Tuesday, August 9, 2022

Devon: to buy Validus Energy for $1.8 billion.

• Eagle Ford operator.
• Hedge fund Elliott Management invested in Validus last year to help it buy assets in Eagle Ford, Texas from Ovintiv Inc for $880 million. 
• one year ago: Validus purchased these assets from Ovintiv for $880 million.
  
• the deal: 42,000 net acres in Eagle Ford
• adjacent to Devon's current holdings in Eagle Ford
• back-of-the-envelope: $1.8 billion / 42,000 net acres = $43,000 / acre
• pre-market trading: DVN up $1.12
• DVN up 87 cents at close yesterday

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Back to the Bakken

WTI: $90.37.

Natural gas: $7.840.

Active rigs: 46.

Wednesday, August 10, 2022: 8 for the month, 39 for the quarter, 378 for the year

• 38004, conf, Hess, CA-E Burdick-155-95-2932H-7,
• 37012, conf, CLR, LCU Ralph Federal 5-27H1,

Tuesday, August 9, 2022: 6 for the month, 37 for the quarter, 376 for the year

• 37925, conf, BR, Lone Beaver 1-1-17MTFH,

RBN Energy: the impacts of banning US exports of crude oil and refined products.

U.S. gasoline and diesel prices have been sliding the past couple of months, but there's still a lot of angst among politicians and the general public about the cost of motor fuels — and who's to say prices at the pump won't soar again, spurring another round of proposed "fixes" to the markets for crude oil and refined products. 

Among the proposals floated when prices spiked this spring were bans on the export of U.S.-sourced crude, gasoline and diesel, the idea being that suspending exports would increase the supply available to domestic markets and thus bring down prices. 

If only it were all so simple! In today's RBN blog, we discuss the complicated ins and outs of oil, gasoline and diesel imports and exports, and the many effects of putting the kibosh on shipments to international markets.

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For The Archives

Road trip.

Currently I am on the road: my notes will be less frequent, perhaps shorter. I will not get to my e-mail as often and I will not be able to post comments as often or in a timely manner.