China's Great Wall Will Buy GM's Plant In India -- And GM Will Pay For The Sale -- ??? -- September 22, 2020

 Am I misreading this? See if you can catch it in the "segment" below.

From Automotive News / Automotive News China:

Delays to General Motors' sale of its Indian plant to Great Wall Motor due to tensions between India and China are likely to result in hefty unplanned costs for the U.S. automaker. 

Gaining Indian government approval for China-related deals is now expected to take quite some time and although the sale should still happen at some point, GM has not changed its plan to begin winding down the plant's operations next month. 

"By next year, it will either be a closed GM site or it will be an operating site with Great Wall," said one source. 

GM had planned to use the expected sale proceeds of $250 million-$300 million to pay off liabilities incurred with its exit from manufacturing in India in what a second source said would have been a "no gain-no loss" situation. 

Although money will come through once the deal is done, it will now have to pay out of pocket for severance pay, some of which would never have occurred had the deal proceeded smoothly, as well as other costs -- which could amount to a couple hundred million dollars. 

Sources also said severance pay costs could be much higher than usual due to lack of clarity about the deal's prospects and workers' demands for greater relief given the low chances of finding new jobs amid the coronavirus pandemic.

By paragraph, paraphrasing:

• paragraph 1: General Motors' sale of its Indian plant to China's Great Wall has been delayed
• paragraph 2: background
• paragraph 3: GM expected proceeds of $250 million to $300 million -- hold that thought
• paragraph 4: due to delay, GM will have unexpected expenses of "a couple hundred million dollars" - isn't that like $200 million? and probably more?
• paragraph 5: yes, it could be much more ...

It looks like GM might end up paying to sell this plant to China's Great Wall. 

I can hear Great Wall dealmakers in the backroom joking: we're going to buy GM's plant in India and GM will pay us to buy it.

Where have we heard that before? LOL.

Maybe I'm misreading something.

A Hess Well Drilled Back In 2010 Showing Some Life -- September 22, 2020

It's a little early to report this well, but ... finally it's coming back on line. Note: 3,581 bbls over 11 days extrapolates to 10,000 bbls over 30 days. Not bad for a well that

The well:

• 18250, 1,230, Hess, BB-Federal B-151-95-2122H-1, Blue Buttes, t5/10; cum 293K 7/20;

I first started tracking it in October, 2018:

October 23, 2018:  #18250 parallels the wells coming from this 5-well pad; still off line; back on line for a few days in 11/19; one day 12/10; #33737 is on a 5-well pad; this one was the first to report; the others are SI/NC, but I believe they have all been fracked; will soon report; #18250 was IA; 1/19 -- now back on A status, 10/19; three days of production in 2/19; still off line as of 4/19; back on line 5/19 but no production; no production, 7/19; remains off line 9/19; two days production 10/19 with minimal production; 2,000 bbls over 10 days, 11/19; continue to follow; the five well pad: #33736 - #33739, inclusive, all have been fracked; see this note; need to see what #18250 does; intermittent production since 6/17; still struggling; off line, 3/20; back on line? one day of production, 5/20; update here, August 15, 2020;

Recent production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	11	3581	3416	1247	4103	4103	0
BAKKEN	6-2020	8	1311	1092	745	1522	1522	0
BAKKEN	5-2020	1	126	0	0	0	0	0
BAKKEN	4-2020	0	0	0	0	0	0	0
BAKKEN	3-2020	0	0	216	0	0	0	0
BAKKEN	2-2020	2	82	0	15	6	6	0
BAKKEN	1-2020	5	724	471	75	620	620	0
BAKKEN	12-2019	1	207	605	53	214	214	0
BAKKEN	11-2019	10	1813	1678	677	1580	1580	0
BAKKEN	10-2019	2	543	424	73	598	598	0
BAKKEN	9-2019	0	0	0	0	0	0	0
BAKKEN	8-2019	0	0	0	0	0	0	0
BAKKEN	7-2019	0	0	0	0	0	0	0
BAKKEN	6-2019	0	0	213	0	0	0	0
BAKKEN	5-2019	2	211	0	8	356	356	0
BAKKEN	4-2019	0	0	0	0	0	0	0
BAKKEN	3-2019	0	0	0	0	0	0	0
BAKKEN	2-2019	3	83	0	6	144	144	0
BAKKEN	1-2019	0	0	96	0	0	0	0
BAKKEN	12-2018	0	0	0	0	0	0	0
BAKKEN	11-2018	0	0	0	0	0	0	0
BAKKEN	10-2018	0	0	0	0	0	0	0
BAKKEN	9-2018	0	0	0	0	0	0	0
BAKKEN	8-2018	0	0	0	0	0	0	0
BAKKEN	7-2018	0	0	0	0	0	0	0
BAKKEN	6-2018	5	521	808	45	595	595	0
BAKKEN	5-2018	7	341	212	4	249	249	0
BAKKEN	4-2018	10	408	191	7	176	176	0
BAKKEN	3-2018	10	290	414	79	266	266	0

 

15X Jump In Production; Well Drilled Back In 2010 -- XTO Fettig Well In Squaw Creek -- September 22, 2020

See this post for background.

Halo effect, if you have interests in this well, you have to be laughing all the way to the bank:

• 18766, 1,392, XTO, Fettig 24-22H, Squaw Creek, t11/10; cum 111K 7/20; from 400 bbls/month to 6,000 bbls/month -- let's see, 6,000 / 400 = 15x jump in production;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	31	4844	5050	1505	5183	0	4470
BAKKEN	6-2020	30	5018	4855	2127	5369	0	4636
BAKKEN	5-2020	31	5911	6319	2452	6325	0	5568
BAKKEN	4-2020	30	6018	5723	2574	6440	0	5707
BAKKEN	3-2020	21	3952	4047	2355	4255	0	3676
BAKKEN	2-2020	1	0	0	0	28	0	0
BAKKEN	1-2020	3	275	0	2563	412	0	329
BAKKEN	12-2019	0	0	0	0	0	0	0
BAKKEN	11-2019	0	0	0	0	0	0	0
BAKKEN	10-2019	0	0	0	0	0	0	0
BAKKEN	9-2019	0	0	0	0	0	0	0
BAKKEN	8-2019	0	0	0	0	0	0	0
BAKKEN	7-2019	10	116	444	128	246	0	2
BAKKEN	6-2019	29	363	430	93	708	0	0
BAKKEN	5-2019	31	389	369	105	757	0	0
BAKKEN	4-2019	30	382	312	104	721	0	7
BAKKEN	3-2019	31	415	255	102	859	0	3

The WPX Badger Wells In Squaw Creek

The wells:

• 35916, SI/A, WPX, Badger 22-21HY, Squaw Creek, t--; cum 110K in six months;
• 35917, SI/A, WPX, Badger 22-21HA, Squaw Creek, t--; cum 128K in seven months;
• 36450, SI/NC, WPX, Badger 22-21HIL, Squaw Creek, t--; cum 160K in seven months;
• 35918, SI/NC, WPX, Badger 22-21HZ, Squaw Creek, t--; cum 174K in eight months; see production below;

The well:

• 35918, SI/NC, WPX, Badger 22-21HZ, Squaw Creek, t--; cum 174K in eight months; see production below; 

Production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	30	15869	15939	11081	27501	25060	0
BAKKEN	6-2020	28	16699	16787	7639	28938	26563	0
BAKKEN	5-2020	30	21596	21426	18077	27472	24622	0
BAKKEN	4-2020	29	22496	22524	18222	30265	24246	3132
BAKKEN	3-2020	22	13183	13300	12923	20758	18799	0
BAKKEN	2-2020	26	28186	28259	33089	33288	27998	1827
BAKKEN	1-2020	31	41989	41838	34393	49589	29362	15347
BAKKEN	12-2019	31	14367	14171	5556	6904	5367	0
BAKKEN	11-2019	0	0	0	0	0	0	0

********************************************
Other Wells In The Immediate Area Of Interest 

Wells at 180-degrees, from south to north:

• 18766, 1,392, XTO, Fettig 24-22H, Squaw Creek, t11/10; cum 111K 7/20; see below;
• 20711, AB/341, WPX, Lucy Lone Fight 16-22H, Squaw Creek, t9/11; cum 124K 4/19;

Halo effect, if you have interests in this well, you have to be laughing all the way to the bank:

• 18766, 1,392, XTO, Fettig 24-22H, Squaw Creek, t11/10; cum 111K 7/20; from 400 bbls/month to 6,000 bbls/month -- let's see, 6,000 / 400 = 15x jump in production; also tracked here;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2020	31	4844	5050	1505	5183	0	4470
BAKKEN	6-2020	30	5018	4855	2127	5369	0	4636
BAKKEN	5-2020	31	5911	6319	2452	6325	0	5568
BAKKEN	4-2020	30	6018	5723	2574	6440	0	5707
BAKKEN	3-2020	21	3952	4047	2355	4255	0	3676
BAKKEN	2-2020	1	0	0	0	28	0	0
BAKKEN	1-2020	3	275	0	2563	412	0	329
BAKKEN	12-2019	0	0	0	0	0	0	0
BAKKEN	11-2019	0	0	0	0	0	0	0
BAKKEN	10-2019	0	0	0	0	0	0	0
BAKKEN	9-2019	0	0	0	0	0	0	0
BAKKEN	8-2019	0	0	0	0	0	0	0
BAKKEN	7-2019	10	116	444	128	246	0	2
BAKKEN	6-2019	29	363	430	93	708	0	0
BAKKEN	5-2019	31	389	369	105	757	0	0
BAKKEN	4-2019	30	382	312	104	721	0	7
BAKKEN	3-2019	31	415	255	102	859	0	3

A Very, Very Bad Week For EVs And Hydrogen Vehicles -- September 22, 2020

Nikola: the company's stock falls 25% when CEO and founder abruptly resigns under SEC investigation.

TSLA: falls 7% on its biggest day -- on "battery day" when we learn:

• nothing new of consequence;
• new battery did not make an appearance; and,
• EVs still a luxury buy for rich people;

Some are suggesting Nikola had its five minutes of fame; Tesla had its 45 minutes of fame. The way it looks now, only with government mandates will EVs become a "thing" any time soon (i.e., my investing lifetime).  I've read a lot of social media content and it all comes down to this: those that are interested in buying a Tesla, it's their second or third vehicle; but not their primary vehicle, and in more cases than note, their third vehicle. Much could be written but most has been previously said.

Eighty Wells Transferred TO D90 Energy; Twelve DUCs Reported As Completed; Thirteen Permits Renewed -- September 22, 2020

Active rigs:

$39.55	9/22/2020	09/22/2019	09/22/2018	09/22/2017	09/22/2016
Active Rigs	11	58	66	58	33

No new permits.

Twelve producing wells (DUCs) reported as completed:

• 35916, SI/A, WPX, Badger 22-21HY, Squaw Creek, t--; cum 110K in six months;
• 35917, SI/A, WPX, Badger 22-21HA, Squaw Creek, t--; cum 128K in seven months;
• 35262, drl/A, CLR, Sefolosha Federal 10-23H1, Epping, t--; cum --;
• 35263, drl/A, CLR, Sefolosha Federal 9-23H, Epping, t--; cum --;
• 35264, drl/A, CLR, Sefolosha Federal 8-23H1, Epping, t--; cum --;
• 35265, drl/A, CLR, Sefolosha Federal 7-23H, Epping, t--; cum --;
• 35266, drl/A, CLR, Sefolosha Federal 6-23H1, Epping, t--; cum --;
• 36485, SI/A, CLR, Sefolosha Federal 3-23H1, Epping, t--; cum --;
• 36487, SI/A, CLR, Sefolosha Federal 5-23H1, Epping, t--; cum --;
• 36720, drl/A, CLR, Vardon 11-14H2, Siverston, t--; cum --;
• 36722, drl/A, CLR, Vardon 11-14H, Siverston, t--; cum --;
• 37192, drl/A, CLR, Wiley 13-25HSL2, Pershing, t--; cum --;

Thirteen permits renewed:

• CLR (11): seven LCU Ralph permits and four LCU Reckitt Federal permits, all in Williams County;
• Crescent Point Energy: one CPEUSC Elena permit in Williams County;
• Nine Point Energy: one Nordtug permit in Williams County;

Change of operator: about 80 wells transferred from Taqa USA to D90 Energy, LLC;

Oasis -- Headed For Bankruptcy? -- Source -- September 22, 2020

Screenshot from The Williston Herald.

Oasis apparently headed for bankruptcy.

Oasis Headed For Bankruptcy; Covid-19 Paints The Bakken Red; Sturgis Rally Update -- South Dakota Looks Better Than Surrounding States -- September 22, 2020

Screenshots from The Williston Herald.

Oasis apparently headed for bankruptcy.

President Trump's White House task force on Covid-19 paints Williams County red:

Links:

• White House task force.
• For North Dakota:
• flattening the curve:
• case fatality rate: 0.8%
• hospital beds: 68% occupied which is "normal" for this time of the year
• ICU bed: 47% occupied which is "normal" for this time of the year

*****************************
Sturgis Rally Update

Link here.

Sturgis Rally: August 7 - August 16, 2020.

At link above, set "search" for "yesterday."

Number of cases means absolutely nothing.

Number of deaths associated with Covid-19 "means more" but numbers are incredibly questionable. Criteria for diagnosis varies across jurisdiction.

But be that as it may, new deaths in last 24 hours:

• Montana: 3
  
• Wyoming: 0 -- three days in a row with zero new deaths;
  
• North Dakota: 1 -- give me a break -- one new death and the White House paints us red!
  
• South Dakota: 0 -- compared to Minnesota, ND, Montana -- looking pretty good
  
• Nebraska: 10 -- ouch!
  
• Iowa: 10 -- ouch!
  
• Minnesota: 4!
  

Deaths per million population, and (ranking among 50 states and DC):

• Iowa: 404 (23) -- ranking unchanged
  
• Minnesota: 358 (27)  -- ranking unchanged
  
• North Dakota: 253 (35) -- moved unchanged
  
• Nebraska: 234 (39) -- ranking unchanged
  
• South Dakota: 228 (40) -- ranking unchanged
  
• Montana: 150 (44) -- ranking unchanged
  
• Wyoming: 85 (50) -- ranking unchanged -- only Alaska is lower with 62 deaths / one million

********************************
New Statistician For The Blog's
Covid-19 Coverage In The Bakken

Starting next week, the blog has hired a new statistician to track Covid-19 in the Bakken:

Off The Net For Awhile -- Time For Sophia -- September 22, 2020

But before I go. On-line ordering and shipping. Packages arrive generally by one of the following four:

• Amazon-branded deliveries
• UPS
• USPS
• FedEx

I don't know anything about DHL. 

Without question, anecdotally one of the four is by far the worst. The other three seem equally good but two of the three seem to have a better attitude than the third.

Later, I will complete the story, but it's gotten so bad that I now let the on-line retailer know that I won't order from them again if the company ships using ........FedEx.

Later: FedEx is by far the worst.

It turns out I'm not alone thinking this. See social media comments. 

**********************************
Did Someone Get The Memo

I don't know what to make of this, but if taken at face value, it suggests that some senators are finally getting the memo that if one party takes control of all the US House, the US Senate, and the presidency, "we" have just moved to a one-party system.

Reason #23 -- Why I Like To Blog -- September 22, 2020

A reader said he/she was unable to access his/her brokerage account and asked if I was having the same issue. I guess the reader knew I was a) an Apple user; and, b) that I might use the same broker. LOL. No, not Robinhood. Whatever.

I asked the reader what browser he/she was using (I've found Safari gives me more problems than my preferred browser, Firefox). The reader replied: Safari. Yup.

It turns out I had no problem getting into my account using Firefox. 

I then tried Safari and had no problem getting into the on-line broker site. However, I never, never check this site any more except on rare occasions (this will be important later on).

I called the broker; I was curious. 

Meanwhile, the reader downloaded FireFox and got into his/her account with no difficulty. So, we now know where the problem exists: at the browser (Safari) - broker interface / handshake. They obviously are using fist bumps and not using handshakes. Must be a Covid-thing. LOL.

So, as I was saying. Out of curiosity I called the broker in question, just to a) see if other folks were calling in with same problem; and, b) let them know, just in case.

The IT folks were very helpful; rambling helps also:

• the IT folks at this particular broker were unaware of any problems; they had minor glitches last week in some areas, but everything had been resolved;
• more idle rambling and then voila -- the IT guy said the magic word: cookies.

I had forgotten all about that. A year ago, I suppose, I had a similar problem -- I can't remember what broker or what browser -- but I couldn't access my account either. I gave them a call, and the woman -- yes, now I remember the broker because I was impressed with the support I was provided -- came to the solution almost immediately: cookies.

From PCMagazine: how to control and delete cookies on your browser.

From above:

I then tried Safari and had no problem getting into the on-line broker site. However, I never, never check this site any more except on rare occasions (this will be important later on).

So, why is that important? Because every time you log in cookies are collected. At some point, the site you are attempting to visit has accumulated so many cookies, the site is inaccessible.  I have no idea, but that's my working thesis for now.

Rumaila -- September 22, 2020

First, re-posting:

Link to Irina Slav: the debt crisis is mounting for oil economies (i.e, the Mideast). Data points:

• Dubai, Abu Dhabi, Bahrain, Saudi Arabia: taking on more debt
• Abu Dhabi: longest bond issue ever; 50-year debt at $5 billion
• Dubai: preparing to issue debt for the first time since 2014
• offerings were oversubscribed
• all Gulf economies, except Qatar, are expected to stay or swing into budget deficits this year
• Saudi Arabia should fare the best
• Saudi's breakeven price: $76.10/bbl
• Saudi's breakeven price could fall to $66 next year, but GS optimistically projects Brent to hit $64/bbl next year
• Vision 2030 may be on its deathbed

Link to Simon Watkins: cash-strapped Iraq to finally roll out refinery megaproject.

• original handshake with Royal Dutch Shell: back in 2012
• multi-billion dollar Nebras petrochemical plant development project
• goal: capture, process flared gas from the fields of Rumaila, West Qurna 1, and Zubair
• much more at the link, but I have to move on

Link to Tsvetana Paraskova: Saudis scold OPEC+ laggards for trying to "outsmart the market"

Rumaila:

The Rumaila oil field is a super-giant oil field located in southern Iraq, approximately 20 miles from the Kuwaiti border. Discovered in 1953 by the Basrah Petroleum Company (BPC), an associate company of the Iraq Petroleum Company (IPC), the field is estimated to contain 17 billion barrels, which accounts for 12% of Iraq's oil reserves estimated at 143.1 billion barrels. Rumaila is said to be the largest oilfield ever discovered in Iraq and is considered the third largest oil field in the world.

Curioser And Curiouser -- The GM-Nikola Story -- September 22, 2020

Updates

Later, 3:05 p.m. CDT: I'm still perplexed. We've gone from ICE to hydrogen in 72 hours? Skipping CNG and EVs, all in one swoop. Pretty amazing. I wonder if GM considered focus groups? Not that focus groups necessarily mean anything -- Steve Jobs famously said his right cortex was his focus group.

Later, 3:02 p.m. CDT: GM news today.

Original Post 

Three mini-bios:CEO on way out, link from Bloomberg below.

CEO on way out:

a high school dropout who parlayed a GED into a college stint that also ended with his dropping out. He then went on to start alarm-system and online-retail ventures and run a natural gas storage-technology company before founding Nikola in 2014. (Yes, Bill Gates and Mark Zuckerberg dropped out of college, too, but not every dropout is a ZuckerGates.)

CEO on way in:

a former GM executive turned dealmaker who originally brought the Nikola transaction to Barra’s attention. He oversaw a $700 million investment in Nikola in March and orchestrated Nikola’s debut as a public company in June by folding it into another publicly traded acquisition vehicle he ran.

Director of Infrastructure:

prior experience looks to have largely consisted of pouring concrete driveways and doing subcontractor work on home renovations in Hawaii.

From Bloomberg op-ed on GM, Nikola, and due diligence. 

[GM CEO Mary] Barra told investors on a conference call last week that GM conducted “appropriate diligence” before entering into a high-profile partnership with Phoenix-based Nikola, a three-year-old publicly traded startup that hopes to mass-produce zero-emission trucks running on hydrogen fuel cells and rechargeable batteries. 

To my ear, “appropriate diligence” is to “due diligence” as “half-baked” is to “fully cooked,” but maybe I’m nitpicking.

By the way, does anyone really know where hydrogen is on the automotive timeline? EVs are here as far as the technology is concerned. Infrastructure, not so much. Sales and market penetration are something else; and profitability is even farther down the road. Hydrogen? I don't know but filming a truck rolling down a hill and passing it off as the future speaks volumes. 

From the op-ed: the reason legacy manufacturers are rushing into EVs and hydrogen: they're tired of paying Elon Musk for regulatory credits. It's buried in this note about the Nikola's new CEO:

If Barra relied heavily on Girsky’s judgment to plow ahead with the GM-Nikola hookup, that may wind up being problematic. After all, Girsky was hardly a passive or objective analyst of Nikola’s prospects. He had skin in the game.

On the other hand, Barra struck a savvy deal, financially. GM received an 11% stake in Nikola, worth about $2 billion when the deal was struck, without putting up any cash. Nikola has to pay GM $700 million to make as many as 50,000 of its electric trucks, and GM gets to pocket the lion’s share of emissions credits earned through sales of those trucks. 

Detroit has also sat around alternately resenting and admiring Tesla Inc.’s ascent without taking enough risky and bold steps on its own to help make electric vehicles a reality. 

Barra’s partnership with Nikola was an important symbolic move, signaling an embrace of innovation and corporate responsibility around climate change.

"Symbolic" does not equate to profitability.

Steve Girsky, bio over at VectoIQ, the penultimate paragraph:

Steve is a currently a director at US Steel Corp and Brookfield Business Partners and a handful of private emerging technology companies. He also served as the lead director of Dana Holdings Corp. from 2008-2009.

An internet search reveals a "Steve Girsky" associated with a number of "emerging technology companies," but whether this is the same "Steve Girsky is not said. 

**************************************
GM, Ultium, And All That Jazz

To be explored later, perhaps:

• let's not lie: GM's new Ultium battery is not better than Teslas; insideEVs, March 13, 2020;
• luxury cars: Hummer and Cadillac will be among the first to get Ultium drive units and batteries, autoweek, September 18, 2020;
• Elon Musk's chance to fend off competition from GM's "novel: Ultium design, businessinsider, September 22, 2020;

Down To Ten Active Rigs; No Wells Coming Off The Confidential List -- September 22, 2020

US housing: existing home sales hit 14-year high; prices race to record peak. Link here.

• pent-up demand, after sector came to complete stop in March, 2020
• low-interest rates
• work-from-home
• school-from-home
• city centers are dead (everything is closed)
  
• city centers are dangerous
• flight to lower-income jurisdictions: 
• intra-state (upstate vs Manhattan, for example)
  
• inter-state (NY to FL; CA to TX
  
• interestingly, the linked article had all those reasons except the reasons why folks are rushing to the suburbs
• as much as anything it has to do with "moms" 
• concerned about safety
• concerned about schools
• very, very interesting phenomenon
• I'll bet it's as much about moms wanting a safer environment, better schools as dads wanting to pay less taxes (and, I'm using "moms" and "dads" generically, as metonyms, no sexism implied although I'm sure it's already been inferred. LOL.
  

US miles: US drivers' mileage in July (2020) falls to lowest for the month of July since 2012. Link here. 

• The biggest declines were seen on the East Coast, where mileage in the North fell 15.4% and in the South by 11.3%. Driving on urban Interstate roads fell by 14.8%, the sharpest decline seen in single road category.
• U.S. mileage has been below year-ago levels since March, when American businesses and schools first closed due to the virus. The lowest levels were seen in April, when government restrictions were most widespread.

Jet fuel: it's now so inexpensive, it's being used in sea-going tankers. Link here.  Next? Your neighborhood filling station. LOL. 

EVs: by the way, speaking of which, on social media someone suggested it was just a matter of time for local service stations to start installing EV charging stations; maybe, but it suggests to me those who say that haven't thought this through. If it's such a great idea why haven't we seen it across the board yet, at least along the interstates? Hey, let's go back to "US miles' above.

OXY: read this article any way you want; my take on it -- Warren Buffett drives a hard bargain; selling your soul to the devil.

OXY will pay Buffett's Berkshire Hathaway $200 million in dividends on preferred shares in cash, rather than common stock. Bloomberg sees it as OXY "getting stronger." It sounds like Warren is saying, "show me the money." 

OPEC basket, a "w" recovery, or a dead cat bounce? Link here.  

**********************************
Back to the Bakken

Active rigs:

$39.80	9/22/2020	09/22/2019	09/22/2018	09/22/2017	09/22/2016
Active Rigs	10	58	66	58	33

No wells come off the confidential list today.

RBN Energy: a rebound in Canadian CBR may not come until 2021.

Western Canada’s relentless, decade-long increase in crude oil production began maxing out its export pipeline capacity in the past few years. With more supply than could be carried by pipelines, exporting crude by rail tank car became the next best alternative, leading to record amounts of rail-based exports earlier this year. However, this year’s wild swings in oil prices and COVID-led demand destruction resulted in drastic production cutbacks that freed up space on pipelines and put the kibosh on more expensive crude-by-rail, at least temporarily. Things are shifting again, though. With oil production recovering somewhat in the past couple of months and excess pipeline capacity dwindling, are we headed for a resurgence in the use of rail to export Canadian crude? Today, we conclude a series on Western Canada crude production and takeaway options with an analysis of what’s ahead for crude-by-rail.

Crude oil has been transported to market by rail tank car since the late 19th century but pipelines overtook rail as a more reliable and cost-effective alternative early in the twentieth. While pipelines remain the safest and cheapest means of delivering large quantities of barrels to refiners, moving crude by rail never really disappeared and has played a vital role in terms of destination flexibility and as an option when pipeline capacity is in short supply. That’s certainly been the case in Western Canada in recent years, as production growth outpaced the addition of new pipeline takeaway capacity and forced shippers to turn to rail with increasing frequency as a supplement to pipelines. That trend was interrupted this spring, however, when a combination of demand destruction and sharply lower crude oil prices spurred a sharp decline in production.