One Well Coming Off The Confidential List -- Hess -- September 3, 2020

First things first: US Army Corps of Engineers: status report on DAPL -- https://earthjustice.org/sites/default/files/press/2020/3154-USACE-Status-Report-8.31.20.pdf. From a reader:

If you want to read the current correspondence, skip to page 2310.  The first several thousand pages of attachment are Corps' boilerplate manuals.

The correspondence is so very indicative of the parties' positions.  Hasselman just can't help himself - he has to take a swat at the proposed expansion.

Other first things first: Lego sales surge. LOL. Link: https://www.foxbusiness.com/markets/lego-sales-surge-coronavirus. 

 

 

Other first things first: PGA FedEx Championship begins today. Expect two things:

• lots of advertising; NBC desperately needs the revenue;
• lots of video clips of Tiger Woods: about the only think that will keep "fair-weather fans" tuned in
  

Right on cue: no sooner than I post the above note on the PGA tournament, and we see an open letter of "thanks" to Tiger Woods from Phil Mickelson on CNBC thanking Tiger for all he's done for the sport  -- reminding all of us, of course, Tiger won't be playing in this tournament. 

Schlumberger: Liberty sets sights on topping SLB. 

DAPL, DAPL, who needs the DAPL? All for DAPL stand up and holler. ET adds takeaway capacity in the Permian. Link here.

Energy Transfer reported Tuesday that it has completed its Lone Star Express Pipeline expansion project on budget and ahead of schedule.

The new 352-mile (566-kilometer), 24-inch-diameter pipeline adds more than 400,000 barrels per day of natural gas liquids (NGL) capacity to the Lone Star NGL pipeline system, Energy Transfer noted in a written statement. The company added the expansion runs from Winkler County, Texas, to the existing Lone Star Express 30-inch pipeline at the Morgan Junction in Bosque County, Texas, south of Fort Worth.

Now we know. WTI fell yesterday despite a huge decline in inventories. '

That didn't make sense ... until one looked at refining runs. Wow. Refiners dropped well below their operating capacity; again, below 80%. Of course, this was somewhat of a one-off, due to the much-hyped Hurricane Laura. But WTI continues to fall. Approaching the $40-support level.

Ouch. OPEC basket drops again, link here: $45.03.

Saudi Foreign Exchange Reserve: pending.

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Back to the Bakken

Active rigs:

$40.68	9/3/2020	09/03/2019	09/03/2018	09/03/2017	09/03/2016
Active Rigs	11	60	63	56	33

One well coming off the confidential list -- Thursday, September 3, 2020:

• 36002, drl/A, Hess, AN-Mogen Trust-153-94-2932H-5, Antelope-Sanish, t--; cum 85K 7/20;

  Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
  SANISH	7-2020	21	12033	11944	3807	0	0	0
  SANISH	6-2020	30	14031	14038	3827	26808	24908	1850
  SANISH	5-2020	31	19637	19635	7721	27261	10787	16427
  SANISH	4-2020	30	17539	17593	4986	26477	16277	10149
  SANISH	3-2020	29	21716	21538	318	34531	21026	13440

RBN Energy: potential recontracting dilemma for gas supply-push pipelines.

The U.S. natural gas pipeline sector is entering a challenging period for recontracting a major chunk of its capacity. The numerous pipeline systems built during the early years of the Shale Era’s midstream boom were anchored by 10-year, firm shipper contracts, mostly with producers, making them so-called “supply-push” pipelines. Many of those initial contract periods have begun to roll off, exposing pipelines to producer-shippers’ renewal decisions based on current fundamentals. Shippers typically expect substantially lower rates for a renewal contract, because much of the pipeline has been paid off through depreciation. 

But there’s another issue that is becoming more important: shipper recontracting may not happen for market reasons. For pipeline owners, this is happening at the worst possible time. The market is in turmoil and facing ongoing uncertainty. Gas production is down, demand from LNG export facilities is in flux, and regional supply-demand dynamics are shifting. As if that weren’t enough, new, large-diameter pipelines out of the Permian now nearing completion will reshuffle gas flows around the country. And other transportation corridors that not long ago were bursting at the seams and feverishly expanding to ease constraints are now at risk of being underutilized. Today, we discuss the factors that together may present significant risk for pipelines approaching the proverbial recontracting “cliff.”