Large Number Of Wells Coming Off Confidential List; WTI Hits $85 -- January 16, 2022

Corky sent me this overnight:

Poland: interesting, but I did not know it was this interesting -- Saudi Arabia now "controls" two-thirds of Poland's oil supply, far outstripping Russia, previously the dominant supplier. Somehow this seems to be a big story.

COP: GS upgrades COP to a "buy." Permian.   

Having downgraded shares of Conoco in late 2021 following a year of outperformance and the $9.5b acquisition of Shell's Permian position, Mehta re-upgrades the stock today, indicating that accretion from the Permian assets will help Conoco delivery a 7.5% shareholder return in 2022.

Scotia: see long-term oil reverting to mean, Brent, $65. Goldman sees long-term Brent at $80.

GS: missed estimates; Shares down 3.5%. Rare for GS to miss estimates. Other banks yet to report. Later: actually not as bad as initially reported though stock still down. GS beat on revenue; missed on EPS. Turns out that GS had to spend a lot of money retaining talent on trading floor.

China: the Omicron surge is yet to come. Truly amazing.

Spare capacity: Russia struggling. Bloomberg must be reading the blog. Major 2022 theme. I'm glad to see that I wasn't the only one confused over the years. Russian conversion: bbls to metric tons: 7.28.

WTI: hit $85 overnight; now trading at $84.83. Later: $85.49.

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Back to the Bakken

$84.83	1/18/2022	01/18/2021	01/18/2020	01/18/2019	01/18/2018
Active Rigs	32	12	56	68	58

Monday, January 17, 2022: 26 for the month, 26 for the quarter, 26 for the year

• 38357, conf, CLR, Dolezal FIU 8-5H1, Chimney Butte, no production reported,
• 38338, conf, Resonance Exploration, Resonance Fylling 12-36H, West Roth, no production reported,
• 38263, conf, CLR, Pletan 9-18H1, Jim Creek, no production reported,
• 38076, conf, Slawson, Muskrat Federal 7-28-33TFH, Big Bend, no production reported,
• 38075, conf, Slawson, Muskrat Federal 6-28-33TFH, Big Bend, no production, reported,

Sunday, January 16, 2022: 21 for the month, 21 for the quarter, 21 for the year

• 38358, conf, CLR, Dolezal FIU 7-5H, Chimney Butte, no production reported,
• 38320, conf, CLR, Dvirnak 11-7H, Jim Creek, no production reported,
• 37447, conf, Koda Resources, Porter 2635-1BH, Bar Butte, nice well; first production, 9/21; t--; cum 38K 11/21;

Saturday, January 15, 2022: 18 for the month, 18 for the quarter, 18 for the year

• None.

Friday, January 14, 2022: 18 for the month, 18 for the quarter, 18 for the year

• 38396, conf-->drl/drl, CLR, Dvirnak 10-7HSL1, Corral Creek, apparently completed; no production reported,
• 37233, conf-->drl/A, Enerplus/Bruin, Wm Polar 157-101-24D-13-3B, Otter, nice well; first production, 7/21; t--; cum 59K 11/21;
• 37132, conf-->loc/A, Hess, BL-Frisinger-LE-156-95-2804H-1, Beaver Lodge, huge well, first production, 7/21; t--; cum 95K 11/21;

RBN Energy: for many carbon-capture projects, 45Q tax credit just isn't enough, part 4.

The idea of capturing the carbon dioxide emitted from power plants and industrial facilities and permanently storing it deep underground is widely viewed as one of the more promising ways to reduce greenhouse gas emissions. The catch is, how do you convince private-sector CO₂ emitters to invest tens or hundreds of millions of dollars in carbon capture and sequestration projects? Enter federal government incentives — in this case the Internal Revenue Code’s carbon oxide sequestration tax credits, better known as 45Q, which at first glance would appear to offer certain industries significant financial incentives if they make these investments. 

However, while the credits — available for a variety of projects and uses — have been around since 2008 and were significantly expanded in 2018, they have not yet made much of an impact. In today’s RBN blog, we look at how the credits can add up for individual projects and how widely variable costs make carbon capture uneconomic for several industries.