On The Road Again -- August 4, 2020

Market:

• all indices green at the moment;
• Ford CEO Jim Hackett hacked; F up marginally; pays no dividend;
• US factory orders increased more than expected in June, 2020; boosted by motor vehicles; my son-in-law, truck manufacturing, is getting more overtime; still having trouble with logistics; getting parts; stifles production, but that will improve;
• AAPL up another $5 today;
• IMUX: after a huge run, profit-taking today, but off its low for the day

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

OPEC basket, link here: $44.02.

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Back to the Bakken

Active rigs:

$41.06	8/4/2020	08/04/2019	08/04/2018	08/04/2017	08/04/2016
Active Rigs	12	58	64	58	33

Four wells coming off confidential list today --

Tuesday, August 4, 2020: 8 for the month; 79 for the quarter, 525 for the year:

• 36985, drl/TAI, CLR, LCU Truman Federal 3-23H1,  Long Creek,
• 36758, SI/A, Whiting, John William 14-12HU, Sanish, t--; cum 133K 4.5 months; a 35K month;
• 36348, F/NC, Hess, EN-Thompson Trust-154-94-1930H-3, Alkali Creek, t--; cum 111K 4.75 months; a 30K month;
• 35893, SI/A, Whiting, Rauser 11-29-3H, Pembroke, t--; cum 103K 4 months; a 28K month;

RBN Energy: Canada's propane supply dip, exports to Asia to hit railed volumes, part 2.

The Ridley Island Propane Export Terminal — Canada’s first propane export facility — has been a game changer since it started up in May 2019. Located along the coast of British Columbia, RIPET has been shipping record amounts of propane to Asian markets in recent months, just as Western Canadian propane production has been sagging due to the twin pressures of crude oil price weakness and COVID-19-related disruptions. With production down, RIPET gradually ramping up its export capacity, a second export terminal poised to come online nearby, and Canadian demand for propane holding steady, something has to give, right? Today, we examine the changing supply/demand outlook for Western Canadian propane, and what it might mean for railed exports to the U.S.

Western Canada, the primary source of Canada’s propane supplies and exports, for many years has had a single direct export market for its excess propane supplies: the U.S. That changed 15 months ago, when AltaGas and Vopak’s jointly owned RIPET export facility in Prince Rupert, BC, began operations, providing Canada with its first access to Asian markets from its own shores. As we explained in Part 1 of this series, prior to RIPET’s start-up, Canada did have an indirect means of sending propane to Asia, namely by railing supplies down to the PetroGas-operated export terminal in Ferndale, WA. With firm delivery contracts in place for both of these terminals, propane exports have been running at strong levels in recent months — record levels, in RIPET’s case. The larger volume of propane being sent to Asia appears to have eliminated the typical seasonal excess of propane supply in Western Canada for the first time ever, and to have partly eroded propane-by-rail exports to the U.S., with multi-year lows being recorded in May.