Three High-Intensity Fracked Wells Reported -- Wednesday, November 8, 2017

Released: US crude oil inventory; released at 9:30 a.m. Central Time. Uh-oh. The numbers: +2.2, -3.3, and +9.6. Oh-oh. WTI: $56.46. See this post, now that report has been released.

High-intensity frack wells reported today:

• 33490, 839, Kraken Operating, Kari 30-19 4H, Squires, 50 stages, 15 million lbs, t9/17; cum 14K over 25 days; 
• 33488, 845, Kraken Operating, Kari 30-19 2H, Squires, 50 stages, 15.4 million lbs, t9/17; cum 14K over 23 days; producing, 
• 32599, 2,386, WPX, Ruby Parshall, Antelope, Sanish, Three Forks, 61 stages, 20 million lbs, t9/17; cum 22K over 21 days; 

The Ruby / Ruby Parshall wells are tracked here. 

Active rigs:

$57.07→	11/8/2017	11/08/2016	11/08/2015	11/08/2014	11/08/2013
Active Rigs	54	38	64	193	182

RBN Energy: E&P leverage stable despite price volatility.

Earlier this year, we conducted an in-depth analysis of these same 43 E&Ps in our market study. We found that E&Ps displayed a new and welcome discipline in response to the oil price plunge in late 2014 through mid-2016. As a result, they emerged from the crisis in a remarkably solid financial position. As we explained in subsequent blogs, our universe of E&Ps generated $9 billion in profits in the first quarter of 2017 after more than $160 billion in losses in 2015-2016.

With prices recovering, they boosted their 2017 capital budgets by 40% after slashing spending by 70% over the previous two years. However, in early March 2017, oil prices started falling again and subsequently seesawed higher and lower until the price for benchmark West Texas Intermediate (WTI) finally hit its 2017 low of about $43/bbl in June. Profits and cash flows dipped in the second quarter, although the industry remained in the black. Despite the price volatility, producers decided to maintain their accelerated budgets. We thought it would be a good idea to revisit the balance sheets of the 43 E&Ps to see if any of these companies have been eroding their financial positions.

US crude futures trading soaring past Brent as shale drillers hedge future output. From Reuters. Huge story which will aggravate Saudi's goal to achieve $70 oil.

OPEC cuts / compliance, from Platts via Twitter: