Two Wells Coming Off Confidential List Today -- May 19, 2020

Twitter scroll: "everyone" seems relieved that WTI is back above $30. If $30 - $40 is the new normal, Saudi is in deep trouble. I still think the Mideast is way too quiet. And North Korea: crickets. Speaking of which, it appears Taiwan is supplying North Korea with oil.

OPEC Basket: $26.64. Link here.

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Back to the Bakken

Active rigs:

$32.39	5/19/2020	05/19/2019	05/19/2018	05/19/2017	05/19/2016
Active Rigs	14	66	61	51	26

Two wells coming off confidential list today -- Tuesday, May 19, 2020: 57 for the month; 107 for the quarter, 334 for the year:

• 35932, drl, XTO, Hovet Federal 41X-29G, Haystack Butte, no production data,
• 34728, drl, Hess, BB-Federal B-151-95-2122H-4, Blue Buttes, no production data,

RBN Energy: the impacts of US LNG cargo cancellations, part 2.

Cancellations of U.S. LNG cargoes are starting to take a toll on Lower-48 natural gas demand. Feedgas flows to U.S. terminals last week fell to as low as 5.76 Bcf/d, down from the daily peaks above 9 Bcf/d seen as recently as April and the lowest since October 2019. While some of the slowdown may be attributable to domestic outages or maintenance on feeder pipes — or short-lived marine channel weather conditions — the bulk of it is a precursor to the first big round of cancellations by offtakers for June delivery.

This, as COVID-related demand destruction and the resulting supply glut in the past month have collapsed what already were weak economics for exporting U.S. LNG to Europe and Asia, wiping out offtakers’ margins for delivery into those markets. Nevertheless, many cargoes will continue to move. What drives offtakers’ decision of whether to lift or cancel cargoes? Today, we wrap up a short series looking at the market and logistical dynamics forcing cancellations, as well as some of the mitigating factors that could prop up cargo liftings more than you’d expect in the current environment.