Recent Bakken Discount To WTI -- February 8, 2019

A reader asked why royalty checks from EOG were so low for November, 2018 in a comment at another post.

That was due to the incredibly low price for Bakken oil (even compared to WTI), not unique to EOG.

I noticed the low Bakken price at the time but did not know why and did not investigate. I assumed it was a "takeaway" problem, either rail or pipeline.

Later, Lynn Helms explained it was a one-time (or will last only a short period of time) anomaly due to some "takeaway constraint." He was much more specific; I remember blogging about it but can't find that post now. If I run across it I will post it. Regardless, both Lynn Helms and Platts (see link below) noted it and commented on it as a one-time anomaly due to some specific pipeline constraint.

Be that as it may, the Bakken discount to WTI will be seen in the December data which will be posted in the February, 2019, Director's Cut, due out next week. In fact, based on the data below, it could be worse. Bakken pricing seems to be slowly improving.

My hunch is that some reader will know specifically the pipeline constraint that resulted in this pricing anomaly. Any help on this will be appreciated -- even if it's anonymous.

Two links:

• Director's Cut, November, 2018, data.
• Platts, December 2, 2018.

From the January, 2019, Director's Cut with November, 2018, data:

By the way, if the judge were to rule "against" the DAPL -- yes, a case is still being considered by "the judge" -- .... well, what can I say?