OPEC+ vs US frackers: not over yet. More to follow.
$10 oil: oil majors preparing for $10 oil.
Tokyo 2020: postponed to 2021. Will still be called Tokyo 2020.
Texas: time to get back to work? Lt governor.
National rig count:
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Back to the Bakken
Active rigs:
| $24.19 | 3/24/2020 | 03/24/2019 | 03/24/2018 | 03/24/2017 | 03/24/2016 |
|---|---|---|---|---|---|
| Active Rigs | 50 | 69 | 60 | 49 | 32 |
Only one wells coming off confidential list today -- Tuesday, March 24, 2020: 56 for the month; 227 for the quarter, 227 for the year:
- 34395, conf, White Butte Oil Operations, LLC, Jore Federal 9-12TFH,
The collapse in crude oil prices and COVID-19’s very negative effects on global gasoline, jet fuel and diesel demand are putting an unprecedented squeeze on U.S. refiners. Even before the initial coronavirus outbreak in Wuhan, China, started to grab headlines around New Year’s Day, refineries had already been incentivized to shift their refined products output toward diesel, which can be used to help make IMO 2020-compliant low-sulfur bunker. Now, with the COVID-19 pandemic spreading to Europe and North America and stifling consumer transportation fuel demand, the price signals are even stronger, pushing refineries to do everything they can to minimize their gasoline and jet fuel production and enter what you might call “max diesel mode.” Today, we discuss how there are challenges and limits to what they can do, and a number of refineries may need to shut down due to lower demand, at least temporarily.
Catch up on diesel and the recovery will be well fueled. Now if those NGLs can be turned into medical equipment quickly, we can move on.
ReplyDeleteIt will be interesting to see what the "end point" in the US is -- if the media says we have to go to "zero new cases" for two weeks, this will last a year.
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