Number Of Active Rigs Drops To 63; Five DUCs Reported As Completed -- June 11, 2019

API: another "surprise" build -- we've discussed this before, these "surprise" buids -- the builds are always "surprise builds." Whatever. Link at oilprice. So, what was the data released today?

• consensus: a drawdown of 481,000 bbls (note the false precision)
• actual API US crude oil inventory: at 4.852 million bbls, the build was 10x what the "drawdown" forecast number was (481,000 bbls) 
• price? flat -- I guess traders are getting used to these "surprise builds"
• EIA will report tomorrow
• previously
• last week: a "surprise" build of 3.545 million bbls
• the week prior to that: another "surprise" build of a whopping 6.8 million bbls

This is simply staggering:

• crude: + 4.852 million bbls (Cushing)
• gasoline: +2.365 million bbls
• distillate: +0.829 million bbls

The big story: without state and federal mandates, and huge tax credits, wind and solar are dead.

US production: EIA projects that US oil production will hit 13 million bopd by January, 2020. M. King Hubbert is rolling over in his grave. RIP. 

Not on the nightly news tonight (see first comment below; apparently Rigzone/Bloomberg analysts are using a "broad" definition of "oil": 

However, this is still making the rounds on NPR:

What a doofus!

It looks like there might be an interesting story playing out:

• Saudi Arabia: will do what it takes to keep oil prices up -- so, Saudi Arabia could cut production to 9 million bopd
• Russia: not ready to cede "bragging rights" to the US; may increase production to the dismay of the Saudis
• US: free market capitalism ... unless Trump is defeated in 2020 -- then, who knows?

********************************************

Back to the Bakken

Active rigs:

$53.27	6/11/2019	06/11/2018	06/11/2017	06/11/2016	06/11/2015
Active Rigs	63	63	52	28	77

Six new permits:

• Operator: RimRock
• Field: Heart Butte (Dunn County)
• Comments: RimRock has permits for a 6-well Skunk Creek permit in lot 4/section 18-148-92, Heart Butte oil field

Six permits renewed:

• Hess: six JW Hamilton permits in Williams County

Five producing wells (DUCs) reported as completed:

• 35241, 2,173, WPX, Badlands 4-33-28HA, Heart Butte, t5/19; cum --;
• 35242, 2,400, WPX, Badlands 5-32-29HT, Heart Butte, t5/19; cum --;
• 35790, 2,657, Whiting, Link 21-15-3H, Foreman Butte, t5/19; cum --;
• 35574, 658, Goliath 150-98-5-8-11H, Siverston, t5/19; cum --;
• 35389, 1,427, Goliath 150-98-5-8-6H,  Siverston, t5/19; cum --;