WTI Back Up Over $60; One Well Coming Off Confidential List -- March 24, 2021

Most interesting data point for the archives, link here:

• Currently, crude by rail accounts for about five per cent of revenue at CP and about two per cent at KCS. The two companies believe the deal will boost these revenues.
  

Suez canal: blocked by a huge container ship. It is being reported that efforts to "unstick" the container ship have been suspended for the day (Thursday). In the mideast, "today" (as in "inshallah"), can mean anything from six hours to six months. Again, for the archives. It's interesting but that's about all. By the way, do you all remember when The NYT suggested it would be the Panama Canal that would have problems. There is even a Panama Canal link for the blog.

Gas prices headed higher: leap in gas prices put $3 / gallon in sight. WSJ. That article was published by The WSJ before the 5.3% surge in the price of oil today. 

Weekly EIA petroleum report, link here:

• US crude oil in storage increased  by1.9 million bbls; about what was forecast; in other words, not a "bad" number;
• US crude oil now stands at 502.7 million bbls, about 6% above the already fat five-year average:
• distillates increased by 3.8 million bbls; distillates in storage just 1% above the five-year average for this time of year;
• refiners are operating at 81.6% of their operable capacity; that's a pretty healthy jump; all things being equal, there should be a nice draw in oil inventories next week;
• jet fuel supplied was down 35.4% compared with the same four-week period last week; that seems counterintuitive with the significant increase in air travel, but this was explained last week;

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Back to the Bakken

Active rigs:

$60.81	3/24/2021	03/24/2020	03/24/2019	03/24/2018	03/24/2017
Active Rigs	15	50	69	60	49

One well coming off confidential list:

Wednesday, March 24, 2021: 25 for the month, 81 for the quarter, 81 for the year.

• 36542, 58 (no typo)/F/A, Zavanna, Blue Heeler 20-17 2H XE, Banks, first production, 11/20; t--; cum 90K 1/21; stimulated 1/12/2020; 42 stages;