Three Wells Coming Off Confidential List Today -- June 3, 2020

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Never mind: before the internet, no one ever had to own up to these major mis-calls. Goldman Sachs "tapers" call for stock-market plunge. Link here, FWIW. 

Why the market keeps going up: earnings. Well, duh.

APPL:

Amazon: Christmas in July June. Amazon's annual Prime Day event moves more merchandise than Black Friday and Cyber Monday. The Wall Street Journal is reporting that Amazon is looking to move the  annual Prime Day event to this autumn. But, and this is a big "but," Amazon is looking to announce "The Big Style Day" sometime later this month (June, 2020). What I find most interesting: with all the demand already being placed on Amazon, it's interesting that Jeff Bezos would increase that demand. Wow. The replies to the Fox Business article were "all" negative -- not sure what this is all about. Fox readers don't like Amazon?

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Back to the Bakken

Active rigs:

$37.37	6/3/2020	06/03/2019	06/03/2018	06/03/2017	06/03/2016
Active Rigs	12	64	60	51	25

Three wells coming off the confidential list today -- Wednesday, June 3, 2020: 13 for the month; 158 for the quarter, 385 for the year:

• 36754, 1,322, Kraken Candace 15-22 1TFH, Sanish, t12/19; cum 97K 4/20; see this post;
• 36458, drl/drl, BR, Glacierfill 1E, Clear Creek, no production data,  
• 35190, drl/drl, XTO, Zane Federal 21X-6AXD, Siverston, no production data,

RBN Energy: European and US gas markets look to each other for price direction. Provides excellent update of European gas situation. Archived here.

Natural gas prices in the U.S. were under pressure for many years, long before the COVID crisis gripped the world and threw energy markets into flux. Shale gas production, from both crude- and gas-focused basins, has driven U.S. output to incredible levels over the last 10 years. That growth has led to persistently low U.S. gas prices across the Lower 48, with the benchmark Henry Hub being no exception. The upshot of low gas prices has been steadily increasing demand, both in the domestic market and for exports of liquefied natural gas (LNG) to various markets around the globe. Until recently, those international markets had often been viewed as an insatiable demand sink, but reality has set in over the past year. Prices in Europe, one of the most popular destinations for U.S. LNG, have crashed below Henry Hub, and are threatening the once-steady flow of LNG. Market participants in the U.S. and Europe now find themselves poring over the fundamental details of both markets to determine how long the price weakness will last, or if it will only get worse from here. Today, we look at the increasingly interconnected gas markets on both sides of the Atlantic.

The gas markets in the U.S. and Europe, linked by ever-growing U.S. LNG export capacity, have kept us busy lately. The convergence of Henry Hub and global gas prices has led to a steady decline in feedgas flows to American LNG facilities and a commensurate drop in the number of LNG cargoes exported from Lower-48 liquefaction facilities. A later blog focused on not only the tightening spreads between U.S. and global prices, but also the various variable costs associated with shipping LNG between those markets.

The RBN Energy blog today also includes this:

Also, a quick aside on TTF, which stands for Title Transfer Facility. The index was established in 2003 by European midstream operator Gasunie and has since grown into one of the most important and liquid trading hubs in mainland Europe. It’s similar to the National Balancing Point (NBP) in the United Kingdom, but is located in the Netherlands, where market participants can access various receipt and delivery points on the Dutch pipeline grid, which is also well connected with the broader European gas infrastructure.