Mexico just made it harder for foreign companies to compete in its nascent fuel market.
Two rules designed to facilitate private investment in the energy sector were rolled back this week, in a move reflective of President Andres Manuel Lopez Obrador’s opposition to his predecessor’s free-market reforms.
A federal court on Wednesday overturned a rule ...
The latest changes are “indicative” of the more challenging political environment that fuel importers face under the new government.Pemex is on track for 15 years of oil production declines and it is struggling to reduce debt of about $100 billion, the highest of any oil company.Mexico, from same link as above:
Lopez Obrador has staunchly opposed his predecessor’s policies that opened the energy market to private investment in 2014 after almost eight decades in which Pemex held a monopoly in the sector. His government has suspended competitive oil auctions and joint-venture agreements with Pemex in its oil fields. He’s also tasked Pemex and the Energy Ministry with building a new $8 billion refinery in his home state of Tabasco, with the aim of making Mexico self-sufficient in fuel production and reducing the influence of global oil markets. [Comment: I was aware of the proposed $8 billion refinery; I had forgotten/did not know that it was in his home state of Tabasco -- speaks volumes.]
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Back to the Bakken
Active rigs:
| $60.74 | 12/19/2019 | 12/19/2018 | 12/19/2017 | 12/19/2016 | 12/19/2015 |
|---|---|---|---|---|---|
| Active Rigs | 53 | 68 | 54 | 41 | 64 |
Wells coming off the confidential list today --
Thursday, December 19, 2019: 56 for the month; 261 for the quarter:
- 36169, drl, XTO, Lavern 42X-EXF, Capa, no production data,
- 35900, SI/NC, Slawson, Slasher Federal 2-222-27H, Big Bend, no production data,
- 36168, drl, XTO, Lavern 42X-14AXD, Capa, no production data,
- 35742, 2,167, Whiting, Ogden 41-9HU, Sanish, t 7/19; cum 126K 10/19;
Date Oil Runs MCF Sold 10-2019 33644 33307 9-2019 26188 17759 8-2019 22166 0 7-2019 39696 0 6-2019 4286 0
Crude oil prices and, just as important, the availability of pipeline takeaway capacity, have supported continued production growth in the Bakken. Good news, right? Except, that’s led to sharply increased output of associated gas in a region that for years has been playing catch-up on the gas processing capacity front. As a result, gas-flaring volumes have soared this year, putting pressure on crude-focused producers to slow down their drilling-and-completion activity. Things are finally getting better, though — 670 MMcf/d of processing capacity has come online in western North Dakota since late July, and another 200 MMcf/d will start up next month. That gives Bakken producers some room to grow but also poses a problem for Western Canadian producers, namely that more pipeline gas out of the Bakken means less room for Alberta and British Columbia gas on pipes to the Midwest. Today, we begin a short blog series on incremental Bakken gas processing capacity and its impacts on producers — and natural gas prices — up in Canada.
What exactly is an "Oil Run" and what is the significance of the number of runs cited?
ReplyDeleteOil produced: actual amount of oil that was produced in that month; all, some, none of it may have been sold; what was not sold, was put into storage.
DeleteOil runs: the amount of oil that was actually sold in that month.
Royalty owners will receive royalties based on oil runs, or oil that is actually sold. Oil runs can exceed oil production in any given month, for example, if oil in storage was also sold along with new oil production. Likewise, oil runs can be less than production if the actual amount of oil sold was less than the amount of oil that was produced.
"Oil runs" are important to royalty owners because "oil runs" are directly tied to the monthly royalty check.
"Oil production" is important to know to get an idea of how that well did that month.
In addition to the above, while the well is "confidential" or on the "confidential list," the operator does not have to report how much oil or natural gas that well has produced. However, the oil company must report how much oil / natural gas it sold each month, and that's why when a well is on the confidential list, one will see "oil runs" and "MCF sold" if the well is producing and if the oil company is selling some/all of that production. MCF = thousand cubic feet of natural gas.
Delete