Natural Gas Price Soaring; Two Wells Coming Off Confidential List -- April 12, 2022

Inflation: March CPI comes in at 8.5% -- much higher than expected a few weeks ago. Highest in 40 years. For the archives.

Pipeline: FERC approves Mountain Valley pipeline; free site but must sign in;

• as for the pipeline, ho-hum; I'll believe it when I see it;
• this says it all:
  

The 2-Bcf/d, 304-mile gas pipeline project is almost complete, but litigation and permitting challenges delayed work on the final pieces. The FERC authorization was conditional pending new approvals from the US Fish and Wildlife Service under the Endangered Species Act, forest crossing authorizations from the US Forest Service and US Bureau of Land Management, and a water crossing permit by the US Army Corps of Engineers. 

There are probably a few other regulators also involved and each of those will likely end up in court.

OPEC+: will struggle to make up Iraqi, Russian production shortfalls. EnergyIntel. 

Vaca Muerta: S&P Global -- Vaca Muerta is finally showing signs of big growth.

• big headline, updates, but not particularly noteworthy
• Vaca Muerta tracked here, linked at the sidebar at the right.
  

LNG: Camerson LNG export terminal expansion; recent update; US terminals tracked here.

• Louisiana
• jointly owned by Sempra, TotalEnergies, Mitsui and Japan LNG
• TotalEnergies to raise capacity
• will expand with a fourth train
• 6.75 million metric tons per annum
• a five-percent increase of the current 13.5 Mtpa first three trains

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Back to the Bakken

Blizzard. 

Bitcoin explosion in the Bakken:

• a non-story;
• Crusoe Energy;
• was an unrelated CNG operation;
• nothing to do with Bitcoin operations
• no injuries.

Active rigs:

$98.28	4/12/2022	04/12/2021	04/12/2020	04/12/2019	04/12/2018
Active Rigs	37	17	36	63	59

Tuesday, April 12, 2022: 25 for the month, 25 for the quarter, 184 for one year

• 38513, conf, CLR, Thorp Federal 3-28H1, Little Knife, no production data,
  
• 38008, conf, Oasis, Cliff 5300 43-35 6B, Willow Creek, huge well; Willow Creek oil field tracked here and updated;
  

RBN Energy: the supply-demand fundamentals are spurring $6-plus natural gas prices.

• Key word: "plus."

Prompt CME/NYMEX Henry Hub natural gas futures prices averaged $4.54/MMBtu this winter, up 67% from $2.73/MMBtu in the winter of 2020-21 and the highest since the winter of 2009-10. Prices have barreled even higher in recent days, despite the onset of the lower-demand shoulder season, with the May contract hitting $6.643/MMBtu on Monday, the highest since November 2008 and up more than $1 from where the April futures contract expired a couple of weeks ago. 

Europe’s push to reduce reliance on Russian natural gas has turned the spotlight on U.S. LNG exports and their role in driving up domestic natural gas prices. However, a closer look at the Lower 48 supply-demand balance this winter vs. last suggests that near-record domestic demand, along with tepid production growth, also played a significant role in drawing down the storage inventory and tightening the balance. Today’s RBN blog breaks down the gas supply-demand factors that shaped the withdrawal season and contributed to the current price environment.

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Initial Production

The well:

• 38008, conf, Oasis, Cliff 5300 43-35 6B, Willow Creek, huge well;

Date	Oil Runs	MCF Sold
2-2022	34324	42241
1-2022	42563	45523
12-2021	41183	38959
11-2021	33849	37219
10-2021	27515	29209