US Crude Oil Inventories Drop Significantly -- Wednesday, May 10, 2017

Drawdown: weekly drawdown -- 6 million bbls. Compare to 0.9 million bbls previous reporting period, and generally in 1 - 3 million bbl range. At this rate, 6 million bbs/week, US would get to historical levels (350 million bbls) within 30 weeks.

Active rigs:

$46.40	5/10/2017	05/10/2016	05/10/2015	05/10/2014	05/10/2013
Active Rigs	50	28	84	192	184

RBN Energy: midstream companies struggle to keep pace with Permian growth.

Permian crude oil production and pipeline takeaway capacity out of the region are in a horse race —it’s a close one too, and the stakes are high. Twice in the past few years, Permian production growth has outpaced the midstream sector’s ability to transport crude to market, resulting in negative price differentials that cost many producers big-time.

Now, thanks to increased drilling activity and producers’ heightened ability to wring more out of the play’s multistack formations, Permian production is expected to rise by at least another 1.5 million barrels/day (MMb/d) by 2022 —a 60%-plus gain over five years —raising the threat of another round of major price hits, maybe as soon as later this year. Today we continue a blog series on the challenges posed by rapid production gains in the hottest U.S. shale play.