The deal: analysis over by Simon Watkins. Consider the source, but there are some interesting observations. For me, the light bulb just went on. Quick: name the country run by a king with a huge fortune in oil. Now, quick, name a country run by a king with a huge fortune that has no military.
US crude oil storage: will be full a month from now.
Valero: has shut down a number of gasoline-producing refinery units (as in completely shut down), and a number of ethanol-producing units.
Wisconsin: still selling gasoline for less than 90 cents/gallon. Milk goes for $4.00+ per gallon, doesn't it? The good stuff is much more when bought by the quart. At least that's my experience.
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Back to the Bakken
CLR's LCU graphic has been updated. Link here.
Active rigs:
| $21.69 | 4/14/2020 | 04/14/2019 | 04/14/2018 | 04/14/2017 | 04/14/2016 |
|---|---|---|---|---|---|
| Active Rigs | 36 | 63 | 61 | 51 | 30 |
Only one well coming off the confidential list today, but it will be a nice one --
Tuesday, April 14, 2020: 12 for the month; 12 for the quarter, 267 for the year:
- 35819, 752, Oasis, Oasis Meiers 5692 11-19 9BX, Alger, t10/19; cum 134K 2/29;
The Canadian natural gas market has exited the most recent heating season in reasonable shape. Storage withdrawals were below average thanks to mild winter temperatures, but overall storage levels at the end of the season were not too far out of line with the five-year average thanks to below-average storage levels in the west more than offsetting above-average storage levels in the east.
However, Canadian gas storage may be facing a most unusual test this coming summer as storage injection activity will be influenced by reduced gas demand in the U.S. due to COVID-19 disruptions, as well as the potential for similar pandemic-driven weakness in homegrown demand, especially in Alberta’s gas-intensive oil sands. How the various pushes and pulls on gas flows play out this summer could very well determine if Canadian gas storage might test capacity limits this injection season. Today, we consider this possibility.
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