Friday, June 10, 2022

Triple-Digit Temperatures This Weekend -- North Texas -- June 10, 2022

This could be hottest summer in ten years for north Texas. 

Hot defined as 30+ days with triple-digit weather.

Our high today: 99°F.

This weekend: both Saturday and Sunday will hit 100+°F.  

Heat advisory for entire weekend: heat index this weekend: 105°F to 110°F.  

Wichita Falls: 111°F heat index.

For the last nine years: around 10 days with triple-digit weather. 

2012: 34 days with triple-digit temperatures. 

The grid held today but it was a bit closer than usual in late afternoon / early evening. Link here.

Swimply.

Week 23: June 5, 2022 -- June 11, 2022

Top story of the week:

  • Joe Biden is still president.

Top international non-energy story:

  • The Saudis may have dis-invited Biden. Details may never be known.
  • Biden team hints Saudi trip still on.

Top international energy story:

Top national non-energy story:

  • Inflation at 40-year high.

Top national energy story:

  • Price of gasoline across the US at $5.00 / gallon. 
  • National policy makers finally realize it's a refining story, not an oil production story.

Top North Dakota non-energy story:

Top North Dakota energy story:

Geoff Simon's top North Dakota energy stories:

Bakken economy:

Commentary:

Another "Silent" Deal In The Bakken? June 10, 2022

From the NDIC daily activity report, June 10, 2022.

Change of operator: 200+ wells in the North Dakota Bakken --

  • from: Resource Energy CAN-AM LLC
  • to: Formentera Operations LLC
  • here it is, effective November 1, 2021:  
    • Effective November 1, 2021, Formentera Operations LLC (“Formentera”) acquired Resource Energy Can-Am LLC’s (“Resource”) assets.
  • website: Formentera Operations.
  • not yet at "Well Search" at the NDIC web site;
  • based in Austin, TX
  • founded in 2022: Bryan Sheffield, Blake London, Paul Treadwell
  • first acquisition: assets in Texas panhandle, $121 million
    • production 30 million cubic feet equivalent per day from about 200 wells (conversion here) (or here).
      • these sound like stripper wells
      • not confirmed but likely were Oklahoma-based privately held Tapstone Energy's Stiles Ranch assets; link here.
    • if Bryan Sheffield sounds familiar, see this Forbes article
    • founded Parsley Energy in 2008
    • after Parsley acquired by Pioneer Natural Resources, Sheffield and two partners founded Formentera in 2020

Resource Energy Can-Am, LLC

Daily Activity Report -- Another "Silent Deal" In The Bakken? Friday -- June 10, 2022

WTI: after all of this, WTI settled at $120.70.

Active rigs in North Dakota: 40 or thereabouts.

Seven new permits, #39005 - #39011, inclusive:

  • Operator: CLR
  • Field: Jim Creek (Dunn County)
  • Comments:
    • CLR has permits for seven wells in SWSE 28-146-96, 
      • to be sited between 638 FSL and 928 FSL and between 924 FWL and 1047 FWL

Change of operator: 200+ wells in the North Dakota Bakken --

  • from: Resource Energy CAN-AM LLC
  • to: Formentera Operations LLC
  • here it is, effective November 1, 2021:  
    • Effective November 1, 2021, Formentera Operations LLC (“Formentera”) acquired Resource Energy Can-Am LLC’s (“Resource”) assets.
  • website: Formentera Operations.
  • not yet at "Well Search" at the NDIC web site;
  • based in Austin, TX
  • founded in 2022: Bryan Sheffield, Blake London, Paul Treadwell
  • first acquisition: assets in Texas panhandle, $121 million
    • production 30 million cubic feet equivalent per day from about 200 wells (conversion here) (or here).
      • these sound like stripper wells
      • not confirmed but likely were Oklahoma-based privately held Tapstone Energy's Stiles Ranch assets; link here.
    • if Bryan Sheffield sounds familiar, see this Forbes article
    • founded Parsley Energy in 2008
    • after Parsley acquired by Pioneer Natural Resources, Sheffield and two partners founded Formentera in 2020

Resource Energy Can-Am, LLC

A Monster Well -- MRO -- Reunion Bay -- June 10, 2022

A bit of hyperbole here, but only a bit: I don't know if folks realize but at $120 / bbl, or even $100 / bbl, these wells pay for themselves in the first month of full production.

 The well:

  • 37774, conf-->drl/NC-->drl/a, MRO, Odell USA 41-6H, Reunion Bay, first production, 8/21; t--; cum 275K 4/22;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN4-2022288937891850061918717950750
BAKKEN3-2022311212312056683325748251720
BAKKEN2-2022281218012145735422195216910
BAKKEN1-202231142251425285902148820838116
BAKKEN12-2021312150621658937140478396010
BAKKEN11-20213040990411871777173115715740
BAKKEN10-202131757677569827953100685980940
BAKKEN9-2021295895558754280926851466278446
BAKKEN8-2021930258299541629933968305131715
BAKKEN7-20212001571290129

And more: 

  • 37770, conf-->drl/NC-->drl/A, MRO, Mabel USA 21-6TFH, Reunion Bay, first production, 8/21;  t--; cum 212K 4/22;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN4-202228121411207897292643924791978
BAKKEN3-20223114949148941122833644329140
BAKKEN2-20222816473164021076431780310810
BAKKEN1-2022311753317517112663170530833162
BAKKEN12-20213121815217462225138941380710
BAKKEN11-20213017309173072350525659250350
BAKKEN10-20213120734207752877926560258570
BAKKEN9-2021292309323575295072780926990113
BAKKEN8-2021306769767017558788257977179148

  • 37773, conf-->drl/NC-->drl/A, MRO, Perry USA 41-6TFH, Reunion Bay, first production, 8/21; t--; cum 312K 4/22; full production profile, to date:
lDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN4-2022289438941173951712116005648
BAKKEN3-2022311250312421936922709221610
BAKKEN2-2022281191012017876019299188320
BAKKEN1-2022312404523989211604765146393244
BAKKEN12-20213126703268492043556878557420
BAKKEN11-20213046158462452328185870840980
BAKKEN10-20213167554677084209094279919380
BAKKEN9-2021297773477433631328730384475467
BAKKEN8-2021133634535980342353990137261548
BAKKEN7-2021200559059

Halo Effect -- A Parent Well Updated --- June 10, 2022

Parent well, see this post:
  • 18880, 129, MRO, Everett Fisher USA 41-6H, Reunion Bay, t7/10; cum 396K 3/21; went off line 3/21; remains off line 7/21; back on line, cum 558K 4/22; recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN4-20229227424841732530951760
BAKKEN3-2022311176011658841526578260010
BAKKEN2-20222898729787708522147216960
BAKKEN1-20221874597474555512205119220
BAKKEN12-2021221137911483568721346208760
BAKKEN11-20213024253242801390337945370610
BAKKEN10-20213133008329762021839638385350
BAKKEN9-2021302550025647243782836627396172
BAKKEN8-2021293636335998991545185448761971
BAKKEN7-20210000000
BAKKEN6-20210000000
BAKKEN5-20210000000
BAKKEN4-20210000000
BAKKEN3-2021231070142231915961178223
BAKKEN2-2021281431134533721581624286
BAKKEN1-2021291438147032321851262673
BAKKEN12-2020301308125126616841152283
BAKKEN11-2020301526160833422691798207

Upwardly Mobile -- June 10, 2022

Billionaire athletes: three but only two are active, if one can consider Tiger Woods still active:

  • Michael Jordan
  • LeBron James
  • Tiger Woods
  • my hunch is that Phil Mickelson wants to join this group; well on his way after he joined the LIV Tour, though his endorsements have cratered

********************************
Streets of Gold

Link here.


Some suspect the graphic may be "suspect." Germany is listed twice. However, this may be due to the fact that in 1980 (see chart) there were still two "Germanies": East Germany and West Germany. They were not reunited until 1990.

If I'm correct, my hunch is that "East Germany" is the "higher" one and "West Germany" is the "lower" one. 

************************
The Book Page

Wow, wow, wow.

From Literary Hub today: On discovering the first fossil of a T. rex, Hell Creek, Montana. 

From Literary Hub: Paleontology. 

From the linked essay above:

As the last days of July 1902 ticked away in Hell Creek, Montana, Barnum Brown found himself torn. The party uncovered a Triceratops skull that was in decent ­condition, though its horns were missing. With enough work, it could be “a fine exhibition specimen,” he wrote to Osborn, knowing that would begin to make up for the crushed fossil now sitting in the museum in New York. If anything, the skull would buy him at least one more year of employment.

But he wanted more ...

.... As he looked down into the pit, Brown took in a shape that no human being had ever laid eyes on. “Quarry No. 1 contains the femur, pubes, [partial] humerus, three vertebrae, and two undetermined bones of a large Carnivorous Dinosaur not described by Marsh,” Brown wrote in a letter that evening to Osborn. “I have never seen anything like it...”

In time, the creature would become perhaps the most recognizable animal the world has ever seen, its deadly silhouette and Latin name familiar even to those with no interest in dinosaurs or science. Yet in that moment in the hot August sun, the animal that would soon take the name of Tyrannosaurus rex was entirely new—​an unmistakable set of clues that the history of life was more varied and surreal than anyone had imagined.

.... Brown knew that he was suddenly in a race against time. He had found the only specimen of a creature previously unknown to science, and there was no telling if he or anyone else would ever find another. With less than two months before the broiling landscape would become too cold to allow work to continue, Brown scrambled to uncover as much of the fossil as possible...

... Finally, in October, Brown pulled the last section of the skeleton free. The small team of horses strained under the load, pulling the haul to Miles City in shifts, eventually moving more than fifteen thousand pounds of bones to a boxcar that Osborn had arranged for them. As the first snow of winter fell, Brown watched as nineteen crates of fossils were loaded into the boxcar, a collection that included not only the new carnivorous dinosaur, but also the skeletons of a crocodile-​like Champsosaurus and a Triceratops—​both of which still stand on the floor of the American Museum.

Excerpted from The Monster’s Bones: The Discovery of T. Rex and How It Shook Our World. Copyright (c) 2022 by David K. Randall.  

Bolt-On Acquisition -- Defined -- June 10, 2022

From wiki.

Odds And Ends -- Part 1 -- June 10, 2022

Investing: for the record, I increased by TSM holdings this morning by 34%. My heirs will never, never ask what I paid for these shares. They will simply be thrilled TSM is in the portfolio thirty years from now.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 

*************************
Clearing Out The In-Box

Upwardly mobile, link here. Stand-alone post later.

Tweets you wish you never tweeted, link here. From ZeroHedge.

PGA suspension, link here to The WSJ. Lawsuits won't go anywhere. 

Mileage rates increased by IRS, link to The WSJ. Unusual mid-year move. For final six months of 2022: 62.5 cents / mile, up from 58.5 cents a mile, which itself was a 2.5 cent increase from 2021.

Smart guy: a minor DC bureaucrat controls the US. Link to The WSJ. Quick: what agency does Rohit Chopra head? Who appointed him? And who made his agency possible?

Gin: I've never seen either.

  • Miles: British, comes in a plastic bottle; recommended by "neighbor"; VP of a Fortune 500 company.
  • The Botanist: Islay Dry Gin; clever ad on television

*******************************
Wedgewood, Lladro and A Sophia

Only one is priceless.

Will Oilprice.Com Add WTI Midland To Its Front Page Banner? June 10, 2022

Announcement, link here:

ARGUS WTI Midland price assessment: link here.

The Argus WTI Midland price assessment represents Permian-quality WTI sold for physical delivery in the prompt month at the Enterprise and Plains terminals at Midland, Texas. It is the most actively traded and transparent price assessment published by any pricing service for WTI at Midland, and it reflects the price of unblended “Midland-quality” WTI at a point near the fields where the crude is produced.

Typically, more than 1mn b/d of prompt physical transactions for “Midland-quality WTI”, deliverable at the Midland terminals, are reported to Argus in each trade month

That equates to more than 500 trades each month

This compares with about 100 spot physical cargo trades per year for all the grades comprising the Dated Brent price basket (Brent, Forties, Oseberg, Ekofisk and Troll) – about 50 times more pricing points for WTI Midland than for Dated Brent.

WTI, McKinsey, link here.

WTI is a light sweet crude oil produced in the interior of the US.

For many years, WTI was considered a global benchmark crude. This role has largely been displaced by Brent, but WTI remains an important regional benchmark for North America.

There are three major locations where WTI prices are quoted:
  • Midland - This is the price point closest to the actual production of WTI. It is one of the main gathering points for WTI in West Texas before it is sent by pipeline to the Gulf Coast, Cushing, or nearby refineries
  • Cushing - Cushing is an intermediate transportation point where pipelines from producing regions (West Texas, Canada, Oklahoma) and to refining regions (Gulf Coast and Midwest) meet. The Cushing blend of WTI is also called Domestic Sweet Blend (DSW)
  • Houston (Magellan East) - At this location on the Gulf Coast, crude arrives by pipeline from Cushing and Midland, and it is shipped by pipe to Gulf Coast refiners or exported by tanker to the international market. WTI blends in Houston are also called MEH
WTI (and similar US domestic crudes) are primarily consumed by US refiners across the Gulf Coast and Midwest regions. WTI is also exported to the international market, largely through the ports of Corpus Christi and Houston.

WTI Midland, Platts, link here.

Following extensive consultation and proposal periods, Platts, part of S&P Global Commodity Insights, will reflect cargoes of WTI Midland crude oil in its Dated Brent crude oil benchmark, with effect from June 2023 cargo deliveries. This inclusion will extend across the Brent complex, including Dated Brent and its related components, Cash BFOE, and all related instruments. Platts will maintain the assessment of the Dated Brent benchmark and Cash BFOE as FOB North Sea values, with Cash BFOE methodology to be finalized in the coming months.

WTI Holds; CLR Reports A Nice Well In Its Long Creek Unit -- June 10, 2022

NBA: fourth game tonight. Boston Celtics lead the series, 2 - 1. Story line: Steph Curry's ankle. 

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

Far Side: link here.

WTI: $121.50. Was as high as $122.10 overnight; CPI data released this a.m.

Active rigs: 40 or thereabouts.

Friday, June 10, 2022: 16 for the month, 153 for the quarter, 313 for the year

  • 38643, conf, Ballard Petroleum Holdings, Smalls 31-8, wildcat, NWNE 8-159-81; no production data,
  • 38478, conf, WPX, Hall 14-15HZ, McGregory Buttes, no production data,
  • 36866, conf, CLR, LCU Truman 10-23H1, Long Creek, first production, 12/21; t--; cum 130K 4/22;

RBN Energy: Yosemite Clean Energy's "Stump to Pump" plans rest on local partnerships. A really slow news day or I'm missing something.

California faces a broad set of challenges when it comes to reducing wildfires, which have been increasingly frequent and intense over the last decade — impacting the lives of those dealing with the threat, not to mention effects on the economy and environment. Separately, the state has been working to reduce transportation-related pollution and incentivize the development and use of a wide array of alternative fuels. Yosemite Clean Energy (YCE), which announced plans for its first plant site in late 2021, has an approach it says will not only make the state a cleaner and safer place but also foster the development of new transportation fuels. In today’s RBN blog, we look at YCE’s plans to turn wood waste into renewable fuels, how its unique “Stump to Pump” approach relies on partnerships with local communities, and the green hydrogen and renewable natural gas it plans to produce at sites across California.  
In a previous blog that examined ways to turn California’s biomass problem into an energy solution, the state had more than 60 biomass-fueled power plants operating as recently as the 1990s, but there are only about 30 direct-combustion plants running today, according to the California Energy Commission. The biomass sector has been hurt over the past decade by a combination of low natural gas prices, expiring power purchase agreements (PPAs), and the greatly expanded use of less-expensive wind and solar, as well as concerns about emissions from the traditional method of burning biomass.

  **********************************
Original Permit

Original permit:

  • #38643 - BALLARD PETROLEUM HOLDINGS, LLC, SMALLS 31-8, NW NE, 08-159N-81W, BOTTINEAU County, 660’ FNL AND 1980’ FEL, CONFIDENTIAL, WILDCAT, 1511’ GROUND, API – 33-009-02476

 **********************************
Initial Production

The well:

  • 36866, conf, CLR, LCU Truman 10-23H1, Long Creek, first production, 12/21; t--; cum 130K 4/22;
DateOil RunsMCF Sold
4-20221161036817
3-20221815037301
2-20222780950144
1-20224358177516
12-20212757740493