New World Order -- Oasis - Whiting Close To Merger -- March 6, 2022

Holy mackerel: here we go -- Whiting and Oasis close to merger. Link here. Being reported as an exclusive, The Wall Street Journal, at a paywall, I have subscription, if you want any information from the site.

• market value deal: $6 billion
• the all-stock tie-up between the rival North Dakota shale drillers could be unveiled early this week, the people said, assuming the talks don’t fall apart. The companies combined would be worth roughly $6 billion, given Oasis’ market value of $2.8 billion and Whiting’s, which stands at $3.3 billion.
• Last year, Oasis bought assets in the Bakken shale region from Diamondback Energy Inc. in a transaction initially valued at $745 million. It also sold its holdings in the Permian Basin of West Texas and New Mexico, the most active U.S. oilfield, for more than $400 million.
• Meantime, Whiting divested leasehold interests and other assets in the DJ Basin in Colorado last year and has snapped up more assets in the Bakken.

Other items:

• Oil prices: we've been here before, but circumstances much, much different. HOFDL. I'm with Josh. Mind the gap. 
• Of course, it's not sustainable, but, like those talking about demand destruction, some are missing the point. Link here.  
• Biden, hat-in-hand: tea leaves, will fly to Riyadh, desperate plea for more oil. Link here. 
• very unlikely Biden would make the trip
• a better trip, if he's gonna fly halfway around the world: Berlin.
• can you imagine the quid pro quota Saudi will demand

• Demand destruction: such incredible trivial dribble. Tea leaves suggest tactical nuclear is no longer out of the question, and folks are worried about demand destruction? Oh, give me a break. 
• John Kerry and Jen Granholm: oil at $130 means only one thing: we need more wind and solar.  
• Goldman Sachs: US sanctions of Russian oil would likely have little impact on US. Link here. 
• Ten-year Treasury yield: fading fast. Now at 1.697%. 
• Aluminum: link here.

Shared with a reader via e-mail:

I would find it absolutely amazing if Biden would actually go to Saudi Arabia -- it's a lose-lose for him. 

If he gets rebuffed by Saudi Arabia, a huge loss. A loss of epic proportions. Of course, he will only go if the agreement is made beforehand.

If Saudis agree to help him out, they really can't add much. 

Saudi Arabia has almost become a marginal player in all of this. 

The real players:

• Canada (had we had the Keystone XL)
• Venezuela (which looks like sanctions will be lifted). 

Everyone else remains marginal:

• even Iran, even if all sanctions lifted; they are more natural gas than oil;
• Libya; more marginal than ever;
• Mexico: hardly even marginal; slowly becoming a failed nation;
  

Russia: definitely marginal

The real question is whether Britain will re-think its position. France won't even though it has shale oil. This, too, will pass. That's the French motto.