Six Wells Yet To Be Reported -- February 5, 2020

First things first: Sports Illustrated to release a 100-page commemorative "Kobe Bryant" issue.

Weather forecast for our area: we were supposed to be snowed in today. "European model" showed several inches of snow; "American model" showed even more. Schools were set to close. So, what do we have? A little bit of rain (no longer raining when I left the house); no wind; no snow; 36° F. But, wow, the television meteorologists attracted a lot of viewers the last couple of nights. LOL. 

TSLA: Saudi dumped their stock back in 2019. Brilliant. Not. Prince Salman, a legend in his own mind, sold 8.2 million shares of TSLA at end of 2019. Those 8.2 million shares are now worth $7.3 billion. His current holdings? Slightly less than 40,000 shares worth slightly less than $35 million.

Still writing headlines ahead of the story: oilprice reported that a large crude inventory build sent prices tumbling. In fact, WTI was up almost 3%, up $1.40, and back above $51. Having said that, API estimates: crude oil inventories increased by 4.2 million bbls vs forecast of 2.8 million bbls. In big scheme of things, the delta between actual and forecast is trivial.

German banks hoarding cash? Running out of space to store cash? Zero Hedge -- consider the source. 

BP: previously posted; story being re-posted at Rigzone. BP 4Q19 beat expectations but that was because of a US shale acquisition. I think BP/CEO is being given a bit more credit that he deserves. BP does increase dividend slightly, but he can do that: he's retiring.

Global warming: Rex Tillerson gets back on the Big Oil wagon. Questions human role in global warming. Link here if interested. I'm not.

Guyana up-sized: I believe this was previously posted. The Orinduik Block offshore Guyana was up-sized; a co-venturer reported a 29% increase in estimated gross prospective resources. One wonders how they came up with 29%, vs 28% or 31%. This "precision" is quite remarkable.

TransMountain: "clears another hurdle." Only 3,472 hurdles left.

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Back to the Bakken

Active rigs:

$51.01	2/5/2020	02/05/2019	02/05/2018	02/05/2017	02/05/2016
Active Rigs	54	63	58	40	42

Six wells coming off the confidential list  --

Wednesday, February 5, 2020: 14 for the month; 121 for the quarter, 121 for the year:
35046, conf, XTO, Johnson Trust Federal 21X-6E,
33976, conf, Petro-Hunt, USA 153-95-8A-31-4H,

Tuesday, February 4, 2020: 12 for the month; 119 for the quarter, 119 for the year:
35447, conf, Lime Rock, Nordloef 4-30-19TFH, 160-90L,
35044, conf, XTO, Johnson Trust Federal 21X-6AXD, 
30188, conf, Oasis, Lewis Federal 5300 11-31 2B, 
22574, conf, Enerplus, Glacier 148-95-02A-11H TF,
 
RBN Energy: What's Ahead For OPEC+ Crude Supply Management?

In the global crude oil market, at least some degree of coordinated management of supply has been the norm since the end of World War II. From the mid-1940s to the early 1970s, the cabal of oil companies known as the Seven Sisters jointly managed production to keep crude prices at levels that accommodated their interests. Then it was OPEC’s turn.

More recently, the efforts to keep supply from overwhelming demand — and help prevent oil prices from crashing — have been led by a combination of OPEC and some other major producers, including Russia. U.S. shale producers — who’ve contributed significantly to the global supply growth in recent years — have both benefited from this supply management and partially thwarted it by continuing to increase production to offset cuts by “OPEC-Plus.”

But a projected slowdown in U.S. production growth in 2021 may change these market dynamics. Today, we begin a short blog series on global oil supply and demand trends, supply management efforts by OPEC-Plus, and what it all means for OPEC, U.S. producers and the broader oil market.