One Well Comes Off Confidential List; Huge Draw In US Crude Oil -- June 23, 2021

Again, due to traveling, blogging will be minimal and intermittent. Posting comments and replying to e-mail will be delayed.

EIA weekly petroleum report: link here.

• US crude oil in storage decreased by another whopping 7.6 million bbls.
• US crude oil in storage now stands at 459.1 million bbls, 6% below the norm for this time of year.
• Imports averaged 6.9 million bbls, up by 197,000 bpd from the previous weekdistillate inventories increased by 10.8 million bbls; remain 4% below the five-year averagerefiners are opearating at 92% of their operable capacicy;
• jet fuel supplied was up 97.5% compared with same period last year

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Back to the Bakken

Active rigs:

$73.62	6/23/2021	06/23/2020	06/23/2019	06/23/2018	06/23/2017
Active Rigs	20	12	64	65	58

One well coming off confidential list -- Wednesday, June 23, 2021: 77 for the month, 101 for the quarter, 179 for the year:

• 37482, drl/NC, BR, F Jorgenson 1B MBH, Elidah, no production data,

RBN Energy: old-school hydrogen production and demand, and why it matters. 

With all the hype about hydrogen you hear these days, you’d think the gas was just discovered yesterday. But, of course, it’s been around for a while — like back to the Big Bang 13.8 billion years ago. It does a nice job powering the sun and, when combined with oxygen, provides another building block of life on our planet: water. And that’s not all. For decades, a lot of hydrogen has been used as industrial feedstock to produce low-sulfur refined products, ammonia, methanol, and other useful stuff. However, this hydrogen production isn’t “green,” the color code for the highly exalted hydrogen produced from zero-carbon sources. 

No, most of the hydrogen used today goes by the drab hue of “gray” and is generally ignored by the carbon-neutral buzz that permeates the decarbonization dialogue. It shouldn’t be disregarded, though. Over 13 Bcf/d of this gray hydrogen is produced on purpose or as a byproduct each day, more than the volumetric equivalent of all Permian natural gas production. And if the carbon dioxide produced along with that hydrogen is stored permanently underground, then gray hydrogen magically becomes “blue” — almost as good as green. Today, we begin an exploration of the gray hydrogen market, and how it has the potential to impact decarbonization goals far more than green hydrogen over the next decade.