WTI Holds; Profiteering In Biden's Backyard — February 23, 2023

Is oil back?

Economy, 8:30 a.m. ET:

• GDP Annualized, quarter-over-quarter, 4Q Second Estimate (2.9% expected, 2.9% prior)
• Personal Consumption, quarter-over-quarter, 4Q Second Estimate (2.0% expected, 2.1% prior)
• GDP Price Index, quarter-over-quarter, 4Q Second Estimate (3.5% expected, 3.5% prior)
• Core PCE, quarter-over-quarter, 4Q Second Estimate (3.9% expected, 3.9% prior)
• Initial Jobless Claims, week ended Feb. 18 (220,000 expected, 194,000 during prior week)

US LNG: chart of the day.

Chevron, Venezuela: better than expected for Chevron? Link here.

A reminder: link here.

OXY: and there's talk that with the recent pullback in the oil sector, Warren Buffett may be buying more of the company.

 

Saudi Aramco: slips to third place. The big story here is not the fact that Saudi Aramco slipped to third place but despite AAPL trading at recent lows, AAPL's market cap is still head and shoulders above MSFT and SA.

Profiteering: link here.

Inside a sprawling factory just off the President Biden Expressway in downtown Scranton, Pennsylvania, the future arsenal of Ukraine’s war effort is being forged, one red hot artillery shell at a time. Running full-tilt, as it was on a recent January morning, the Scranton Army Ammunition Plant churns out roughly 11,000 artillery shells a month. That may seem like a lot, but the Ukrainian military often fires that many shells over just a few days. To meet that demand, the Scranton plant is undergoing a massive expansion, fueled by millions of dollars in new defense spending from the Pentagon. It’s investing in new high-tech machinery, hiring a few dozen additional workers and will eventually shift to a 24/7 schedule of constant production.

NVDA beats, LCID widely misses: link here. Also, link here:

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Back to the Bakken

Active rigs: 47.

Peter Zeihan newsletter. 

WTI: $74.56.

Natural gas: $2.151.

Thursday, February 23, 2023: 66 for the month; 137 for the quarter, 137 for the year
39096, conf, Kraken, Jenna 28-33 2H, 
39090, conf, CLR, Colette 2-18HSL,
38415, conf, Liberty Resources, AZ W 158-93-13-24-2MBH,
36051, conf, Oasis, Foley Federal 5301 12-13 4B,

RBN Energy: Petra Nova’s new lease on life after a critical test for carbon-capture technology.

The lack of successful projects has long been a thorn in the side of the carbon-capture industry, with a few high-profile cases falling short of expectations for a variety of economic and technological reasons. When looking for a prime example of how a highly touted (and taxpayer-supported) project can still fall short, the Petra Nova facility southwest of Houston, which completed its three-year demonstration period shortly before being shut in 2020, often comes to mind. But now it’s just a few months away from getting another shot, courtesy of its new owner and recovering oil prices. In today’s RBN blog, we look at the impending restart of the Petra Nova project, how falling oil prices overshadowed its technical successes, and its importance to the carbon-capture industry.