Three Wells Coming Off The Confidential List Today -- December 5, 2019

WTI: at $58.91, trending towards $60. For California commuters, Brent is trending toward $64.  

Active rigs:

$58.91	12/5/2019	12/05/2018	12/05/2017	12/05/2016	12/05/2015
Active Rigs	56	62	53	39	64

Three wells coming off the confidential list today -- Thursday, December 5, 2019: 16 for the month; 221 for the quarter:

• 36450, SI/NC, WPX, Badger 22-21HIL, Squaw Creek, no production data,
• 35611, 1,596, Hess, RS-Flickertail-156-91-1720H-4, Ross, t6/19; cum 81K 10/19; 23K month;

Date	Oil Runs	MCF Sold
10-2019	14355	11799
9-2019	12765	11744
8-2019	23484	17686
7-2019	12086	10272
6-2019	17729	10944

• 35536, 675, Oasis, Om Erickson 5501 11-18 4B, Missouri Ridge, t6/19; cum 94K 10/19; 21K month;

Date	Oil Runs	MCF Sold
10-2019	17908	14164
9-2019	21262	15188
8-2019	17637	11629
7-2019	15930	9506
6-2019	21045	6404

RBN Energy: disappearing arbs and harder times for some third-party oil shippers.

A little over a year ago, we discussed the rapidly expanding third-party shipper market for crude oil in West Texas. At the time, crude at Midland was trading at nearly a $15/bbl discount to Gulf Coast markets. Pipeline space out of the Permian was hard to come by and extremely valuable, and everybody and their brother — literally, in some cases — were forming a limited liability corporation and trying to secure space as a walk-up, “lottery” shipper. A lot of people made a lot of money, but now, just over a year later, much of that lottery opportunity has dried up. Nowadays, these same folks are looking for new opportunities, or going back to old strategies, only to find that being a third-party shipper today is more expensive and more burdensome. In today’s blog, we recap how lottery shippers made buckets of money in late 2018 and early 2019, only to see their target of opportunity dry up due to midstream investment.