Twelve New Permits; WTI Continues To Slide -- August 1, 2018

Fast and Furious

US oil services companies: could get "shot in the arm." Mexico's new president says he will invest $9.4 billion into state's oil industry to increase supply. Link here. Let's see if "state-run" under new president can do better than "private-run" did under outgoing president.

US oil production:

• US oil production not growing as fast as expected -- oilprice.com
• EIA forecast for May, 2018: 10.749 million bopd
• actual, May, 2018: 10.442 million bopd (13% increase from one year earlier)
• one year ago, May, 2018: 9.218 million bopd
• EIA estimates 10.900 million bopd for June but Bloomberg suggests the number could be lower based on May data
• Comment: I think Bloomberg had an incredibly slow news day; five minutes of my life I will never get back

Gasoline demand: summer demand trails that of last year, see this link:

Distillate demand: even more striking, the lag in distillate demand this summer compared to last summer; see this link.

Back to the Bakken

Active rigs:

$67.79↓	8/1/2018	08/01/2017	08/01/2016	08/01/2015	08/01/2014
Active Rigs	63	60	34	74	193

Twelve new permits:

• Operators: Crescent Point Energy 98); Oasis (4)
• Fields: Winner (Williams County); Banks (McKenzie County)
• Comments: Crescent Point Energy has permits for an 8-well Burgess/Sylven pad in SESW 11-158-100; Oasis has permits for 4-well Kellogg Federal permit in SESE 19-152-97;

And that was all.