Colonial Pipeline: I mentioned the other day this would likely be Biden's first big challenge. First thing he did was call it a "national emergency." Hoarding, panic buying, huge shortages would have occurred regardless but when a president makes that statement it certainly doesn't help. News coming out of the East Coast is not good.
Reminder: shutdown came just as refiners were in the process of shutting down anyway, to transition from "winter gasoline" to "summer gasoline." Biden's EPA will grant waivers to allow refiners to continue producing "winter gasoline," delay seasonal shutdowns.
JOLTS: US reported 8.1 million job openings in March, 2021, vs 7.5 million forecast. Federal government and states still paying folks not to work.
US equities plunging. Perfect storm. The trifecta timeline:
- FAANG with record earnings; investors not rewarded;
- jobs report blindsides everyone;
- Colonial Pipeline shutdown;
The faux environmentalists' pipeline trifecta:
- Keystone XL
- DAPL
- Line 5
Sell in May, go away. The date to watch, May 18, 2021, a week from today. Be greedy when others are fearful; fearful when other are greedy. Or something like that: Warren Buffett.
TSLA: plummets. Announces halt to expand Chinese operations. Link here.
Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.
Fire: the Fed is playing with fire -- The WSJ op-ed -- link here:
- clinging to an emergency policy after the emergency has passed, Chairman Powell courts asset bubbles;
- with Covid uncertainty receding fast, and several quarters deep into the
strongest recovery from any postwar recession, the Federal Reserve’s
guidance continues to be the most accommodative on record, by a mile.
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Back to the Bakken
ND's rock library: too bad this story will end up behind a paywall. Enjoy it while you can. Amy Sisk has really stuck to her knitting all these years and has posted an incredible story. Congratulations. Archived.
Active rigs:
| $64.06 | 5/11/2021 | 05/11/2020 | 05/11/2019 | 05/11/2018 | 05/11/2017 |
|---|---|---|---|---|---|
| Active Rigs | 17 | 17 | 66 | 60 | 51 |
Three wells coming off the confidential list -- Tuesday, May 11, 2021: 21 for the month, 45 for the quarter, 126 for the year:
- 37634, drl/NC, BR, Cherry Pie 1R TFH ULW, Haystack Butte, no production data,
- 37540, drl/NC, BR, Faye 3B MBH, Elidah, no production data,
- 36603, 3,416, Hess, EN-Anderson-LE-156-94-1820H-11, Manitou, t11/20; cum 126K 3/21;
RBN Energy: Colonial Pipeline shutdown exposes vulnerability, highlights resiliency.
We all hope that by the time you read this the operators of the ransomware-impacted Colonial Pipeline will have been able to restore service to more of the 5,500-mile refined products delivery system — maybe even to all of it.
In any case, the shutdown of the Houston-to-New-Jersey pipeline system on Friday both exposes the vulnerability of the North American pipeline grid to malevolent hackers and reveals how, by its very nature, that same grid offers at least some degree of redundancy and resiliency built into it. A lot of that ability to respond to a crisis, whether it be a pipeline leak or a hack by an Eastern European criminal group called DarkSide, involves what you might call “market-inspired workarounds” — alternative suppliers reacting to an anticipated supply void and potentially higher prices by jumping into action. Today, we look at what the ransomware attack on the U.S.’s largest gasoline, diesel, and jet fuel transportation system can teach us.
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