Pages

Monday, March 14, 2022

Limited Blogging This Week -- March 14, 2022

I apologize of lack of blogging today. That may continue much of this week. Spring break. Lots of family activities with granddaughters.

No New Permits; Ten Permits Renewed; Four DUCs Reported As Completed -- March 14, 2022

CVX: getting very, very active in Venezuela's oil patch. Reuters

Memo to self: look up Venezuela's history or production. Imagine being the US company in charge of the world's largest oil reserves. Hunter Biden will be VP of Venezuela operations if everything goes as planned. I think there was some other news today, but everything pales in comparison to this. 
Biggest loser with this announcement: Putin.

Venezuela: oil production, history:

Tesla: oh, that's right. One other bit of news. TSLA slumps; trades below $800.

US shale: huge jump in production in April, 2022, anticipated -- EIA. Link to Julianne Geiger

******************************
Back to the Bakken

Active rigs

$102.50
3/14/202203/14/202103/14/202003/14/201903/14/2018
Active Rigs3214556458

No new permits.

Ten permits renewed:

  • CLR (7): seven Plano FIU / Plano permits in Williams County.
  • XTO: two Frisinger permits in Williams County
  • Prima Exploration: one State permit in Divide County.

Four producing wells (DUCs) reported as completed:

  • 35454, 1,459, QEP, MHA 5-27-26H-150-92, Van Hook, first production, 4/21; t--; cum 178K 1/22;
  • 35451, 2,651, QEP, MHA 4-29-30H-150-92, Van Hook, first production, 5/21; t--; cum 284K 1/22;
  • 38085, 1,996, MRO, Delores USA 21-4TFH, Bailey, no production data,
  • 38357, 1,249, CLR, Dolezal FIU 8-1H1, Chimney Butte, no production,

Diesel Is Going To Be The Big Energy Story For 2022 -- March 14, 2022

Diesel: a top story in 2022.

Others are spotting the same thing. Oil is going to be a big story; gasoline a bigger story; and, diesel, the biggest story.

Link here.  

Whiting's Tarpon Federal Wells -- Production

Whiting's Tarpon Federal wells are tracked here.

Through January, 2022:

Whiting Tarpon

NDIC File

Jan 22

Dec 21

Nov 21

Oct 21

Sep 21

Aug 21

Runs

34628

3,800

6,076

7,868

8,488

11,072

17,173

BO Per Month

22360

18

74

150

152

124

96


22361

95

69

176

275

431

468


35193

6,792

9,061

10,964

10,592

13,348

14,855


35772

29,117

35,268

41,724

16,491

0

0


35771

32,604

43,155

49,026

0

0

0


35770

14,930

50

5,812

0

0

0


35768

27,768

25,754

31,415

20,067

0

0


20589

433

383

409

303

330

384


28492

426

333

1,092

1,057

1,321

1,538


28493

818

861

890

999

1,007

806


28495

1,903

2,063

1,172

1,292

1,770

1,912


28494

573

755

799

813

881

858


28496

907

1,686

2,029

1,202

2,209

2,320


34631

6,116

7,335

9,372

10,496

11,235

17,616


34630

4,125

6,063

7,664

7,056

10,470

12,094


34629

5,582

7,884

8,758

9,763

13,263

19,188


34627

7,643

9,180

10,636

12,156

13,608

17,091


29199

0

0

0

0

0

0


22554

0

0

0

0

0

0


22556

1,773

0

0

0

0

0


22555

0

0

0

0

0

0


35773

29,946

31,846

38,945

22,832

0

0


29200

0

0

0

0

0

0


35769

18,349

35,220

8,267

7,971

0

0


27413

1,835

1,350

509

0

0

0



















195,553

224,466

237,677

132,005

81,069

106,399

Another Nice Hess Alkali Well -- March 14, 2022

The well:

  • 37708, conf, Hess, EN-Johnson A-155-94-2932H-6, Alkali Creek, a nice well, first production, 9/21; t--; cum 123K 1/22;
DateOil RunsMCF Sold
1-20222010628159
12-20211747824499
11-20212582235466
10-20212891627432
9-20213043024453

Another reminder: these wells are paid for by the time they come off confidential list if they have been completed.

Six Wells Coming Off Confidential List -- March 14 ,2022

Be prepared for a very bumpy ride for the next two weeks. So, what's new? LOL. Release the kraken!

****************************
Back to the Bakken

Active rigs:

$104.60
3/14/202203/14/202103/14/202003/14/201903/14/2018
Active Rigs321455645

Monday, March 14, 2022: 18 for the month, 127 for the quarter, 127 for the year

  • 38510, conf, Kraken, Jenna LE 4-33-28 1TFH, Burg, no production data,
  • 38509, conf, Kraken, Jenna 4-33-28 3H, Burg, no production data,
  • 37708, conf, Hess, EN-Johnson A-155-94-2932H-6, Alkali Creek, a nice well, first production, 9/21; t--; cum 123K 1/22; see initial production here.

Sunday, March 13, 2022: 15 for the month, 124 for the quarter, 124 for the year

  • 38511, conf,  Kraken, Alamo 3-34-27, Burg, no production data,
  • 38495, conf, CLR, Whitman FIU 8-34H, Oakdale, no production data,
Saturday, March 12, 2022: 13 for the month, 122 for the quarter, 122 for the year
  • 38364, conf, Petro-Hunt, Boss 154-99-18C_21-1HS, Stockyard Creek, no production data,

RBN Energy: Cushing's running low on crude oil, how much is left in the tanks? Part 2. Archived.

The world is in desperate need of more crude oil right now and anybody with barrels is scouring every nook and cranny for any additional volume that can be brought to market. Some of that may come from increased production, but the oil patch is a long-cycle industry, just coming off one of the most severe bust periods ever, and it will take time to get all the various national oil companies, majors, and independents rowing in the same direction again. For now, part of the answer will be to drain what we can from storage — after all, a major purpose of storing crude inventories is to serve as a shock absorber for short-term market disruptions. 
To that end, the U.S. is coordinating with other nations to release strategic reserve volumes to help stymie the global impact of avoiding Russian commodities. Outside of reserves held for strategic purposes though, commercial inventories have already been dwindling as escalating global crude prices have been signaling the market to sell as much as possible. Stored volumes at Cushing — the U.S.’s largest commercial tank farm and home to the pricing benchmark WTI — have been freefalling for months, which raises the question, how much more (if any) can come out of Cushing? In today’s RBN blog, we update one of our Greatest Hits blogs to calculate how much crude oil is actually available at Cushing.

China Shuts Down Foxconn, Shenzhen -- March 14, 2022

Markets: could be a huge day for opportunity buying. I have trouble believing market will not fall significantly today on news coming out of China. Shutting down their largest economic center: Shenzhen.

Link here.

One of the best things I ever did on the blog was a create a Chinese map with US overlay to help me remember the geography of China. Shenzen (wiki entry here) is in the Guandong province just to the east of Hong Kong. See map below. I did not "re-label" Taiwan, but you can guess what it would be labeled had I done that. It really is quite amazing. Shutting down Shenzen would be like the US shutting down Silicon Valley, Detroit, and Houston.

Two things are going to happen:

  • oil: perceived short-term Chinese oil demand will plummet, taking oil prices with it; and,
  • AAPL: Apple's big Foxconn center is shut down. 

The question is this: is Dr Fauci providing Beijing advice on the Covid pandemic? He has not been seenin the US in weeks. Is this "legit" or is this a financial-political gambit on the part of the Chinese for other reasons?

How long will the shutdown last? The tea leaves suggest two weeks.

China

Speaking of China, I've never been able to wrap my head around the history of the Far East. China has always fascinated me but try as I might, I seem to make no headway.

Some years ago, trying to keep track of cities and regions in China, I put together a pretty nice map that has actually held up over time.

From an earlier post: 
Today's there's a headline article over at Yahoo!Finance about Nanking, China, a "second-tier" city in that country with a population of over 8 million, similar to that of NYC. The best thing I ever did with regard to geography on the blog was "fix" a picture in my mind of what China "looks like." Nanking? Where is it? If it were on the US map, it would be a suburb northwest of Charleston, SC, (Shanghai) up the Yangtze River. Maybe similar to Summerville, SC, where we lived for several years.