Dueling banjos:
- Harold Hamm: "oil" to rise to $75/bbl within next six months.
- Goldman Sachs: oil rally to be short-lived
That big draw was due to record exports...a blowout, too: almost 900K bpd higher than the previous record.
https://rjsigmund.files.wordpress.com/2020/01/january4th2020usoilexportsasofdecember27.jpg
Comment: I completely missed it. And I bet most Americans completely missed it. From the EIA, weekly exports: too many graphics -- will move to stand-alone post.
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Back to the Bakken
Active rigs:
| $62.94 | 1/7/2020 | 01/07/2019 | 01/07/2018 | 01/07/2017 | 01/07/2016 |
|---|---|---|---|---|---|
| Active Rigs | 56 | 64 | 54 | 39 | 54 |
Two wells coming off confidential list today: Tuesday, January 7, 2019, 23 for the month; 23 for the quarter; 23 for the year:
- 34364, conf, Petro Harvester, FLX4 17-18 163-90 H,
- 33186, conf, BR, Franklin 34-36MBH,
With 2020 already in full swing, some things in the Permian Basin’s oil and natural gas markets have changed dramatically since this time last year, others not so much. When it comes to crude oil, new pipelines that came online during 2019 had a huge impact on differentials: Permian barrels are now pricing very close to other regional hubs, versus massive discounts a year ago.
That has enabled Permian producers to fully benefit from the recent run-up in global oil prices. On the gas side of things, the start of the new decade won’t look much different than the end of the last one. There is still way too much supply and not enough takeaway capacity. That means that regardless of what happens at Henry Hub, the U.S. benchmark for natural gas prices, Permian producers should expect dismal values for their natural gas in 2020. Today, we take a look at the year ahead for Permian producers.
Hamm has a really bad record over last 5 years of always predicting higher prices than what results. On one of the last calls, an analyst challenged him and said "are you adding rigs based on what you say will happen to oil" and he admitted "no".
ReplyDeleteYou are so correct; sometimes I wonder if he steps closer "to the line" than Elon Musk in his prognostications. LOL. But I can never really speak ill of Harold Hamm. He has the guts to put his money where his mouth is, as they say, and he is not afraid to say what he thinks. I think of Harold Hamm as a pit bull and I say that will all due respect and great admiration. Would the Bakken have done as well without him? Probably. Would the Bakken have been as exciting without Harold Hamm? I doubt it.
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