WTI Might Open At $51 -- September 25, 2017

WTI: over $51 in early trading. 

Permian: Chevron to invest $4 billion to boost Permian Basin output (also, see Bloomberg article linked below). Data points:

• next year, $4 billion in CAPEX in the Permian
• plan to grow production over the next several years to well in excess of 400,000 bopd
• Chevron expects crude oil from all producers operating in the Permian to rise to 3.8 million bopd in 2020, from 2.4 million bopd at present

Active rigs:

$50.99↑	9/25/2017	09/25/2016	09/25/2015	09/25/2014	09/25/2013
Active Rigs	57	33	71	192	186

:
RBN Energy: How renewables are displacing natural gas from the west coastt.

Global markets: after Trump was elected, the US markets surged, and the US markets continue to hit new highs. Following Angela Merkel's re-election in Germany, the German stock market is flat to slightly negative. In addition, I think I heard that she took 32% of the votes which will require three parties to come together to "form a government." If that 32% is correct, it sort of puts things into perspective. It sounds like the Green Party will be one of the three parties. My condolences to my German friends.

Must-read. Excellent, excellent Bloomberg article on the Permian. Sounds like the Bakken Boom all over again. One has to read between the lines a bit; I'm not exactly sure what the takeaway of the article is. The headline and tone suggest the Permian is close to a bust, but the activity in the Permian suggests anything but (a bust).

“You would think oil is $100 a barrel the way the real estate market is going,” said Victoria Printz, a Midland-based agent representing properties selling for more than $1 million. The average new-home sales price in the metro area shot up 8.5 percent in the past year, and permits for new construction climbed 76 percent. “This is extraordinary—even for Midland.”

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Back In The News

This is pretty cool. I "discovered" White Castle for the first time many, many decades ago I forget the circumstances, but I think it was when I was in college in Sioux Falls, SD, and had gone up to Minneapolis for some reason. I think Ive only visited White Castle that one time.

I've mentioned White Castle in three different posts on the blog. I had long forgotten about White Castle.

It's back. From The Wall Street Journal, White Castle takes a slider-sized bite out of China's fast food market. The chain hopes curiosity about Western food, and Cherry Duck mini-burgers, will attract customers.

Unlike McDonald’s and Yum China, which are publicly traded and franchised, White Castle is a closely held family business and owns all but one of its 385 restaurants across 12 states. Its signature sliders are sold in frozen-food aisles of local grocery stores across the U.S. and represented a quarter of its $720 million in sales last year.