EIA dashboards:
- EIA pdf, Bakken: https://www.eia.gov/petroleum/drilling/pdf/bakken.pdf
- EIA, pdf, Permian: https://www.eia.gov/petroleum/drilling/pdf/permian.pdf
- EIA, pdf, Eagle Ford: https://www.eia.gov/petroleum/drilling/pdf/eagleford.pdf
Tuesday, May 17, 2022
EIA Dashboards Have Been Posted -- May, 2022, Data
The Only Takeaway From This Report: The SPR Release Was Not Big Enough -- May 17, 2022
API:
- a draw of 2.445 million bbl crude oil; forecast: 1.533-million-bbl build.
- market anticipates a resurgence in oil demand from China as Shanghai starts to re-open.
- US crude oil production fell to 11.8 million bopd, week ending May 6, 2022, the first drop since the end of January -- the Biden policies must be working to shut down Big Oil
- but there was some good news: distillate stocks saw a build of 1.075 million bbls -- not often do we see a build in distillates.
Oasis With Four New Permits In The Williston Area -- May 17, 2022
From the May 16, 2022, daily activity report.
Forty active rigs.
WTI: $104 +-.
Four new permits, #38950 - #38953, inclusive:
- Operator: Oasis
- Field: Todd (Williams County)
- Comments:
- Oasis has permits for our new wells (one Osprey, one Kestrel, and two Harrier) in NESEE 33-154-101;
- to be sited between 1397 FSL and 1393 FSL and between 839 FEL and 938 FEL.
Eleven permits renewed:
- EOG (6): six Liberty LR permits in Mountrail County;
- MRO (5): a Satrum permit, a Bertsch permit, a Vanessa permit, a Herrbolt permit, and a Magdalena USA permit, all in Killdeer oil field, Dunn County;
Daimler Trucking Group -- Freightliner -- Portland, OR -->LA Port -- May 17, 2022
Low-hanging fruit.
My son-in-law probably helped build this truck. Link here.
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Trending on The Blog, But Not On Twitter
Shag dancing. I never knew.
Carolina shag: wiki entry.
Beach music: wiki entry.
And this will take you to the Big Apple and the Little Apple.
EV Watch -- May 17, 2022
EVs: link here. Scorecard. 
- graphite
- not for me
- EVs charging.
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EV WatchFord sells more Rivian stock, link here:
Shocked, link here.
China, link here:
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On the Way to the Ft Worth Zoo
Notes From All Over -- Early Morning Edition -- May 17, 2022
WMT: earnings miss; CEO surprised; stock plunges. Well, sort of.
Buffett watch:
- exits Wells Fargo; ending decade-long bet;
- "Big Short" Michael Burry bets against Apple; takes opposite view of Buffett;
So, who you gonna go with? a bank, Buffett, or Burry? Link here.
Amazon moat, link here. Only reason I'm posting this is someone suggested Costco's logistics is better Amazon's. Two completely different stories. Comparing an apple to an orange.
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Global Energy
No way out, link here:
Russian production, link here:
SPR release, update:
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EV Watch
Ford sells more Rivian stock, link here:
Shocked, link here.
WTI: $115. North Dakota Active Rigs At 39 Or Thereabouts -- May 17, 2022
Texas: some suggest we will see retail gasoline this summer with a 7-handle. We're starting to see more and more thoughts along this line among analysts:
It's no longer an oil production problem (maybe never was an oil production problem; and, it's no longer a pipeline problem (maybe never was a pipeline problem) , but it's clearly a refinery problem.
If one thinks it is expensive to drill a well; if one thinks it is expensive to lay a pipeline; neither is anything compared to the cost of building a new refinery / expanding an existing one.
If one thinks it is difficult to get permit approval for a well or for a pipeline, in this ESG / woke / climate change / liquidity crisis environment, it's impossible to even think about addressing the refinery issue.
Texas: the grid has held. Perhaps barely. I don't know how close it's come to failing. Beto tweeted if elected he will fix the grid. Curious his position on 7-handle gasoline, the southern surge, and the baby formula shortage. Apparently El Paso has no baby formula shortage.
Aviation: the baby formula shortage is going to look like a cake walk compared to the impending aviation (jet) fuel shortage. Aviation is back to pre-Covid levels, and not by just a little:
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Back to the Bakken
Active rigs: 39.
Wells coming off confidential list: first time in years data not available. NDIC website remains down for second week in a row.
RBN Energy: rebound in jet fuel demand renews pressure on stressed distribution network, part 3.
It took a while, but domestic air travel is finally returning to pre-pandemic levels and international travel to and from the U.S. is showing signs of recovering too. As a result, U.S. production of jet fuel has been rising steadily in recent months and, since most jet fuel needs to be transported long distances from refineries to airports, so have flows of jet fuel on U.S. refined products pipelines. All of that is good news, but as pipeline flows rise, so may the stresses on some elements of the U.S. refined products/jet fuel distribution network, including pipelines, storage facilities and “last mile” jet fuel delivery trucks. In today’s RBN blog, we continue our look at jet fuel, this time with a look at the extensive web of U.S. refined products pipelines.
This is the third episode in our series. In Part 1, we discussed the wild ride the jet fuel market has been on since the pandemic started in early 2020. First, demand, prices and production plummeted. Then came a slow, uneven recovery that continued through this past winter, when Russia’s war on Ukraine and other factors caused spikes in crude oil and jet fuel prices just as air-traffic volumes were finally returning to normal. We also explained that jet fuel is produced via atmospheric distillation, that the U.S. is by far the world’s largest producer, and that while the U.S. is essentially self-sufficient regarding jet fuel — producing about as much as it consumes — and its volume of exports and imports are relatively modest (and roughly equal), mostly because it’s more economic to import jet fuel from other countries to some parts of the U.S. than to transport it there from domestic refineries.
In Part 2, we took a big-picture, PADD-by-PADD look at jet fuel production and demand. The headlines from that blog are:
- Refineries in PADD 3 (Gulf Coast) generally account for more than half of U.S. jet fuel production, followed by PADD 5 (West Coast) and PADD 2 (Midwest).
- PADD 1 (East Coast), with its population density and slew of major airports, consumes more jet fuel than any other region, with the West Coast being the runner-up.
- The East Coast depends on a combination of in-region jet fuel production, imports, and — most of all — piped-in volumes, mostly from the Gulf Coast.
We also noted that no long-distance pipelines are dedicated to jet fuel-only use. Instead, jet fuel, ultra-low-sulfur diesel (ULSD) and various grades of gasoline typically are transported on the same refined products pipelines, not as a mix to be separated later, but in a series of “batches” that are diverted to the proper tanks in sequence as they arrive at downstream storage facilities.
Today, we look at the nationwide network of larger refined products pipelines that help move jet fuel (and gasoline and ULSD) to market. Figure 1 shows the major pipes, most of them interstate and a few intrastate (such as the Flint Hills system in Texas and a couple of pipelines in Florida). The vast majority of these pipelines run from refineries or refining centers to large or mid-sized cities (each of them with at least one airport). In a handful of cases (again, in Florida), the pipelines connect marine terminals to nearby cities with airports.