Six Wells To Be Reported Today -- February 6, 2020

AAPL: Apple shipped an estimated 31 million Apple Watches in 2019, beating the entire Swiss watch industry. 

Deepwater: taking off.

Permian deal: Noble Midstream, Greenfield Midstream gain Saddlehorn interest.

• the two will acquire a 20 percent interest in the Saddlehorn Pipeline 
• to be called their Black Diamond Gathering LLC; a joint venture
• Saddlehorn Pipeline
• will expand by 100,000 bpd to 290,000 bopd; by late 2020
• owned by Magellan Midstream Partners, Plains All American Pipeline, and Western Midstream Partners
• 190,000 bopd crude oil and condensate from the DJ and Powder River basins to Cushing, OK
• Magellan is the pipeline operator

EVs to replace ICE: Uh, no. Link here.

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Back to the Bakken

Active rigs:

$50.81	2/6/2020	02/06/2019	02/06/2018	02/06/2017	02/06/2016
Active Rigs	54	62	58	40	42

Six wells coming off confidential list today --  
Thursday, February 6, 2020: 18 for the month; 125 for the quarter, 125 for the year:

• 36424, drl, XTO, Linda 41X-22C, Capa, 
• 35620, 690, Whiting, Fladeland 44-9-2H, Sanish, t8/19; cum 81K 12/19; a 24K month;
  
• 35529, 395, Lime Rock, Ward Hill 2-29-20H_160-90, Dimond, t8/19; cum 63K 12/19;
• 35049, drl, XTO, Johnson Trust Federal 21X-6B, SIverston,

Wednesday, February 5, 2020: 14 for the month; 121 for the quarter, 121 for the year:

• 35046, drl, XTO, Johnson Trust Federal 21X-6E,
• 33976, SI/NC, Petro-Hunt, USA 153-95-8A-31-4H, 

RBN Energy: why Iroquois Pipeline gas flows are an outlier in the US northeast.

The development of Appalachia’s Marcellus and Utica shales has flipped regional natural gas prices in the U.S. Northeast from their long-time premiums to Henry Hub, to trading at a significant discount and, in the process, reversed inbound gas flows, including from Eastern Canada. But there is an exception: from an entry point at the northern edge of New York, the Iroquois Gas Transmission pipeline is still importing Canadian gas supply nearly year-round to help meet local demand, despite its proximity to Marcellus/Utica production via other Northeast pipelines. This has kept prices along the Iroquois pipeline system at a premium to the other points in the region. And with the new, 1,100-MW Cricket Valley Energy Center power plant due online this spring, Iroquois prices are likely to strengthen. Today, we examine the dynamics driving Iroquois prices and gas flows.

Natural gas pricing is not uniform across the Northeast; the magnitude of the discount varies with how constrained the local pipe is and the location of the pricing point relative to the constraints. But in general, from eastern Ohio and Pennsylvania up through New England, prices tied to robust Marcellus/Utica shale production have traded at a significant discount to Henry Hub ever since Appalachian gas production surpassed Northeast demand and the region became a net supplier to the Midwest and Gulf Coast regions in the mid-2010s. Of course, during extreme wintry weather, prices in the East Coast market area, particularly New York and New England, are prone to spikes, where they jump not only above Henry Hub, but above all global gas prices or even above an oil parity price. These markets have maintained discounts to Henry on most days, however — that is, except for points along the Iroquois pipeline, which, because of the system’s reliance on gas imports from Canada, have escaped the worst of the discounted pricing and trade above the rest of the region year-round.