Two Wells Coming Off Confidential List Today; Active Rigs Back To 60 -- July 9, 2019

Note: temporary weight restrictions in place on Williams County roads due to rain. 

Wells coming off the confidential list today -- Tuesday, July 9, 2019: 8 for the month; 8 for the quarter;

• 35544, SI/NC, WPX, Delores Sand 29-32HY, Antelope-Sanish, no production data,
• 34095, 2,457, CLR, Colter 8-14H1, 41 stages; 10.2 million lbs; Bear Creek, t3/19; cum 75K 5/19;

Active rigs:

$58.09	7/9/2019	07/09/2018	07/09/2017	07/09/2016	07/09/2015
Active Rigs	60	65	56	29	74

RBN Energy: new entrants in the race to build offshore crude export terminals, part 6.

The competition to develop the one or possibly two new offshore crude oil export terminals that the U.S. will likely need by the mid-2020s has been under way for more than a year now, and the field of contestants continues to expand. Within the past few weeks, both Phillips 66 and Sentinel Midstream filed applications with the U.S. Maritime Administration (MARAD) — Phillips 66’s project would be located off the coast of Corpus Christi and Sentinel’s in the waters off Freeport. And who knows, maybe another deepwater project or two capable of fully loading Very Large Crude Carriers (VLCCs) might still be in the offing. Today, we update our series on prospective offshore crude export terminals with a look at the P66 and Sentinel project details revealed by their applications to MARAD.

One of the more interesting questions in the U.S. energy business today is which of the seven individual companies and joint ventures planning to build new deepwater terminals for exporting crude off the Texas and Louisiana coasts will be the first to reach a final investment decision (FID) on their project. The query regarding who crosses the FID line first is particularly important because, as we said a couple of weeks ago, the Gulf Coast — with an estimated 5.1 MMb/d of crude export capacity in place — will likely need at least another 1 MMb/d of capacity by 2024 or so as production keeps rising in the Permian and other major shale plays. While still more export capacity may be required in the mid-2020, the palpable fear of a capacity overbuild suggests that only a few of the proposed offshore terminals (and onshore-terminal expansion projects) will be able to secure the necessary throughput commitments to advance their plans to construction.