Tuesday, June 1, 2021

Californians Can't Transition To EVs Fast Enough -- Gasoline Trending Toward $6 / Gallon -- June 1, 2021

Updates 

Later, 1:21 p.m. CT: absolutely amazing. I suggested to a reader that the $6 / gallon gasoline pictured in the original post was from west Hollywood and that prices were probably higher out in the far east desert near the Arizona state line. 

It's generally higher out there simply because of the distance to transport gasoline and very few stations with huge traffic on the interstate with gas stations out there few and far between.

Right on cue, a reader sent this picture of one of those very, very busy service stations I used to visit on my cross country trips. It appears they've pulled the gasoline pumps and will be installing EV charging stations any day now. This is on the Arizona side of the state line. California requires warning signs regarding risk of cancer (Proposition 65).

You can fact check this by googling "Desert Center, I-10."

Original Post

Oil/gasoline:

  • Brent: $71.11 / bbl
  • WTI: $68.59 / bbl
  • Gasoline: $5.99 / gallon west Los Angeles

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Back to the Bakken


Active rigs
:


6/1/202106/01/202006/01/201906/01/201806/01/2017
Active Rigs2212646048

Wells coming off confidential list:

Monday, May 31, 2021: 38 for the month, 59 for the quarter, 140 for the year:

  • None.

Sunday, May 30, 2021: 38 for the month, 59 for the quarter, 140 for the year:

  • None.
Saturday, May 29, 2021: 38 for the month, 59 for the quarter, 140 for the year:
  • 36994, 2,433, MRO, Hull 41-28TFH, Chimney Butte, t12/20; cum 114K 3/21;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN3-202131185051860419273219602053969
BAKKEN2-20212827982277872672526359243940
BAKKEN1-20213133097331093849628771264520
BAKKEN12-20203031852313504671727217249820

RBN Energy: OPEC+ supply management faces tests as crude oil market recovers

Much like the world at large, the crude oil market has been healing from the ravages of COVID-19. Overall, market conditions are far better than they were in April 2020, when global oil consumption, crushed by pandemic-related lockdowns, slumped to 80.4 MMb/d, a 17% decline from the start of last year and a 20% drop from April 2019. Demand has been rebounding in fits and starts for a full year now — recovering from downturns is what markets do. But this recovery has gotten a big assist: 10 members of the Organization of the Petroleum Exporting Countries (OPEC), acting in concert with 10 non-members, have restrained crude oil production in a program unprecedented in scale and duration. Now, oil prices are high enough to revive activity by some producers outside the so-called OPEC+ group. For at least the rest of this year, in fact, the market looks like a steel-cage match between crude supply subject to coordinated management and supply governed only by raw market signals. Today, we look at oil-market projections from three important agencies and estimate demand for oil not supplied by the OPEC+ exporters.

4 comments:

  1. Huge stock moves in MRO and DVN.

    ReplyDelete
    Replies
    1. Thank you. I haven't had a chance to look at the market yet today, except briefly. MRO has incredible wells in the Bakken. If it's due to skill more than luck, they should do well in the Permian also. This could be an incredible year for mineral owners.

      Delete
  2. I'm looking at the big picture for USA.

    Biden administration released 10mmbbl from the SPR last March to be delivered April and May. USA oil production is steady at 11mmbbl/day, I do not see a quick recovery back to 13mmbbl/day. Rig count (both domestic and world wide) is still down by 40% compared to 18 months ago. (as per Baker Hughes rig count). Now there is the ESG movement going on.

    Saw your comment about the Alaska oil field coming on line a couple of days ago. Ain't nobody happy (voters) about the increase in price to fill up. The upfront cost of buying an EV over a gas powered vehicle is not going away until battery prices come down.

    I'm offsetting my fuel cost by buying oil stocks. :-)

    ReplyDelete
    Replies
    1. I think it's going to be absolutely fascinating. We have the midterms next year -- we'll see how the price of gasoline affects that.

      Delete

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