We'll see EIA's data tomorrow.
WTI: this evening, $86.56.
And now, this, also this evening:
Tuesday, November 15, 2022
Phoenix Capital Group Closes Over 4,000 Net Royalty Acres In Colorado -- November 15, 2022
Mineral acres in the Denver-Julesburg:
- $33 million / 4,000 net acres = $8,250 / acre.
Press release.
Phoenix Capital Group Closes over 4,000 Net Royalty Acres in Colorado from City of Thornton.
Transaction is one of the largest mineral acquisitions in DJ Basin history
DENVER – November 10, 2022 – Phoenix Capital Group Holdings, LLC, doing business as Phoenix Capital Group, acquired over 4,000 net royalty acres for a purchase price exceeding $33MM USD.
Phoenix Capital Group acquired the mineral interests in Weld and Adams Counties from the City of Thornton, Colorado.
This acquisition marks one of the largest mineral rights transactions in the prolific Denver-Julesburg (DJ) basin of Colorado and represents a substantial win for the City of Thornton, its residents, and the oil and gas community.
Thornton’s mineral interests proved to be a challenging test, as many of the holdings involved complicated tracts with several types of title challenges. Despite these title challenges, Phoenix Capital Group’s industry-leading title team successfully completed the due diligence within a compressed timeframe to meet the city’s needs. Justin Arn, Chief Land and Title Officer at Phoenix Capital Group, led the title verification on this project with over fifteen members of his elite title team. Phoenix Capital Group’s ability to move quickly allowed the city to benefit from current market conditions and maximize the value of its assets.
China Will Build More New Coal Plants In Three Years Than Currently Exist In The US -- Blames Their Requirement On The Ukraine War -- COP27 -- Cop-Out -- And Kerry's Concern? Flaring In The Permian -- November 15, 2022
I think folks forget how big China is ... and India for that matter.
You have to read to the third paragraph and even then it's easily missed:
China is adding coal plants to tackle energy security concerns, but this doesn’t mean it is backing away from its previously stated emissions curbs, Chinese delegates said at the COP27 summit this week.
China may be adding new coal plants to prevent a repeat poor performance from recent years that triggered electricity shortages in the Asian nation, but these coal plants will serve as a buffer to volatile global energy markets in the wake of Russia’s invasion of Ukraine, the country’s delegates said.
Previous figures from a senior researcher at State Grid of China Corp Energy Research Institute estimated China’s coal expansion would total 270GW of new plants through 2025—more than what the United States has now.
Key points:
- China embracing coal (this is not even new; China is simply doubling down);
- China blames Ukraine war -- despite embracing coal for decades
- China's coal expansion -- new plants between now and 2025 -- three years -- China will build more new coal plants than the entire number of coal plants in the US
- China will build more new coal plants than the entire number of coal plants that currently exist in the US
- incredible on so many levels
- with so many EPA regulations in the US, it would probably be impossible for the US to build even one new coal plant in the US
John Kerry? Worried about flaring in the Permian.
China gives "cover" to western European countries returning to coal, like Germany.
And if "we" are returning to coal, we're going to be using natural gas and crude oil for a long, long time.
For investors, another open-book test.
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For The Archives
Veterans Day - 2022
Speaking at the Veterans Day assembly, O. C. Taylor Elementary School, November 11, 2022.
Granddaughter Sophia introduced me and handed me the microphone.
Photos by the "Yearbook" photography staff, third and fourth grade students.
Lefse! Beautiful Badlands -- November 15, 2022
Lefse
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Is Anyone Paying Attention?
Worth 10,000 words.
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Back to the Bakken
Active rigs: 41.
WTI: $86.88 (up $1.01).
Natural gas: $6.153
Four new permits, #39413 - #39416, inclusive:
- Operator: Liberty Resources
- Field: Enget Lake (Mountrail)
- Comments:
- Liberty Resources has permits for four M&M wells, NWNW 28-158-93;
- each to be sited 376 FNL and between 839 FWL and 944 FWL
Two producing wells (DUCs) reported as completed:
- 38366, 1,114, CLR, Fuller 4-2H1, Little Knife, t--; cum minimal production;
- 38367, 1,876, CLR, Fuller 3-2H, Little Knife, t--; cum minimal production;
Road To New England -- NH NPR -- November 15, 2022
Key words / phrases:
- Eversource: New Hampshire's largest electric utility
- sets rates twice a year; in that process now
- failures in wholesale energy markets could make it difficult to secure enough energy for customers this winter
- Eversource: only distributes energy; does not produce any energy
- New Hampshire customers currently pay 22 cents / kWh -- more than double the rate the previous period
- bids in Massachusetts and Connecticut have indicated a breakdown in the competitive market
- company blames the Ukraine war
- seeking government regulators' support
- might have to supplement needed power on a daily basis, spot price
Director's Cut -- September, 2022, Data
Director's Cuts are tracked here.
Wells offline for operational purposes tracked here.
Director's Cut -- September, 2022, data:
September, 2022:
- crude oil: 1,119379 bopd (4.1% change); RF = +12%
- natural gas: 3,175,779 MCF / day (+2.8%)
It looks like crude oil production increased by 4.1% due to:
- a huge increase in completed wells, month/month;
- a significant decrease in the percent of wells off line, m/m;
September, 2022:
- completed: 81 (preliminary; a 22.7% increase)
- inactive:1,447 (decreased by 267; decreased by 15.5%)
- DUCS: 474 (decreased by 3; decreased by 0%)
- total off line for operational reasons: 1,921 (decreased by 12.3%)
- producing:17,759 (increased by 143, increased by 0.7%)
Natural gas capture:
- 95% statewide; commission-set goal: 91%.
And Yet WTI Continues To Fall -- "Betting" On A Recession? November 15, 2022
A divergence (?) between WTI moves and share prices of oil companies?
In early trading, shares in oil companies were rising even as WTI was falling.
Win-win for investors.
If fall in WTI is followed by a drop in share prices: opportunity to accumulate.
If fall in WTI is followed by increase in share prices of oil companies: really, really bullish.
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.
"Chest Colds" -- November 15, 2022
See this link. That last update was from last week; new CDC data should be out later this week.
We've been talking about this for past couple of months.
Today, link here:
Tags: Covid-19; Covid; flu; seasonal flu; PFE; mRNA.
Me?
- Covid-19: fully immunized; two primary, and two boosters; expect new vaccine to be yearly;
- seasonal flu: vaccinated last week
- shingles: first of two in the series about two weeks ago
- pending:
- pneumococcal
- tetanus
For investors: another open-book test.
- OTC "cold medications" at Walmart, Target, Walgreens
- think "picks and shovels"
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.
Walmart And Other Stuff -- November 15, 2022
Inflation:
- And as a reminder, the real driver of high-inflation numbers was the price of used cars.
Pre-market:
Walmart, link here:
- shares jump 7% in pre-market trading
- strong earnings: EPS and revenue beat
- guidance: full-year guidance boosted;
- Dow futures up 150+ points: up 172 points
Walmart earnings:
The numbers:
- EPS: $1.50 vs $1.32; up 3.4% y/y;
- revenue: $152.8 billion vs $147.75 billionn; up 8.7% y/y;
- US same store sales rose 8.2% vs forecast of 4.6%; up 25% y/y
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Turkey Drive
Every year Sophia's elementary school sponsors a turkey drive for a local charity. This year, the school hopes to beat last year's record of ~ 300 turkeys.
Sophia's extended family donated seven turkeys. May and I bought the last Honeysuckle turkeys available at Target and then two more Butterball turkeys. Her parents bought two Butterball turkeys. The "89-cent-per-pound" turkeys were all sold out. Honeysuckle and Butterball were $1.19 / pound, the same -- or very close -- as last year.
No Wells Coming Off Confidential List Today -- November 15, 2022
Director's Cut: to be released today, late afternoon, assuming recent inclement weather did not impact schedule.
TSM: link here.
Announcement: Donald Trump to make "major" announcement.
Pre-market:
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Back to the Bakken
The Far Side: link here.
Active rigs: 39.
WTI: $85.09..
Natural gas: $6.051.
Wednesday, November 16, 2022: 26 for the month, 63 for the quarter, 608 for the year.
37430, conf, Hess, EN-Madisyn-LE-154-94-0705H-6,
38792, conf, Ovintiv, White Butte 146-98-34-27-1H,
None.
RBN Energy: does a slew oof M&A and drilling activity signal a rebound in the Eagle Ford? Archived.
Way back in 2015, the Eagle Ford Shale in South Texas was big news,
duking it out with the Permian and the offshore Gulf of Mexico for the
#1 spot in crude oil production and with the then-preeminent Haynesville
for top honors in natural gas output. But the mid-decade crash in oil
and gas prices hit the Eagle Ford harder than any other U.S. production
area — in fact, production there remains below its peak seven years ago.
Lately, however, M&A activity in the shale play has been surging,
suggesting that the Eagle Ford may finally be on the verge of a serious,
sustained comeback. In today’s RBN blog, we discuss this renewed
interest in South Texas and whether this time the play’s recovery is for
real.