Sixteen Wells Coming Off The Confidential List -- July 6, 2020

Renewable energy: there's no "there" there. ISO New England -- this morning -- 92% natural gas and nuclear; 5% renewable energy.

OPEC basket, link here, $42.93.

Friends again: Saudi Arabia and Kuwait restart production at shared oil field. Link here. So, while Saudi Arabia bullies rest of OPEC countries to cut production, it re-starts a huge field. Okay.

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Back to the Bakken

Active rigs:

$40.52	7/6/2020	07/06/2019	07/06/2018	07/06/2017	07/06/2016
Active Rigs	11	58	65	57	31

Sixteen wells coming off confidential list --

Monday, July 6, 2020: 25 for the month; 25 for the quarter, 470 for the year:

• 35974, drl/NC, XTO, Skarpsno Federal 22X-20F, Haystack Butte, no production data,
• 31521, SI/A, CLR, Steele Federal 6-24H, Banks, t--; cum 179K in less than five months; 57K months;
• 31520, SI/A, CLR, Steele Federal 5-24H1, Banks, t--; cum 118K in less than five months; 

Sunday, July 5, 2020: 22 for the month; 22 for the quarter, 467 for the year:

• 37043, drl/NC, CLR, Simmental Federal 13-16HSL2, Elm Tree, no production data,
• 36428, SI/A, Whiting, Lindseth 11-1-2H, Sanish, t--; cum 106K over five months;
• 35973, drl/NC, XTO, Skarpsno Federal 22X-20B, Haystack Butte, no production data,
• 32434, drl/NC, MRO, Stillwell 21-13H, 33-025-03101, Lost Bridge, first production, 8/20; t--; cum 215K 9/20; fracked, 8/19/20 - 8/25/20; 7.9 million gallons of water; 81.2% fresh water by mass; 6.4% produced water by mass; production; note 90K in first full month of production; 215K in three months. Early in the boom, EURs of 300K were the expected.

Saturday, July 4, 2020: 18 for the month; 18 for the quarter, 463 for the year:

• 37044, drl/NC, CLR, Charolais South Federal 2-10HSL Elm Tree, no production data, 
• 36819, drl/NC, WPX, Omaha Woman 24-13-12HY, Squaw Creek, no production data,
• 35972, drl/NC, XTO, Skarpsno Federal 22X-20E, Haystack Butte, no production data,
• 35694, SI/A, Oasis, Joplin 5397 42-32 6T, Banks, t--; cum 70K over four months;

Friday, July 3, 2020: 14 for the month; 14 for the quarter, 459 for the year:

• 37045, drl/NC, CLR, Simmental Federal 12-16H, Elm Tree, no production data,
• 36820, drl/NC, WPX, Omaha Woman 24-13-12HC, Squaw Creek, no production data,
• 35971, drl/NC, XTO, Skarpsno Federal 22X-20AXD, Haystack Butte, no production data,
• 35693, SI/A, Oasis, Joplin 5397 42-32 5B, Banks, t--; cum 137K over five months;
• 35692, SI/NC, Oasis, Joplin 5297 42-32 4T, Banks, t--; cum 70K over four months;

RBN Energy: rulings on KXL permit cloud other oil and gas pipeline projects.

The demand destruction caused by COVID-19 hasn’t only hurt producers and refiners; it’s also slowed the development of a number of planned midstream projects. In fact, the only multibillion-dollar crude-related project to reach a final investment decision (FID) during the pandemic is TC Energy’s Keystone XL, which in late March won financial backing from Alberta’s provincial government. But Keystone XL soon hit another snag, this time in the form of U.S. district and appellate court rulings that vacated the project’s Nationwide Permit 12 for construction in and around hundreds of streams and wetlands along the U.S. portion of the pipeline’s route in the U.S. More important, the courts also put on ice — at least for now — the use of the general water-crossing permit for other new oil and natural gas pipelines as well. As we discuss in today’s blog, that could result in delays and legal challenges to dozens of projects that midstreamers and their counterparties have been counting on.

For midstream companies, the process of advancing a pipeline, an export terminal, or another major project is often fraught with challenges. For one, there’s the competition among midstreamers to line up the long-term commitments generally needed to secure financing — a factor that has always been a hurdle for large new midstream projects. Then there’s the matter of locking down the various regulatory approvals and permits that the project will need — again, always a stumbling block that has only increased in significance over the years. Today, environmental, landowner, and stakeholder challenges to pipeline projects, even from the states they traverse, have become very difficult. For example, Williams has failed to convince New York regulators that its Constitution Pipelien project passes environmental muster. And even when midstream developers do get the approvals and permits they need from administrative agencies, there’s always the very real possibility that there will be court challenges that could drag on for years.