EOG, MRO Report Three Monster Wells -- April 17, 2020

Dueling banjos:

• Saudi Arabian oil to US doubles over past couple of weeks -- CNBC; link here.
• EIA weekly petroleum report for week ending April, 2020:
• US crude oil imports average 5.7 million bbls per day last week, down by 194,000 bopd from the previous week
• over the past four weeks, crude oil imports averaged about 9.5 million bopd, 8.4% less than the same four-week period last year

WTI, link here:

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Back to the Bakken

Active rigs:

see above	4/17/2020	04/17/2019	04/17/2018	04/17/2017	04/17/2016
Active Rigs	33	66	59	52	29

Four wells coming off the confidential list today -- 

 Friday, April 17, 2020: 18 for the month; 18 for the quarter, 273 for the year:

• 36411, 2,783, EOG, Clarks Creek 46-0706H, Clarks Creek, t10/19; cum 230K 2/20; see this note; 
• 36410, 1,639, EOG, Clarks Creek 45-0705H, Clarks Creek, t10/19; cum 123K 2/20; see this note; 
• 35630, 4,505, MRO, Four Bears USA 13-16H, t10/19; cum 157K 2/20;
• 35121, drl, XTO, Prairie Federal 31X-30A, Haystack Butte,

RBN Energy: second-wave US LNG prospects stagnate amid market uncertainty.

Despite the pandemic-driven economic slowdown wreaking havoc on the global LNG market, U.S. LNG export volumes from operating terminals have proven resilient, so far. Total feedgas deliveries to the liquefaction and export facilities peaked at 9.44 Bcf/d less than a month ago and are averaging about 8.3 Bcf/d in April to date. But for many of the already-struggling second wave of U.S. liquefaction projects still under development, the one-two punch of the crude oil price crash and COVID-related lockdowns has further stymied — or in some cases even reversed — their progress toward securing long-term capacity commitments and reaching final investment decisions anytime soon. Today, we provide an update on the status of the next round of prospective LNG export projects.

The global battle against COVID in recent weeks has caused big cuts in gas demand in key LNG-consuming regions, worsened an existing supply glut, sent international gas prices to record lows and tightened the price spreads for U.S. LNG offtakers delivering into those supply-saturated markets. Port closures due to COVID lockdowns in Europe and Asia have resulted in more cargoes floating offshore or entering the spot market in efforts to find alternative buyers. Despite all this, U.S. LNG exports have remained steady up to this point, save for what, at least on face value, appear to be brief maintenance or weather-related disruptions. That’s because of the long-term, take-or-pay sales and purchase agreements (SPAs) that anchor over 90% of operating U.S. liquefaction capacity. These commitments are critical not only for ensuring steady utilization rates once the facility comes online but for shoring up prospects for the two dozen or so LNG projects currently in development in North America. However, current market conditions have made securing these commercial agreements nearly impossible. Today, we turn our attention to these, the second wave of LNG projects vying to cross the finish line and the impacts of recent events on their progress.