Notes From All Over -- Here's Another Flood -- And It's Not In The Midwest -- Part 5, July 11, 2019

From Bloomberg via Rigzone: Big Oil plans to unleash a flood of plastic from US gulf.

The world’s biggest oil and chemical companies are about to unleash a tidal wave of plastic raw materials by the mid-2020s, tapping cheap shale gas to meet growing demand from makers of everything from toys to plumbing to consumer goods.

Exxon Mobil Corp., Dow Inc., France’s Total SA, South Africa’s Sasol Ltd. and Saudi Basic Industries Corp. have built or announced at least $40 billion in new petrochemical facilities in Texas and Louisiana.

The most recent is an $8 billion joint venture between Chevron Corp., Phillips 66 and Qatar Petroleum announced this week.

Two words: plastic straws.

From the link, companies involved / projected cost (rounded) / location:

• Sasol / $12 billion / Louisiana 
• Exxon - Sabic / $10 billion / Texas
• Chevron Phillips Chemical Company, Qatar Petroleum / $8 billion / US Gulf Coast
• Dow / $6 billion / Texas, Louisiana
• LyondellBasell Industries NV / $2.4 billion / Texas
• Exxon / $2 billion / Texas
• Total, Nova Chemicals, Borealis / $2 billion / Texas

Perhaps this helps explain why Texas does not need an income tax.

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Reality Sucks

If one has been reading mainstream media lately, one gets the feeling OPEC/Russia have this all under control -- that they will be able to slow the Americans. LOL.

From ArgusMedia: OPEC's 2020 outlook highlights re-balancing challenge.

OPEC's first outlook on supply and demand for 2020 suggests that rebalancing the oil market may require longer and deeper output cuts than those envisaged under its recently renewed production pact with its non-OPEC partners.

OPEC's latest Monthly Oil Market Report forecasts that global oil demand will rise by 1.14m b/d next year, the same level of growth as projected for this year.

But it forecasts the pace of non-OPEC supply growth to accelerate to 2.44mn b/d in 2020, compared with a downwardly revised 2.05mn b/d in 2019.

These projections leave the call on OPEC crude at 29.27mn b/d next year, 1.34mn b/d lower than this year and more than 400,000 b/d below Argus' assessment of OPEC production in June.

Memo to Art Berman regarding US shale's retirement party:  the pace of non-OPEC supply growth to accelerate to 2.44mn b/d in 2020.

Party on!

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So, How Is Today's Market Doing?

Disclaimer: this is not an investment site.

The numbers:

• WTI: $60.64 (will drop back to mid-50's when the Gulf storm dissipates)
• Dow: up 138 freaking points, now trading at 26,996 which is like four points from 27,000; are the CNBC talking heads wearing caps with 27,000 on them or are they wearing MAGA caps? LOL. The day's high, so far: 27,007.86! Whoo-hoo!
• S&P 500: 2,999.68 -- that's like less than a point from 3,000; the day's high, so far: 3,002.33. Whoo-hoo-hoo.
• NASCAR: just joking

Sell in May, go away? I don't think so.

Others:

• JAG: down four cents today.
• NOG: down one penny today.
• EPD: up 1.2%
• CVX: down slightly
• XLNX: up slightly
• AAPL: holding on
• TSLA: on a day the market is setting new records, TSLA falls

Again, this is not an investment site. 

It's a MESS (mobile entertainment simply stated).