Monday, June 6, 2022

Natural Gas Surges 10% In One Day -- June 6, 2022

Things Are Never So Bad ...

... that President Biden can't make them worse.

Sixty-five US refiners asked for waivers with regard to ethanol blending.

All sixty-five were denied.

So, in anticipation of a global food shortage, the US will be converting food (soybeans and corn) into fuel. 

I can't make this up. 

It won't help at the pump -- no one uses E85 anyway -- and it will only raise grocery prices

Way to go, Brandon.

Back to the Bakken

WTI: steady at $118.80.

But in case you missed it, natural gas surged by 10.03% -- an increase of more than 10% in one day -- and hardly anyone noticed. Natural gas is now trading at over $9 / "unit." Wow.

Active rigs: 39 or thereabouts. I would say 40 but someone would write to correct me, so we'll leave it at "39 or thereabouts." 

Four new oil and gas permits, #38997 - #39000, inclusive:

  • Operators: Hunt Oil (3); Slawson
  • Fields: Alexandria (Divide County); Big Bend (Mountrail)
  • Comments:
    • Slawson has a permit for a Blizzard Federal well, SWSW 13-152-93;
      • to be sited 1469 FNL and 500 FWL;
    • Hunt has permits for three Alexandria wells, SWSE 24-161-100;
      • to be sited 460 FSL and between 2180 FEL and 2120 FEL

Ten permits renewed:

  • BR (7): six Sequoiafill permits (McKenzie County) and one Pullman permit (Dunn County)
  • Enerplus (3): one Beryllium, one Niobium, and one Yttrium permit, all in Dunn County

3 comments:

  1. Noticed that Slawson has a second rig up now

    ReplyDelete
    Replies
    1. Thank you. That's a biggie. I had not noticed that. Slawson is very conservative and for them to add another rig speaks volumes.

      Delete
  2. most of the LNG going to China is under long term contracts signed when prices were much lower....they've been able to turn those ships around and sell the LNG to Europe at more than twice what the paid for it...in fact, some of the LNG shipments leaving Louisiana were Chinese owned (the Chinese were under lockdown and hence not using it..)

    there will come a day that China will be able to sell the US LNG that they own back to us at a profit, too...

    ReplyDelete