WTI Drops Below $120 As China Hints At New Covid Outbreak And Biden Ramps Up Rhetoric; To Visit Saudi Arabia; Six Wells Coming Off Confidential List -- June 13, 2022

Far Side: link here. 

WTI: $119.0 -- another Covid lockdown coming in China?

Active rigs: 40 or thereabouts

Monday, June 13, 2022: 21 for the month, 159 for the quarter, 319 for the year

• 38432, conf, WPX, Wounded Face 14-15HC, McGregory Buttes, no production data,
  
• 37188, conf, Zavanna, Edgar 10-3 6TFH, Poe, first production, 12/21; t--; cum 86K 4/22;
  
• 37010, conf, CLR, LU Reckitt Federal 2-22H, Long Creek, no production data,
  

Sunday, June 12, 2022: 19 for the month, 156 for the quarter, 316 for the year

• 37186, conf, Zavanna, Edgar 10-3 4TFH, Poe, first production, 12/21; t--; cum 85K 4/22;
  

Saturday, June 11, 2022: 18 for the month, 155 for the quarter, 315 for the year

• 38477, conf, WPX, Hall 14-15HIL McGregory Buttes, no production data,
• 38134, conf, CLR, Dennis FIU 8-8H, Cedar Coulee, no production data,
  

RBN Energy: gas flow, price impacts of the Freeport LNG outage.

An explosion June 8 at Freeport LNG, the 15.3 MMtpa (2 Bcf/d) export terminal on Quintana Island, TX, has knocked it offline at a time when the global market is already facing tight conditions because of the war in Ukraine and other factors. The explosion, fire and subsequent shutdown — which fortunately did not include any injuries — sent U.S. natural gas tumbling off recent highs and shot global gas prices higher. 

Much is still unknown about the developing situation, including exactly how long the outage will last. While Freeport has said it expects the terminal to be offline for at least three weeks, multiple regulatory agencies have investigations underway and will likely need to approve a return to service. In today’s RBN blog, we look at the latest news from Freeport LNG and run through the potential market implications, starting with impacts to the U.S. gas market.

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Initial Production

• 37186, conf, Zavanna, Edgar 10-3 4TFH, Poe, first production, 12/21; t--; cum 85K 4/22;

Date	Oil Runs	MCF Sold
4-2022	21681	21832
3-2022	13536	17658
2-2022	16008	20935
1-2022	23045	18628
12-2021	15096	9058

• 7188, conf, Zavanna, Edgar 10-3 6TFH, Poe, first production, 12/21; t--; cum 86K 4/22;
  

Date	Oil Runs	MCF Sold
4-2022	24417	25168
3-2022	11742	21194
2-2022	11550	15607
1-2022	27390	23057
12-2021	11641	6840