Thursday, December 23, 2021

They Must Be Reading The Blog -- ISO NE Spiking Tonight -- December 23, 2021

Link here

Tonight, electricity is spiking in ISO NE and is in the sixth decile, And they're burning oil, accounting for 3% of consumption. 

Link here

Meanwhile, Overseas

China is letting LNG tankers be diverted to Europe; China, instead, is replacing that LNG with coal

Greta Thunberg unavailable for comment.

Joan Didion, Dead At 87

Whiting With One New Permit -- December 23, 2021

Endemic: I wonder if eighth graders understand the difference between "pandemic" and "endemic"? That's important because:

a) average literacy in the US: at the eighth grade level; and,
b) after two years of "this," we're finally moving into "endemic" status; in other words;
i) it's never going to go away: Fauci
ii) it's a "cold": Brandon

XOM: can break even -- dividends -- at $35-oil; oil trading at $73.

The Art Page

Sophia and her grandfather in the local art studio. 

Back to the Bakken

Active rigs:

Active Rigs31

One new permit, #38724:

  • Operator: Whiting
  • Field: Dollar Joe (Williams)
  • Comments:
    • Whiting has a permit for a Mariah Olson permit on Lot 2, section 1-155-97; 
    • the well will be sited 271 FNL and 1761 FEL;

Six permits renewed:

  • NP Resources: six Roosevelt Federal permits, Billings County;

Three producing wells (DUCs) reported as completed:

Video Of The Day? -- December 23, 2021

Stalingrad, 1942?

Waterloo, 1815?

Nope, apparently, December, 2021. Russian troops "walking" to Ukraine. A 21st century army "walking" hundreds of miles in dead of winter? Speaks volumes. Link here. Is it a fake video? I don't know. Needs to be fact-checked. But I think its old footage.

NDIC Hearing Dockets For January, 2022

Usual disclaimer applies: I do this quickly for my benefit. I do not expect readers to read this summary. There will be content and typographic errors. I used shorthand that may be confusing.  For all I know the links may not even be correct. I haven't checked them in quite awhile. In a long note like this there will be content and typographical errors. If this is important to you, go to the source.

Link here.  

Comment: look at all the SWD cases. 

Wednesday, January 1, 2022
Seven Pages

Cases, not permits:

  • 29142, White Rock, Sherwood Field, NDIC wants to review the abandoned status of #2 Beckedahl B, #12581, located in section 34-164-85; Renville County.
  • 29143, Hess, Tioga-Bakken, establish an overlapping 2560-acre unit, sections 25/26/35/36-158-95; one well; Williams County;
  • 29144, Hess, Stanley and/or Ross-Bakken, establish an overlapping 2560-acre unit, sections 33/34-156-91 and sections 3/4-155-91; Mountrail County one well; Mountrail County;
  • 29145, Hess, Beaver Lodge-Bakken, establish an overlapping 2560-acre unit, sections 5/6/7/8-155-95; one well; Williams County;
  • 29146, Oasis, Rosebud and/or Hardscrabble-Bakken, establish an overlapping 3200-acre unit, sections 2/3/E/2 4-153-102 and E/2 33/34/35-154-102; one well; Williams County;
  • 29147, Oasis, Rosebud-Bakken; establish a 1600-acre unit, sections 2/3/E/2 4-153-102; six wells; Williams County;
  • 29148, Oasis, Rosebud and/or Trenton-Bakken, establish a 2880-acre unit, sections 10/15/22 and E/2 of sections 9/16/21-153-102, ten wells, Williams and McKenzie counties;
  • 29149, Oasis,Rosebud, Hardscrabble, and/or Trenton-Bakken, establish a 3840-acre unit, sections 10/11/14/15/22/23-153-102, one well; Williams, McKenzie counties
  • 29150, Oasis, Trenton-Bakken; establish a 640-acre unit, W/2 of sections 16/21-153-102; three wells; Williams
  • 29151, Oasis, Deep Water Creek Bay-Bakken, establish a 1280-acre unit; sections 18/19-150-90, eight wells, McLean County;
  • 29152, Kraken, Oliver-Bakken,
  • 29153, WPX, Squaw Creek-Bakken, establish an overlapping 640-acre unit; E/2 sections 17/20-149-94, two wells, McKenzie County
  • 29154, Hess, pooling,
  • 29155, Hess, pooling,
  • 29156, Hess, polling,
  • 29157, Hess, commingling
  • 29158, Hess, commingling
  • 29159, Oasis, Pooling,
  • 29160, Oasis, pooling,
  • 29161, Oasis, pooling,
  • 29162, Oasis, pooling,
  • 29163, Oasis, pooling,
  • 29164, Oasis, pooling,
  • 29165, Oasis, pooling

Thursday, January 20, 2021
Six Pages

Cases, not permits:

  • 29166, RIM Operating; NDIC, terminate Lakeside-Midale/Rival Unit, Burke County.
  • 29167, EOG, Squaw Creek-Bakken, i) establish an overlapping 960-acre unit, W/2 of sections 8/17/20-149-94, four wells; ii) amend order # 30870 to terminate two existing 1280-acre units which authorizes eleven wells on each, and terminate an existing 2560-acre unit which authorizes two lease-line wells in Zone XIX, and instead create and establish an overlapping 2560-acre unit, section 9/10/15/16-149-94, authorizing fifteen wells; McKenzie County;
  • 29168, Bowline, Ft Buford-Bakken, establish an overlapping 1920-acre unit; one section line well; Williams County
  • 29169, Rimrock, Heart Butte-Bakken, eight wells on an existing overlapping 1280-acre unit, sections 4/9-147-92; Dunn County
  • 29170, Rimrock, Twin Buttes-Bakken, establish an overlapping 1920-acre unit, sections 12/13/24-147-92, four wells; Dunn County;
  • 29171, Rimrock, Covered Bridge and/or Pierre Creek-Bakken, establish an overlapping 1280-acre unit; sections 22/27-146-102, four wells, McKenzie County
  • 29172, Ballantyne Oil, Red Rock-Spearfish, rework Bernstein 13-7H, #21887, as an water injection well to test feasibility of water flooding, Bottineau County;
  • 29173, Zavanna, pooling,
  • 29174, Zavanna, pooling,
  • 29175, Zavanna, pooling,
  • 29176, Zavanna, pooling,
  • 29177, XTO, commingling,
  • 29178, XTO, commingling,
  • 29179, CLR, commingling,
  • 29180, CLR, Rattlesnake Point, SWD, Dunn County
  • 29181, CLR, Jim Creek field, SWD, Dunn County
  • 29182, RIM operating, Lakeside Field, SWD, Burke County
  • 29183, Grayson Mill, Painted Woods Field, SWD, Williams County

The Market -- For The Archives -- Before The Santa Claus Rally Next Week -- December 23, 2021

WTI: near the close -- $73.73. Closed at $73.76.

S&P 500: trading above its all-time high. Closed at a new all-time high.

Every S&P 500 sector: on track for double-digit gains this year. Link here

Dow: within 15 points of going over 36,000 (again) -- trading at 35,985. Closed at 35,951.

First group "financial / economic" indicators:

  • 10-Year Treasury: link here. Remains below 1.5%. Some suggest the TYT could go to 1%; most investors are equity-heavy; may move to balance with more bonds -- at least that's the "theory."
  • DXY: link here. 96.15.
  • Silver: link  here. $22.80
  • CBOE volatility index: link here. Explained at Investopedia.17.81; down 4.4%. Wow.


  • XLNX: up over $5/share; but still off its highs

Best of class -- BofA, link here:

  • Zoom (ZM)
  • DVN
  • FCX
  • KLAC
  • RIO

Also here, one in each S&P 500 sector:

  • DIS
  • BorgWarner (BWA)
  • Mondelez (MDLZ)
  • XOM
  • Wells Fargo (WFC)
  • CVS
  • Eaton (ETN)
  • F5 (FFIV)
  • Eastman Chemical (EMN)
  • Welltower (WELL)
  • NRG

TSA: boardings in 24 hours exceeds that of 2019, pre-pandemic. Source. Seven day average remains almost 10% below that of 2019.

One person's interpretation:  

Feel like it’s a construct of recent risk off moves in growth and high beta. Demand rising for stable businesses with strong cash flow and dividends in the face of tightening monetary policy and general uncertainty. Almost like a flight to fixed income except you can’t own bonds. High beta definition here

EU crisis: Kosovo starts cutting electricity to most of its two million citizens. Bloomberg

EU crisis: US saving Europe again. Flotilla of US LNG tankers streaming to Europe. Link here.

Omicron: top five symptoms -- it's a "cold." Link here.

WTI Hits $73; Rimrock FBIR Johnson Wells Continue To Come Off The Confidential List; Thirty-two Active Rigs -- December 23, 2021

US crude oil supply; drops to less than 27 days supply; not seen since pre-Covid, 2019. Link here

Permian: to beak daily oil production records in January, 2022. Link here

Back to the Bakken

Active rigs: estimate based on NDIC reports --

Active Rigs3214566953

Friday, December 24, 2021: 81 for the month, 110 for the quarter, 336 for the year:
38279, conf, Rimrock, FBIR Johnson 13X-7H,

Thursday, December 23, 2021: 80 for the month, 109 for the quarter, 335 for the year:
38280, conf, Rimrock, FBIR Johnson 13X-7C,

RBN Energy: New England power sector shift from gas to renewables and storage. Archived.

For the next few years, New Englanders will remain heavily dependent on natural-gas-fired generation — and keep their fingers crossed regarding the availability of piped-in gas for power during periods of frigid winter weather. 
But the power sector in the enviro-conscious six-state region has ambitious plans to gradually ratchet down its reliance on gas and other fossil fuels and increase the role of wind, solar, and battery storage. 
Over time, that could help to alleviate the gas-supply risk associated with New England’s seasonally insufficient gas pipeline capacity. However, front-and-center roles for highly variable renewable energy sources could pose reliability challenges of their own. In today’s RBN blog, we discuss the evolution of the region’s electric grid and what it may mean for natural gas producers and midstreamers.