Fast And Furious -- July 23, 2018

Updates

Later, 5:36 p.m. CDT: it doesn't matter whether the data is correct or not; the question is how an entire industry; and, the millennials fell for his data; I guess the same way they fell for the global warming data -- if you say it enough times, it becomes fact. Public school education.

Original Post

Wells coming off confidential list over the weekend:

• Monday, July 23, 2018:
• 33999, SI/NC, XTO, FBIR Walker 31X-36H, Heart Butte, no production data,
• 33998, SI/NC, XTO, FBIR Walker 31X-36D, Heart Butte, no production data,
• 33957, SI/NC, Crescent Point Energy, CPEUSC Bennie3-20-17-157N-99W MBH, Lone Tree Lake, no production data,
• 33343, SI/NC, XTO, Dakota Federal 42X-36B, Bear Den, no production data; Dakota Federal wells are tracked here;
• 33193, 94 (no typo), Enerplus, Bear Den 150-94-32D-29H, Spotted Horn; producing, nice but not remarkable; t1/18; cum 43K 5/18;
• 33192, 81 (no typo), Enerplus MHA 150-94-32D-29H-TF, Spotted Horn, producing; very, very nice; t1/18; cum 82K 5/18;
• 33095, 701, CLR, Monroe 13-2H1, Banks, very, very nice well; the CLR Monroe wells are tracked here; t3/18; cum 78K 5/18;
• 31956, 1,234, Hess, EN-Vachal-LW-155-93-0523H-9, Alger, t6/18; cum --
• Sunday, July 22, 2018:
• 34289, SI/NC, XTO, FBIR Walker 31X-36HXE, Heart Butte, no production data,
• 33342, drl, XTO, Dakota Federal 42X-36F, Bear Den, no production data,
• 31957, 1,205, Hess, EN-Vachal-LW-155-93-0532H-1, Alger, t6/18; cum --
• Saturday, July 21, 2018:
• 33958, SI/NC, Crescent Point Energy, CPEUSC David 4=29-32-157N-99W MBH, Lone Tree Lake, no production data,
• 33055, drl, XTO, Dakota Federal 42X-36A, Bear Den, no production data,
• 31517, 2,572, CLR, Lansing 6-25H, Banks, 56 stages; 9.3 million lbs large/mesh; 20 million gallons water, huge well; 50K+ in one month; t3/18; cum 140K 5/18; the Lansing wells are tracked here;

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Fast and Furious

Fast and furious (we'll get back to these when time permits)

• Oh-oh: Saudi Arabia to spend billions on foreign investments -- oh, oh -- kingdome to create funds to support ventures, bolster legal environment after FDI plummets -- WSJ; foreign investment fell to a 14-year-low in 2017
• Oh-oh: Trudeau can't find buyer for Trans Mountain -- over at GlobalNews
• Oh-oh: Tesla asking for its money back -- LOL; says it's a common practice in the automotive industry; again, over at The WSJ
• Oh-oh? After pumping more oil for Trump, Saudis doubt if it's needed -- Bloomberg via Rigzone
• I wish I had said that: plastic straws, over at The Coyote Blog
• ; and now this, what a joke -- the entire US plastic industry, the entire "plastic straw" industry; the California democrats; the entire millennial population; and the entire US restaurant industry fell for data obtained by a 9-y/o who called three companies to get their estimate of the amount of straws used by Americans daily; I can't make this stuff up;
• Making America great again: yet another story in The WSJ on trucks -- truckers looking to haul in more profits

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Back to the Bakken

HAL beats: North American revenue rose 38%; international revenue a paltry rise of 6% -- tells one where the activity is, doesn't it?


Active rigs:

$68.95↑	7/23/2018	07/23/2017	07/23/2016	07/23/2015	07/23/2014
Active Rigs	67	58	32	70	194

RBN Energy: Permian producers' options when severe gas takeaway constraints arise.

Permian producers continue to walk a tightrope, almost perfectly balanced between still-rising production of natural gas and the availability of gas pipeline takeaway capacity to transport that gas to market. Don’t get us wrong. There are gas takeaway constraints out of the Permian, as evidenced by a Waha cash basis that averaged more than 50 cents/MMBtu last week. But a combination of factors — including increased flows to Mexico and a couple of small, under-the-radar expansions of existing takeaway pipes — has prevented the Waha basis from tumbling to $1 or even $2/MMBtu. But that big fall may still happen — in fact, you could say that odds are that severe takeaway constraints and differential blowouts will occur within the next few months. If and when that happens, what can producers do to quickly regain their balance? Today, we discuss recent developments in Permian gas markets and the options that producers, gas processors and midstream companies may need to consider if things get really tight.

Philippe Petit, the French high-wire artist who in 1974 famously walked (eight times!) between the twin, 110-story towers of the original World Trade Center in New York City, once said, “When I see three oranges, I juggle; when I see two towers, I walk.” Well, when oil and gas producers see a hydrocarbon resource as gargantuan and as promising as the Permian, they jump in with both feet, even if it requires multibillion-dollar investments in infrastructure and poses the risk of huge, profit-squeezing price spreads if production growth outpaces the ability of pipelines to transport crude oil and natural gas to end-users.

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Notes for the Granddaughters

Whenever we go back to San Pedro, California (along the coast, south of Los Angeles, along the LA Harbor), we always enjoy the drives along the coast.

There's a particularly steep hill in San Pedro, but I had never given much thought to it. It's "28th Street" -- just a mile or so down the road from where May's parents' home is. I avoid it whenever possible. I can't imagine learning to drive an Alfa Romeo with manual transmission on that incline. LOL.

Last night while watching an old Humphrey Bogart - Lauren Bacall - David Goodis movie I was reminded of the steep hills in San Francisco. I was curious. Just how steep are those hills. From wiki:

Filbert Street and 22nd Street in San Francisco have a maximum gradient of 31.5% (17.5°).]

The steepest hill on Filbert is the east half of the block between Hyde and Leavenworth; like 22nd St it is one-way down.

The city map shows a descent of 65 feet, which based on a half-block being 206.25 horizontal feet makes the grade 31.5%, the official figure.

The sidewalk-only section of Broderick Street (between Broadway and Vallejo, where the city map shows a climb of 96 feet in the 275-foot block) is steeper, just under 35% grade, and a block west the sidewalk-only block of Baker Street is a bit steeper than that.

An unofficial survey of San Francisco streets declared the steepest street in San Francisco to be a 30-foot section of Bradford Street, paved in 2010, with a 40% grade. The curvy Lombard Street started as a 27% grade.

Now this:

Three streets in Los Angeles are steeper—28th Street in San Pedro at 33.3%, Eldred Street in Highland Park at 33%, and Baxter Street in Silver Lake at 32%.

That 28th Street down the road from May's parents' home -- steepest of the steep. Amazing where following the dots leads one. LOL.