Five Wells Coming Off The Confidential List -- November 27, 2020

Active rigs:

$45.37	11/27/2020	11/27/2019	11/27/2018	11/27/2017	11/27/2016
Active Rigs	14	57	62	54	37

Wells coming off the confidential list --

Friday, November 27: 31 for the month; 55 for the quarter, 720 for the year

• 36596, drl/A, Hess, TI-Beauty Valley-158-95-1423H-4, Tioga, t--; cum 94K 9/20;

Thursday, November 26: 30 for the month; 54 for the quarter, 719 for the year

• 37355, loc/loc, XTO, Satter 24X-35FXG-N, Siverston,
• 37354, loc/loc, XTO, Satter 24X-35FXG-S, Siverston,
• 37507, loc/NC, CLR, Kennedy 13-31H, Dimmick Lake,

Wednesday, November 25: 27 for the month; 51 for the quarter, 716 for the year

• 36535, drl/A, Hess, EN-Sorenson B-155-94-1526H-9, Alkali Creek, t--; cum 38K 9/20;

RBN Energy: links to two blogs today.

Pipeline commitments key to Enbridge's strategy: this is a re-post of an earlier post. 

The energy industry in North America is in crisis. COVID-19 remains a remarkably potent force, stifling a genuine rebound in demand for crude oil and refined products — and the broader U.S. economy. Oil prices have sagged south of $40/bbl, slowing drilling-and-completion activity to a crawl and imperiling the viability of many producers. The outlook for natural gas isn’t much better: anemic global demand for LNG is dragging down U.S. natural gas prices — and gas producers. The midstream sector isn’t immune to all this negativity. Lower production volumes mean lower flows on pipelines, less gas processing, less fractionation, and fewer export opportunities. But one major midstreamer, Enbridge Inc., made a prescient decision almost three years ago to significantly reduce its exposure to the vagaries of energy markets, and stands to emerge from the current hard times in good shape — assuming, that is, that it can clear the major regulatory challenges it still faces. Today, we preview the Calgary, AB-based midstream giant, Enbridge, which plans to de-risk its business model.

The multi-billion merger of Canadian giants Cenovus and Husky.  

On October 25, a major consolidation of two Canadian oil and gas companies was announced with the planned merger of Cenovus Energy and Husky Energy. The prospective consolidation will offer the opportunity for corporate-level synergies and, over the longer term, for the physical integration of some of the companies’ operations, especially in Alberta’s oil sands. In today’s blog, we discuss some of the more nuanced elements of the consolidation, including potential improvement in crude oil market access and the larger presence of the combined company in PADD 2 refining, a sector that has taken a major hit during the pandemic. This blog also introduces a new weekly report from RBN and Baker & O'Brien: US Refinery Billboard.

Cenovus Energy is an integrated oil and natural gas company headquartered in Calgary, AB. It was formed when Encana Corp. (now known as Ovintiv) spun-off its oil-based assets into a separate corporation in 2009, allowing Encana to — at the time — focus on its natural gas assets. Cenovus produces oil in Canada and has refining interests in the U.S. The production assets include oil sands facilities at Christina Lake and Foster Creek and conventional operations at Marten Hills and Deep Basin. Notably, Cenovus announced this week that they have entered into an agreement to sell their Marten Hills oil assets to Headwater Exploration.

In the U.S., Cenovus has a 50-50 partnership with Phillips 66 in WRB Refining, which has refineries in Borger, TX, and Wood River, IL.