Random Update On DUCs Nationwide -- Bloomberg -- June 19, 2017

This is for the archives. Nothing new for folks familiar with the Bakken.

Bloomberg is reporting:

• nationwide, 5,946 DUCs at the end of May, 2017 -- so, let's call it 6,000 DUCs nationwide and around 1,000 in the Bakken
• this sets a three-year record (hard to believe that it's not an all-time record)
• the Permian: in May -- operators drill 125 more wells than they would complete
• the Permian: in May -- nearly 100,000 bopd in DUCs
• breakeven price in the Permian as low as $35

For newbies, I could be wrong but I believe operators in the Bakken can leave a well uncompleted for up to two years. Prior to the collapse in oil prices, North Dakota required wells be completed within one year after being spud. Operators can get waivers to delay completing wells if not completed within two years, but those requests are considered on a case-by-case basis.

WTI closed at lowest level since November, 2016, and we're approaching the middle of the US driving season.

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First World Problems

I just got back from mailing two small, but relatively heavy, packages to family members in Portland, Oregon. Least expensive option, $25 for one and $12 for the other package. Remember those numbers.

Upon arriving home, I checked the WSJ on-line. This headline caught my attention: UPS to Add Delivery Surcharges for Black Friday, Christmas Orders. Delivery company seeks to recoup increase in hiring and reserving extra vehicles during busiest period.

I gasped -- UPS and FedEx are already more expensive than the US Postal Service. I could only imagine how "bad" the surcharge would be.

Hold your breath.

27 cents/package.

Okay, back to other first world problems. LOL.