Seven Wells Coming Off Confidential List Today; Enbridge Wins Big -- March 28, 2019

Enbridge / Line 3: win big -- in court -- Minnesota -- again. 

Wells coming off confidential list today -- Thursday, March 28, 2019: 120 wells for the month; 340 wells for the quarter

• 35433, SI/NC, XTO, Emma 31X-30A, Alkali Creek, no production data,
• 34927, 2,663, WPX, Plenty Sweet Grass 18-19HF, Squaw Creek, t2/19; cum --;
• 34912, SI/NC, Hunt, Halliday 146-93-13-1H-1, 
• 34416, 1,086, Enerplus, Scissors 149-93-04B-03H, Mandaree, t10/18; cum 83K 1/19;
• 34415, 1,490, Enerplus, Thimble 149-93-04B-03H, Mandaree, t10/18; cum 113K 1/19;
• 34414, 1,450, Enerplus Tailor 149-93-04B-03H-TF, Mandaree, t10/18; cum 73K 1/19;
• 24045, SI/NC, Petro-Hunt, State 154-94-31C-32-1H, Charlson, no production data;

Active rigs:

$58.58	3/28/2019	03/28/2018	03/28/2017	03/28/2016	03/28/2015
Active Rigs	66	62	49	31	97

RBN Energy: negative Permian gas prices, but is the worst yet to come?

Permian natural gas prices are having a rough spring. After a volatile winter that saw two periods of negative-priced trades followed by a period of relatively strong prices, values at the Permian’s major trading hubs hit the skids earlier this week just as Spring Break set in for most in the Lone Star state. Once again, pipeline maintenance and burgeoning production appear to be the main culprits, but this upheaval feels different, in our view.

Clearly, the price crash has reached a new level of drama, with day-ahead spot prices at West Texas’s Waha hub now settling below zero — some days by more than $0.50/MMBtu. Gas production has raced higher too, now within striking distance of 10 Bcf/d, on the coattails of continued oil pipeline capacity expansions, but new gas pipeline takeaway capacity is an estimated six months away. What becomes of Permian gas prices in the meantime, and how much worse could already-negative prices get? Today, we discuss the drivers behind the latest price deterioration and assess what’s ahead for the Permian natural gas markets.