One Well Coming Off The Confidential List -- Friday, May 7, 2021

Jobs forecast: the miss by the analysts was the worst in 23 years. 

How does this happen?

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Back to the Bakken

Mailbox money: readers -- okay, a reader -- are writing me telling me that their royalty checks have increased significantly. 

Active rigs:

$64.93	5/7/2021	05/07/2020	05/07/2019	05/07/2018	05/07/2017
Active Rigs	17	20	64	61	49

One well coming off the confidential list -- Friday, May 7, 2021: 12 for the month, 36 for the quarter, 117 for the year:

• 37062, F/A, Hess, EN-Labar-154-94-1003H-5, Alkali Creek, first production, 11/20; t--; cum 138K 3/20;

RBN Energy: when it comes to FERC, oil and gas really are distinct.

Here at RBN, we’ve built our analytics around the concept that hydrocarbon commodity markets — crude oil, natural gas, and NGLs — are fundamentally and closely linked. That’s why in all that we do, we emphasize that, in order to have an understanding of one market, you must also be competent in the others. That can be difficult at times when not only the market structure, but the very rules governing the upstream, midstream, and downstream sectors of oil and natural gas transportation are so different from each other. For example, consider the many contrasts between how oil and natural gas pipelines are regulated. Today, we look at how federal oversight of pipelines has evolved and why it matters for folks trying to move a barrel of crude oil or an Mcf of natural gas from Point A to Point B.

Regulation is a funny thing (as in “funny-peculiar,” not “funny-ha-ha”). Some see the legalities and nuances of regulations as issues for pipeline attorneys to stay up late worrying about, but that’s not how it really works for a heavily regulated sector like interstate pipelines. For midstream companies and the shippers that use their pipelines, regulation matters as much as gravity does to an airline — it’s not something that the CEO wants to think about every day, but it’s a set of rules that can be lethal if not adequately appreciated. Cheap fares may get people on an airliner, but if the airline forgets about gravity, the outcome may not be good. In the case of regulation, forgetting about it can put a pipeline company out of business (or at least make it pay some humongous penalties).