Another API Inventory Build -- WTI Drops 7% -- December 18, 2018

WTI: down a whopping 7%; down $3.60; now trading at $46.60. One gets the troubling feeling that GS was just a year or two early when they forecast $20 oil.


Surprise, surprise: surprise inventory build. API report:

• another huge build of 3.45 million bbls
• analysts had expected a draw of 2.475 million bbls
• peak oil? I don't think so.

Trajectory: the last time we saw this trajectory of downward prices it was due to the Saudi surge (their one-trillion-dollar mistake). This time is seems very, very different. 

See updated note here.

Active rigs:

$46.60	12/18/2018	12/18/2017	12/18/2016	12/18/2015	12/18/2014
Active Rigs	67	51	40	64	183

Nine new permits:

• Operators: Equinor (6); Whiting (3)
• Fields: Todd (Williams); Sanish (Mountrail)
• Comments: Equinor has permits for a 6-well Pyramid pad in section 15-154-101; Whiting has permits for a 3-well Fladeland permit in section 10-154-92;

One permit reinstated:

• Slawson: an Atlantis Federal permit in Mountrail County
  

Four permits renewed:

• Hess: four EN-Madisyn permits in Mountrail County

Eight permits canceled:

• Crescent Point (5): five Legacy Et Al Berge permits in Bottineau County
• BR (2): two Hawkeye permits in Dunn County
• Nine Pointe Energy: one Helling permit in McKenzie County

Seven producing wells (DUCs) reported as completed:

• 26282, 762, Bruin, Fort Berthold 147-94-1B-12-5H, McGregory Buttes, t11/18; cum 120K 4/19;
• 34139, 2,528, WPX, Raptor 13-24HZ, Reunion Bay, t11/18; cum 130K 4/19;
• 34138, 1,241, WPX, Raptor 13-24HY, Reunion Bay, t11/18; cum 73K 4/19;
• 34140, 2,126, WPX, Raptor 13-24HEL, Reunion Bay, t11/18; cum 170K 4/19;
• neighboring wells: #22114, #22113; see this post; also here; 
• 34467, 1,624, Whiting, Wold 41-5-1HR, Banks, t12/18; cum 127K 4/19;
• 34468, 2,031, Whiting, Wold 41-5-1TFHR, Banks, t12/18; cum 94K 4/19;
• 32784, 724, Whiting, Kessel 44-35PHU, Park, t12/18; cum 31K 4/19;