Mexico's 2017 budget: will slash their state oil company's budget
the Pemex budget will be slashed by $5 billion to $21 billion
production in 2017 will go to lowest production since its peak in 2004 -- that's more than a decade ago
2004 production: 3.4 million bopd
2017, projected production: 1.93 million bopd
Pemex's crude oil production has now fallen for 11 straight years
reforms/targets set in 2013 / 2014 -- now seem distant (and unlikely)
one quote: Mexico is "killing the goose that lays the golden eggs"
This is not good news for the people of Mexico and not good news for Texas ranchers trying to stop the influx of Mexican immigrants across their land. Not only is Mexico exporting less oil, they are getting a much smaller return on their product: a double whammy. My hunch: by 2018, we will see huge fiscal problems for Mexico.
Venezuela is close to becoming a net importer of oil (if it isn't already). Iran's crude oil production growth has stagnated, we were told today. And now Mexico. What reason would Saudi Arabia and Russia have to agree to a freeze now? All their competitors, including the US, are doing it unilaterally.
Annual vacation being contemplated. Plans change from day-to-day.
Having said that, let's continue.
Active rigs, I see we still have 37 / 73 rigs (37 being the 12th prime, and 73 being the 21st prime, and so much more):
9/9/2016
09/09/2015
09/09/2014
09/09/2013
09/09/2012
Active Rigs
37
73
198
185
191
Three new permits:
Operator: Crescent Point Energy
Field: Ellisville (Williams)
Comments:
Eleven wells came off the confidential list today; two were reported earlier (an Oasis Andersmadson well and an XTO TAT State Federal). The other nine, today, were all permits that had expired, something I seldom see. The follow operators all let permits expire:
Cornerstone: 1
MRO: 2
Slawson: 2
Mountain Divide: 1
Newfield: 3
On the other hand, five permits were renewed, all by WPX:
WPX (5): five Rachel Wolf wells in McKenzie County
One producing well completed:
25199, 2,928, BR, Merton 21-15MBH, North Fork, t8/16; cum --
Iran's steep oil
output growth has stalled in the past three months
suggesting Tehran might be struggling to fulfill its plans to raise
production to new highs while demanding to be excluded from any OPEC
deals on supply curbs.
Iran's
oil output soared to 3.64 million barrels per day in June from an
average of 2.84 million bpd in 2015 following the easing of Western
sanctions on Tehran in January.
But since June,
output has stagnated and reached just 3.63 million bpd in August.
Unless I missed it, the article does not say why Iranian output stagnated. But it fits my view that there's more to the oil patch than just "saying you're going to do something."
*****************************
GDP Now
Latest forecast: 3.3 percent — September 9, 2016
The GDPNow model forecast for real GDP growth in the third quarter of 2016 is 3.3 percent on September 9, down from 3.5 percent on September 2.
The forecasts of third-quarter real consumer spending growth and real equipment investment growth declined from 3.5 percent to 3.4 percent and from 3.3 percent to 2.0 percent, respectively, on Tuesday after the motor vehicle sales release from the U.S. Bureau of Economic Analysis and the Non-Manufacturing ISM Report On Business.
The forecast of the contribution of inventory investment to third-quarter real GDP growth decreased from 0.62 percentage points to 0.57 percentage points after this morning's wholesale trade report from the U.S. Census Bureau.
******************************
Valiant Ambition: George Washington, Benedict Arnold, and the Fate of the American Revolution
Nathaniel Philbrick
c. 2016
DDS: 973.4 PHI
The waterways along the East Coast played a major role, a subject well suited for Nathaniel Philbrick. A key to understanding the Revolution War -- the war itself -- is the role water played for moving troops quickly.
In this book, Philbrick will cover the two "fronts" in the Revolutionary War: the shooting war between George Washington's troops and William Howe's troops; and, the non-shooting civil war among squabbling colonists
Chapter 1:
spring of 1776
March, 1776: British abandon Boston, after a 9-month seige
May, 1776: Continental Congress commissions Charles Willson Peale to paint Geo Washington's portrait
June, 1776: George Washington has established his army's headquarters in NYC
August 5, 1775: British General Clinton joins them; he had recently been defeated at Charleston, SC
important landmarks
New York City and New Jersey
Sandy Hook: barrier beach; last landing before ships sail north, through "the Narrows"
the Narrows: a chokepoint -- between Brooklyn (western end of Long Island) and Staten Island that ships must sail through to reach Port of New York, south Manhattan; the Narrows opens up into the Upper Bay
Upper Bay: northern opening just north of the Narrows; Ellis Island; Governor's Island
Ellis Island, smaller of the two, to the west; Governor's Island, larger of the two, to the east
Hudson River, up the west side of Manhattan
East River, up the east side of Manhattan
recent history:
three months earlier (in March) British General William Howe had abandoned Boston with 9,000 soldiers; George Washington had set up cannon on Dorchester Heights overnight, March 4, 1776; General William Howe evacuates to Halifax, Nova Scotia; again, using the sea (waterways) -- provided quick movement whereas land impeded movement; re-armed in Nova Scotia; heads back to NY
brothers Richard and William had an older brother George who
had been killed in the French and Indian War; had "soft spot" in their
hearts for the colonists; hoped war could be avoided; declaration of independence, 1776, had ended all hopes of a peaceful resolution
contemporary events:
June 27, 1776: British Navy seen on open sea, arriving
middle of August, 1776: 400 vessels; 45,000 soldiers and sailors
William Howe, Army general; when British military returns from Nova Scotia to attack NY, the British Navy is under command of William's older brother: Admiral Richard Howe; another British Army General on those ships, General Henry Clinton; so two British Army generals, staging at Sandy Hook before moving through the Narrows to New York harbor: General William Howe and General Henry Clinton
late August, 1776: British unload 15,000 soldiers at Gravesend Bay, far south Brooklyn; far west Long Island
Washington appoints General Israel Putnam of Connecticut to take charge of troops in Brooklyn
American defense at Wallabout Bay; three easily defended passes
British attack; American General William Alexander, Scottish, defends
but
the Brits took a fourth pass: Jamaica Pass -- far to the east -- that
the colonists had forgotten about; huge lapse in judgement
the evacuation from Brooklyn, across the East River (overnight, August 29 - 30, 1776)
the Brits are in command of Brooklyn; will eventually take Fort Putnam and secure the island
Geo Washington had no option: evacuate, but make it look like he was going to replenish his troops
huge, huge story: evacuation began where base of Brooklyn Bridge now is
the reason NYC strategically important
Brits in St Johns (present day, Quebec), planning an assault on Fort Ticonderoga on Lake Champlain
Hudson River to Albany and then to For Ticonderoga
if Brits control New Jersey "sea" up the Hudson all the way to Lake Champlain, the Brits have cut "America" in half
Washington evacuates NYC
controls the Hudson 14 miles north of NYC from Harlem Heights
Admiral Howe moves north of Brooklyn, to Queens County, still on Long Island
Chapter 1 ends with the Brits taking NYC; Geo Washington severely beat; and retreating across New Jersey to the Delaware River
That huge drop in crude oil stocks? Never mind. It was a one-off.
The Energy Information Administration said on Thursday that commercial crude oil inventories fell by 14.5 million barrels. Analysts had expected a build in inventories by 0.225 million barrels.
The drop was the largest dating back to 1999.
"This was primarily due to Hurricane Hermine which prevented ships docking in the Gulf of Mexico. As such we think that last week's plunge in imports and stocks is likely to be a one-off. In fact, stocks will probably rebound sharply this week as those tankers which were prevented from unloading last week unload."
********************************* Where the Deer and the Antelope Play
Updates
Later, 10:31 p.m. Central Time: Keystoned! Link here.
Original Post
North Dakota National Guard activated. Does the governor know something we don't know? By the way, speaking of the Dakota, has anyone noted that no bones (animal or human remains) have been found
where the Standing Rock protesters say the pipeline is going through a
sacred burial ground? It turns out there's an explanation, as reported on CBS Evening News the other night (a reader provided the update; I never, ever watch CBS Evening News):
Native Americans consider all land in any watershed "sacred." Before the white man decimated the huge herds of American Bison bison bison, Native Americans, I am not making this up, used the hills and buttes along any creek or river to search for game (where the deer and the antelope play) and to hold religious services, sort of like our mega-churches in Texas. Apparently, like the "three-mile international water rule, " Native Americans claim a three-mile riparian zone on either side of all waterways from the Little Muddy to the Mississippi Delta.
********************************* Early Frost In The Bakken?
Early frost? I don't know if this is early or not, but when growing up in Williston, the first significant frost did not occur until Halloween, on/about October 31. When one had on a flimsy pirate costume, one remembers those freezing nights. But apparently, frost / freeze is forecast next Tuesday morning, September 13, by the local meteorologists. If there is a freeze that early this year, it may be due to the precipitous drop in atmospheric CO2 this summer.
Greece
is struggling to deliver on fresh reforms that are needed to unlock a
further 2.8 billion euros ($3 billion) in bailout loans and more
crucially, launch negotiations on debt relief later in the year.
Athens
has committed to deliver on the refroms by the end of the month. They
include the long delayed launch of a massive privatisation fund and
reforms in the highly sensitive energy sector.
The
influential German Finance Minister, Wolfgang Schaeuble, said Greece
still had a short period of time to get back in line on its 86 billion
euro bailout programme, bitterly agreed in July 2015.
"The pressure is back on. We really need some progress. The summer is
over, pack up the camping gear," Dijsselbloem, who leads the group of 19
finance ministers from the eurozone, told reporters in Bratislava.
Man, I'm glad I don't watch CNBC. Greece will obviously be front and center for the next six months. And so it goes.
The FAA has a single vote with SpaceX having all remaining votes.
The
structure and operation of the investigative group, according to the
officials, reflect strict legislative restrictions on the role of
federal agencies in accidents involving purely commercial space
ventures.
Congress approved legislation last year reiterating
that the FAA, which licenses all space launches, should take a largely
hands-off approach when it comes to regulating the burgeoning commercial
space industry, particularly fledgling space-tourism ventures.
Lawmakers mandated the agency to focus primarily on protecting people
and property on the ground, rather than ensuring the safety of
passengers or crews during flights.
The group of 21 liquids-focused exploration and production companies we
have been tracking plans to cut capital expenditures by half in 2016,
after a 42% decline in 2015. However, capex for this “oil-weighted”
E&P peer group is apparently bottoming out—their mid-year guidance
was only 2% lower than their original 2016 estimates. Even with deep
cuts in capital spending, the group expects production to fall only 7%
in 2016, and those estimates have been revised higher from the initial
2016 guidance. Also worth noting: Pure Permian Basin players, the most
optimistic companies in the peer group, are cutting capital spending by
only 19% and are expecting a 12% gain in production. And with
Apache Corp.’s announcement earlier this week of a huge discovery in the
Permian’s Southern Delaware Basin, the market is definitely making a
turn. Today we discuss 2016 capex and production for a representative
group of E&P companies whose proved reserves are more than 60%
liquids.
**********************************
Aleppo, Per The New York Times
New York Times, first story: Aleppo is the self-proclaimed ISIS capital. Wrong.
New York Times, second story: Aleppo is the capital of Syria. Also wrong.
Mid-day: the market is down 235 points. Once the computer algorithms kick in, it is free-fall until circuit breakers applied. This all started, they say, because it looks like the Fed might raise rates a quarter of a percent in September. NYSE:
new highs: 17
new lows: 13
Opening: down 160 points in early morning trading. NYSE:
new highs: 8
new lows: 5
Futures: we haven't had a brutal day in the market for quite awhile but it looks a bit bleak today. Futures are pointing to a pretty "negative" market.