Wednesday, May 29, 2019

Big Drop In WTI -- Now Below $58; RBN Energy Looks At The New Washington State Law Aimed At The Bakken -- May 29, 2019

Louisiana LNG: $1.3 billion project. Data link here:
  • Calcasleu Pass LNG export facility
  • Cameron Parish, LA
  • 10-million tonne per annum 
  • will use mid-scale, modularly, factory-fabricated liquefaction trains from Baker Huges, a GE company
  • Stonepeak Infrastructure Partners will exclusively provide $1.3 billion equity investment in Venture Global LNG's venture
  • total committed capital to fund construction now totals $2.2 billion
  • more than $250 million has already been spent on preparation work
But there's more:
  • Venture Global also anticipated FERC approval for its 20-mtpa Plaquemines LNG project along the Mississippi River near New Orleans
And, there's more:
  • Venture Global has also proposed developing a second 20-mtpa facility, Delta LNG, nearby
The list: the list of potential US LNG export facilities is here.

Snarky: when I first posted that list, I vividly recall a reader writing me that just because something is proposed, doesn't mean it's going to happen. Whatever.  I'm now thinking that was an anonymous note from President Obama.
Back to the Bakken

Wells coming off the confidential list after the long weekend and today -- Wednesday, May 29, 2019: 94 for the month; 188 for the quarter --
  • 35378, SI/NC, Newfield, Skipjack 149-98-11-2-4H, Pembroke, no production data,
  • 35096, 795, Liberty Resources Management Company, LLC, Stanley W 158-91-30-6-1MBHX, Kittleson Slough, t12/18; cum 67K 3/19;
  • 34907, SI/NC, Hess, SC-JCB-LE-154-98-1720H-1, Truax, no production data,
  • 34803, 1,299, Nine Point Energy, Erickson 155-102-26-25-6H, 60 stages, 10 million lbs, Squires, t12/18; cum 108K 3/19;
  • 30485, 500, BR, Jerome 14-10MBH, North Fork, t4/19; no production data,
Tuesday, May 28, 2019: 89 for the month; 183 for the quarter --
  • 35738, SI/NC, Newfield, Skipjack 149-98-11-2-12H, Pembroke, no production data,
  • 35457, SI/NC, WPX, Minot Grady 26-35HWL, Squaw Creek, no production data,
  • 34043, 484, Lime Rock Resources III-A, L.P., Harstad 44-9-2H, Stanley, t11/18; cum 38K 3/19;
  • 30486, 178, BR, Merton 14-10MBH, North Fork, t4/19; no production data,
Monday, May 27, 2019:
  • 35296, SI/NC, WPX, Minot Grady 2635HZ, Squaw Creek, no production data,
  • 30487, 77, BR, Merton 14-10TFH ULW, North Fork, t3/19; no production data,
Sunday, May 26, 2019:
  • 35361, SI/NC, Hunt, Halliday 146-92-19-18H-6, Werner, no production data,
Saturday, May 25, 2019:
  • 35298, SI/NC, WPX, Minot Grady 26-35HD, Squaw Creek, no production data,
  • 35297, SI/NC, WPX, Minot Grady 26-35HZ, Squaw Creek, no production data,
  • 34906, SI/NC, Hess, SC-JCB-154-98-1720H-9, Truax, no production data,
Active rigs:

Active Rigs6465502980

RBN Energy: will a new Washington State law hurt Bakken crude oil producers? Archived.
Refineries in Washington state have been reliable buyers of Bakken-sourced crude oil during the Shale Era, receiving an average of about 145 Mb/d — all of it by rail — over the past two-plus years. But a newly approved Washington law slashing the allowable vapor pressure limit for crude being unloaded from rail tank cars could hinder future growth in crude-by-rail shipments from North Dakota to the Evergreen State, or force Bakken producers to remove more butane and other “light ends” from the crude oil they rail west. It’s such a big deal that the state of North Dakota has indicated it will file suit to kill the new law. Today, we discuss Washington’s new law and its potential effects on Bakken crude oil producers.


  1. the state of North Dakota should ban Boeing jets from landing or flying over the state

    1. I think the air bases in Minot and Grand Forks would also be affected.

  2. Our (WA) pinhead governor basically controls the state thru three or four counties on the westside of the Cascade mountains. He just signed a bill mandating that all of its electricity comes from carbon-free sources by 2045.In addition to requiring 100 percent clean energy, Washington’s law mandates a coal phaseout by 2025. The 2045 statute will require no NG gas produced electricity too. All the windfarms and solar farms will be placed on the eastside of the mountains, out of the democrat controlled population centers and into historical republican counties. I hope ND sues and they win.

    1. One of the things "common" folks do not understand is that "2045" is now. "Common" folks think that the "carbon-free by '45" law will never affect them is not accurate. Now, starting this year, as soon as the bill was passed, any project must meet to carbon-free criteria. For all intents and purposes, "carbon-free" laws are anti-growth laws. A lot of Washington folks who support the governor won't know what hit them until it's too late.

  3. US LNG has been amazing. I just meant that there's more projects nosing around than come through. The ones that do come through are plenty awesome.

    Just it's important to be a little skeptical/sophisticated about individual project hype. Some of these places puff themselves up with news releases when they really haven't turned the corner yet. There are various stages of these projects (2 or 3 important permitting hurdles, contract approval hurdle, FID, construction, commissioning, online. Of these FID is the key hurdle. Before that project can die. After it, project likely finishes.

    Not every contractor with a pickup truck, a dog and a PPT slide show is going to really get a multibillion dollar project over the line. Lots of these guys will never get financing or customers. Many of the second wave projects have been in limbo for last few years. Finally a couple are moving forward. But they're either existing players or big badasses like XOM/Qatar.

    If you look at the total projects, it would be like 35 BCF/d. But we're unlikely to see all those projects get done. For one thing it would crash the market. Even though there is plenty of gas here, there's limits on the overseas demand. And you do have to cover shipping and liquifaction costs, not just gas purchase cost.

    1. That would be true in most endeavors, I would assume. For example, in Texas, some retailers joke that HEB plans to put up a grocery store on every corner and very, very few of those plans ever come to fruition.