One Well Coming Off Confidential List Today -- October 6, 2020

First things first! How 'bout them Yankees. Color me impressed. After dissing the Yankees just a month or so ago, I'm eating crow. Not only did they win the 3-game play-in series, they smashed the Tampa Bay Rays, 9 - 3, including a grand slam. This is so incredible. Love it. 

The missile: yesterday, a reader mentioned the fracking "missile." From a very, very old article in the Greeley Tribune, all the way back to October 14, 2016, but look at this, updated on May 13, 2020.

Uh-oh: Saudi Arabia tweaking its national budget -- see oil at $50 until 2023. Link to Irina Slav. 

Uh-oh: WTI smackdown.

Uh-oh: OPEC basket, but some recovery, link here. The "W" recovery. 

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Back to the Bakken

Active rigs:

$39.58	10/6/2020	10/06/2019	10/06/2018	10/06/2017	10/06/2016
Active Rigs	11	58	64	59	33

One well coming off the confidential list:

Tuesday, October 6, 2020: 8 for the month; 8 for the quarter, 673 for the year

• 36079, conf-->loc, Petro-Hunt, Hartman 144-97-5B-8-2H, Little Knife, 
• sister well on this pad:
• 20860, 540, Petro-Hunt, Hartman 144-97-5A-8-1H, Little Knife, t7/12; cum 136K 8/20; a stripper well as of 2020; 27 stages; 3.3 million lbs proppant; a lousy well from the very beginning;
  

RBN Energy: 4 Bcf/d Permian gas capacity headed to the beach -- what happens to flow and basins? First in a series. Archived.

Expectations for Permian natural gas are far from what they were when this year started. Lower crude oil prices and a focus on capital discipline have slashed rig counts by about two-thirds since January and there are few signs of a recovery on the horizon. As a result, just about everyone’s forecast for Permian gas growth is much lower than just a few months ago, with tepid gains through the early 2020s now the industry’s consensus view.

However, if you think all this means that Permian gas markets have lost their relevance, think again. Despite the modest production growth anticipated, the basin’s gas flow patterns will soon be thrown into shock as 4 Bcf/d of new outflow capacity to Gulf Coast markets starts up next year, when the Permian Highway and Whistler pipelines begin operation. And that shock will reverberate through regional basis relationships, including at the Waha Hub, which we expect to end 2021 much stronger than it is currently. 

First in a series.

Are Permian gas markets like Tom Brady, still interesting but on the verge of becoming less relevant? Certainly, the volatility of Waha is set to dissipate over the next few years, as less drilling and more pipelines finally rebalance the gas market out in West Texas. That means that periods of negative pricing, which hit again last Friday, are soon to be a thing of the past. But we doubt folks will lose their focus on the Permian anytime soon; after all, it’s still the most actively drilled region in the U.S. by far, and one of the most likely basins to see increased activity should oil and gas prices break out of their current doldrums.