Oil Surges; It Feels "Real" This Time -- March 21, 2022

Buffett:

• cash hoard said to be about $147 billion at end of 2022.
  
• Alleghany deal: $12 billion
• will it be bought using that cash hoard or will the deal be financed?
• first large acquisition since 2015, Precision Castparts
  

Russian oil:

• earlier, some readers thought Russia would be a desirable source for oil
• I'm sure that's true; India is said be buying Russian oil at a discount
• but now a headline story that Saudi Arabia remains the lead supplier of oil for China
• it really is quite amazing; three countries supply the bulk of oil (Russia, Saudi Arabia, US)
• most agree that none of the three have significant "spare capacity"
• several countries with large demand for oil are releasing oil from their SPRs
• literally, overnight one of the "big three" (Russia) is cut off;
• everything will probably work out just fine if one's an optimist but one certainly gets the feeling this (the oil supply / demand ratio) could go sideways very easily, very quickly;
• it seems it wouldn't take much to really spook the already "tense" markets
• I think this is going to be absolutely fascinating
  

Oil:

• Brent: up 8%; up $8.68; closed at $116.60.
• WTI: up 7.63%; up $8.00; closed at $112.70
• Later, after hours:
• 6:26 p.m. CT: WTI up another $1.20; now trading at $113.30.
• 7:10 p.m. CT: WTI at $113.60.
• 7:12 p.m. CT: WTI at $113.80.
  

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Back to the Bakken

Active rigs:

$112.70	3/21/2022	03/21/2021	03/21/2020	03/21/2019	03/21/2018
Active Rigs	35	16	51	67	59

No new permits.

Three producing wells (DUCs) reported as completed:

• 36210, 2,067, XTO Energy, FBIR 34X-25C, Heart Butte, minimal production;
  
• 36208, 3,103, XTO Energy, FBIR Baker 34X-25D, Heart Butte, minimal production;
• 38424, 60, Crescent Point Energy, CPEUSC Reed 6-10-03-100W-MGH-11, 

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Older Wells On that XTO Baker Pad

The wells:

• 19292, t7/11; cum 238K 1/22; was taken off line 9/21; back on line 1/22 for two days;
  
• 23393, t1/13; cum 244K 1/22; was taken off line 9/21; back on line 122 for three days;
  
• 23394, t1/13, cum 278K 9/21 was taken off line 9/21; remains off line as of 1/22;
  
• 19293, t7/11, cum 404K 9/21; was taken off line 9/21; remains off line as of 1/22;
  
• 23395, t1/13; cum 260K 9/21; was taken off line 9/21; remains off line as of 1/22;