Two Wells Coming Off Confidential List -- December 2, 2021

Heads are exploding. SCOTUS and Susan Sarandon, the new Jane Fonda. Link here.  

Top story of the month: less than a month since COP26 and Japan is now quietly backing oil and gas. Link to Bloomberg here. 

Comment: I think even the blind may start to see a trend here .

US to become "energy dominant." Hellooooo ... we're already there. Link to Julianne Geiger. 

Spare capacity. Old story. Still true. Link to Tsvetana Paraskova.

DUCs. Drilling is picking up as DUCs decrease. Link to Tsvetana Paraskova. 

Covid-Omicron: looney. We just have to hope this lasts to December 31, 2021. RMDs for 2022 based on value of IRAs on last day of the year. 

Gasoline demand: link here. Not a good sign; dropping, trending toward 9.0 million bbls/day.

Shell: completes $9.5 billion sale of Permian business to COP. Whoo-hoo!

Climate change franchise: if a movie is ever made on climate change, it needs to be a fantasy epic like Lord of the Rings where natural gas is the wizard Gandalf, coal is Sauron (danger) and wind is that useless Frodo. Not mine; over at twitter. 

Biden, Kamal, and Pete: I often have the same question, when watching the administration these days, "What's the vector, Victor?"

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Back to the Bakken

Active rigs:

	12/2/2021	12/02/2020	12/02/2019	12/02/2018	12/02/2017
Active Rigs	31	14	56	66	53

Thursday, December 2, 2021: 48 for the month, 51 for the quarter, 302 for the year:

• 38266, conf, CLR, Dvirnak 12-7HSL1, Chimney Butte, no production data,
• 38047, conf, Slawson, Muskrat Federal 5-28-33TFH, Big Bend, no production data,

RBN Energy: the battle to define carbon-neutral and GHG-neutral LNG. 

There’s been a slew of high-profile shipments of “carbon-neutral LNG” the past few months, typically involving the use of carbon credits to offset, ton-for-ton, the carbon dioxide equivalent of greenhouse gases released during the production, piping, and liquefaction of natural gas, the shipping of LNG, and often the regasification and ultimate consumption of the gas too. 

The problem is, there is no widely agreed-to definition for carbon neutral, nor is there a consensus on how to quantify and validate the GHG “footprint” of a specific LNG cargo. Now, an international group representing the world’s LNG importers has established a framework for “GHG-neutral LNG” that it hopes will gain widespread acceptance. Elements of the proposal are sure to be controversial, however, as we discuss in today’s RBN blog.

Trees: the metric for measuring carbon-neutral is not by how much oil one uses, but how many trees one plants. CVX/CEO pointed that out several weeks ago. If I read my electricity bill correctly for the month of November, 2021, if I planted 50 trees I would have been carbon-neutral for the month of November.