Will WTI HIt $60 Today? -- June 28, 2019

Re-posting:

US crude oil production: new all-time high -- 12.2 million bopd -- Rigzone/API. And note:

“These milestones were achieved despite less drilling activity, which is testament to productivity but also pipeline infrastructure expansions that helped enable drilled but uncompleted wells to come to market,” the API report stated.

Subject du jour: crude oil inventories in the US; removing pipeline capacity as part of storage inventories; tank bottoms still included as part of US crude oil inventories. Buy-side analysts trying to suggest US crude oil inventories barely able to support US refiners' demand.

EIA chimes in:

Two wells come off confidential list today -- Friday, June 28, 2019: 79 for the month; 268 for the quarter;

• 34955, 108, Petro Harvester Operating Company, PTL2 04-28 164-92 A, Portal, target: Madison, t3/19; cum 6K after 38 days; horizontal; TD = 15,354 feet;
• 34400, SI/NC, WPX, Lion 18-19HY, Mandaree, no production data,

Active rigs:

$59.59	6/28/2019	06/28/2018	06/28/2017	06/28/2016	06/28/2015
Active Rigs	59	66	58	30	75

RBN Energy: Enbridge's mainline crude system advances toward a new era, part 4.

Enbridge’s long-running effort to revamp how it allocates space — and charges for service — on its 2.9-MMb/d Mainline crude oil pipeline system is about to enter a new and important phase. On July 15, the Calgary, AB-based midstream giant plans to initiate an open season for shippers interested in locking up long-term capacity on the Mainline, which serves as the primary conduit for heavy and light crude from Western Canada to U.S. crude hubs and refineries. If all goes well, shippers will know by late in the year how much space they will have on the system starting in mid-2021, assuming Enbridge’s plan is approved by regulators. This is a huge change. The Mainline isn’t just the largest crude pipeline system out of Western Canada, it’s also the only major line whose service is currently 100% “uncommitted” — that is, the Mainline has no capacity under long-term contracts with shippers. Today, we discuss the latest on the midstreamer’s Mainline tolling plan.

Enbridge’s multi-pipe Mainline system accounts for a staggering 70% of Western Canada’s total export-related pipeline capacity. The system’s parallel Lines 1, 2, 3, 4 and 67 transport crude from Edmonton and Hardisty, AB, to Clearbrook, MN, and Superior, WI. From there, other Mainline pipes move crude to Flanagan in north-central Illinois (Line 61), the Chicago area (Lines 6, 14 and 64), Michigan (Lines 5 and 78) and Ontario (Lines 5, 78, 7, 10 and 11). The Canadian side of the Mainline system is known (logically enough) as the Canadian Mainline), while the U.S. side is called the Lakehead Mainline (blue lines) because it runs near all five of the Great Lakes.