US equity markets:
- Dow: closes up 349 points
- S&P 500: closes up 64 points
- NASDAQ: closes up 270 points
Shift: just a month ago, some Dems were advocating an outright ban on US crude oil / natural gas exports.
Now, apparently, the US is preparing a major LNG shipment-plan, akin to the Marshall Plan or the Berlin Airlift. Link here. My hunch: Biden is going to announce a plan more massive than anyone might imagine. This would solve a lot of problems.
US natural gas / crude oil: all of a sudden, bigger than ever. Link here. EU assesses no-Russian-gas scenario for next winter.
Diesel: Austrian energy giant limits sales. Diesel may end up being the #1 energy story of 2022.
EVs: tracked here. Hertz adds Tesla's Model Y crossover to its EV offering. Previously only the Tesla Model 3 was available. Link here
. Think about it. Right now Teslas only available in DC, Florida, California, and Georgia. I bet most rentals in urban areas require less than a full tank of gasoline or a full electric charge. In other words, rent a full charged EV and return it and not have to pay for any gasoline or electricity. Or perhaps a nominal charge for re-charging.
Back to the Bakken
Active rigs:
| $111.40 | 3/24/2022 | 03/24/2021 | 03/24/2020 | 03/24/2019 | 03/24/2018 |
|---|---|---|---|---|---|
| Active Rigs | 35 | 15 | 50 | 69 | 60 |
No new permits.
Ten permits renewed:
- BR (7): four Saddle Butte permits, three Curtis permits, all in McKenzie County;
- Lime Rock Resources (2): a Harlan Rebsom permit and a Robert Sadowsky permit, both in Dunn County;
- Enerplus: a Moran permit in Dunn County;
Two producing wells (DUCs) reported as completed:
- 31365, 2,205, Grayson Mill, Topaz 20-17 5TFH, Banks, no production data,
- 36209, 811, XTO, FBIR Baker 34X-25H, Heart Butte, minimal production data,
My opinion- These mineral grab folks do not have owners best interests in mind. They market their "deals" as "Are you tired of all the hassles of rollercoaster markets?" Etc.
ReplyDeleteThey try to market the value of the acre but do not mention the value of the production. Selling the rights is a one time deal, benefits of production is a 20-30 year payoff.
Was offered over $100,000 for my rights in one section. The annual avg for last 10 yrs on that section is nearly $50,000 per year.
I'm told that section still has 20-30 yrs left at least.
I dont like math but is adds up easy for me, its a no brainer-no deal
Everyone's situation is very, very different. For me, the offers provide me a data point for the value of the Bakken.
DeleteOf course these 'buyers' are not offering top dollar. They are simply trying to acquire mineral interests to demonstrate their acquisition prowess to their investors to whom they "suggest" returns in excess of 10%/year. Then, they sell partnership interests to dentists and surgeons (the easiest marks in the investment community!) Of course, this couldn't happen if they actually paid retail! If one is really needing to sell, an old friend often said "Leave something for the buyer"!
ReplyDeleteWe've happily turned down double reported above. As you've often said, "Unless you really need the money, never sell minerals". True then,true today. Thus sayeth the Old Guy.
1. Like everything else in life, there's a lot to be said about education. One of the purposes of the blog was to help mom-and-pop mineral owners figure out the value of their minerals.
Delete2. It was incredibly difficult to put a price on minerals in conventional fields but in tight basins like the Bakken it was much easier and I pointed that out in the first one or two years of the blog.
3. As the Bakken has matured, it has become even easier to estimate the value of one's holdings.
4. There are no laws that force anyone to sell their minerals. Whether one does or doesn't it's a personal decision. It's never as simple as it seems.
You've done a laudable effort in educating mineral owners as the the value of the asset they own. Keep the Faith and, pray, don't stop.
ReplyDeleteI'm constantly amazed that a person with no actual interests (Am I correct here?) in Bakken should go out of one's way to educate the "unwashed". Good on you!!!
The blog started simply because I grew up in Williston, saw several "boom and bust" cycles but was never involved in oil. The closest I ever came to energy was working as a "gopher" one summer with MDU, helping to build and maintain utility lines (think: Glenn Campbell's "Lineman for the County." LOL).
DeleteIn 2007, I would retire from the USAF; I was aware of the Bakken in Montana and maybe (I forget) some activity in North Dakota). I sensed that somehow this "boom and bust" cycle would be different. I have no idea why I thought that.
But I was really, really curious. I really, really wanted to learn about "oil" was all about. I was going to follow the Bakken but it was going to be with a word document and hyperlinks when I realized doing it in HTML was made for this.
The rest of my comment was too long for the "comment section." I got a warning from the "blogging app" that my comment was too long and would not be accepted.
The full comment is posted here: https://schwanation.blogspot.com/2022/03/rambling-response-to-reader-regarding.html.
In my long rambling reply, I was remiss in not thanking the reader for his/her kind words. Thank you very much.
DeleteAnd, no, I have no plans to ever stop blogging.
In my long rambling note, I forgot to thank the reader for the kind words. Thank you very much.
ReplyDeleteAnd, no, I have no plans to quit blogging.