Wednesday, September 18, 2019

Saudi Arabia To Flood The World With Oil By End Of November -- September 18, 2019

Swing producer: again, we won't find out if US shale is the swing producer. "Alfalfa" says everything is returning back to normal. Saudi plans to flood the world with oil by the end of November, promising to produce 12 million bopd. No links. Stories everywhere.

In the meantime, who can boost production to make up current Saudi shortfall? I mentioned that yesterday; it's a non-problem. Right now, it's all about a race for market share as consumers look for more reliable sources for oil. China for one is loading US oil to make up for Saudi loss. WTI now back to $58 should tell us everything we need to know. Link here. Bloomberg has a long list of oil-producing countries, how much they produced in August, and their capacity. Looks like they probably took the list from the CIA Fact Book.

Saudi Arabia's foreign reserves account: I can hardly wait to see the January, 2020, data. 

ND Legacy fund: September, 2019, deposits should be posted Friday, September 20, 2019, or early next week.

Flaring: global gas flaring value to hit $16.4 billion "this year." "This year" was not explicitly stated in lede, but I assume it means calendar year 2019. Link here. Lots of ink spent on the flaring story for the past ten years; I consider it a non-story, except as a story of opportunity. If only the US federal government was as efficient as the oil and gas industry.

EOG / Cheniere hook up: in a long-term agreement, EOG will supply natural gas to Cheniere Energy. Details here. "The approximately 15-year gas supply agreement period begins in 2020."

Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, relationship, or travel decisions based on what you read here or think you may have read here.

Back to the Bakken

Only one well coming off confidential list today -- Wednesday, September 18, 2019: 45 for the month; 177 for the quarter:
35700, conf, Petroshale Thunder Cloud 1MBH, McGregory Buttes, no production data;

Active rigs:

Active Rigs6264563267

RBN Energy: capital dries up as new crude, gas, and NGL infrastructure comes on line. Archived.
U.S. energy markets are coming to the end of their latest infrastructure cycle just as the reality of tight capital markets is sinking in.
Permian crude oil and natural gas takeaway constraints are being relieved by new pipeline capacity. Long-delayed LNG terminals and NGL-consuming petrochemical plants are coming online. Essentially all growth in crude, gas and NGL production volumes is being exported to global markets that — so far, at least — have been absorbing the incremental supply. But there is a chill in the air. Besides the recent bump-up in crude prices tied to last weekend’s attack on Saudi oil facilities, commodity prices have remained stubbornly low. Easy access to capital is a thing of the past. No longer can private equity count on the build-it-and-flip asset investment model. Yup, it’s another inflection point in the Shale Revolution that we’ll start exploring today. All this has huge implications for energy flows, infrastructure utilization and price relationships across all of the energy commodities.

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