NOG Will Present Today; ND Rigs Back To 64 -- April 9, 2019

The Red Queen is back, The WSJ. Link here. 

Brexit deal: best for oil, gas industry. "No deal" not good outcome. Link here. 

Inventories: still too high -- and significantly -- Saudi Arabia. Link here.

EOR: remember all those stories that operators would not produce as much oil as projected! Now, "EOR push may make the Permian even bigger." Link here to Bloomberg. Data points:

• Occidental
• New Mexico
• CO2
• goal: move primary recovery from 10 - 11 percent to 17 - 18 percent

NOG: will present today at IPAA's symposium, NYC, link here. 

Wells coming off the confidential list today -- Tuesday, April 9, 2019: 29 wells for the month; 29 wells for the quarter

• 33682, drl, Crescent Point Energy, CPEUSC Berner 7-19-18-157N-99W TFH, Lone Tree Lake, no production data,3
• 35215, SI/NC, XTO, Teddy Federal 12X-5EXH, Haystack Butte, no production data,

Active rigs:

$64.47	4/9/2019	04/09/2018	04/09/2017	04/09/2016	04/09/2015
Active Rigs	64	58	49	31	93

RBN Energy: Rockies NGL production gains spur Williams / Tara pipe-and-frack deal.

Rising natural gas liquids production in the Niobrara is increasingly straining existing pipeline capacity out of the region and has spurred midstreamers to propose various combinations of new pipelines, expansions to existing pipelines and pipeline conversions in order to ease constraints. One of the latest entrants is a joint venture of Williams and Targa Resources that would expand Rockies producers’ ability to move mixed NGLs to the Mont Belvieu, TX, hub for fractionation and marketing/export. Williams plans to build a 188-mile pipeline — Bluestem — that would extend from its Rockies-to-Conway, KS, Overland Pass Pipeline to Kingfisher County, OK. For its part, Targa will build a 110-mile extension of its new Grand Prix NGL pipeline from southern Oklahoma north into Kingfisher to connect with Bluestem. As part of the deal, Williams has also contracted substantial volumes on Grand Prix as well as at Targa’s fractionation facility at Mont Belvieu. Today, we discuss Williams and Targa’s plan.

We should begin by noting that while Williams for decades has been a dominant gas-processing player elsewhere in the Rockies — including the Green River-Overthrust, Piceance and San Juan production areas — it has only recently become a gas processor in the Niobrara’s Denver-Julesburg (D-J) Basin. The company and joint-venture partner KKR & Co. in July 2018 announced a nearly $1.2 billion deal to acquire Discovery DJ Services. Discovery started up its first gas processing plant in the D-J in Fort Lupton, in Weld County, CO (capacity, 60 MMcf/d) in the third quarter of 2017; that plant, now owned by Williams and KKR, recently underwent an expansion that increased its capacity to 260 MMcf/d. Williams also is planning four 225-MMcf/d processing plants in Weld County — Keenesburg I and II, both of which will come online later this year — and Milton I and II, which will start up in 2021 and as soon as 2022, respectively. That means that within three years or so, Williams may well have more than 1.1 Bcf/d of D-J gas processing capacity, making it a leading NGL producer in the play.