Thursday, July 30, 2020

Rambling Notes -- Early Night Edition -- July 30, 2020

For the archives.

Not ready for prime time.

Blog entry.
  • July 30, 2020
  • 7:46 p.m. local time.
  • Undisclosed location.
  • Weather: unlimited visibility; temperate; dry.
I am traveling. I am at a temporary, undisclosed location where I will be for three to four days. From here I will be on the road again, to another temporary, undisclosed location.

I have internet capability but I am greatly pressed for time. I am gradually catching up but wow! I can hardly believe all the "stuff" that has happened in the past two days.

I departed Tuesday evening, about 8:00 p.m. and drove until about 2:00 a.m. I napped on an interstate exit ramp among several 18-wheelers. I woke up about 5:00 a.m., I suppose, although I have forgotten the exact time. Then a full day of driving, Wednesday, from about 6:00 a.m. to Wednesday night, when I again slept along the road from 10:00 p.m. to 2:00 a.m. Two hours later, I was still tired, so I stopped and slept from 4:00 a.m. to 6:00 a.m.  Arrived at my destination about noon today.

So, Tuesday night to Wednesday night: 24 hours.

Wednesday night to Thursday noon: about 16 hours.

Google maps said, at posted speed limits and no stopping for rest, it would take one full day (24 hours) + six hours.

A two-hour time difference worked in my favor, though I will lose that "advantage" on the return trip home.

I'll provide more detail on the trip in subsequent notes, geographic locations, etc.

One of the best things about cross-country trips, especially at night, is listening to radio hosts talking about UFOs and Area 51. I was hoping to see some meteors during my all-night driving but if there were any I missed them. I did learn about the new asteroid headed towards earth (it will not affect this year's US presidential campaign):
Two Indian schoolgirls have discovered an asteroid which is slowly shifting its orbit and moving toward Earth. Radhika Lakhani and Vaidehi Vekariya, both studying in 10th grade, were working on a school project when they discovered the asteroid, which they named HLV2514.
That's a temporary name; one the asteroid is verified by an independent team of astronomers, the young women can give the asteroid its permanent name
The schoolgirls found a vocation where they could practice social distancing when the 2020 spelling bee was postponed for the year due to "the virus."

No asteroid is awarded a name until it has been observed long enough for its orbit to be determined with a fair degree of precision. This may take several years, but when it is achieved the body is awarded a “permanent designation” (a number issued in strict numerical sequence) and the discoverer is invited to suggest a name for approval by a special committee of the International Astronomical Union.
Strictly speaking, Ceres, the first known asteroid, is known as (1) Ceres. Examples of more unusual or whimsical names include (7758) Poulanderson (named after a science fiction author), (8749) Beatles (named after the 1960s pop group), and (5460) Tsenaat'a'i (which means “flying rock” in the Navaho [sic] language).
The prize for the most imaginative name goes to (2037) Tripaxeptalis. The name is pure invention but sounds like “triPax-septAlice”, which reflects the fact that its permanent designation is three times that of (679) Pax and seven times that of (291) Alice.
Until its orbit has been sufficiently well-documented, each new discovery is known only by a “provisional designation” consisting of the year of discovery followed by two letters and, if necessary, numbers that relate more precisely to the date and sequence of discovery.
Vincent, Don McLean

This song, by the way, led to Killing Me Softly With Your Song, and one of the most sought-after items for urban guerilla warfare, the "Roberta Flak jacket" popularized by Hillary Clinton after she landed in Bosnia under sniper fire.


There were three energy stories that caught my attention during the forty hours on the road. The first was the presidential permit allowing the Keystone pipeline to carry more oil. The second was the announcement that Bruin E&P was filing for bankruptcy. I would have missed that story but two readers alerted me to that one. The third story: a huge solar energy farm going broke. Again, this one brought to my attention by reader. I will get back to the solar energy farm later, if I don't forget. Too tired tonight.


This was the biggest earnings story. Did  you all see this one? Amazon. Analysts forecast earnings of $1.50/share. Amazon reported earnings of $10/share. Numbers are rounded. Links to follow. But if accurate, that has to be some kind of record.



The second biggest earnings story: Apple. I will come back to that one.


QCOM had a huge day.



Bruin E&P Files For Bankruptcy -- July 30, 2020

Somehow I missed this one -- a reader alerted me to it.

From The Houston Chronicle, July 20, 2020:
Bruin E&P Partners, a Houston oil and gas company backed by private equity firm ArcLight, has filed for bankruptcy protection, another casualty of the coronavirus-driven oil crash.
The energy company filed for Chapter 11 bankruptcy Thursday in federal court in Houston.
The privately-held company, which is focused on oil and gas production in North Dakota, said it was forced to file for bankruptcy after its lenders reduced the company’s credit line, causing the company to be overdrawn by more than $170 million.
The reader sent the following, thank you, very much:

Bruin, as an operator, milestones (tracked here):

North Dakota Supreme Court Sides With State Over Minerals Law -- The Bismarck Tribune -- July 30, 2020

Link hereArchived.
The North Dakota Supreme Court has ruled in favor of the state over a law intended to clarify long-disputed ownership of minerals under a Missouri River reservoir.

The court's opinion released Thursday centers around a law signed by Gov. Doug Burgum in 2017 that limited state mineral claims under Lake Sakakawea to a smaller area than it had previously claimed. The move has been estimated to cost the state nearly $187 million it already had collected in oil-drilling royalty payments that must be returned.

President Trump Issues New Presidential Permit To Expand Capacity Of Keystone Pipeline -- July 30, 2020

Link here.
Trump issued a new presidential permit for the base Keystone line, allowing TC to boost capacity by 170,000 barrels per day (bpd) to 761,000 bpd, TC spokesman Terry Cunha said on Thursday. The first 50,000 bpd increment begins flowing next year.

The additional Canadian crude oil on the line will help meet growing U.S. refinery demand, Chief Executive Russ Girling said on a conference call.

When Trump came to office, he revived TC's proposed Keystone XL pipeline, which has been delayed by opposition from landowners, environmental groups and tribes. It would give Canada expanded access to its top oil market after its existing pipelines ran full in recent years.

The U.S. Supreme Court reinforced this month a lower court ruling that blocked a key environmental permit, blocking substantial U.S. construction.

TC expects Keystone XL to enter service in 2023. Construction is underway in Canada, and TC is working on a revised 2020 U.S. work plan focusing on areas that have all permits and approvals, Girling said.
Much more at the link.

Zavanna With Ten New Permits; Rimrock Reports Two Nice DUCs Completed; Hess Reports A Completed DUC -- July 30, 2020

Active rigs:

Active Rigs1258636135

Three producing wells (DUCs) permitted (sic) -- that's how it was reported on the Daily Activity Report; I believe it should be three producing wells (DUCs) reported as completed:
  • 29628, drl/A, Hess, TI-Beauty Valley-158-95-1423H-1, Tioga, t--; cum --;
    PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
  • 36290, , drl/A, Rimrock Oil & Gas, Two Shields Butte 3-24-12-2H, Mandaree, 
  • PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
  • 36399, SI/A, Rimrock Oil & Gas, Two Shields Butte 4-24-12-4H3, Mandaree, t--; cum --;
    PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
Four permits renewed:
  • Sinclair (2): a Porcupine permit and an Olson Federal permit, both in Dunn County
  • EOG (2): two Hawkeye permits in McKenzie County
Ten new permits, #37756 - #37765, inclusive --
  • Operator: Zavanna
  • Field: Stony Creek (Williams)
  • Comments:
    • Zavanna has permits for a 10-well King Charles pad in SWNW 26-155-100, Stony Creek
      • 37756, loc, Zavanna, King Charles 26-35 1H, 2210' FNL 590' FEL; 22, 26, 27 & 35;
      • 37757, loc, Zavanna, King Charles 26-35 2TFH, 2240' FNL 590' FEL; 22, 26, 27 & 35;
      • 37758, loc, Zavanna, King Charles 26-35 3H, 2270' FNL 590' FEL; 22, 26, 27 & 35;
      • 37759, loc, Zavanna, King Charles 26-35 4TFH, 2300' FNL 590' FEL; 22, 26, 27 & 35;
      • 37760, loc, Zavanna, King Charles 26-35 5H, 2330' FNL 590' FEL; 22, 26, 27 & 35;
      • 37761, loc, Zavanna, King Charles 26-22 6H, 2210' FNL 420' FEL; 22, 26, 27 & 35;
      • 37762, loc, Zavanna, King Charles 26-22 7TFH, 2240' FNL 420' FEL; 22, 26, 27 & 35;
      • 37763, loc, Zavanna, King Charles 26-22 8H, 2270' FNL 420' FEL; 22, 26, 27 & 35;
      • 37764, loc, Zavanna, King Charles 26-22 9TFH, 2300' FNL 420' FEL; 22, 26, 27 & 35;
      • 37765, loc, Zavanna, King Charles 26-22 10H, 2330' FNL 420' FEL; 22, 26, 27 & 35;
Note: this may not be the first time this has ever happened, but this is the first time I've seen it -- all ten (10) wells are spaced for 2560-acres; generally eight permits are spaced for 1280 acres and two are section line wells spaced for 2560 acres.

Three Wells Coming Off Confidential List -- July 30, 2020

Still traveling; no hotel/motel stops. Cat naps here and there. 1726 miles  since Tuesday night, 9;00 p.m. CDT.  Now Thursday morning, 11:17 a.m. CDT. Masks are now universal. McDonald's still has free wi-fi and it reaches into the parking lot. Whoo-hoo. So, we have Covid-19, a national coin shortage, heat wave across the northern tier, and, road construction everywhere, which gets pretty sporty at midnight among the 18-wheelers.


Jobless claims, link here: 1.434 new jobless claims, in line.

Natural gas fill rate, pending, link here. Close but no cigar:

OPEC basket, link here: slight increased, at $43.40.

Back to the Bakken

Active rigs:

Active Rigs1258636135

Three wells coming off the confidential list  --

Friday, July 31, 2020: 71 for the month; 71 for the quarter, 517 for the year:
  • None.
Thursday, July 30, 2020: 71 for the month; 71 for the quarter, 517 for the year:
  • None.
Wednesday, July 29, 2020: 71 for the month; 71 for the quarter, 517 for the year:
  • 37309, drl/NC, WPX, Omaha Woman 24-13-12HIL, Squaw Creek, no production data,
  • 37248, drl/drl, CLR, Monroe 4-2HSL, Banks,
  • 36630, drl/NC, XTO, Arnold 21X-17BXC, Tobacco Garden;
RBN Energy: US natural gas living good south of the border. Archived.
The fundamental drivers of global energy markets are shifting as the world begins to recover from the crisis induced by COVID-19. North American natural gas markets have been upended this year by a multitude of events, chief among them the plunge in crude oil prices and a dramatic drop in LNG exports. Other smaller, yet relevant, factors have been gyrating as well, including natural gas exports to Mexico by pipeline. After climbing to new highs last fall, piped gas exports to our southern neighbor suffered significantly during the worst of this spring’s series of calamities, but things are looking up. Total exports across the border have reached new highs this month, with just-completed infrastructure in Mexico assisting in the jump. Perhaps things are getting back to normal, at least in this small corner of the energy markets. Today, we provide an update on exports of natural gas from the U.S. to Mexico.
RBN Energy: how crude price differentials affect producers. Archived.
As the number of new COVID-19 cases continues to rise, so does the oil patch’s apprehension that crude oil prices could be poised to take another hit. If that happens, producers would have to review, yet again, their plans for optimizing production as best they can, given their pricing outlook. But producers do not all receive uniform prices reflecting NYMEX WTI for their physical barrels — far from it. Crude quality and proximity to a demand market can make a big difference in the price that the barrels will ultimately sell for. Price reporting agencies (PRAs) such as Argus and Platts track and publish these differentials. But how are those differentials calculated and how do they affect producers? Today, we discuss crude differentials and their impact.