NOG News; PXD News -- Related? September 17, 2021

Booze: only one non-energy business story worth posting today -- out of Pennsuylvania. State puts two-bottle limit on some booze: champagne, bourbon, tequila, cognac, whiskey. But look at the reason: shortages. Stand-alone post coming.

PXD: Pioneer Natural launches land sale -- Reuters.

• PXD: assets in Delaware Basin to be sold; seeks $2 billion
• would leave PXD focused on Midland, its traditional base
• more at the link: reading between the lines, it's not good news coming from PXD but that's just my take
• US equity markets were down today; PXD held; actually up two cents at the close; trading at $157.05;
• social media here; worth reading; related to NOG / Comstock news?
  

US airlines: traffic climbed to 18-month high in July, 2021 -- let's see -- that goes back to pre-pandemic, doesn't it?

Curious minds want to know: why is the price of gasoline not falling. A must-read thread over at twitter. 

• Eric Nuttall: we are about to hit a production all setting up for all-time high oil prices -- Financial Post.
• US shale: "the marginal swing producer of the past decade" [wow, wow, wow -- I made that case years ago, well before others were saying it;
• today, shale investors demand tepid production growth rates (if at all) to maximize free cash flow and for at least fifty percent of that free cash flow to be returned to them in the form of dividends and share buybacks
• the result? the end of US shale hypergrowth a watershed event for the industry
• can anyone say "windfall taxes"?
• we've had zero oil inflation since 2007
• deserves a stand-alone post;
  

Things can't be that bad: Freddy's Frozen Custard and Steakburgers plans to open a restaurant in Bismarck.

Crude oil: more and more comparisons to 2017 being made. Fifty-six rigs operating in North Dakota on this date in 2017; then sixty-six rigs one year later (2018). 

Christmas backlog: a record number of cargo ships now waiting to unload at US port complex in San Pedro, CA -- sixty ships waiting to unload at ports of Los Angeles and Long Beach.

• tell me again the US economy is doing poorly;
• chicken or the egg?
• how much is being off-loaded daily? compared with 2019 (pre-pandemic?)
  
• is anyone doing analysis of reason for backlog?
• FedEx, USPS, UPS, Amazon Prime are each averaging one to two trips through our apartment complex each day

Sinopec: says Chinese demand for oil will peak in five years; projections needed to meet climate-related emissions goals. 

UK on the brink: US natural gas prices force key industrial sites to close. 

China: natural gas consumption growth potential is stunning. Link to Julianne Geiger. 

US: crude oil and fuel stocks fall below 2018 levels -- previously reported. Link to Tsvetana Paraskova. HFI Research graphic posted; same one posted earlier. It's quite stunning.

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Back to the Bakken

Bakken economy: Grand Forks AFB has been selected for a military satellite mission. Sources.

NOG: front-runner to buy a stake in Comstock Resources Bakken assets in North Dakota, three sources familiar with the matter, told Reuters.  SeekingAlpha.

• 427 active wells (producing)
• bid: $170 million for a non-operated working interest
• six-month net average production of 6,400 boe/day
• for interest in existing wellbores; does not include acreage, new drilling -- according to a reader
  
• analysts: NOG is capable of generating more than $200 million in positive cash flow in 2022 at current strip prices -- source at link;

Active rigs:

$71.96	9/17/2021	09/17/2020	09/17/2019	09/17/2018	09/17/2017
Active Rigs	24	11	62	66	56

Active rig data not provided. 

No new permits.

One well released from confidential status:

• 38156, conf, CLR, Kukla 10-16HSL1, Chimney Butte, data not updated on scout ticket.
  

Seven permits renewed:

• Slawson: all in Mountrail County, but different sections -- Vixen Federal; Genesis, Genekat Federal (2); Loon Federal (3)

Six permits canceled:

• Grayson Mill: all in Williams County; four in section 15-154-100; two in section 26-154-103; Larsen (2), Lucy Hanson (2), Reiten (2)