Harold Hamm Won't Be Secretary Of Energy -- Source Questionable --December 9, 2016

Funny story: I don't know if folks are following the story in which California guardsmen were "overpaid" for their deployments to Afghanistan and/or Iraq. The government was going to go back and collect this money from the guardsmen. After the outcry, the US Senate has now directed that DOD will not claw back this money. My wife reminded me that some years ago while serving overseas, many active duty members (including me) did not get any pay for two months -- our "earnings and leave statement (LES)" actually showed $0 for any pay for two consecutive months.

That included basic pay, and even pay for subsistence (food) and housing. LOL.

I've long forgotten the details, in fact, I had completely forgotten the episode. I've often said that I enjoyed the USAF so much I would have served without pay. And, I guess, for two months I did serve without any pay. Never bothered me a bit. 

Twitter: Harold Hamm says he won't be Secretary of Energy. Not confirmed. Source: questionable. 

From John Kemp, this morning, via Twitter:

Best news of the day: Congress "punts" energy reform to Trump administration.  Congress did a great job slow-rolling the administration on this one. Which reminds me: where does Obama's pick for the Supreme Court stand? Is that process still moving through the Senate?

Rubes: I debated posting this story. It's becoming a common story -- one we read too often.  I find it amazing that folks look into the details after they spend their money. From Fox News -- a story that we wouldn't see in the NY Times or Washington Post. This small city with a small budget spends big on wind; after the fact they find out they were suckered. Data points:

• Falmouth, MA
• a most beautiful part of the country; Cape Cod across from Martha's Vineyard; elitist; home of Wood's Hole
• a funding grant (for what, the story does not say): $286,000
• cost of feeling good: $108,000
• decision was made unanimously by city's leaders
• three little wind turbines
• spires not yet operational
• trying to save face, city's spokesman says savings could be as much as $5.44/day in electric costs for the city
• in reality: likely to save at most $1.39/day in electricity
• at least one city councilwoman justifies purchase as "piece of art"
• same councilwoman: "it will show folks how wind power works" -- and that pretty much says it all 

Winter Storm Caly: I think I mentioned this elsewhere last night -- there is talk of a "polar vortex" next week. If it hits: Caly. 

 *****************************

Back to the Bakken

Active rigs:

	12/9/2016	12/09/2015	12/09/2014	12/09/2013	12/09/2012
Active Rigs	40	65	190	193	181

RBN Energy: disappointed by Keystone XL setback, Canadians look to Asia.

It’s been a tough few years for Canadian oil producers. As they ramped up production in the oil sands, Canadian E&Ps faced pipeline takeaway constraints that drove down the price of Western Canadian Select versus Gulf Coast crudes.

The Keystone XL pipeline would have largely solved things, but when that project was killed by Canada’s U.S. friends and neighbors, oil sands producers had to settle for a series of smaller, more incremental projects that provided only a partial fix.

The devastating Alberta fires of May 2016 reduced production and pretty much eliminated constraints for much of this year. But volumes have recovered, and if oil sands production is to continue growing, more pipelines and new customers will be needed.

Today we consider Canada’s long-running effort to ensure there’s enough capacity to move its crude to market, two major projects that just won the backing of the Canadian government, and what may be next.

****************************

The Market

Futures: up about 26 points just before the market opens. WTI back over $52 -- that sneaked up on me -- didn't see that coming.

Close: market sets new all-time highs -- I believe this is the 12th all-time high closing since Trump was elected president -- confidence at a 12-year-high; stock market at an all-time high since the election -- 

• S&P 500: up 13 points to 2,259
• Dow 30: up 142 points to 19,757
• Nasdaq: up 27 points to 5,445

NYSE:

• new highs, 267, including: Boeing, CVX, GM, Helmerich & Payne, MDR, ONEOK, Stillwater Mining, Time Warner. RIG,
• new lows:  3 (wow)