As this is being posted, WTI is moving up again; now up 2.27%, and solidly above $87 / bbl.
Major 2022 theme: when capacity goes from spare to scarce to scare.
White House is monitoring: regular grade gasoline is up almost exactly $1.00 / gallon from one year ago -- EIA -- the White House energy agency. Link here.
Tone deaf: elites prioritizing decarbonization while two billion people suffer in energy poverty. Max Gagliardi.
Permian soars: December sets a record.
WTI: dropped back from $87 to $86. Shares in public oil companies plummet. EOG breaks even at $30; covers dividend at $36.
Legacy Fund deposits: January, 2022, data pending.
ISO NE: they're reading the blog. Link here.
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Back to the Bakken
Active rigs:
| $87.14 | 1/19/2022 | 01/19/2021 | 01/19/2020 | 01/19/2019 | 01/19/2018 |
|---|---|---|---|---|---|
| Active Rigs | 32 | 12 | 56 | 68 | 58 |
Wednesday, January 19, 2022: 32 for the month, 32 for the quarter, 32 for the year
- 38355, conf-->drl, CLR, Dolezal FIU 10-5H1, Chimney Butte, no production provided;
- 38350, conf-->F/A, Hunt, Blue Ridge 159-100-6-7H 4, Green Lake, some production reported;
- 38265, conf-->drl/A, CLR, Pletan 11-18H1, four section spacing, Jim Creek; minimal production reported;
- 38356, conf-->drl, CLR, Dolezal FIU 9-5H, Chimney Butte, no production data provided;
- 38264, conf-->drl/A, CLR, Pletan 10-18H, four-section spacing, Jim Creek, minimal production,
- 38077, conf-->drl, Slawson, Vagabond Federal 1 SLH, Big Bend, no production data;
RBN Energy: pipeline projects, refinery closures alter flows to crude export venues.
It’s possible for a single new infrastructure project to be a game-changer — the Transcontinental Railroad comes to mind, and so do the New York City subway system and the Hoover Dam. In the energy industry’s midstream sector, things work a little differently. There, projects are incremental. They’re privately, rather than publicly backed and so they must be commercially justified, which means they need to serve a specific purpose. That’s not to say they can’t shift the landscape of the areas they serve. For example, when the Shale Revolution transformed and disrupted U.S. hydrocarbon markets, supply and demand dynamics were turned on their head and waves of projects had to be built to handle surging production in suddenly supercharged shale plays like the Bakken, Appalachia, and Permian and to serve new markets, most notably exports.
Sometimes, it’s a more complicated combination of projects and events that, as a group, cause not-so-subtle shifts in how things are done. Lately, handfuls of pipeline projects and refinery closures — plus increasing regional crude oil production in both the U.S. and Canada — have spurred changes in traditional pipeline-flow patterns and may breathe new life into oil-export activity at the Louisiana Offshore Oil Port and the Beaumont-Nederland area in Texas. In today’s RBN blog, we discuss these changes and their effects.
What has always impressed me is how the oil industry has always been willing to try something new.
ReplyDeleteTo often the "We've always done it this way" attitude has slowed progress when progress should be the next thing to do.
Working outside the box, looking around the bend, however you put it, the oil industry has always been ahead of the curve
Agree, completely.
DeleteThe oil industry: where really, really, smart high-tech folks intersect with really, really hard-working roughnecks.
Quite amazing. Pushing 9-foot (?) pipes four miles to total depth in a manner Edwin Drake would recognize/understand and tracking placement within inches only understood by guys like Bill Gates (and Harold Hamm).