North Dakota Active Rigs Drop To 58 -- September 23, 2019

Wells coming off the confidential list over the weekend, today -- 
Monday, September 23, 2019: 59 for the month; 191 for the quarter:

• 35413, conf, Crescent Point Energy, CPEUSC Austin 5-17-20-158N-99W TFH, Ellisville, no production data, 
• 35037, SI/NC, Hess, BB-Charlie Loomer-150-95-0718H-4, Blue Buttes, no production data,
• 34820, SI/NC, XTO, Myrna Federal 21X-2EXH, Alkali Creek, no production data,

Sunday, September 22, 2019: 56 for the month; 188 for the quarter:

• 35702, SI/NC, Petroshale, Thunder Cloud 2MBH, McGregory Buttes, no production data,
• 35038, SI/NC, Hess, BB-Charlie Loomer-150-95-0718H-5, Blue Buttes, no production data,
• 34817, SI/NC, XTO, Myrna 21X-2B, Alkali Creek, no production data,

Saturday, September 21, 2019: 53 for the month; 185 for the quarter:

• 36003, 289, Hunt, Alexandria 161-100-22-15H 2, Alexandria, t8/19; cum --;
• 35039, SI/NC, Hess, BB-Charlier Loomer-150-95-0718H-6,  Blue Buttes, no production data,

Active rigs:

$58.07	9/23/2019	09/23/2018	09/23/2017	09/23/2016	09/23/2015
Active Rigs	58	66	57	33	69

RBN Energy: Cushing crude inventories drop amid shifting fundamentals.

Every week, traders far and wide watch inventories at the storage hub of Cushing, OK, for insight into the U.S. crude oil market. Cushing has long been the epicenter for crude trading in the U.S., and while that role has shifted as the Gulf Coast gains more prominence, inventories at the Oklahoma hub are still a valuable indicator for traders looking for supply and demand trends. Recently, we’ve seen Cushing stocks drop significantly, declining for 11 straight weeks since the beginning of July to their lowest levels since last Thanksgiving. Today, we review the recent drop at Cushing, and discuss how a few changes in supply and demand fundamentals, plus strong pricing motives, helped drag down stockpiles this summer....

The third and final big reason for the draws at Cushing was the change in Permian flows. Starting at the end of June with linefill beginning on Plains All American’s Cactus II pipeline, more and more Permian volumes were being attracted away from Cushing-bound pipes and toward the new pipelines to the Gulf Coast. Gulf Coast pricing has maintained a premium over Cushing of over $4/bbl since the beginning of June, making it the premier market for West Texas barrels. Add in the opportunity to move those barrels to even higher-priced overseas markets via export, and the Gulf Coast has been the place to be for Permian oil. Once Cactus II and EPIC began flowing this summer, it became harder and harder for Cushing markets to drag barrels north out of the Permian. This a big, fundamental shift in flows into the Cushing hub, and one that could have an ongoing profound impact on storage levels.

Focus on Fracking: Sunday update.