CLR Reports Two Spectacular Wells -- And Many, Many More On That Uhlman/Pittsubrgh Pad To Come -- March 10, 2020

Break-even costs: Hey, before we get started, can we clear up one myth regarding break-even prices for Saudi Arabia? One of my pet peeves is the meme/myth/worldview that Saudi has the cheapest oil in the world, that they can produce oil for $5 a barrel or some such thing. Not even close.

According to S&P Global Platts the break-even price for Saudi Arabia is $83 for the Saudis, $51/Brent bbl for the Russians.] But as I've said on the blog many, many times, if the Saudis want to give away their lifeblood at $30/bbl that's their choice. Americans are lovin' it. The Chinese will love it when they get back to normal.

Trump: by the way, do y'all remember those days when President Trump said oil prices were too high and he wanted to see oil prices to come down. Wow, love him or hate him, this guy gets things done. The previous president said multiple times, "it" couldn't be done. Of course, the previous president also said Bloomberg "didn't build that." Wow, what a digression. Sorry for the politics. Twitter link:

Speaking of which, how is that Saudi Aramco IPO working out? MBS: welcome to the world of geo-politics.

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Back to the Bakken

Active rigs:

$34.18	3/10/2020	03/10/2019	03/10/2018	03/10/2017	03/10/2016
Active Rigs	54	67	59	44	33

Two wells coming off the confidential list today: again, these are going to be spectacular wells.

Again, "who will show the most resilience, the Bakken or the Permian?" The one thing I did not consider/mention in that linked commentary: time frame. There has to be a time frame. The Permian will last decades longer than the Bakken, but that's not the question being asked. I'm asking about the current situation as it pertains to the "Market Meltdown - 2020." My time frame is the next six months, or if the price war goes on longer than this, then one year, max. And even a year out is way too long, but ...

No cherry picking, just reporting them as they come off the confidential list which I've been doing since 2009. Wow, that's a long time. 

Tuesday, March 10, 2020: 20 for the month; 191 for the quarter, 191 for the year:

• 34857, see below, CLR, Uhlman Federal 8-7H, 
• 34851, see below, CLR, Pittsburgh 8-18H,

RBN Energy: new Pembina LPG terminal to boost Canadian exports.

Canada has been facing a similar situation to the U.S. in recent years in which the production of natural gas liquids, such as propane, has been rising sharply thanks to a focus on liquids-rich gas wells in unconventional gas plays. In response to the rising bounty of propane, infrastructure development in Canada has focused on export projects, and in 2019, the completion of the new Ridley Island Propane Export Terminal in British Columbia enabled the first overseas exports of propane from Canada’s west coast, allowing Western Canadian producers to access destination markets beyond just the U.S. for the first time. Later this year, Pembina Pipelines, a developer of energy infrastructure projects across Western Canada, will complete a new propane export terminal just outside Prince Rupert, BC, further boosting propane exports to overseas markets. Today, we take a closer look at propane supply issues, Pembina’s new propane export terminal and recently announced plans to further expand the terminal’s export capacity.

The shift to more unconventional oil and natural gas plays in North America over the past decade has generated significant production increases in all forms of hydrocarbons. Crude oil, natural gas and natural gas liquids (NGLs), which includes propane, have all been hitting record or near-record levels in both the U.S. and Canada. This has forced markets in both countries to find more outlets for their growing output, both domestically and overseas.

Another important article for the archives.

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The Two Wells Coming Off Confidential List Today

The wells:

• 34857, A, Uhlman Federal 8-7H, 33-053-08516, Banks, 73K in one month; fracked 7/9/19 - 7/22/19; 9 million gallons of water; 86.7% water by mass; friction reduction, 0.06;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2020	31	73759	73619	39958	94992	93002	1841
BAKKEN	12-2019	2	3635	3544	1856	4349	4270	16
BAKKEN	11-2019	0	0	0	0	0	0	0
BAKKEN	10-2019	0	0	0	0	0	0	0
BAKKEN	9-2019	4	704	704	1773	1283	0	1283

Can we get an "amen"? LOL.

• 34851, SI/NC, CLR, Pittsburg 8-18H, 33-053-08510Banks, t--; cum --; fracked 6/3/19 - 6/21/19; 11.1 million gallons of water; 88.7% water by mass; friction reduction, 0.059;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2020	31	50978	50861	42246	68632	67193	1331
BAKKEN	12-2019	2	1715	1672	1530	2309	2266	9
BAKKEN	11-2019	0	0	0	0	0	0	0
BAKKEN	10-2019	0	0	0	0	0	0	0
BAKKEN	9-2019	5	964	964	3617	1328	0	1328

Another Bakken DUC produces more crude oil in one month than the average new Permian well. See the EIA dashboards. Can we get another "amen"?