Wednesday, November 16, 2016

Suitable For Framing -- November 16, 2016

This note is for the archives. There is nothing here about the Bakken. Nothing to see here, move on. Just some rambling notes.

Life is good again.

For the six weeks prior to the election, I was so distraught I could not even watch my DVDs. I watched no television (except NASCAR and some football). But now, things are back to normal.

It is quite incredible how "uncivil" our country has become, or at least our country as portrayed by the media. When I watch this video I am struck at how "mean" / how "nasty" the "comedians" were. To see Mr Trump sit there quietly while some moron made fun of him was the reason I could not watch television any more. Everything had become so incredibly uncivil. Then, when I saw Ann Coulter in that video, my respect for her jumped a thousand-fold. I didn't care for her one way or the other six months ago, but after watching this video for the umpteenth time, I am just amazed how civil she remained despite the attitude of her colleagues and the mob-hysteria of the audience.

So, now I am back to watching my DVDs. I watched Tinker, Tailor, Soldier, Spy last night and now I'm watching Birdman tonight. I've watched both movies more than a dozen times and never get tired of them. Not only that, I always see something I had not seen before, it seems. I can't find it now, but I think I've previously posted how I decide what movies are on my top ten list. To get on my top ten list, a movie is one I could watch seven times over seven days or something like that. Casablanca, Birdman, and Tinker, Tailor fit that definition.

I enjoyed Doctor Strange but it won't make my top ten list. It will very likely make my top 20 list.

Again, another screenshot from The Drudge Report, another screenshot suitable for framing.
From CNS News:
Republicans added to their historic 2014 gains in the nation’s state legislatures with the addition of five state House chambers and two state Senate chambers in last week’s election, while Democratic control was reduced to levels not seen since the Civil War.

Republicans are now in control of a record 67 (68 percent) of the 98 partisan state legislative chambers in the nation, more than twice the number (31) in which Democrats have a majority, according to the bipartisan National Conference of State Legislatures (NCSL).

“That’s more than at any other time in the history of the Republican Party,” according to NCSL. “They also hold more total seats, well over 4,100 of the 7,383, than they have since 1920.”

Next year, the GOP will control both legislative chambers in 32 states - an all-time high, according to NCSL - while Democrats will have total control of just 13 state legislatures.

In 24 of the 32 states with Republican-controlled legislatures, voters have also elected Republican governors. In contrast, Democrats have a “political trifecta” in just six states.
This sort of gives lie to the claim that Donald Trump does not have a mandate. He literally destroyed the opposition. One has to remember he won the presidency on his own. The GOP abandoned him; Paul Ryan did not endorse him; George W Bush made a point to say that he did not vote for the GOP candidate. To say the least, I was quite appalled. On stage, during the primary debates, every GOP contender raised his right hand, pledging to support the nominee whoever it was. Ironically, only Donald Trump seemed to waffle, but in the end he, too, raised his right hand. And then, they all abandoned him. I think, if truth be known, a fair number of Democrats were more loyal to Trump than the GOP.

Thirteen Permits Renewed; Four New Permits -- November 16, 2016

Active rigs:

Active Rigs3863186183187

Wells coming off the confidential list Thursday:
  • 31248, 1,272, EOG, West Clark 104-0136H, Clarks Creek, middle Bakken, 36 stages, 21 million lbs, t5/16; cum 86K 9/16;
  • 31945, SI/NC, Enerplus, Fire 151-94-16DH, Clarks Creek, no production data,
Four (4) new permits:
  • Operator: Statoil 
  • Field: Painted Woods (Williams)
  • Comments: 
Thirteen (13) permits renewed:
  • CLR (5): five Jack permits in Dunn County 
  • EOG (3): three Austin permits in Mountrail County
  • BR (3): two Pacific Express permits and one Atlantic Express permit, all in Dunn County
  • Lime Rock Resources III-A (2): two Raphael Stroh permits, Dunn County
Statoil canceled four permits:
  • two Broderson wells and two Garmann wells, all in McKenzie County
Two producing wells (DUCs) reported as completed:
  • 30297, 1,385, Hess, EN-Weyrauch C-154-93-2932H-5, Robinson Lake, t10/16; cum --
  • 30298, 794, Hess, EN-Weyrauch C-154-93-2932H-6, Robinson Lake, t10/16; cum --

31945, see above, Enerplus, Fire 151-94-16DH, Clarks Creek:

DateOil RunsMCF Sold

The Inflation Page

If anyone can make sense of he/she is doing better than I am. From The Wall Street Journal:
The rise in Treasury yields slowed this week, highlighting skepticism in some quarters that Donald Trump’s presidency will usher in a period of rising inflation.
The yield on the 10-year Treasury note, which falls as prices increase, fell Wednesday, following a muted rise on Tuesday, while the 30-year bond yield fell both Tuesday and Wednesday.
Yields had surged since the U.S. presidential election on the view that Mr. Trump’s tenure will generate a period of rising inflation, as he pursues policies such as tax cuts, regulatory rollbacks and infrastructure spending to boost economic growth.
Market-based inflation indicators were rising before Mr. Trump’s victory last week, following sharp declines earlier in 2016.
Yada, yada, yada. Then:
Some economists and businessmen wrote an open letter in 2010 warning then-Federal Reserve Chairman Ben Bernanke that monetary stimulus would have inflationary consequences, a view that now seems thoroughly discredited.
Inflation has failed to hit the Federal Reserve’s 2% annual target for more than four years.
The U.S. producer-price index for final demand, a measure of business prices, held flat in October compared with the prior month, data showed Wednesday. Prices were up 0.8% from a year earlier.
Yada, yada, yada. Then:
One reason one analyst thinks inflation is set to stay low is the nation’s $19.8 trillion debt load. The increase in debt stands to make each dollar go less far in spurring growth, the analyst said. From 1952 to 1999, it took about $1.70 in nonfinancial debt for gross domestic product to expand by $1. In the year through June, it took $4.90 to do the same.
The national debt could increase $5.3 trillion over a decade should Mr. Trump cut taxes and boost spending as he has said during the campaign.
Even after stimulus projects are completed, their impact on inflation isn’t necessarily positive. Improving roads and rails to make transportation more efficient can actually cut per-unit costs. He cited the New Deal package in the 1930s and the highway-construction spending of the 1950s as big stimulus measures that didn’t in their own right boost prices.
Before the election, I wrote to a friend in California, a huge Hillary supporter that I had resigned myself to a Clinton presidency. I had comes to terms with Sharia law in Detroit existing side-by-side with Judeo-Christian-based-US-constitutional law, and was no longer concerned with increasing US debt.

I guess I was half-right.

Sharia law in Detroit is yet to play itself out, but I see the Democratic party will probably nominate a Minnesota Muslim as its new head.


North Dakota Oil Production Falls To 31-Month Low -- September, 2016, Data

Link here.
  • North Dakota’s crude oil output in September fell to the lowest level in more than two years, staying below the 1M bbl/day level for the second month in a row
  • production fell 1.1% for the month to 971K bbl/day in September, the most recent month for which data is available, 10K bbl/day less than August and the lowest level since February 2014, when output was 952K bbl/day
  • natural gas production in North Dakota fell 1.7% in September to 1.61B cf/day, the state also reports
Director's Cut is here.

The Culinary Page

We've all seen the articles: how difficult it is to cook for one person. Or two. Hogwash.

The "national" story I enjoyed most last night was the story in which Donald Trump and family left the press pool behind and went out to eat. As a family.

Can you imagine? All the work yesterday, putting together policies, and programs, and people, and then Don, Jr, saying, "Hey, folks, it's time for dinner. Let's take a break." Three adult children, a son-in-law, his wife, who knows who else -- after all, the press was not there to report it -- enjoying an evening at the "21 Club" in Manhattan.

I can enjoy that moment vicariously.

Years ago I had a close friendship with a woman who had never remarried after her marriage ended in divorce some forty years yearly. I talked to her about relationships. She said she could enjoy relationships vicariously. I never thought about that before. She enjoyed watching couples -- and putting a story together in her head about their circumstances.

For me, hearing about the Trumps going out to a family dinner was just as rewarding. They could have had dinner in the penthouse. But they chose to go out.

I hope Donald Trump enjoys the presidency. I hope he takes his family out for dinner often. I enjoy his lifestyle vicariously. I enjoy him because he's not a phony.

For me the Italians had it right. Pasta. After my daily bike ride I came home to an empty refrigerator. In less than fifteen minutes a huge pot of spaghetti, most of which will be saved, but with a bit of Kentucky bourbon, the spaghetti was incredible.

All those articles about how difficult it is to cook for one person. Or two. Hogwash.

How To Build "The Wall" With Mexican Money; US Crude Oil Stocks Still "Off The Chart" And Rising Fast -- November 16, 2016

The Art of Compromise, The Art of Negotiating, The Art of Solving Problems

I've always thought this story was quite amazing, from wiki:
The Compromise of 1790 was a compromise between Alexander Hamilton on the one hand and Thomas Jefferson and James Madison whereby Hamilton won the decision for the national government to take over and pay the state debts, while Jefferson and Madison obtained the national capital (District of Columbia) for the South.
The compromise resolved the deadlock in Congress.
Southerners were blocking the assumption of state debts by the treasury, thereby destroying the Hamiltonian program for building a fiscally strong nation state. Northerners rejected the proposal, much desired by Virginians, to locate the permanent national capital on the Virginia-Maryland border.
The compromise made possible the passage of the Residence and Assumption Acts in July 1790. Historian Jacob Cooke says it is, "generally regarded as one of the most important bargains in American history, ranking just below the better known Missouri Compromise and the Compromise of 1850."
The emphasis on this "deal" was the art of "compromise" and the art of "negotiating."

But there was another aspect of this story: how to solve problems. It has been said that sometimes a problem is solved by turning it into a bigger problem. In this case, Jefferson -- whether he realized it or not -- took two "smaller" problems -- a state-debt problem and a federal capital location problem and combined them into a much bigger problem. Many won't see it that way, but I've often thought about it.

Trump wants to build a wall; many oppose it. Trump wants to charge a 35% tariff on cars coming into the US manufactured in Mexico; many oppose that, especially Ford.

Now wouldn't this be interesting: host a dinner, and invite his #1 strategist Steve Bannon who wants the wall to sit across the table from Ford CEO Mark Fields who doesn't want a 35% tariff on his cars coming up from Mexico.

Taking two problems -- border security and American jobs -- and making a bigger problem: solving the two "smaller" problems simultaneously. Neither Mexico nor Ford Corp shareholders want to see a 35% tariff on imported automobiles. Trump wants border security (as do most Americans, regardless of whom they voted for).

But Trump also wants that border security paid for by private corporations and Mexico. How about this compromise: in exchange for substantial help in border security, which will require some enhanced physical barriers, why not offer to reduce/eliminate the 35% tariff threat that is on the table.

Other corporations that might want to be asked to help Ford and Mexico pay for the enhanced physical barriers:
  • MDU (think CEMEX)
  • SRE  
  • GM 
  • Google, Amazon, Yahoo: in return for expedited review of visas for software engineers
The Glut Grows

New Williston High School Gymnasium Has A New Name

Named after Jon Cole; the school board unanimously approved the name -- and the great thing -- Jon Cole is still here to accept the honor.
For the past 35 years, student athletes experienced wins and losses, but they could expect one constant — an interview with Jon Cole.

“Williston has an unbelievable sports tradition and to think that they would put your name on a brand new gym, it’s just so surprising,” Cole said, after receiving news that his love for the community would immortalize him on the walls of the new high school.
“This is one of the greatest honors I can ever have in my life.”
The North Dakota Sportscasters and Sportswriters Hall of Fame inductee has been a staple within the community since 1981 and has been almost as prominent as the rule book.
It really is an incredible honor. The "old" Williston High School fieldhouse was named after Phil Jackson, if memory serves me well. 

The End Of The Line -- November 16, 2016

Link here.
The Senate Finance Committee and the House Ways and Means Committee have launched a probe into tax incentives paid to solar companies, according to The Wall Street Journal
The committee probes, led by their respective Republican chairmen, Rep. Kevin Brady of Texas and Sen. Orrin Hatch of Utah, have found an appropriate and disturbing target to begin this work. SolarCity, a solar installation company set to be purchased by Tesla Motors Inc., is one of the seven companies named in the initial investigation.
Already grossly subsidized, Musk’s SolarCity has become an albatross of waste, fraud, and abuse of tax payer dollars. As legitimate earnings and cash become even scarcer for SolarCity, its entanglement in the Tesla empire suggests that a drastic reckoning not only is imminent, but in fact emboldening Musk to become more outlandish and reckless.
So many songs to choose from. The finalists were "with a little help from my friends" and "the end of the line." But something new. This is the extended version, available only in the UK, apparently:

The End Of The Line, The Traveling Wilburys

Tesla shares have seen a huge drop in the past month:
  • October 27, 2016: $204
  • November 8, 2016: $195 -- Tuesday, election day
  • November 9, 2016: $190 -- Wednesday, Trump declared the winner
  • November 16, 2016: $183

T+8: Suitable For Framing -- November 16, 2016

And he hasn't even been sworn in as president yet.

Majority Of Americans Now Feel More Confident About President Elect
9% Don't Know What To Think

Link here 51% more confident; 40% less confident. Gallup.

The Political Page

For the past several years, I have not watched network news (I still do not watch "network news") -- I could not tolerate the biased reporting -- implicit, explicit, omissions, commissions. I particularly hated MSNBC, the least "bad" was Morning Joe, but even that I refused to watch.

Now I can't wait to get up in the morning to watch Morning Joe. I actually set my alarm to watch it. I still don't watch -- and I have no plans to watch -- the evening network news shows or the network morning talk shows.

I watch MSNBC for several reasons now, mostly to watch the narrative gradually changing. In some instances, the narrative is changing rapidly.

I think the anchors went through the seven stages of grief in about 24 hours, and are now "accepting Trump" as their president. LOL.

I continue to enjoy the "eyes wide shut" phenomenon.

Exhibit A:
  • they are upset about Rudy Guiliani's conflict of interests, but...
  • never mention that the Clintons were broke when they left the White House, but with her "pay-for-play" scheme at the State Department and clever method of laundering money through the Clinton Foundation. they went from being broke to multi-millionaires -- measured in hundreds of millions, not tens of million.
It's also interesting to see the self-righteousness of the news media. The MSNBC crew was aghast that Trump went out for a family dinner last night without a press pool. Helloooo! He's not the president yet.

And finally, the MSNBC crew is aghast that he has not named his entire cabinet yet. Helloooo!. It's been less than one full week since he was elected president -- okay, maybe a full week now -- but he's got "forever" to name his cabinet. Anyone he names today won't be confirmed for months. The bureaucracy will do just fine; maybe the bureaucracy will do better without a political appointee at the top. Trump will have some very good friends near the top of some of those bureaucracies even without a confirmed political chief. My hunch is the Department of Defense will do just fine.

Eyes wide shut? The MSNBC crew is all worked up about the "delay" in getting the names of his cabinet. Helloooo! The Supreme Court will go a full year without a ninth justice simply because Obama was seen as a failed president.

Speaking of a "failed" presidency, we are also now seeing stories in the mainstream media that would have never been seen two years ago.

Exhibit A: this headline over at Yahoo!Finance -- "This Obama Failure Opened The Door For Trump." It had to do with Obama's plans to raise American exports.

Eyes wide shut.

Exhibit A. There is a continuum from "nationalism" to "globalism." The Clintons skated to where the puck was headed: globalism. Obama, according to a majority of Americans, skated well past the puck, hitting the plexiglass, and taking several of his teammates with him. The phrase "make America great again" is all about nationalism. Any surprise then that Trump picked who he picked for top job in the White House? Americans voted for "Make America Great Again" in overwhelming numbers and that's all about nationalism.

Why does the MSNBC seem so surprised?

[Later, 12:58 p.m. Central Time: from The Hollywood Reporter, a staunch Hillary supporter Jeffrey Katzenberg, says it all comes down to this: 
It all comes down to a fundamental, disturbing question: Is our next president a demagogue or democrat? 
Hillary wasn't? when she "moved" into her fake southern accent? Bernie Sanders wasn't? Wow! Eyes wide shut.]

The Terror Dream: Fear and Fantasy in Post-9/11 America
Susan Faludi
c. 2007
DDS: 306.2

This might be an interesting book to read in light of the 2016 presidential election. One can argue that Susan Faludi -- who I assume is a huge Hillary supporter -- presaged Donald Trump's win back in 2007.

A quick scan of the book suggests this is a view of 9/11 and its aftermath from the perspective of traditional feminists. But a reading of the introduction suggests that America is finally coming out of its post-9/11 "fear and humiliation" as the author calls it.

Page 9 - 10, she writes:
American analysts have remarked on the "intense humiliation" that seems to drive our Islamic male antagonists.
Indeed, the military interrogation policies that led to the abusive treatment of prisoners at Abu Ghraib were based on the conviction, as one source explained it to the New Yorker's Seymour Hersh, that "the biggest weakness of Arabs is shame and humiliation."
But what about our own shame, our own humiliation?
It doesn't take a degree in psychology or political science to see where this is going. It's been at least nine years since Faludi wrote that.

Perhaps Americans finally tired of our political leaders in Washington acquiescing to "fear and humiliation" fifteen years after 9/11. Americans were ready to emerge from their decade of fear and humiliation and they wanted someone whose ideology reflected that. (Everyone agrees that Hillary had no ideology; she had no moral compass; she lacked consistency; she had no plan except to continue to adding to her predecessor's legacy.)

Many in the media seem to think that "Make America Great Again" simply refers to trade and nationalism. I like to think it means that American no longer feels threatened or humiliated by what happened on 9/11, and the new president will act accordingly.

The photo op when he meets the Queen of England and the King of Saudi Arabia will tell me everything I need to know: I hope he stands erect, looks them in the eye, and extends a firm handshake.

No bowing. 

Not Peak Oil; Now It's Peak Oil Demand -- But Not Until At Least 2040 -- November 16, 2016

A reader recently asked a very, very prescient question, it turns out. The reader wondered how forecasts for oil demand would change with the election of Donald Trump as the next president?

Obviously the IEA's new forecast was developed prior to the outcome of the election, but it was still an incredibly prescient question.

From The Wall Street Journal: IEA sees peak oil demand After 2040. Demand will keep rising for longer because there are scant alternatives to oil, says group’s chief Fatih Birol.

Read it and weep:
Global oil demand won’t stop growing before 2040 despite pledges made at the Paris climate change summit last year to cap greenhouse-gas emissions, the head of the International Energy Agency said.
IEA Executive Director Fatih Birol’s comments have added to a debate over when oil consumption—which has steadily grown for decades—will begin a sustained decline, a change known as peak demand. Royal Dutch Shell PLC’s Chief Financial Officer Simon Henry caused a stir earlier this month when he said the company believes demand for oil could stop growing within the next two decades and as soon as five years.
Mr. Birol said demand will keep rising for longer because there are currently scant alternatives to oil for road freight, aviation and petrochemicals, despite increasing investment in renewable energy.
Reality: global oil demand won’t stop growing before 2040 despite pledges made at the Paris climate change summit last year to cap greenhouse-gas emissions, the head of the International Energy Agency said.

The Permian Now Holds The Record -- New USGS Report -- 3x Bigger Than The Bakken; Jaw-Dropping -- November 16, 2016

Three times the size of the record-setting Bakken.


Before you begin this "jaw-dropping" update on the Permian, let's go back to this observation made by an expert on oil and gas and also an expert on global warming:

From the linked articles below:
“It’s no surprise that Texas has massive oil fields, but these new findings from USGS are jaw-dropping. Fracking and horizontal drilling have turned the United States into a global energy superpower, and the untapped potential in the Wolfcamp means we won’t be surrendering that status any time soon,” group spokesman Steve Everly said. “For the few remaining advocates of ‘Peak Oil,’ this certainly isn’t their lucky day.”
Previous discovery record: 2013 -- North Dakota's Bakken-Three Forks.

From Bloomberg: a $900 billion oil treasure lies beneath West Texas desert.

From Breitbart: West Texas deposit 'largest" in history.

From MarketWatch: the US is increasingly looking at this Texas region for oil.

Data points that should get your attention:
  • new USGS report
  • 3x larger than North Dakota's Bakken
  • single largest US unconventional crude accumulation ever assessed
  • at current prices: almost $1 trillion
  • the formation is as much as a mile thick -- read that again: this single formation is as much as a mile thick -- the Bakken is measure in tens of feet
  • the best news -- this report concerns a deposit in a state, that:
  • is oil friendly
  • sits next to Mexico
  • has low tax rate
  • is able to get pipelines laid
  • has huge export capability along a coast relatively near a newly enlarged Panama Canal
  • location of the surveyed area: from north of Lubbock to remote regions southwest of San Angelo
  • an estimated and previously unaccounted for 20 billion bbls crude oil; 16 trillion cubic feet of natural gas; and 1.6 billion bbls of natural gas
  • despite all the press on the Permian and despite producing since the 1920s, in fact, "its multiple layers of oil-soaked shale remained largely untapped until the last several years"
  • COP, November 10, 2016: increased its own estimate for the size of its Wolfcamp holdings to almost 2 billion bbls from 1 billion bbls last year -- almost doubled its estimate
  • COP: two recent wells -- pumping an average of 2,000 bopd
  • everything above concerned crude oil
  • in addition, the Wolfcamp holds 16 trillion cubic feet of natural gas
  • in addition, the Wolfcamp holds 1.6 billion bbls of gas liquids   
  • west Texas' Permian basin holds nearly as many active oil and gas drilling rigs as the rest of the US combined -- and includes offshore rigs in the Gulf of Mexico
  • the Permian is currently the only region where crude oil production is expected to increased for the third straight month

The Perryville Hub -- RBN Energy -- November 16, 2016

Ben Carson: say what? It's being reported that Ben Carson turned down a job in Donald Trump's cabinet, saying that "the last thing he would want to do was take a position that could cripple the presidency."
A close friend said that "Dr Carson feels he has no government experience, he's never run a federal agency."
And this guy was running for president? Say what?

Boeing moves, link here, data points:
  • moves will effect about 2,500 positions, cut 500 jobs, and close two facilities by end of 202
  • Huntington Beach, CA: 1,600 positions move to other CA sites -- El Segundo, Long Beach, and Seal Beach; 500 positions will move to St Louis, MO; 400 will move to Huntsville, AL
  • El Paso, TX, facility will close (290 folks)
  • Newington, VA, facility will close (70 folks)
  • Huntington Beach facility will stay open, but unknown how many employees will remain
  • an unspecified number of jobs will move from Kent, WA, to Tukwila, WA, sixteen miles away
  • Huntington Beach, Long Beach, Seal Beach are all near each other along the coast (the "beach" designation probably gives that away)
  • El Segundo is a long, long way from Huntington Beach
Target boosts forecasts. Profit rises to $608 million on strong back-to-school performance. Target is soaring after demolishing earnings.

This will slow things down: industry groups file lawsuit over BLM methane emissions rule

Back to the Bakken

Two huge stories -- must-read stories today -- will be posted within a few minutes in a separate post. 

Active rigs:

Active Rigs3963186183187

RBN Energy: the pivotal role of the Perryville Hub in transforming US natural gas flows.
Natural gas pipeline takeaway projects under development out of the U.S. Northeast would enable ~10 Bcf/d to flow south from the Marcellus/Utica supply area. About half of that southbound capacity is geared to serve growing power generation demand directly south and east via the Mid-Atlantic states. But another nearly 5.0 Bcf/d is headed southwest to the Louisiana and Texas Gulf Coast for growing LNG export and Mexico demand—and that is on top of about 4.4 Bcf/d of reversal (or backhaul) capacity already added over the past two years. Much of the Gulf Coast-bound backhaul capacity will converge on the Perryville Hub, a market center located in northeastern Louisiana, about 220 miles north of the U.S. national benchmark Henry Hub. As such, the ability for gas to move through Perryville and get to downstream demand market centers will be key to balancing the natural gas markets. Today, we take a closer look at the historical and future pipeline capacity in and around the Perryville Hub.
The Perryville Hub pricing location has long been a pulse-point for gas flows through the Gulf Coast region, although arguably an under-appreciated one, given that it sits in the shadows of Henry Hub.
One of the touchstones of a successful trading hub is optionality, and Perryville has no shortage of that. For one, it is a highly connected, high-capacity hub. For another, its location gives it just about 360-degree access to supply regions. Much like Henry Hub, the Perryville pricing hub is not a hub-and-spoke system in the classic sense. Rather it is a collection of pipeline interconnects starting in Ouachita Parish, LA and extending as far east as Madison Parish, LA, but for the most part the supply converges at two major nodes: around Perryville, LA, on the western side of the hub and near Delhi, LA, on the eastern side. The multitude of interconnects allow gas to hop from one pipeline to the other on its way from supply to demand market areas, changing direction along the way if need be. Unlike Henry Hub, which also boasts ample throughput capacity, Perryville historically has seen high utilization of its interconnect capacity but low trading liquidity (as opposed to Henry Hub’s low physical flow utilization and high liquidity—at least in the futures market). In other words, although a large volume of gas physically moves through Perryville, comparatively little of that gas changes hands at the hub.