The Brent futures curve has returned to backwardation, the state of the market signaling tighter supplies with prompt prices higher than those further out in time. Backwardation removes the incentives for traders to store oil in floating storage.For newbies: when it comes to a commodity like crude oil that "should" deplete / become scarcer in the long term --
- contango is the normal state of affairs: the price of oil should go up in the future, all things being equal, since global oil should deplete over the long term; "contango" -- come tango, come dance with me; a pleasant experience;
- backwardation: is not the normal state of affairs; oil is getting cheaper in the future, not because there is going to be more oil in the long term, but there are geopolitical, economic, strength of the dollar, chokepoints, manmade, etc., reasons for the price of oil to be going down in the near future; barkwardation -- it even sounds unpleasant;
Back to the Bakken
$50.83 | 1/7/2021 | 01/07/2020 | 01/07/2019 | 01/07/2018 | 01/07/2017 |
---|---|---|---|---|---|
Active Rigs | 11 | 56 | 64 | 54 | 39 |
Four new permits:
- Operator: Hess
- Field: Dollar Joe
- Comments:
- 38060, loc, Hess, GO-Braaten-156-97-2833H-2, Dollar Joe, SESW 21-156-97, 350 FSL 1569 FWL,
- 38061, loc, Hess, GO-Braaten-156-97-2833H-3, Dollar Joe, SESW 21-156-97, 350 FSL 1536 FWL,
- 38062, loc, Hess, GO-Braaten-156-97-2932H-3, Dollar Joe, SESW 21-156-97, 350 FSL 1470 FWL,
- 38063, loc, Hess, GO-Braaten-156-97-2932H-2, Dollar Joe, SESW 21-156-97, 350 FSL 1437 FWL,
Dollar Joe: tracked here but as a rule I no longer update the various fields in the Bakken, Dollar Joe is on the south side of Ray, North Dakota, and northeast of the very interesting Brooklyn oil field. There are only two wells in these drilling units:
- 20308, 654, Hess, GO-Soine A-156-97-3229H-1, Dollar Joe, t9/11; cum 170K 11/20;
- 20372, 451, Hess, GO-Braaten-156-97-3328H-1, Dollar Joe, t10/11; cum 118K 11/20;
Eight producing wells (DUCs) reported as completed:
- 37203, drl/A, CPEUSC, CPEUSC Tami 11-85-157N-99W-LL TFH,
- 33840, drl/A, CPEUSC, CPEUSC Tami 10-8-5-157N-99W TFH,
- 33945, loc/A, MRO, Walcel USA 42-8H, Reunion Bay, first production, 9/20; t--; cum 97K 11/20;
Pool Date Days BBLS Oil Runs BBLS Water MCF Prod MCF Sold Vent/Flare BAKKEN 11-2020 22 33192 33179 27065 43556 41498 0 BAKKEN 10-2020 28 63483 63035 52810 79947 73024 3133 BAKKEN 9-2020 3 812 761 1126 1028 0 983 - 33946, loc/A, MRO, Ranum USA 44-8TFH-2B, Reunion Bay, first production, 9/20; t--; cum 69K 11/20:
Pool Date Days BBLS Oil Runs BBLS Water MCF Prod MCF Sold Vent/Flare BAKKEN 11-2020 30 26173 26054 38281 33264 31647 0 BAKKEN 10-2020 28 36216 36335 60713 39208 35740 1330 BAKKEN 9-2020 3 6379 5975 15657 8920 7034 1463 - 36888, drl/A, Murex, Sophia Drake 25-36H-R, Sanish, first production, 10/20; t--; cum 27K 11/20;
Pool Date Days BBLS Oil Runs BBLS Water MCF Prod MCF Sold Vent/Flare BAKKEN 11-2020 30 21568 21153 3861 13823 13823 0 BAKKEN 10-2020 10 5559 4447 2952 2054 1924 0 - 34256, drl/A, CPEUSC, CPEUSC Tami 3-8-5-157N-99W MBH, Lone Tree Lake, --
- 34258, drl/A, CPEUSC, CPEUSC Tami 2-8-5-157N-99W MBH, Lone Tree Lake, --
- 34259, drl/A, CPEUSC, CPEUSC Tami 6-8-5-157N-99W--LL TFH, MBH, Lone Tree Lake, --
Seven permits canceled:
- EOG (5): five Sidonia permits in Mountrail County;
- NP Resources (2): two20901 Elhorn permits in Billings County;
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