The weekly update is usually posted Sunday; internet access issues accounted for the delay. The official date of the post is April 20, 2020, but "technically" it's the April 19, 2020, edition, at least by my calculations. Macht nichts. It will take me awhile to go through it. The writer highlights two items:Oil: fascinating.
- The writer estimates US production cuts at 1 million bpd for the next two months...no special insight, the big round number just makes the math easier.
- OPEC's 9.7 million barrel per day cut was based on October 2018 production...why October 2018? because it was their highest production in 3 years....based on their February production, their cut is closer to 7.2 million barrels per day....they'd have to cut another 9.3 million bpd to balance supply and projected demand...
Recommendation: keep your gasoline tanks full; don't let them get below 3/4ths or maybe even 7/8ths full.
PowerLine: link here. The headline -- Saudi Arabian tankers streaming to America. Okay, so what? Where will they unload that oil? Lots of oil storage capacity remains mid-continent US, but I doubt there's much storage along the coast.
Just when you thought it couldn't get any worse:
WTI closes at a minus $16.20/bbl. That means that there were traders who were committed to taking physical oil -- this was not a "paper trade" -- the traders had actually committed for real, physical black oil but they had no place to store it. They scrambled to find places to store it; they couldn't find any storage and had no choice but to sell it back to perhaps the company who was "holding" the oil -- and that company -- free market capitalism -- "kept" it or took it back as long as the "owner" was willing to pay $16.20/bbl. At least that's how I understand it but I don't understand the global trading market.
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Back to the Bakken
Active rigs:| -$16.20 | 4/20/2020 | 04/20/2019 | 04/20/2018 | 04/20/2017 | 04/20/2016 |
|---|---|---|---|---|---|
| Active Rigs | 31 | 63 | 59 | 49 | 28 |
Four new permits, #37526 - #37529, inclusive -- the daily activity report only reports two new permits (#37526, #37527) but "well search" suggests there were four new permits as noted below --
- Operator: Crescent Point Energy
- Field: Dublin
- Comments:
- Crescent Point Energy has permits for four Pankake wells in SESE/SWSE 31-158-99, Dublin oil field;
- the wells will be sited in section 31, but will south into sections 6/7 where is one producing well --
- 21043, 554, Bruin, Pankake 157-99-6A-7-1H, Dubline, t12/11;cum 238K 7/19; offline 8/19; remains offline 2/20;
- Bruin, #25445, Ann H. Thome 5-25-36H; Strandahl oil field;
