Badlands NGLs, LLC -- Anyone Have Any Update? --- April 16, 2018

The Badlands NGLs, LLC, is tracked here. Last updated in 2016.

Blog Readers Are Ahead of The Curve -- April 16, 2018 -- The State Of Ohio Has Eleven (11) New Natural-Gas-Fired Power Plants -- Either New And On-Line, Or Under Construction Or Some Phase Of Planning

Wow, wow, wow.

Connecting the dots.

First, re-posting a comment a reader just sent me -- this comment was in response to an earlier post:

To put some context to supply/shortage/US NGL potential ...  feedstock supply is dwindling on the global stage. 

Right now, in the US, oversupply of ethane is resulting in about 600,000 barrels a day rejected back into the pipelines. 

That is, due to the current infrastructure shortage, ethane that could supply 6 large crackers is simply being burned along with methane. 

The US has a HUGE advantage on the world stage with rock bottom, ample supply of feedstocks along with cheap electricity to run the operations.

Now a screenshot of an article from Reuters:

This is quite coincidental. Don sent me an article earlier today. I did not post it because it looked like a lobbyist of the coal industry or the nuclear energy sector or wind/solar energy group had written it. But perhaps not. The writer suggested that there may be risk in the US putting all its eggs in one basket, or in this case, supporting the electricity grid with only natural gas.

To what extent electric vehicles will exacerbate the problem is also of interest.

Anyway, the article Don sent that I am now posting, from TimesReporter.com: are we becoming too reliant on natural gas? From OREGON, Ohio.

The past and present, at least in terms of how Ohio generates electricity, can be found within a few miles along the shores of Lake Erie.

Pressed up to the edge of the water is the Bay Shore Plant, a coal-fired power plant owned by a subsidiary of Akron-based FirstEnergy that rarely runs and is scheduled to be closed by 2020.

Sitting two miles inland is the Oregon Clean Energy Center, a natural-gas-fired power plant that opened last summer and is running most days. It’s owned by Clean Energy Future of Massachusetts, a company that focuses exclusively on building and operating these types of plants.

“We are the next iteration of technology,” said Peter Rigney, the plant manager, referring to how the gas plant takes up less space, has fewer employees and generates less waste than coal or nuclear plants.

Oregon Clean Energy is part of a building boom, one of 11 natural-gas plants built, under construction or in some phase of development in Ohio. Investors are spending billions of dollars on plants that will take advantage of the region’s inexpensive and plentiful natural gas.

People who manage the electricity grid are trying to figure out the risks of increasing reliance on natural gas as old coal and nuclear units are closing or likely to close. At the same time, the people behind this slate of projects tend to downplay the risks and say natural gas will remain plentiful and inexpensive.

I have never thought of Rick Perry as being the sharpest knife in the drawer, but he may be correct. There may be a reason to encourage clean coal technology, which he advocates.

*******************************

Speaking of Sharp Knives

I'm sure everyone has heard by now: London, a city with one of the world's strictest gun control laws, now has a murder rate that exceeds a city in which every citizen either already owns a gun or will own a gun eventually, namely, New York City.

So, how are these London murders being committed?

Knives.

Headline:

"After the murder rate passes that of NYC, London mayor Sadiq Khan calls for sharper knife control."

No pun intended, I'm sure. From USA Today.

Apparently Mayor Khan wants to ban knives in public.

"No excuses: there is never a reason to carry a knife," Khan tweeted. "Anyone who does will be caught, and they will feel the full force of the law."

"Never a reason to carry knife."

I'm not exactly sure how chefs will do what chefs normally do.

But our older daughter noted an even bigger problem: how does one bring home a kitchen knife after buying it at Walmart?

Oh, that's right. We can order knives from Amazon.

Why I Love To Blog -- I Learn So Much From Readers -- And Readers Seem Better Able To Put In Perspective What CNBC Cannot -- April 16, 2018

Reading the business news and all the new oil and gas projects and all the infrastructure going in, I was absolutely certain "we" were at risk of "over-building." Apparently not. This from a reader who knows the subject very, very well; it came in as a comment at another post:

To put some context to supply/shortage/US NGL potential ...  feedstock supply is dwindling on the global stage. 

Right now, in the US, oversupply of ethane is resulting in about 600,000 barrels a day rejected back into the pipelines. 

That is, due to the current infrastructure shortage, ethane that could supply 6 large crackers is simply being burned along with methane. 

The US has a HUGE advantage on the world stage with rock bottom, ample supply of feedstocks along with cheap electricity to run the operations.

See Houston Chronicle link at this post.

***********************************

Tesla Temporarily Shutting Down Model 3 Production. Again.

Second Time In Three Months

I'm only posting this because I find it absolutely fascinating.

The story is everywhere, but here is one link.

CLR Reports Two Completed DUCs -- One Completed With Resin-Coated Sand; One Without; WPX With Permits For A 4-Well Pad In Spotted Horn -- April 16, 2018

Active rigs:

$66.42↑	4/16/2018	04/16/2017	04/16/2016	04/16/2015	04/16/2014
Active Rigs	59	51	29	93	184

Four new permits:

• Operator: WPX
• Field: Spotted Horn (McKenzie)
• Comments: WPX has permits for a 4-well Sweet Grass Woman pad in Spotted Horn, section SESE 22-150-94

Two producing wells completed:

• 33095, 701, CLR, Monroe 13-2H1, Banks, 4 sections, Three Forks 1; 59 stages; 16.3 million lbs; mesh; large/ resin coated, t3/18; cum --
• 33096, 1,905, CLR, Monroe 12-2H1, Banks, 4 sections, Three Forks 1; 60 stages; 11.1 million lbs; mesh; large/medium, t3/18; cum --

KMI Trans Mountain Pipeline -- Previously Posted -- April 16, 2018

Previously posted:

Kinder Morgan (technically Kinder Morgan Canada Limited, I guess): Canadian pipeline, Trans Mountain pipeline -- I find this story most interesting on so many levels -- PM Justin Trudeau says the pipeline will be built.

Prime Minister Justin Trudeau is pledging financial backing and legislation to ensure that the Trans Mountain pipeline expansion is completed, after B.C. Premier John Horgan gave no ground at a hastily called meeting in Ottawa on Sunday.

Emerging from a two-hour session on Parliament Hill, Mr. Trudeau and Alberta Premier Rachel Notley made it clear that their respective governments are determined to see construction proceed this summer, despite legal and political challenges from B.C. and protests on the ground.

Read this closely:

On Sunday, Mr. Horgan continued to insist that he has an obligation to protect B.C. coasts from oil spills and said his government will pursue a reference in federal court to clarify his government’s authority to regulate transportation of oil-sands bitumen through the province.

“We continue to disagree on the question of moving diluted bitumen from Alberta to the port of Vancouver,” he said.

He added, however, that he will stand down if the court rules against his government. The B.C. Premier said the tone of the meeting was cordial, noting that Mr. Trudeau assured him Ottawa would not pursue measures to punish B.C. over its pipeline position.

Something tells me this story is not going to end well for Alberta.  As soon as I read that the BC Premiere John Horgan will take this to court tells me this is not going to end any time soon -- unless Canadian judicial system works a whole lot faster than the US court system.

Also, note, PM Trudeau says legislation will be passed -- think about this -- I can't believe the legislative process is going to happen overnight on this project, and then, according to the provincial premier, he will take that legislation to court. 

Remember: there are almost 1,200 BC provincial permits required -- almost 1,200 -- these are not simply one-postcard-size permit applications. These applications are probably an inch thick (or more) of supporting data. Six hundred have not even been submitted yet.

• of the 587 permits the company has submitted:
• 201 have been approved
• 386 are under review

I've been told by a reader much smarter than I am regarding these judicial / political issues, that the pipeline will be built. "Arrangements" will be made to ensure the pipeline will be built.

Right now, this is where I see the process:

• Kinder Morgan: no change; will not start work now that the BC premier says he wants the courts to rule on the legality of the federal government; Kinder Morgan will wait to see how the court rules, or if the BC premier "changes his mind"
• British Columbia: it sounds like "they" have dug in their heels on this issue
• if the Canadian Supreme Court rules in favor for Premier Trudeau, the next question will be whether those 1,187 permits all need to be approved
• my understanding is that many (most?) of the provincial permits are "indigenous-native-based" issues and that the federal government would have supported these issues in the past
• Horgan originally said he/his province was not against / not delaying the pipeline -- he/his province simply wanted to make sure the environment was protected, and that all i's and t's were dotted and crossed before the pipeline would move forward; but having said that, they are fully supportive of the pipeline and can't wait to see it finished 

And finally this: the Business Insider article says the meeting was cordial. Of course the meeting was cordial. This is Canada, not New York City.

Interesting, Interesting Day -- The Market, Energy, And Political Page, T+47 -- April 16, 2018

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

Wow, I'm in a good mood. For those paying attention, this has been an incredibly good weekend from my point of view. I'm probably in the minority but wow! it's been incredible.

There is simply too much to write, so maybe some quick "one-liners."

Trucking: anyone paying attention probably not surprised by JB Hunt today -- shares are up 6% today.

Bank of America: look at this -- BAC's earnings up 51%. This company was specifically mentioned by one of the CNBC guys a few weeks ago -- when the question of banks came up -- he was very, very bullish on BAC -- saying that this was "the one bank" in which to invest.

Netflix: earnings huge; beat expectations. Netflix up almost 7% intra-day. My hunch: will go even higher tomorrow. Netflix US net adds rise 1.96 million, more than expected; on top of that, the first quarter is usually soft for "new adds." "The Next Big Thing" was based on Netflix -- that was back in 2013. Wow. How prescient. Netflix market cap could match the market cap for Disney. Wow.

Schwab: huge day; up 4%.

Overall market: imagine what the market would have done today if the missile barrage on Syria had occurred at 10:30 a.m. EDT this morning (Monday, April 16). In fact, for the archives, the missile barrage, which lasted all of 15 minutes, was late Friday night. Price of oil up significantly in anticipation of "war" in the Mideast. Today, price of oil is down a bit more than 1%. If one wants to "understand" how the Mideast is playing out, follow the price oil. With price of oil down a bit more than 1% today, it tells me that, for now, traders think this is the end of "this issue" this time around. There is war of words and war of bullets: the war of bullets is over -- "mission accomplished" -- and the war of words .... the amazing thing -- the markets have completely ignored the missile barrage -- the talk shows tonight (and during the rest of the week) will talk ad nauseum about events in Syria -- but the markets are telling me --- a big "yawn."

Comey: the best news for Trump supporters -- the Friday night barrage speaks volumes about all that talk about Russian collusion -- Rush Limbaugh has this figured out.

Jobs: I don't know if WSJ was writing this story from a positive, neutral, or negative point of view -- I read the headliney; haven't read the article yet. But for teenagers, this is incredibly good news and exactly what Trump was hoping for. "Facing history labor shortages, companies snap up teenagers." And the teenagers today are technologically very, very savvy. 

Tesla: this might be the big investment story of the day -- on a day that the market did very, very nicely, Tesla had a bad day:

Kinder Morgan: Canadian pipeline, Trans Mountain pipeline -- I find this story most interesting on so many levels -- PM Justin Trudeau says the pipeline will be built.

Prime Minister Justin Trudeau is pledging financial backing and legislation to ensure that the Trans Mountain pipeline expansion is completed, after B.C. Premier John Horgan gave no ground at a hastily called meeting in Ottawa on Sunday.

Emerging from a two-hour session on Parliament Hill, Mr. Trudeau and Alberta Premier Rachel Notley made it clear that their respective governments are determined to see construction proceed this summer, despite legal and political challenges from B.C. and protests on the ground.

Read this closely:

On Sunday, Mr. Horgan continued to insist that he has an obligation to protect B.C. coasts from oil spills and said his government will pursue a reference in federal court to clarify his government’s authority to regulate transportation of oil-sands bitumen through the province.

“We continue to disagree on the question of moving diluted bitumen from Alberta to the port of Vancouver,” he said.

He added, however, that he will stand down if the court rules against his government. The B.C. Premier said the tone of the meeting was cordial, noting that Mr. Trudeau assured him Ottawa would not pursue measures to punish B.C. over its pipeline position.

Starbucks bathroom policy: it sounds like Starbucks has an "open-door" policy for anyone who wants to use Starbucks bathrooms whether or not someone who wants to use the Starbucks customer is a customer or not. We'll see how this goes during a huge event when scores of folks show up to use Starbucks bathroom. We'll see how this goes in Starbucks stores in urban areas where there is a large number of homeless living. I do agree, that in this case, the manager "blew it" when he/she called the police, but my hunch is that there is more to the story than we are being told. I've never seen any situation in which someone was asked to leave Starbucks simply while waiting for a friend/colleague to show up. Something tells me there is much more to this story.

"Morning Note" And Wells Coming Off Confidential List Today -- April 16, 2018

Active rigs:

$66.35↓	4/16/2018	04/16/2017	04/16/2016	04/16/2015	04/16/2014
Active Rigs	59	51	29	93	184

RBN Energy: LNG and pipeline reversals turn Louisiana gas market upside down, part 5.

Wells coming off confidential list today:

Monday, April 16, 2018:
33376, 505, NP Resources, Mosser 143-102-10-3-1H,  Elkhorn Ranch, a nice well, Three Forks, NOS; 33 stages; 5.3 million lbs; t12/17; cum 25K 2/18;
32587, 1,587, CLR, Tarentaise Federal 12-19H2, Elm Tree; a very nice well, Three Forks B2; 42 stages; 7.2 million lbs, mesh/large/medium; 43K in one month; t11/17; cum 109K 2/18;
32269, SI/NC, BR, CCU Atlantic Express 23-19TFH, Corral Creek, no production data,
32267, conf, BR, CCU Pacific Express 22-19MBH, Corral Creek, no production data,

Sunday, April 15, 2018:
32268, SI/NC, BR, CCU Pacific Express 22-19TFH, Corral Creek, no production data,

Saturday, April 14, 2018:
33013, 711, Oasis, Hagen Banks 5198 12-6 9BX, Banks, producing, Banks, 4 sections, 50 stages;  4 million lbs; mesh; large/medium, and  medium ceramic, t10/17; cum 76K 2/18;
32916, 767, Oasis, Hagen Banks 5198 13-6 10T, Banks, a very nice well; Banks, Three Forks B1; 50 stages, 4 million lbs; mesh; large/medium, and resin-coated medium, t11/17; cum 121K 2/18;

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