"Lower For Longer"? (Again) -- June 11, 2018

SRE: jumps 17% at opening. It would be interesting to read the report / analysis. What changed? Trump's tariff talks and Mexico's July 1, 2018, presidential election? Was this an open-book test? I don't know. But "those with an agenda" suggest SRE could go to $159. At least that's what I heard. No link. See disclaimer.

JPM: apparently suggests "lower for longer" (again). Perhaps down to $50/bbl (WTI). No link. 

AAPL: inches closer to $1 trillion market value. Link here. Apple could be the first company to hit that mark.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or think you may have read here.

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Back to the Bakken

Active rigs:

$65.14↓	6/11/2018	06/11/2017	06/11/2016	06/11/2015	06/11/2014
Active Rigs	61	52	28	77	188

RBN Energy: early impacts of Rover's Appalachian natural gas flows to Michigan, Dawn.

On June 1, Energy Transfer Partners’ new Rover Pipeline began service on its market segment from northwestern Ohio into southern Michigan, effectively sending nearly 800 MMcf/d of Marcellus/Utica gas production to Vector Pipeline and its northern destinations in Michigan, and, by extension, to the Dawn Hub. This latest in-service has already shuffled flows in the region and pushed back on other supplies targeting the same markets, including Canadian gas imports. And that’s even before the project has achieved its full expected capacity of 3.25 Bcf/d. Today, we analyze the early effects of Rover’s first flows to the Michigan/Dawn markets via Vector.

We’ve been following ETP’s 3.25-Bcf/d Rover Pipeline project closely in the RBN blogosphere, given its scale and potential for disrupting the Midwest, and even Canadian, gas markets. In fact, we’ve already seen some of that happening over the past eight months or so. The project has been phasing in since last fall, with each lateral and mainline capacity addition bringing on more supply. Initial service on the first portions of the Rover Pipeline began September 1, 2017, with just two of eight planned supply laterals online and partial capacity available on just one of its two mainlines (Mainline A). Within days of launching, the pipeline filled to capacity, which at that time was 700 MMcf/d. New compression was added in early October 2017, nearly doubling that capacity to 1.2 Bcf/d, and flows again jumped, this time to more than 1.0 Bcf/d for a bit. The additional takeaway capacity helped eastern Ohio gas production volumes reach new highs last fall, regional gas flows started to shift in response to this new supply route, pushing more Marcellus/Utica gas toward the Midwest, where it could then turn south toward the Gulf Coast.