The Bakken Morning Report -- March 9, 2020

Hey, y'all -- I'm trying to avoid watching the market and "everyone" is sending me screenshots of CNBC. All I want to know is this: is Rick Santelli on the trading floor? His comment(s) about coronavirus a couple of days ago ... I didn't see it live, but networks are reporting it ...

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Back to the Bakken

Active rigs:

$32.66	3/9/2020	03/09/2019	03/09/2018	03/09/2017	03/09/2016
Active Rigs	55	67	59	43	33

The wells that have come off the confidential list today since last Thursday --

Monday, March 9, 2020: 16 for the month; 187 for the quarter, 187 for the year:

• 36027, 3,823, MRO, Pletan 11-13TFH, Bailey, t9/19; cum 107K 1/20;
• 36026, 5,560, MRO, Herbert 41-14H, Bailey, t9/19; cum 130K 1/20;
• 35821, 4,081, MRO, Bryden 11-13H, Bailey, t9/19; cum 134K 1/20;
• 35820, 4,967, MRO, Maher 41-14TFH, Bailey, t9/19; cum 139K 1/20;

Sunday, March 8, 2020: 12 for the month; 183 for the quarter, 183 for the year:

• None.

Saturday, March 7, 2020: 12 for the month; 183 for the quarter, 183 for the year:

• 36416, 2,859, EOG, Clarks Creek 105-0719H, Clarks Creek, t91/9; cum 232K 1/19;
• 36415, 3,519, EOG, Clarks Creek 18-0719H, Clarks Creek, t9/19; cum 282K 1/19;
• 36413, 2,058, EOG, Clarks Creek 106-0724H, Clarks Creek, t9/19; cum 291K 1/19;
• [36414 is still on loc status]

Friday, March 6, 2020: 9 for the month; 180 for the quarter, 180 for the year:

• 35100, SI/NC, Oasis, Kellogg Federal 5297 12-30 8T, Banks, t--; cum 73K in less than five months;
• 23958, 2,719, EOG, Liberty LR 107-1109H, Parshall, t9/19; cum 178K 1/10;

Thursday, March 5, 2020: 7 for the month; 178 for the quarter, 178 for the year:

• 35064, 687, Enerplus, Hawksbill 152-94-33D-28H, Antelope-Sanish, t9/19; cum 122K 1/20;
• 35063, 1,291, Enerplus, Tortoise 152-94-33C-28H-TF1, Antelope-Sanish, t9/19; cum 165K 1/20;

RBN Energy: crude prices tumble, OPEC+crumbles as COVID-19 spreads. What's next? Link here.

On Friday, global energy markets entered uncharted territory. Already facing declining demand due to the impact of COVID-19, markets then were dealt a body blow with the collapse of the OPEC-Plus alliance and the resulting prospect of a significant increase in supply. Saudi Arabia wanted to manage supply to balance against lower demand, but Russia was having none of it.

Instead, reports from the OPEC-Plus meeting indicate that Vladimir Putin has declared war on U.S. shale. Then on Saturday, the plot thickened. Saudi Arabia made huge cuts in the price of its crude oil, presumably in a high-stakes move to bring Russia back to the negotiating table. Even though we are witnessing unprecedented market conditions, it’s not Armageddon. Crude oil will continue to be pumped, piped, shipped and refined. Most infrastructure projects under construction before the collapse in oil prices will be completed. The big question is, how will the market adapt? In today’s blog, we’ll begin an exploration of that question.

Important article. It will disappear behind a paywall. Archived.