Eight New Permits; Three DUCs Reported As Completed; That Intel Plant -- Chandler, AZ -- Deal Inked For $30 Billion -- August 23, 2022

Before we get started:

• WTI: up 3.4%; up $3.06; trading at $93.42.
• Natural gas: up 1.85; up 17 cents; trading at 9.853.

Comment:

• Prince MbS not a big fan of Joe Biden.

API weekly data, link here:

The American Petroleum Institute reported a large draw this week for crude oil of 5.632 million barrels. Analysts had predicted a draw of less than a half million barrels.

The build comes as the Department of Energy released a massive 8.1 million barrels from the Strategic Petroleum Reserves in week ending August 19, leaving the SPR with just  453.1 million barrels. If confirmed, this is the largest one-week release of the SPR in history.

Despite U.S. crude inventories having shed some 67 million barrels since the start of 2021, there has been a 4-million-barrel gain since the start of 2020, according to API data.

Intel: Brookfield will finance 49% of a chip factory expansion. $30 billion project. Chandler, AZ, near Phoenix, link here. 

Intel also has said it could spend as much as $100 billion each on new plant complexes in Ohio and Germany. It appears the $20-chip-factory slated for Columbus, Ohio, that received a lot of fanfare earlier this year was put on hold pending the CHIPS act and is yet to be announced. Google Intel Columbus Ohio. Now The WSJ is reporting that Intel could spend as much as $100 on the plant in Columbus, if I'm reading that correctly.

Chesapeake: to exit oil; will focus on natural gas.

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Back to the Bakken

WTI: $93.59. A nice 3.65% jump in price today.

Natural gas: $10.02 earlier today before dropping back a bit. To $10 for first time since 2008.

Active rigs: 45.

Eight new permits, #39185 - #29192, inclusive:

• Operators: Grayson Mill (4); Ovintiv (4)
• Fields: Banks (McKenzie); Westberg (McKenzie)
• Comments:
• Grayson Mill has permits for four Jay wells in NENE 25-153-98; 
• to be sited 220 FNL and between 664 FEL and 754 FEL
• Ovintiv has four permits for four Rolfsrud wells in SESE 32-152-96, 
• to be sited between 997 FSL and 1072 FSL and at 600 FEL

Three producing wells (DUCs) reported as completed:

• 37480, 0, BR, F Jorgenson 1D MBH, Elidah, no production data,
• 37482, 0, BR, F Jorgenson 1B MBH, Elidah, no production data,
• 38535, 710, BR, Hunt Oil, Halliday 145-93-15-22H 3, Lake Ilo, no production data,