Thursday, April 20, 2017

XTO Not Stressed -- Given A Long Leash By Exxon Mobil -- Bloomberg -- April 20, 2017

Link here.

The Apple Page

Apple currently has more iPhone users in the US than at any point in history -- Macrumors.  Data points:
  • almost 90 million iPhone users in the US
  • iPhone: the most popular smartphone in both the US and the world
  • operating system in the US 
    • iOS: 43%
    • Android: 54%
    • Blackberry: --
    • Windows 10 Mobile (the one Steve Ballmer uses): -- 
What I find most amazing about the graph at the link is how fast Blackberry and Microsfot "disappeared."

Minnesota, Then North Dakota -- Least Stressed States In The Union -- Time.Com -- April 20, 2017

Link here (map may take awhile to download). Click bait.
The least stressed state was Minnesota, followed by North Dakota and Iowa. The states with lower stress levels were largely grouped in the upper Midwest and Northwest.
For full report at originator -- WalletHub -- click here

US Petroleum Demand Back To Record Highs -- API, April 20, 2017

From Oil & Gas Journal:
  • March, 2017, total US petroleum deliveries
    • increased 0.2% from one year ago (March, 2016)
    • average: nearly 20 million bopd
    • highest March deliveries in 9 years 
  • for 1Q17, total US petroleum deliveries
    • increased 0.4% from one year ago (1Q16)
    • highest first quarter deliveries since 2008
  • gasoline deliveries (previously posted)
    • up month-over-month, but still down year-over-year
    • also, 1Q17 down from 1Q16
  • gasoline deliveries: second-highest March deliveries ever recorded
Lots of data but basically; US petroleum and gasoline demand flirting with record highs.

QEP To Report Several Nice Wells Next Monday -- April 20, 2017

Active rigs:

Active Rigs492892188185

No new permits issued.

Two permits renewed:
Triangle (2): two Little Muddy permits, both in Williams County

Wells coming off confidential list --

Saturday, April 22, 2017
  • 31765, SI/NC, Hess, HA-State-152-95-1621H-6, Hawkeye, no production data, 

Sunday, April 23, 2017
  • 23910, SI/NC, Slawson, Pike Federal 2-3-2H, Big Bend, no production data,
  • 31764, SI/NC, Hess, HA_State-152-95-1621H-7, Hawkeye, no production data,
Monday, April 24, 2017
  • 25873, SI/NC, Slawson, Pike Federal 5-3-2TFH, Big Bend, no production data,
  • 31763, SI/NC, Hess, HA-State-152-95-162H-8, Hawkeye, no production data,
  • 32401, 1,260, QEP, Tipi V 3-13-12BH, Spotted Horn, t11/16; cum 114K 2/17;
  • 32402, 1,140, QEP, Tipi V 2-13-12TH, Spotted Horn, Three Forks, 54 stages, 9.7 million lbs, t11/16; cum 55K 2/17;
  • 32403, 1,988, QEP, Tipi V 4-13-12BH, Spotted Horn, t12/16; cum 135K 2/17;
  • 32404, 1,189, QEP, Tipi V 3-13-12T2H, Spotted Horn, Three Forks second bench, 51 stages, 9.6 million lbs, t11/16; cum 54K 2/17;
  • 32405, 707, QEP, Tipi V 5-13-12BH, Spotted Horn, middle Bakken, 51 stages, 10 million lbs, t11/16; cum 61K 2/17;
  • 32406, see below, QEP, Tipi V 5-13-12TF, Spotted Horn, producing,
  • 32992, drl, Petro Harvester, PTL1 32-29 164-91 B, Portal, no production data,
Tuesday, April 25, 2017
  • 31762, SI/NC, Hess, HA-State-152-95-162H-9, Hawkeye, no production data,

32406, see above, QEP, Tipi V 5-13-12TF, Spotted Horn:

Oil RunsMCF Sold

32405, see above, QEP, Tipi V 5-13-12BH, Spotted Horn:

DateOil RunsMCF Sold

32404, see above, QEP, Tipi V 3-13-12T2H, Spotted Horn:

Oil RunsMCF Sold

32403, see above, QEP, Tipi V 4-13-12BH, Spotted Horn:

DateOil RunsMCF Sold

32402, see above, QEP, Tipi V 2-13-12TH, Spotted Horn:

Oil RunsMCF Sold

32401, see above, QEP, Tipi V 3-13-12BH, Spotted Horn:

Oil RunsMCF Sold

ND Legislature Clarifies Minerals Under Lake Sakakawwa, Which Some Argue Is Not The Same As The Missouri River -- April 20, 2017


Later, April 22, 2017: it's nice the state legislature "corrected" this issue, but it seems this should have been settled by the ND Supreme Court a long time ago. Based on what little I know about mineral rights what the legislature did was a no-brainer and the courts should have agreed, and sorted this out years ago.
Original Post
A reader alerted me to this article in The Bismarck Tribune.
The North Dakota Legislature has approved a bill clarifying that the state does not own minerals under Lake Sakakawea, setting up a process to return an estimated $187 million in bonus, rent and royalty payments.
Supporters of Senate Bill 2134 say it’s about doing the “right thing” for citizens who retained their minerals when they lost land for the construction of the Garrison Dam, which created Lake Sakakawea.
“We need to make sure that we get the mineral ownership back to the rightful owner,” said Sen. Jessica Unruh, R-Beulah. “We need to clarify what the state owns and provide clarity and certainty for our judicial system.”
But opponents of the bill say the primary beneficiaries are likely the federal government and the oil industry, which was heavily involved with developing the legislation.
I have a lot of problems with that last statement but not worth the effort to discuss it. I have no dog in this fight.

There may have been some thought that this had to do with "the high water mark" issue, another "water issue" affecting mineral owners. This was also in the article:
The bill sets up a process to define the ordinary high water mark of the historic Missouri River channel as it existed before the Garrison Dam, starting with the 1950s survey of the river by the U.S. Army Corps of Engineers.

Hyperdrive, Game-Changing: Exxon Mobil And Saudi Plan Multi-Billion Dollar Ethane Cracker Near Texas Gulf -- April 20, 2017

With regard to this story, note this bizjournal headline: shale gas was key factor in landing game-changing Exxon Mobil plastics plant. Link here. Data points:
  • natural gas from Eagle Ford shale was key in landing this project in Texas
  • joint venture: Gulf Coast Growth Ventures; XOM; and, Saudi Basic Industries
  • 1,400-acre site (in this article; elsewhere said to be 1,300 acres)
  • Eagle Ford's proximity to rail, highway, and deep-water port
  • to be operational by 2021
Data points: AP
  • Saudi partner: Saudi Arabia Basic Industries Corp
  • Portland, TX -- just north of Corpus Christi
  • 1,300 acres
  • $10 billion
  • product: polyester, anti-freeze, plastic bottles
  • "thousands of jobs"
Also at Rigzone:
  • one of 11 proposed projects that XOM announced in conjunction with its 10-year $20 billion Growing the Gulf initative
  • 1.8 million tonnes per year of ethylene
  • "thousands of jobs during construction"
  • 600 new, full-time jobs; 3,500 indirect jobs once completed
  • the company anticipates more than $22 billion in economic output during construction and a $50-billion-plus economic impact during first six years of operation
Growing the Gulf Initiative
  • overall should produce more than 45,000 jobs
  • 12,000 of those jobs: full-time; average salary of $100,000/year
  • throughout coastal Texas and Louisiana
More on Saudi Arabia Basic Industries Corp here.

Spring Thaw, Muddy Conditions? Rig Count Drops Below 50 -- April 20, 2017

Active rigs:

Active Rigs492892188185

RBN Energy: Many diversified E & Ps in major realignments, shifting toward an oil focus.
U.S. oil and natural gas E&P companies, anticipating continuing low crude oil and natural gas prices, have been reshaping their portfolios to focus on a half-dozen top-notch resource plays whose production economics can hold up even if prices were to soften further. The biggest of these asset purchases and sales grab the headlines, but countless other, smaller-bite deals are having profound effects too. Taken together, this piranha-like devouring of E&P assets in the Permian, the SCOOP/STACK and other key production areas is transforming who owns what in the plays that matter most, and positioning a select group of E&Ps for success.
When considering the Diversified E&Ps on a company-by-company basis, ConocoPhillips stands apart from its peers, and not just because it is by far the largest in the group. ConocoPhillips also is an outlier because it had until recently been a major international, vertically integrated oil giant; it has since spun off its midstream and downstream assets to focus on the E&P side of things. Unlike the other diversified E&Ps, production growth has been on the bottom rung of the company’s priorities. That’s why it has been sharply reducing capital outlays—from $20.1 billion in 2014 to $11.8 billion in 2015, $5.2 billion in 2016 and $5.0 billion in 2017. ConocoPhillips also has been pursuing asset sales; in the last month, the company has been able to meet its three-year financial targets through $16 billion in proceeds from the sale of part of its Canadian oil sands portfolio, its Canadian Deep Basin gas assets, and its San Juan Basin gas assets. The downside of the sales is that the company has shed 25% of 2016 production. ConocoPhillips plans to spend the largest amount of its reduced capital budget in the Lower 48 states, with the Eagle Ford Shale getting the largest allocation (about 14% of total capex), followed by the Bakken (11%) and the Permian (6%). Prior to the announcement of these asset sales, the company had been expecting a 1% increase in production in 2017.
Scott Adams: you don't have free will, but you might get it some day.

Off confidential list today: a Madison re-entry well. No new production. Completion solution for this vertical well: Mission Canyon formation well: 2,000 gallons of 15% HCL. Production will be re-established in the zone, perforating between 9,704' - 9,709' and 9,668' to 9,670'.
9762, A, North Range Resources, Sheep Creek Storm 2-1, Grassy Butte; first produced January, 1983; last production, April, 1986; now confidential again; no sundry forms since July 16, 1960; North Range has ten (10) permits/wells as of April, 2017; the two Sheep Creek Storm wells are on confidential status; five Placed wells have been discussed to some degree previously (one PNC; two on drl status; two confidential; all five in Rough Rider; all five vertical wells; #9762, a Madison well; cum 34K 4/86;

The Energy And Market Page, T+89 -- April 20, 2017

Glut: John Kemp via twitter: Credibility of OPEC deal now on the line. Stocks need to show significant draw in Q2+Q3 or hedge funds will give up bullish narrative. Agree completely.

Glut? Australia "encouraged" after steps taken to avert natural gas crisis No mention of Elon Musk: apparently Australia has not accepted his challenge to "save" Australia in 100 days.
The Australian Energy Market Operator warned in March of a shortage set to hit eastern Australia just as the country becomes the world's top LNG exporter. At least one of the east coast LNG plants, Gladstone LNG (GLNG) - operated by Australia's Santos - is drawing gas out of the domestic market to help meet its export contracts. 
The big concern is that the gas shortfall is fuelling price hikes, hurting households and manufacturers such as brick makers and fertiliser producers, who need gas for their operations.
Manufacturers are getting offers of gas for as much as A$16-A$22 ($12-$17) per gigajoule for one-year deals, up from A$6 a GJ in previous contracts.
KMI: misses 1Q17 profit forecast. 18 cents adjusted to 17 cents; forecast for 18 cents. Revenue of $3.42 billion beat forecast of $3.15 billion.

BK: Bank of New York Mellon post 1Q17 profit. Right on target: 80 cents.

Market: lots of volatility; wide swings; trending down.

WTI: flirting with $50 floor, again.

The Political Page, T+89 -- April 20, 2017


Later, 4:05 p.m. CDT: Here we go again. Quality control issues at Tesla. A bunch of Musk Melon cars recalled due to faulty brakes. The headline says 53,000 Teslas recalled; I am surprised there are that many Teslas in the wild. On another note, I saw a wild Tesla with the gull wing doors while walking at Bridgeport Village, an upscale shopping mall west of Portland, OR. I wanted to take a photograph but I didn't want to look like a dork.

Later, 4:01 p.m CDT: Russians trying to influence French election? Story here: assailant, two policemen killed in Paris, near tall structure; another assailant may still be on the loose; city on lockdown -- the whole city? -- comes three days before the election.

Original Post

Gasoline demand: hand-in-hand with jobs.
  • remains flat week-over-week
  • remains slightly under same period one year ago 
Paglia: Trump already headed towards re-election; Democrats have played their hand.

O'Reilly: non-factor for the Fox machine. Today's social media environment: "one and done." If a corporation stung with really, really bad news that is going viral, make the decision quickly and move on.

GM: factory in Venezuela ceases production after seized by government. Well, that's one way to bring jobs back to America. Put that in your pipe and smoke it. I assume Bernie Sanders supports the nationalization of GM. I don't' know; just thinking out loud.

Maxine: alt-left's nominee for 2020?