WTI Recovers After A Volatile Tuesday; Thirty-Nine Active Rigs; Several Wells To Report -- June 1, 2022

ISONY: barely morning and Long Island is already at $102 / MWh and marginal cost at $75.

Depression: there, he said it. When shares in EV are still rising, it's hard to see those folks investing as if they expect a depression. See poll at sidebar at the right.

Inflation, not transitory. Janet Yellin. Sorry. Not sorry.

Russia: looks like OPEC+ to exempt Russia from production quotas. Meanwhile eight of ten OPEC-10 members under-produced their allowed quota in May when oil is at $120 / bbl. Spare capacity? Sparee me.  

US: shocked! I'm shocked! US petroleum inventories (crude, oil products, SPR) fell by 24.632 mb m/m to 1,719.690 mb in March. 

The abbreviations are a bit screwy, as usual, but you can see the graph at this link. Even with the decrease, inventories reverting to recent levels after hitting all-time highs -- and still oil is trading at $120 and gasoline at the pump is sporting 5-, 6- and, in some cases, a 7-handle. It makees no sense at all to some. 

Inventories of all US petroleum / products: around 1.7 billion bbls according to the chart at the link

in thousands of bbls, 1,700,000 = 1.7 billion bbls

25/1700 = 1.5%

Permian: leaving rivals behind as production continues to grow. Link to Rystad Energy over at oilpricce.com. 

Midland: photo of the day.

Refining margins: rocketing again, surging above $52.50 / bbl for the WTI 3-2-1 crack margin. 

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Back to the Bakken

WTI: $116.30

Active rigs: 39 or thereabouts. The NDIC has not posted a daily activity report for four days. 

Tuesday:

• 37896, conf, Iron Oil Operating, Boxcarr 1-4-16H,
• 38577, conf, Slawson, Lightning Federal 4-24-13TFH,

RBN Energy: what's powering the growth of small-scale LNG producers? Part 2.

Just like there’s room for Amazon and Etsy in the e-commerce world — one for mass marketers and the other for artisans — there’s room in the energy industry for both large- and small-scale LNG companies and plants. By focusing on the development of niche markets and scaling their production and distribution operations accordingly, a number of smaller (but growing) players in the LNG space have been making natural gas available to a surprising variety of customers: from industrial, oil-and-gas and mining companies to rocket launchers, Caribbean resorts and island utilities. ESG is a big driver — the LNG supplied often replaces diesel, fuel oil and propane, which can have bigger carbon impacts. In today’s RBN blog, we continue our series on small-scale LNG with a look at a cross-section of key players in this space and how they’ve been growing their businesses.

The U.S. LNG market has been expanding by leaps and bounds over the past half-dozen years or so, most evidently via the build-out and operation of large liquefaction/LNG export facilities along the Gulf and East coasts. But there’s more to the U.S.’s LNG story than the megaprojects built by Cheniere, Venture Global and their ilk. There also are dozens of much smaller liquefaction plants, including (1) peak-shaving plants that squirrel the LNG away for periods of high gas demand by local distribution companies (LDCs) or power generators and (2) commercial plants that typically supply a variety of customers, which typically hold long-term contracts under which the plant delivers LNG to the customer by truck, ship or a combination of the two.