Thursday -- September 28, 2023

Locator: 45599B. 

Government shutdown looms: not much news coming out of DC. If so, it appears only a few affected:

• active-duty military won't get paid;
• TSA, border security, homeland security folks won't get paid
• national parks will close
• but, other than that, all's good

Airheads: Was there a debate last night? I missed it.

LNG: seems to be the place to be. More later.

XOM: loses again in California. California plays Lucy to XOM's  Charlie Brown.

Dividends matter: Total Energies equity shares surge.

UAW: polls show Americans support 40% pay raise for "legacy" workers; 60% pay raise for recent hires. UAW will likely expand strike locations. UAW is really, really upset with Ford, now.

WTI: surges in last 24 hours. Looks like recent surge may not hold; already talk that Saudi Arabia may relax production cutbacks.

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Back to the Bakken

WTI: $93.32.

Friday, September 29, 2023: 119 for the month; 321 for the quarter, 566 for the year
39565, conf, Kraken, Cass 4-9-4H,
39461, conf, CLR, Hegler 5-13H1,

Thursday, September 28, 2023: 117 for the month; 319 for the quarter, 564 for the year
38988, conf, Hess, RS-Harstad-155-91-0433H-8,

RBN Energy: high-nitrogen Permian natural gas mucks up Texas gulf coast LNG feedgas.

There’s a lot of nitrogen out there — it’s the seventh-most common element in the universe and the Earth’s atmosphere is 78% nitrogen (and only 21% oxygen). And there’s certainly nothing new about nitrogen in the production, processing and delivery of natural gas. That’s because all natural gas contains at least a little nitrogen. But lately, the nitrogen content in some U.S. natural gas has become a real headache, and it’s getting worse. There are two things going on. First, a few counties in the Permian’s Midland Basin produce gas with unusually high nitrogen content, and those same counties have been the Midland’s fastest-growing production area the past few years. Second, there’s the LNG angle. LNG is by far the fastest-growing demand sector for U.S. gas. LNG terminals here in the U.S. and buyers of U.S. LNG don’t like nitrogen one little bit. As an inert gas (meaning it does not burn), nitrogen lowers the heating value of the LNG and takes up room (lowers the effective capacity) in the terminal’s liquefaction train. Bottom line, nitrogen generally mucks up the process of liquefying, transporting and consuming LNG, which means that nitrogen is a considerably more problematic issue for LNG terminals than for most domestic gas consumers. So as the LNG sector increases as a fraction of total U.S. demand, the nitrogen issue really comes to the fore. In today’s RBN blog, we’ll explore why high nitrogen content in gas is happening now, why it matters and how bad it could get.