D-Day Seventy-Eight Years Ago -- June 6, 2022

Active rigs: 41 or thereabouts.

WTI: $118 and change.

Monday, June 6, 2022: 7 for the month, 144 for the quarter, 304 for the year

• 37185, conf, Zavanna, Edgar 10-3 3H, Poe, see initial production below;
  

Sunday, June 5, 2022: 6 for the month, 143 for the quarter, 303 for the year

• 38130, conf, CLR, Dennis FIU 16-8HSL, Cedar Coulee, Dunn County, NWNE 8-147-96, 241 FNL 1853 FEL;  no production data,
  

Saturday, June 4, 2022: 5 for the month, 142 for the quarter, 302 for the year

• 38129, conf, CLR, Dennis FIU 15-8HSL1, Cedar Coulee, Dunn County, NWNE 8-147-96, 208 FNL 1854 FEL;  no production data,

Comment: it will be interesting to see file reports for #38130 and #38129 to see how closely spaced these wells were (surface spacing -- data is available now) and how close the laterals were placed both horizontally and vertically. They are both "xx-HSL" but one is a middle Bakken; the other is a Three Forks well. I assume both are section line wells.

RBN Energy: when a molecule's pedigree is more important than its energy content. 

There is a fundamental difference in the way value is established in renewable, decarbonized energy markets versus traditional commodities. In traditional energy markets, value is defined by natural laws — physics, chemistry, geography. But in the world of renewables and decarbonization, value is primarily determined by man-made laws — RULES that specify what a particular flavor of energy is worth, what is required to prove that worth, and how that value is ultimately captured by market participants. In effect, a molecule’s (or electron’s) pedigree is as important — if not more important — than its energy content. Whether you are deep into renewables markets or you deal with energy commodities that are impacted by the rules, it is critically important that you understand everything about how these rules work and how they are regulated. In today’s RBN blog we’ll begin an exploration into the inner workings of energy transition market mechanisms.

It’s all about those rules. Here’s some examples of what we’re talking about:

Perhaps the most significant is the California LCFS — the state’s Low Carbon Fuel Standard. In the LCFS, each energy commodity or source (called a pathway) — and there are hundreds of them — has a carbon intensity “score” or CI. That score is determined by a methodology — an algorithm, based in part on targets laid out in California Assembly Bill 32 and Executive Order S-01-07, which are the basis for rules promulgated by the California Air Resources Board (CARB). It really comes down to this: Deliver low-CI energy within the guidelines, get a credit; deliver high-CI energy, pay a penalty. To get the credits, which can be quite lucrative, you just need to follow the rules.

The Far Side. Link here. 

**************************
Initial Production

37185, conf, Zavanna, Edgar 10-3 3H, Poe, Williams County

Date	Oil Runs	MCF Sold
3-2022	31714	54760
2-2022	29764	42412
1-2022	47376	40611
12-2021	20845	13768

******************************
The Map

This is the best we can do until the NDIC GIS map is back up and running. 

Cedar Coulee is in a very, very good area:

• just two townships away from the spectacular McGregory Buttes township;
• just north of Rattlesnake Point and "kitty-corner" from Chimney Butte
• and Oakdale just to the southeast -- a huge field

Cedar Coulee is tracked here but has has not been updated in a long time, but it does have some nice graphics.