Six Wells Coming Off Confidential List Over The Weekend -- July 10, 2023

Locator: 45056B.

Fisker: link here.

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

WTI: it's Monday. WTI is down. WTI is always down on Monday. $73.31.

Tuesday, July 11, 2023: 60 for the month; 168 for the quarter, 423 for the year
37404, conf, Liberty Resources, Esther 158-93-28-33-20MBH,
37364, conf, Liberty Resources, Albertson 158-93-27-34-1MBH,

Monday, July 10, 2023: 58 for the month; 166 for the quarter, 421 for the year
39175, conf, CLR, Clyde Hauge 4-13H,
38944, conf, Iron Oil Operating, Antelope 5-32-29H,

Sunday, July 9, 2023: 56 for the month; 164 for the quarter, 419 for the year
39442, conf,  Kraken, Orbit 24-13-12 5H,
39176, conf, CLR, Clyde Hauge 5-13H,

Saturday, July 8, 2023: 54 for the month; 162 for the quarter, 417 for the year
39441, conf, Kraken, Orbit 24-13-12 4H,
39178, conf, CLR, Clyde Hauge 6-13H, 

RBN Energy: FERC crude oil pipeline tariffs jump again, with differing impacts on customers.

When the calendar flipped from June to July, it did more than just close the book on the first half of 2023, it also allowed some oil pipelines regulated by the Federal Energy Regulatory Commission (FERC) to increase their rates by more than 13%. Yes, you read that correctly. This is the largest increase in the index rate since FERC initiated its current methodology in 1992 and follows last year’s increase of almost 9%. In today’s RBN blog, we look at what’s going on with index rates at FERC and what it means for producers and shippers alike.

Let’s start with some background. As we explained in Now Here You Go Again, rate indexing was part of FERC’s response to congressional direction in the Energy Policy Act of 1992 to simplify the regulation of oil pipeline rates. (If you need a refresher on how indexing works, it would be helpful to read that blog.) Ever since FERC took over the regulation of oil pipeline rates from the Interstate Commerce Commission in 1977, the system of regulation had been burdensome and complicated. So, while FERC kept some of the onerous stuff like full cost-of-service reviews for certain situations (new services and company-specific complaints, primarily), the industry norm became indexing. These days, the vast majority of all liquids-pipeline rates are capped based on the index, meaning that in markets where competition doesn’t push the rates lower than the cap, the indexed rate is what’s really charged. (It’s also worth noting that while index rates have increased more drastically recently, they have moved up and down over the past 10 years, as shown in Figure 1.)

Figure 1. Annual Changes in Liquids Pipeline Index. Source: FERC