Not ready for prime time: in response to an article that suggested that OPEC had cut production by 710,000 bpd in the month of November, a reader asked my thoughts on whether OPEC at some point would quit exporting oil to the US. My response, not ready for prime time:
1. The US exported record amounts oil and refined products
this past week, almost 12 million bpd -- compare that to 710,000 bpd
which is divided up among all countries to which OPEC exports and
domestically consumes.
2. US imports approximately 1.5 million bopd from OPEC. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMXX1&f=M
3.
If OPEC were to cut us off, Permian, Eagle Ford, and Bakken could
easily make up the difference. In fact, the Bakken might be able to do
that on its own. Then there are the other half dozen shale plays
onshore and all the federal offshore that could be opened if necessary.
Then Canada. And now Venezuela is in play.
4.
Global production is around 90 million bopd; that's an average. Can
easily reach 100 million bopd. An OPEC cut of a million bopd is
inconsequential, ...
5.
... but to answer your question, I doubt OPEC will ever quit exporting
oil to the US. The more interesting question is when the US will say "no
more OPEC oil for the US (NOPEC).
************************
Back to the Bakken
Active rigs: 40.
WTI: $80.48.
Natural gas: $7.017.
Nine new permits (Julianne Geiger, last week, "The shale boom is over."): #39438 - #39446, inclusive.
- Operators: Kraken (5); MRO (4);
- Fields: Burg (Willams County); Bailey (Dunn County)
- Comments:
- Kraken has permits for five Orbit wells, NWNE 25-159-99;
- to be sited between 425 FNL and 557 FNL and at 2315 FEL;
- MRO has permits for four wells in Bailey oil field, SESW 33-146-94 -- Bunk, Luptak, Margery, and Claudia,
- to be sited 360 FSL and between 1899 FWL and 2019 FWL
One producing well (a DUC) reported as completed:
- 38730, 1,511, Kraken, Fairbanks 17-20 6H,
The following wells were released from the confidential list (Julianne Geiger, last week, "The shale boom is over."):
- CLR: #37946; #37947; #38921; #37953; #38785; #37952; #37950; #37951; #37949
- Slawson: #38843;
- Petro-Hunt: #38933; #38859; #38860;
- Enerplus: #37966;
- Hunt: #38777; #38779;
- Kraken: #38730;
- Neset Consulting: #38890 (Halite 1);
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