Busy, Busy Thursday Morning -- January 31, 2019

Busy, busy morning. Reminders:

• COP
• CVX/Permian
• GE
• M/C
• Straws
• Smash
• NG
• 55 degrees
• The Big Lebowski
• Permian pipeline
• Chevron refinery
• The oil shock that never was

Jobs report: government shutdown? Claims surge; nearly a one-and-a-half year high. CNBC's analysis:

• The report could raise concerns that the labor market is slowing.
• The surge could reflect filings by non-federal government workers who were temporarily unemployed during the partial government shutdown that recently ended.

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Back to the Bakken

Only one well coming off the confidential list today -- Thursday, January 31, 2019: 102 wells for the month; 102 wells for the quarter

• 33539, SI/NC, CLR, Sakakwea Federal 1-19H2, Elm Tree, minimal production prior to frack;

Active rigs:

$54.37	1/31/2019	01/31/2018	01/31/2017	01/31/2016	01/31/2015
Active Rigs	65	59	40	45	146

RBN Energy: WhiteWater midstream's latest Permian gas pipeline project. 

While Permian natural gas pipeline announcements came fast and furious last year, it had been relatively quiet on that front the past few weeks. Leave it to the folks at WhiteWater Midstream to break the lull, which is exactly what they did with the recent announcement of a binding open season for a new interstate pipeline in the heart of the Delaware Basin. Named Steady Eddy, the pipeline would originate in an underserved corner of the Permian and provide access to the Waha Hub, where a number of planned greenfield pipelines leaving the Permian will begin. Today, we look at the details of WhiteWater’s proposed Steady Eddy pipeline project.

2018 was an eventful year for Permian natural gas infrastructure, a frequent blog topic here in the RBN blogosphere. Natural gas production surged in the basin, topping 9 Bcf/d by the end of the year and sending prices in the region into negative territory as takeaway constraints worsened.

On the infrastructure front, some major projects took significant steps forward and more greenfield pipelines were proposed that would eventually alleviate those constraints. Among projects that advanced their development last year, Kinder Morgan began construction on the Gulf Coast Express Pipeline (GCX), a 42-inch-diameter, 1.98-Bcf/d greenfield pipeline that will originate at the Waha Hub in the Permian and extend to the Agua Dulce Hub in South Texas. GCX is owned by a partnership that includes Kinder, DCP Midstream, Targa Resources and Altus Midstream. Kinder Morgan also reached a final investment decision (FID) on another greenfield pipe: the Permian Highway Pipeline (PHP). PHP is another 42-inch-diameter pipeline that will be built by Kinder Morgan and is jointly owned by Kinder and EagleClaw Midstream; Altus Midstream also has an option to become a 20% equity owner in the project.

Besides those two projects reaching important milestones, two other potential greenfield natural gas projects were announced last year. Williams announced its Bluebonnet Market Express Pipeline, a potential 2-Bcf/d pipeline from Waha to the Katy, TX, area that could go into service by late 2020. There was also an announcement from WhiteWater Midstream; the company, along with partners Targa and MPLX, in August announced the 2-Bcf/d Whistler Pipeline, which would consist of about 450 miles of 42-inch-diameter pipeline from Waha to the Agua Dulce Hub. Whistler is also proposed to have an approximately 27-mile extension into the Midland Basin via a 30-inch pipeline lateral.

Now for some details on WhiteWater’s most recently announced project. As proposed, Steady Eddy would consist of approximately 25 miles of 24-inch-diameter pipeline extending from Eddy County, NM, to northern Culberson County in West Texas.

Go to the linked article for the rest of the story.