Back To The Bakken -- June 28, 2022

Interesting headline: again, at the linked story, no denominator, but in round numbers, we know what it is.

• folks quibble about supply / demand / balanced / not balanced but when global demand is around 100 million bopd and the excess is running around 1 million bbls / day -- that's a one-percent margin;
• I suppose day-after-day at one percent excess adds up to a big number over time, but a one-percent margin seems a bit troublesome

Just beginning: link here. 

Irony:

• Biden begging the Saudis for more production; they don't have it.
• Macron begging Biden for more production; Biden not interested. 

Re-posting:

Spare capacity: doesn't exist

• this story all over twitter yesterday;
• now it's a Reuters story
• begs the question: what is Biden's purpose going to Mideast
• Russia making huge inroads -- especially in Iraq
• but back to the linked story -- Macron tells Biden
• it's a bizarre "set-up" 
• it's like a little kid running up to a bigger kid to tell him something he just heard
• some suggest it was "posed" -- disagree; 
• but certainly these heads of state must have already known about OPEC spare capacity

********************************

Back to the Bakken

Far Side: link here.

WTI: up 1.4%; up $1.56; trading at $111.10

Active rigs: 44.

Tuesday, June 28, 2022: 39 for the month, 177 for the quarter, 336 for the year 

• 38659, conf, CLR, LCU Reckitt Federal 9-22H1X, 

RBN Energy: replumbing US refined products pipeline networks. 

Refinery closures. Shifting demand for gasoline, diesel and jet fuel. Yawning price differentials for refined products in neighboring regions. These and other factors have spurred an ongoing reworking of the extensive U.S. products pipeline network, which transports the fuels needed to power cars, SUVs, trucks, trains and airplanes — not to mention pumps in the oil patch, tractors and lawnmowers. 

New products pipelines are being built and existing pipelines are being repurposed, expanded or made bidirectional, typically to take advantage of opportunities that midstreamers, refiners and marketers see opening up. In today’s RBN blog, we begin a review of major pipelines that batch gasoline, diesel and jet fuel and look at the subtle and not-so-subtle changes being made to the U.S. refined products distribution network.