Whiting, EOG, Oasis To Report Huge Wells Monday; Oil Up $2.15; Futures Up; Good Directions -- December 11, 2016

Futures. Dow 30 futures are up 54 points. Futures don't mean squat ...

Unless. WTI jumps $2.15....

Because. Saudi ready to cut more and ...

Shorts. Worried about OPEC cheating but ...

Could happen, but that's not what the tea leaves suggest. We've seen this movie before. In 1985, Saudi's daily output was around 3.5 million bopd, down from 10 million in 1981. Saudi had lowered their production to prop up prices, but the other OPEC countries were found to be cheating. In response, the Saudis began producing at full capacity. Oil prices plummeted, falling as low as $7/bbl. So ....

Saudi panic. Saudi's breakeven price this year (2016) is $90. Next year, it's $80, or so they say. KSA made one $1 trillion mistake; can't afford another.

Playing shorts like a fiddle? Off-shore can't ramp up; other OPEC countries probably at maximum anyway; US shale -- we'll see.

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Analysts

“Assuming reasonable compliance levels, these cuts will be enough to push the market into deficit,” said Neil Beveridge, a senior analyst at Sanford C. Bernstein in Hong Kong. “This level of coordination is unprecedented.” -- Bloomberg

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The Political Page

Tea leaves? Rex Tillerson out of the running for SecState? Rick Perry for SecEnergy? Heidi for SecAgriculture? Would follow another North Dakota personality as SecAgriculture: Ed Schafer. One wonders what Schumer would promise Heidi if she would turn down Trump's offer -- Senate now at 52 - 48 -- Schumer can't afford Senate to go to 53 - 47.

Pennsylvania learns tomorrow if their votes have been all for nought/naught. I doubt any sane judge would make that ruling. But who knows?

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Active rigs:

	12/11/2016	12/11/2015	12/11/2014	12/11/2013	12/11/2012
Active Rigs	40	65	186	192	183

Wells coming off confidential list --
Monday, December 12, 2016

• None. 

Sunday, December 11, 2016

• 32339, 1,556, Whiting, Carscallen 31-14-3H, Truax, the Carscallen wells are followed here; 45 stages, 8.2 million lbs; t7/16; cum 41K 10/16; 
• 32417, 257, EOG, Austin 421-2821H,  Parshall, 44 stages; 17 million lbs, t6/16; cum 125K 10/16;

Saturday, December 10, 2016

• 31327, 733, Oasis, Johnsrud 5198 12-18 4T2, Siverston, 36 stages 4 million lbs, t6/16; cum 100 10/16;
• 31328, 714, Oasis, Johnsrud 5198 12-18 5B, Siverston, 36 stages, 4 million lbs, t6/16; cum 126K 10/16;
• 32368, 1,764, Whiting, Carscallen 31-14-2H, Turax, 45 stages, 8.7 million lbs, t7/16; cum 140K 10/16;

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 31328, see above, Oasis, Johnsrud 5198 12-18 5B, Siverston:

Date	Oil Runs	MCF Sold
10-2016	30193	60862
9-2016	29500	32283
8-2016	22266	30588
7-2016	28141	34550
6-2016	16005	14950

31327, see above, Oasis, Johnsrud 5198 12-18 4T2, Siverston:

Date	Oil Runs	MCF Sold
10-2016	24001	46703
9-2016	14729	19449
8-2016	19827	24927
7-2016	24534	40337
6-2016	17169	20794

32417, see above, EOG, Austin 421-2821H,  Parshall:

Date	Oil Runs	MCF Sold
10-2016	27811	9916
9-2016	28379	14961
8-2016	29105	13882
7-2016	31212	7860
6-2016	8634	1164

32339, see above, Whiting, Carscallen 31-14-3H, Truax:

Date	Oil Runs	MCF Sold
10-2016	7239	20672
9-2016	3813	8127
8-2016	8262	22092
7-2016	18716	37854
6-2016	2677	2502

32368, see above, Whiting, Carscallen 31-14-2H, Turax:

Date	Oil Runs	MCF Sold
10-2016	22997	58071
9-2016	27860	52005
8-2016	36588	53657
7-2016	40916	60777
6-2016	11411	15802

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Southern California, December 10, 2016