Tuesday, May 29, 2018

Tuesday, May 29, 2018

Back in the saddle again. I will be slow getting started but at least I'm home and back to blogging. Talk about great timing. See this post -- something I thought about over the weekend and finally posted last night. This morning: The US is the only economy with legs.
  • GDP:
    • Italy: $1.85 trillion
    • Texas: $1.7 trillion
Permian: added 11 rigs last week. Now up to almost 500 rigs. Compare to Williston, maybe 65. And daily production between the two "in the same ballpark." As they say.

For planning purposes: Starbucks closes early today. For sensitivity training.

Back to the Bakken

Active rigs:

Active Rigs65502980187

RBN Energy: pipeline alternatives gunning to provide Permian relief.
Natural gas supply growth from the Permian Basin has flooded the Texas market in recent months, filling up takeaway pipelines and sending Waha spot prices to steep discounts relative to its downstream markets. Incremental demand — from exports to Mexico for gas-fired power generation as well as for power demand in Texas — has provided some relief for West Texas prices in recent weeks. But Texas power demand is seasonal and, while Waha’s exports to Mexico are expected to continue growing, it’s likely to be on a piecemeal basis. Thus, longer term, new Permian takeaway capacity will be needed to balance the Waha market. To that end, there are a bevy of takeaway projects vying to expand capacity from the Permian. These projects — their timing and routes — will drive the Texas gas flows and pricing relationships over the next several years. Today, we continue our series on Permian gas, this time delving into the various takeaway capacity projects competing to move Permian supply to market.
We know that much of the incremental Permian supply growth over the next five years will head east to the Texas and Louisiana Gulf Coast. But which pipes get built will determine where along the coast all that gas will end up — South Texas, Louisiana or somewhere in between. And that, along with the timing of LNG export demand, will drive downstream prices at Agua Dulce, HSC and Henry Hub.

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