Thursday, December 20, 2018

Another Active Rig Added In North Dakota -- December 20, 2018

Active rigs:

Active Rigs69514164182

Seven new permits:
  • Operators: Liberty Resources (5); Whiting (2)
  • Fields: East Tioga (Mountrail), Sanish (Mountrail)
  • Comments: Whiting has permits for a two-well Meiers pad on section 17-154-92; Liberty Resources has permits for a 5-well pad on section 29-158-93;
And that was all.

News Article Reads Like A Press Release From Saudi Arabia -- December 20, 2018


Later, 4:55 p.m. CT: talk about mixed messages. In the original post, we were told how conventional oil makes up 93% of the world's oil mix and much/most of that comes from the Mideast. And now we get this banner headline from oilprice:

How is cognitive dissonance spelled?
Original Post 
It's easy to forget this when focused on the Permian and the Bakken, but look at this, from Rigzone:
Conventional oil makes up around two-thirds of the world’s recoverable oil resources and accounts for 93 percent of today’s oil mix. More than half of this oil comes from oil fields that are past their peak and declining, revealed by a loss of about 3 million barrels of output last year.
To accommodate this yearly natural decline from old wells and to satisfy rising demand, the world needs a fresh supply of 5.7 million barrels each year according to the International Energy Agency (IEA).
With so much attention focused on the exceptional growth in U.S. tight oil supply to 11.5 million barrels per day (MMbpd) this year and forecasts of 12 MMbpd in 2019, it is easy to forget the pivotal role of the Middle East in global oil supply.
Rystad Energy analysts expect Middle Eastern oil production to grow by 2.7 MMbpd by 2025, driven largely by supply additions of 1.5 MMbpd from Iraq and another 1.2 MMbpd from the re-opened Neutral Zone—the area between Saudi Arabia and Kuwait—as well as the UAE and Iran.
OPEC countries hold nearly 82 percent of the world’s crude oil reserves of which the bulk 65 percent are in the Middle East, led by Saudi Arabia, Iran, Iraq, Kuwait and the UAE. The world’s cheapest oil producers, with costs between $9 and $10 a barrel in 2016, were respectively Saudi Arabia, Iran and Iraq because their oil lies close to the surface and is pooled in mega fields.
Moreover, the Middle East's producing countries have some of the lowest oil decline rates in the world, which matters greatly since, as one estimate suggests, the difference between a 5.7 percent (2017) and a 7.5 percent (2016) decline rate yields another 900,000 barrels online.
Rystad Energy notes that output from conventional fields beyond the Middle East peaked in 2010 and they expect it to continue falling to 45.6 million barrels a day, a 2.3 million barrel decline from current levels.
This is largely due to the oil price collapse in 2014, which triggered fierce cuts to exploration budgets in 2015 and 2016, flat investment during 2017, and only a slight uptick this year. 
In essence, capital investment fell from $750 billion to $460 billion in 2016 and has yet to recover, says the IEA. 
The impact is seen in discoveries of new oil, which fell to a record low in 2017 with less than 4 billion barrels of crude, condensate and NGLs.
Discoveries in 2018 are led by offshore Guyana with an estimated 4 billion barrels of oil equivalent, the Barents Sea, the north slope of Alaska, the Dorado field offshore Australia and new finds in Oman and by Norway.
However, unlike oil fields in the Middle East and U.S. tight oil for that matter, conventional offshore oil fields are huge, complex and expensive projects that take years to come to fruition. This has encouraged big energy companies in recent times to invest in acreage, drilling wells and hydraulic fracturing in U.S. shale, especially in the premier Permian Basin stretching from Texas to New Mexico. Drilling a tight oil well costs between $5 and $10 million, is fast—measured in days rather than years—and brings a return on investment within months.
More at the link.

This data point from the article is irrelevant and results in questionable credibility of the entire article:
The world’s cheapest oil producers, with costs between $9 and $10 a barrel in 2016, were respectively Saudi Arabia, Iran and Iraq because their oil lies close to the surface and is pooled in mega fields.

Bakken Oil Production Expected To Drop Next Month -- Platts -- December 20, 2018

It appears this is about production for the month of January, 2019. Note that official (final) production figures lag two months. The most recent Director's Cut was for data for October, 2018. The article below, I believe, pertains to January, 2019, data, estimates.

Also, we get an explanation for the incredibly low prices for North Dakota light sweet oil (Bakken) this past autumn. And we were correct in our guesses why prices were so low. 

From Platts: after months of record Bakken oil production, a dip is expected next month.
A combination of winter weather and sluggish upstream investment in the Williston Basin because of declining oil prices will likely cause output growth to plateau or slow in early 2019, potentially until May, Lynn Helms, North Dakota's top oil and gas regulator, said.
Helms added that investments in drilling, fracking and well completions all are slowing down because of the decline in Bakken oil prices.
Bakken crude oil price differentials saw pressure in October and November as growing production in the Williston Basin began to outpace available pipeline takeaway capacity.
Other factors that put pressure on prices was prolonged seasonal maintenance at Midwest refineries this fall and record-low prices for competing Canadian crude as oil there faced issues with takeaway constraints as well. Bakken crude in the Williston basin was assessed at a multi-year low November 1 at a $20.50/bbl discount to the NYMEX WTI calendar-month average.
The differential averaged WTI CMA minus $12.75/bbl in October and November. At their strongest level this year in June, Bakken Williston was trading at WTI CMA plus $1.75/bbl.
Prices quickly rebounded in December, however, after refinery maintenance was complete and there was an announcement that the Alberta government ordered a 325,000 b/d curtailment of Canadian crude production, starting January 1. Differentials spiked in December and Williston basin crude reached WTI CMA minus $3.50/bbl before leveling off at the end of the trade cycle for February. A few trades for January Bakken continue to get done and it was heard bid Thursday at WTI CMA minus $3.25/bbl.
By the way, Bakken companies might have actually made money when prices dropped this past autumn. Counterintuitive but very possible. 

CLR Looks To Put Seventeen Wells On A 2560-Acre Drilling Unit In Jim Creek Field -- December 20, 2018

From the January, 2019, NDIC hearing dockets, case number (not permit):
  • 27279, CLR, Jim Creek-Bakken, 17 wells on an existing 2560-acre unit, sections 6/7/18/19-146-95; Dunn County
This is a four-section stand-up drilling unit. In a four-unit stand-up, drillers often site the wells in the middle and drill standard long laterals, some going north for two sections; and, some going south for two sections.

As that section looks today:

The Pletan / Dvirnak wells are tracked here.

BR Looks To Put Nine Wells On A 640-Acre Drilling Unit In Charlson Field -- December 20, 2018

From the January, 2019, NDIC hearing dockets, case number (not permit):
  • 27250, BR, Charlson-Bakken, 9 wells on a 640-acre unit, section 34-153-95, McKenzie;
This section is a 640-acre drilling unit; part of a 1280-acre drilling unit; and part of a 2560-acre drilling unit. 

As that section looks today:

The wells in the graphic:
  • 33931, n/d, BR, Three Sons 1A TFH-ULW, Charlson, t7/18; cum 44K 10/18
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
  • 33932, 208, BR, Three Rivers 1B MBH, Charlson, t7/18; cum 72K 10/18
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
  • 33933, 192, BR, Three Rivers 1C TFH, Charlson, t7/18; cum 56K 10/18
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

33934, conf, BR, Three Washers 3D TFH-ULW, Charlson, no production data,
33935, conf, BR, Three Rivers 2C MBH, Charlson, no production data,
33936, conf, BR, Three Rivers 2A TFH, Charlson, no production data,

NDIC Hearing Dockets For January, 2019

NDIC posts the hearing dockets here.

Dockets are tracked here

The usual disclaimer applies. As usual this is done very quickly and using shorthand for my benefit. There will be factual and typographical errors on this page. Do not quote me on any of this. It's for my personal use to help me better understand the Bakken. Do not read it. If you do happen to read it, do not make any investment, financial, job, relationship, or travel plans based on anything you read here or think you may have read here. If this stuff is important to you, and I doubt that it is, but if it is, go to the source.

Wednesday, January 16, 2018 -- four pages (generally 10+ pages)

27237, Oasis, single well in Banks-Bakken, exception to rules, #34226, McKenzie
27738, Petro-Hunt, pooling, a single spacing unit, Charlson-Bakken; sections 15/22-153-95; McKenzie County
27239, QEP, Spotted Horn-Bakken, extend the timeframe in which development must occur in the E/2 of a 2560-acre unit, sections 24/25/36-150-95 and section 1-149-95, McKenzie County
27240, Hess, Wheelock-Bakken, establish an overlapping2560-acre unit; one well; Williams County
27241, Lime Rock Resources III-A, Cabernet-Bakken; establish an overlapping 2560-acre unit; one well; Dunn County
27242, BR, to indefinitely extend the June 1, 2019, deadline to spud a horizontal well in sections 18/19-149-96, or in the alternative revoke a PetroShale permit, McKenzie
27243, Hess, Tioga-Bakken, 13 wells on a 1280-acre unit, sections 25/26-158-95; Williams County
27244, Hess, Tioga-Bakken, 10 wells on each of two 1280-acre units, sections 35/36-158-95 and section 1-157-95/section 6-157-94; Williams, Mountrail
27245, Hess, Stanley-Bakken, 11 wells on a 1280-acre unit, section 33-156-91 and section 4-155-91, Mountrail
27246, Hess, pooling
27247, Hess, pooling
27248, Hess, commingling
27249, Whiting, commingling
27250, BR, Charlson-Bakken, 9 wells on a 640-acre unit, section 34-153-95, McKenzie
27251, BR, pooling
27252, BR, pooling
27253, BR, pooling
27254, BR, pooling
27255, BR, commingling

Thursday, January 17, 2018 -- eight pages (generally 10+ pages)

27256, NDIC; to consider actions/measures to be taken for existing/future horizontal wells in the Bakken and/or Birdbear pools in several oilfields: Ash Coulee, Beaver Creek, Bicentennial, Cinnamon Creek, Cooks Peak, DeMores, Elkhorn Ranch, Morgan Draw, Roosevelt Fields, and Billings County, Golden Valley County, and McKenzie County with a portion of a Birdbear Pool well open hole in the Bakken Pool
27257, Strike Oil, Inc.; Grano-Madison, proper spacing, Renville
27258, NDIC, a treating plant, in Black Slough Field, Burke County
27259, XTO, North Tobacco Garden-Bakken, to reduce the number of wells required on an existing overlapping 1920-acre unit, section 4/5/16-151-99; McKenzie
27260, XTO, North Tobacco Garden-Bakken; establish an overlapping 3840-acre unit; sections 4/5/8/9/16/17-151-99, McKenzie
27261, XTO, unitizing the Grinnell-Bakken Unit Area, McKenzie, Williams
27262, WPX, Antelope-Sanish, establish an overlapping 1280-acre unit, E/2 of sections 25/36-151-95 and the W/2 of sections 30/31-151-94; one wells; McKenzie
27263, WPX, Mandaree-Bakken, establish an overlapping 2560-acre unit, sections 8/9/16/16-149-93; one well; Dunn
27264, WPX, Spotted Horn-Bakken, establish an overlapping 1280-acre unit; sections 28/33-150-94; one well; McKenzie
27265, Enerplus, Spotted Horn-Bakken, i) terminate a 1920-acre unit; instead establish an overlapping 1280-acre unit, one well; ii) establish an overlapping 2560-acre unit, one well; McKenzie
27266, Ballantyne, North Souris-Speafish pool; to rework the Corinthian Skarphol #22064 as a water injection well; Bottineau
27267, Yellowstone-Bakken, proper spacing, McKenzie
27268, CLR, recomplete the MPHU 41-16A, #13603, Mission Canyon formation; Bowman County
27269, CLR, Chimney Butte-Bakken, i) establish an overlapping 2560-acre unit, one well; ii) establish an overlapping 2560-acre unit; two wells; Dunn County
27270, CLR, Pembroke-Bakken; revoking permits issued to Newfield, the Sailfish wells; McKenzie
27271, CLR, Pembroke-Bakken; revoking permits issued to Newfield, the Kummer wells; McKenzie
27272, Sinclair, pooling
27273, Sinclair, pooling
27274, Abraxas, North Fork-Bakken; two wells, McKenzie
27275, Abraxas, North Fork-Bakken, two wells, McKenzie
27276, CLR, pooling
27277, CLR, pooling
27278, CLR, Pembroke-Bakken; nine wells on an existing 1280-acre unit, sections 4/9-149-98; McKenzie
27279, CLR, Jim Creek-Bakken, 17 wells on an existing 2560-acre unit, sections 6/7/18/19-146-95; Dunn County
27280, CLR, Little Knife-Bakken, 10 wells on an existing 1280-acre unit; sections 13/24-145-97, Dunn County
27281, CLR, commingling
27282, XTO, Lost Bridge-Bakken, 14 wells on an existing 2560-acre unit; sections 7/18/19/30-148-96; Dunn County
27283, Zavanna, SWD
27284, Secure Energy, SWD
27285, Secure Energy, SWD
27286, Slawson, SWD
27287, Peregrine Petroleum Partners, SWD

The Market, Energy, And Political Page, Part 2, T+45 -- December 20, 2018

Call for the wall: the issue may not be yet settled. Just breaking. Interesting. The tea leaves suggest that Trump is holding the line.

The market meltdown. Scott Adams suggests:
  • Trump-China tariffs issue would have slowed down the US economy on its own
  • now, with the Fed slowing down the economy through raising the rates
  • a double whammy
Fed: raised rates in Trump's first two years of presidency more times than it raised rates during the entire Obama presidency, eight years, and the Fed says it will continue raising rates (at least twice more next year).

WTI: One of the best oil contributors over at twitter:
A lot of crazy crap happens in the oil market every now and then. You get used to it. But at least when it happens there is normally a reason (however crazy) to explain it. What's happening to price this week is just nuts... 
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.

Market tip: if you think the world will still be using oil five years from now, and if you think CAPEX is not keeping up with future demand, then it seems like an open book test ...

Canada: closed for business.

Saudi Arabia: 2019 will be a huge test for MBS.

American businessmen: usually don't pay attention to the business pages.

Confused: liberal press has not yet gotten the story line to push regarding Trump's decision to exit Syria. The "Resist Trump Movement" was caught off-guard. Announcement just before the Christmas break was brilliant. Later: from twitter --
Note to liberals who now support military force in Syria because of the Kurds or Russia or Iran or Turkey or humanitarian reasons: NONE OF THOSE WAR ACTIONS WERE AUTHORIZED BY CONGRESS. Only authorized use of force was to go after terrorists. President Trump is right to withdraw troops.
The Movie Page

I watched David Lean's Oliver Twist (1948) last night on TCM. Absolutely delightful. It was the first time I had ever seen it. I would consider it "must-see" television if one has not seen it.

Watching The Great Gatsy again today. A bit of it is too intense, to violent for adolescents, but an incredibly good movie. Because it was an incredibly good story. Our older granddaughter's has as a school assignment to read The Great Gatsby over Christmas break. Where does one even begin? Arianna loves geography.

I would have her lay out a map of Long Island, the Long Island Sound, Manhattan -- and watch the opening scenes of movie -- the green light, the relative locations of the two mansions, and Manhattan in the background.

And ... I finally learned the definition and etymology of "sound" -- the geographical term.

Saudi Arabia Announces A Record Budget -- December 20, 2018

Prior to this news story, it was forecast that Saudi's "break-even" price for oil is $84/bbl going into 2019. Let's see if this story provides the "new" "break-even" price for Saudi Arabia.

From oilprice:
  • Saudi Arabia's proposed 2019 budget: almost $300 billion 
    • seven percent (7%) more than 2018
    • breaks all previous spending records for Saudi Arabia
    • includes a hefty bill for cost-of-living allowances introduced this year
    • those allowances add an estimated $13 billion
    • the deficit will go to 4.2%; previous forecast at 2%
    • the sixth straight year of budget deficits for the kingdom
  • this year's (2018) deficit projected to be 4.6%
  • finally, at the end of the article, the break-even is estimated to be $88 but it's not clear if that takes into account all the new information
  • OPEC basket and Brent are each trading at around $55
  • simple arithmetic suggests that Saudi Arabia could be selling each bbl of oil at a loss of $33/bbl -- yes, I know
The number I will be tracking: 1,800,000 million Saudi Riyals. Ten-year graphic:

Before the market dropped, Jeff Bezos, in very rounded numbers, had a net worth of about $150 billion.

Canada's SAD Agency Kills Exxon's Plan For Huge LNG Export Terminal Off British Columbia -- December 20, 2018

If one does a "word/phrase" search on the blog for "closed for business," this is the first hit --
KMI, Suggesting Canada Is Closed For Business, To Sell All Canadian Assets -- September 17, 2018.
It appears ExxonMobil has also figured that out -- that Canada is closed for business. This is absolutely incredible.

Don sent me the link. Thank you.

From Reuters:
U.S. oil major Exxon Mobil Corp has withdrawn its WCC liquefied natural gas (LNG) export project in Canada from an environmental assessment.
British Columbia rules require large projects to obtain an Environmental Assessment Certificate before they can be developed.
An examination of the project by the Canadian Environmental Assessment Agency has been going on since February 2015.
LNG demand is growing but environmental groups say exports will boost carbon emissions in Canada, both through gas extraction and the liquefaction process.
Let's see, simple arithmetic suggests that as of February, 2019, the Canada's Stop-All-Development Agency, will have held up this project for four years.

But unlike TransCanada, it appears that Exxon has learned to cut its losses.

Exxon is taking advantage of projects where they might actually be built. From the article:
Exxon’s decision signaled it is concentrating on LNG projects with Qatar Petroleum and a proposed expansion of its chilled-gas operation in Papua New Guinea.
Well, duh.

As a side note: Qatar again shows up in the news

Meanwhile, look at what is happening in the US:

One can assume that these projects would have never gotten this far along by now (or would have been killed outright altogether) had Hillary been elected president.

I count eighteen LNG projects in the graphic above.

The Market, Energy, And Political Page, T+45 -- December 20, 2018

Jobs, weekly first time claims unemployment report, link here:
  • prior: 206K
  • forecast/consensus: 220K (an increase of 14K)
  • actual: 214K (6K less than forecast)
  • new claims, change: +8K
  • prior: -27K

When You Look At This Graphic, Remember: It's Been A Warm Winter So Far -- December 20, 2018


December 23, 2018: from a reader who follows this very, very closely -- see first comment --
Here's the same historical comparisons that I ran last week:
Putting this week's storage data into historical perspective, the 2,773 billion cubic feet of natural gas that we had in storage on December 14th was 15.8% lower than the previous five year low for the 2nd week of December of 3,295 billion cubic feet that was set on December 12th of 2014, and was 12.4% below the previous 10 year low of 3167 billion cubic feet that was set on December 12th of 2008. 
This year's December 14th storage level was also 1.0% below the 15 year low of 2,802 billion cubic feet of natural gas that we had in storage on December 16th of 2005, and 2.7% below the 2,850 billion cubic feet that were in storage on December 12th of 2003, a year when supplies had peaked at a lower level than this one. 
We have to follow the archived records back 16 years, to December 13th of 2002, when 2,635 billion cubic feet of natural gas were in storage, to find a lower quantity of natural gas in storage at this time in December than we have now. 
Here's a temperature graphic from the EIA gas storage dashboard in support of Platt's forecasts for smaller withdrawals: 
It's pretty clear that the week to the 20th was much warmer than the prior one in every region. 
But forecasts for January are looking closer to normal again, and January will be the tell as to whether we get in trouble before spring or not.
Later, 3:28 p.m. CT: the NG withdrawal was huge this past week, but it is expected withdrawals will be reduced in the coming weeks. From Platts. 

Original Post 

Link here.

The small print:
  • five-year average: 3,493 Bcf.
  • current inventory: 720 Bcf below that five-year average.
  • 720 is 20% of 3,493.
  • current inventory: 2,773 Bcf.
  • 2,773 is slightly less than 80% of the five-year average.
Let's hope the winter stays warm.

All in all, it's a pretty stunning graphic, and a pretty stunning number this week. The natural gas market does not reflect the deficit: natural gas is trading for $3.16 today, down about a percent.

Same graphic with lots of lines:

Around The Bakken -- December 20, 2018

CLR: two wells each have produced more than 500,000 bbls in less than two years. Production for two incredible CLR first and second bench Three Forks wells has been updated. The wells are tracked at this post. It appears #32606 was renamed. Both of these wells are very, very "long." They are both about 25,000 feet long -- the length of three sections -- but only a 1280-acre drilling unit. They had to be set almost a section back from the river. Both horizontals are "under the river."  

The wells:
  • 32606, 2,305, CLR, Brangus North 1-2H2/Brangus Federal 1-2H1, SWNW 26-154-94, 2200' FNL and 537' FWL, Elm Tree, 24,628', 9-5/8 inch, 46 stages; 10 million lbs; 24,942 feet, API 33-061-03939; according to FracFocus, it was fracked 7/30/16 - 8/7/17, with 8.6 million gallons of water; water, 88% of proppant by mass; sand 11% of proppant by mass, the second bench of the Three Forks, t9/16; cum 532K 10/18
  • 32605, 1,995, CLR, Charolais North Federal 1-3H1, t9/16; cum 548K 10/18; SWNW 26-154-94, 2200' FNL and 492' FWL, Elm Tree, 24,741', 9-5/8 inch, 46 stages, 10 million lbs; 24,741 feet; surface hole in section 26-154-94; bottom hole in section 10-153-94; API: 33-061-03938, according to FracFocus, it was fracked 8/7/17 - 8/14/16, with 9.1 million gallons of water; water, 88% of proppant by mass; sand 11% of proppant by mass.
  • 29190, 622, EOG, Parshall 406-34H, Parshall, 21 stages; 5 million lbs, t11/16; cum 69K 10/18; off line as of 9/18; struggling; geologist's report --
    • spud date: October 14, 2014
    • KOP reached: October 16, 2014
    • FTD: October 21, 2014
    • total lateral: 5,263 feet
    • middle Bakken: 5,263 feet, in zone, 100%
    • middle Bakken entered at 9,528 feet;
    • lateral began October 19, 2014; TD - 14,825 feet; reached October 21, 2014
    • seven days from spud to TD
    • maximum gas through the curve: 380 units
    • maximum gas in the lateral: 1,754 units; no flare
MRO. From an earlier post, now updated. This well was on AB list at one time; now back on line:
December 17, 2014: I noted this well on the MRO likely-to-be-refracked wells to have been taking off-line in early January, 2014; curious when it will go back on line; according to FracFocus as of 10/18, not re-fracked:
  • 19375, A/AB/IA/308, MRO, Gertrude Tuhy 34-24H, 33-025-01147, Chimney Butte, Bakken, 14 stages; 2 million lbs; t3/11; cum 49K 10/18; last production of any note 1/14; six days of production in April, 2015; back on line as of April, 2015; full month of production May, 2015; full month, 6/15; noted in 11/15 to be inactive; noted to be AB, 12/16; but now back on line, 9/18;
CLR: From an earlier post, we now have re-frac data for this well. Full production profile here.
June 25, 2016: CLR re-frack in the Rattlesnake Point oilfield. #17089. Update: this well was taken off-line 7/16; getting ready for a re-frack? Recent sundry form says they are getting ready to drill more wells in this area -- was that reason for coming off-line? API: 33-025-00731. FracFocus does not show this well as having been fracked. Now inactive; still inactive as of 5/17. Active as of 6/17; small production, one day, 6/17. Then, 2,000 bbls over 5 days in 7/17; fracked; completed, tested 8/10/2017 with an IP of 1,344; 40 stages; 14.3 million lbs;

Random Update Of An Old CLR Weydahl Well Impacted By Neighboring Fracks -- December 20, 2018

  • The well is coming back on line:
16510, 1,082, CLR, State Weydahl 44-36H, Corral Creek, t4/07; cum 332K 10/18;
This well will be impacted by the newly fracked Weydahl/Brandvik wells which are tracked here.

From an earlier post:
October 18, 2015: follow-up production jump on #16510. There was what appears to be a halo effect in June, 2015, but there are still three more wells waiting to be fracked; it will be interesting to see how fracking these three north/south wells affect the double-lateral #16510. This well, #16510, needs to remain on the list of wells that need to be followed up (March 27, 2016). Follow-up here
Recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

One-thousand bbls at eight days extrapolates to 3,750 bbls/month, up significantly from the 750 bbls/month prior to the neighboring wells being fracked. This well, #16510, is back on the list of wells that need to be followed for a few more months.

Cushing Update -- RBN Energy -- December 20, 2018

Tallgrass Energy: may be up for sale -- Fitzsimmons over at SeekingAlpha --
  • Tallgrass popped higher Wednesday. and it's not even a marijuana stock.
  • Bloomberg says a consortium of companies including StonePeak Infrastructure Partners are considering a deal to buy Tallgrass.
  • Three insiders bought a total of 88,828 shares during November for a total value of $1.8 million-plus.
  • Institutional and insider ownership is high, which means individual investors will have little say and are just along for the ride.
  • Recent insider buys indicated management would need a price of at least $25.50/share for a 20% return on their recent insider buys.

OPEC may fail to get the price correction it wants.

Back to the Bakken

Wells coming off confidential list today -- Thursday, December 20, 2018:
  • 34921, SI/NC, Slawson, Whitmore 4-7-6H, Parshall, no production data, 
  • 34206, SI/NC, Hess, BB-Chapin-151-95-0506H-10, Blue Buttes, no production data,
  • 33691, 1,011, Oasis, Lite 5393 41-11 12T, Sanish, Three Forks, 50 stages; 10 million lbs (small, medium, large white sand and ceramic), t7/18; cum 93K 10/18;
Active rigs:

Active Rigs68514164182

RBN Energy: Cushing -- still the preeminent crude oil hub for the US. Archived.
The Cushing, OK, storage and trading hub plays critically important roles in both the physical and financial sides of the crude oil market. Located at a central point for receiving crude from a wide range of major production areas — Western Canada, the Bakken, the Rockies, SCOOP/STACK and the Permian among them — the hub also has numerous pipeline connections to Gulf Coast refineries and export docks, and to a large number of inland refineries. And, with Cushing’s 94 MMbbl of storage capacity and status as the delivery point for NYMEX futures contracts for West Texas Intermediate, the hub’s inventory levels and the WTI-at-Cushing price are closely watched market barometers.
But like a lot of other U.S. energy infrastructure in the Shale Era, Cushing’s place in the energy world has been in flux. Most importantly, Permian production has been surging, the ban on U.S. oil exports is a fading memory, and the Gulf Coast — not Cushing — is where most U.S. crude production wants to go.