Monday, Monday -- September 11, 2017

Active rigs:

$47.73→	9/11/2017	09/11/2016	09/11/2015	09/11/2014	09/11/2013
Active Rigs	55	37	69	198	180

RBN Energy: not good news for new pipelines. Judges running amok. (Be sure to see first comment.)

A federal appellate court decision has set back the start-up of a newly completed set of natural gas pipelines in the U.S. Southeast, and raised the possibility that all gas pipeline projects will need to clear a new — and potentially challenging — hurdle before they can secure a final OK from the Federal Energy Regulatory Commission (FERC).

In its late-August ruling in Sierra Club, et al vs. FERC, the U.S. Court of Appeals for the District of Columbia Circuit said FERC’s environmental impact statement for the Southeast Market Pipelines Project, which includes the 1.1-Bcf/d Sabal Trail pipeline from west-central Alabama to central Florida, should have considered greenhouse gas emissions from gas-fired power plants the new pipelines will serve.

Usually a bad sign: Saudis stress commitment to economic change despite challenges. Riyadh has backtracked on some moves recently, and there are worries about a public backlash. Story at The WSJ. Data points:

• Saudi Vision 2030, the Saudi economic plan unveiled April, 2016
• introduced by MBS, age 32, who leapfrogged his nephew MBN to become crown prince (next king)
• the government has backtracked on some politically-sensitive moves
• postponing an increase in fuel prices and reinstating some government employee perks
• the government is redrafting part of the plan to allow more time for implementation

Strange bedfellows: China invests $9.1 billion in Rosneft. Data points at Reuters:

• Chinese conglomerate CEFC will buy a 15% stake in Russian oil major Rosneft for $9.1 billion
• buyer: CEFC, the world's second largest energy consumer; will boost cooperation with Russia
• seller: a consortium of Glencore and Qatar
• US sanctions on Russia makes it difficult for companies like Glencore to develop partnerships and increase ties with state-owned firms such as Rosneft
• Rosneft's market cap almost $60 billion
• the CEFC deal is one of the largest investments ever made by China into Russia
• meanwhile China announced it will seen announce a date when the country plans to ban conventional gasoline-powered cars

Minor note: Statoil says Eagle Ford operations back to normal after Hurricane Harvey.

Better lucky than smart: Rush Limbaugh was exactly right on Hurricane Irma. It will be interesting to see if he mentions that today on his newscast.