Every Day Enough Natural Gas "Rejected" In Alaska That Could Supply The Entire US West Coast -- California, Oregon, Washington -- RBN Energy -- November 30, 2016

Updates

Later, 11:15 a.m. Central Time: snow totals (so far) from winter storm Blanche -- this was a huge ND storm. I wonder if the Kennedys will send their grandchildren to see the snow. The Kennedys, as folks well remember, said their children and grandchildren would never see snow because of global warming.

• Van Hook Park: 24"
• Bismarck: 18"
• Minot: 17"
• Williston: 6"

Original Post

US student loans: the US will forgive at least $108 billion in student debt in coming years; the Obama program is proving to be far more costly than predicted. And this is news? Over at The Wall Street Journal. 

The report, to be released on Wednesday by the Government Accountability Office, shows the Obama administration’s main strategy for helping student-loan borrowers is proving far more costly than previously thought. The report also presents a scathing review of the Education Department’s accounting methods, which have understated the costs of its various debt-relief plans by tens of billions of dollars.

DAPL: the weather should start improving later today. Late last night, moving into today:

Active rigs:

	11/30/2016	11/30/2015	11/30/2014	11/30/2013	11/30/2012
Active Rigs	40	65	185	191	182

RBN Energy: the dilemma posed by Alaska North Slope's stranded gas. When you read the first paragraph below note the amount of natural gas that is being "rejected" in Alaska, and then recall the huge outcry in the Bakken about the incredibly small amount of natural gas that was not being captured in the early days of the Bakken:

Every day, crude oil producers on Alaska’s North Slope re-inject nearly 7.8 Bcf of natural gas into their wells, enough gas to supply the entire U.S. West Coast—California, Oregon and Washington State. If only there were some way to monetize that gas supply, to move it to market. The problem is that there isn’t, at least in today’s gas/LNG market, which is characterized by ample supply and relatively low prices. This same market also favors infrastructure projects that are simple and low-cost; no one wants to make multibillion-dollar commitments when natural gas prices and margins are so low. Today we conclude our series on the tough times ahead for Alaska’s energy sector with a look at the state’s vast natural gas reserves and the challenges associated with tapping them.

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The Market

Trump rally continues: Fifteen trading days since the election. Thirteen days were "up" days and most of those days new records were set. We're now in a new trading range, but it looks like we might have another "up" day. Dow 30 futures are showing green, albeit only 23 points to the "up" side.

"Trump inheriting a very strong economy" -- CNBC "Squawk Box" -- jobs. ADP data. Jobs:

• 216,000 private sector jobs added (forecast, only 170,000)
• previous number revised downward by 28,000 to 119,000 -- last month; when you look at the ADP of 119,000, remember the magic numbers; 
• market responds; futures rise, now up 50+ points

Oil: oil "jumps" on prospects for OPEC output cut. Oil had dropped to $45 yesterday; today, it's back up to where it was a few days ago: $48. That represents a 7% increase overnight.

 Deal or no deal, OPEC can't win in fight against American frackers. Link here to Forbes. Again, the Harold Hamm quote: "We've doubled oil production. We can double it again."

Oxy is the biggest producer and acreage holder in the Permian basin, with a vast legacy position in old conventional fields. In the two years since prices collapsed in 2014, Oxy has cut its spend per barrel in half and doubled its Permian tight oil production to 125,000 bopd. With thousands of drilling locations economic at $50, Oxy should be able to double that and double it again.

Tesla. The SEC is writing strongly-worded letters to Tesla about "individually tailored" measurements in its August earnings release.

The market, Dow 30:

• new highs -- 204, including Anadarko (APC), Apache (APC), BHI, CVX, Concho Resources, CLR, EOG, Enerplus, HAL, Helmerich & Payne, MRO, McDermott Int, ONEOK, Plains All American, RSP Permian, SLB, Tenaris, UNP, WPX
• new lows -- 53