MIght We See WTI Hit $60 Today? No Wells Come Off The Confidential List Today -- December 13, 2019

Santa Claus rally to continue: Dow futures up strong again. Be prepared for bad news, thought Kudlow said the date to watch was December 15, 2019 -- Sunday.

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How does this NOT affect the GDP? Chevron to go ahead with $5.7 billion deepwater project. At Rigzone. 

• it's called the "Anchor project"
• US Gulf of Mexico
• the industry's first deepwater high-pressure development to win a final investment decision
• $5.7 billion: just to develop the initial phase
• Green Canyon area approx 140 miles offshore Louisiana; water depth: 5,000 feet
• a seven-well subsea development and a semi-submersible floating production unit (FPU)
• boe resources exceed 440 million bbls
• Stage 1: 75,0000 bopd; 28 million cfpd
• to put that in perspective, initial production of a good well in the Bakken is 30,000 bbls per month and declines fairly quickly
• 440 million x $50 = $22 billion
• JV: CVX, 63%; Total E&P USA, Inc, 37%
• $6 billion / 440 million = $14 / bbl

Breakevens: projects anticipating breakeven prices above $60/bbl probably not economical "in the next decade" -- Rystad Energy via Rigzone.

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Back to the Bakken

Active rigs:

$59.93	12/13/2019	12/13/2018	12/13/2017	12/13/2016	12/13/2015
Active Rigs	53	67	51	40	65

No wells are coming off the confidential list today.

RBN Energy: how global prices drive US LNG cargo destinations, part 4.

U.S. LNG cargoes’ ability to reach different destinations has become increasingly important for the global market as more liquefaction trains continue to come online, oversupply conditions worsen, and international price spreads have shrunk. Earlier this week, Freeport LNG’s first train began commercial service, marking the sixth U.S. liquefaction and export facility to start commercial operations. About 30% of U.S. long-term contracts for currently operating or commissioning liquefaction trains are held by global portfolio players — i.e., offtakers with large international portfolios and the ability to shift cargoes around the world as prices move. And destination flexibility doesn’t end there, as the other types of offtakers also have shown an increased willingness to divert or even re-sell cargoes in the spot market to better take advantage of shifting price spreads. Today, we continue a series on U.S. LNG export trends, this time focusing on how global prices impact cargo destinations.

Two new "codes" to know regarding LNG pricing:

• NBP: UK's National Balancing Point; and,
• JKM: Japan-Korea Marker