One Well Coming Off Confidential List -- Apparently Not Even Drilled Yet, Waiver -- November 24, 2020

Active rigs:

$44.67	11/24/2020	11/24/2019	11/24/2018	11/24/2017	11/24/2016
Active Rigs	14	57	62	53	37

One well coming off confidential list today -- Tuesday, November 24: 26 for the month; 50 for the quarter, 715 for the year

• 32426, loc/NCW, BR, Cleetwood 21-27MBH-A, Elidah (NCW = not completed; waiver)

RBN Energy: could US propane demand plus exports drawn down inventories enough to spike prices?

Like everything else in 2020, the propane market has been exceedingly difficult to navigate. So far this year, we’ve seen Mont Belvieu propane prices down to 24 cents/gallon (c/gal) and up to 57 cents. Exports continue to increase, but stocks seem to be reasonably healthy, partly thanks to November so far being one of the warmest on record. Propane production was projected to dip in the fourth quarter but has held up pretty well. 

During the spring there was considerable concern about the possibility of a tight supply-demand situation this winter, but so far, market conditions seem relatively benign. Does that mean we are in the clear for winter 2020-21? 

Unfortunately, there may be a few gotchas still out there. As always, a lot depends on the weather. But there are other factors at work that could surprise us because some of the statistics we’ve relied on in the past to gauge what’s ahead are not what they used to be. In today’s blog, we begin a series looking at those factors.

Propane shortage, northern Michigan: Reuters, November 23, 2020. Line 5. Implications.