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Saturday, January 21, 2023

A Slawson River Rat Federal Well Surges Through 500K Bbls Crude Oil Cumulative -- January 21, 2023

The well:

  • 30733, 978, Slawson, River Rat Federal 5-23-14TFH, Big Bend, t12/16; cum 522K 11/22; drilled back in 2016, look at recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN11-20223044894260462647402724318
BAKKEN10-20222128303026310731044472554
BAKKEN9-20223043284821521761455391604
BAKKEN8-202231517145455271711857201243
BAKKEN7-202231535060345498687650411680
BAKKEN6-20223051224705616478056859796
BAKKEN5-202231530448707198867585200
BAKKEN4-20222952935351671472616165951
BAKKEN3-202231604862937541918890330
BAKKEN2-202228548253916275875486140
BAKKEN1-202229611762877450916590180
BAKKEN12-202131678665458344831569941166
BAKKEN11-20213070716976990986827667865
BAKKEN10-20212565326332842575657006434
BAKKEN9-202119418643114235596845611311
BAKKEN8-202131737577217955112161104417
BAKKEN7-2021287483704477921120210588476
BAKKEN6-20212976307678846611179110340
BAKKEN5-2021316919695975668867865953

A CLR Thronson Federal Well Has Just Gone Over 500K Bbls Crude Oil Cumulative -- January 21, 2023

The well:

  • 29670, 1,195, CLR, Thronson Federal 7-21H, Alkali Creek, t8/15; cum 409K 11/19; cum 511K 11/22;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN11-202224172216431495566354343
BAKKEN10-202231176617401445560352914
BAKKEN9-2022301477145512754908457542
BAKKEN8-2022312070210016956273587990
BAKKEN7-2022261154118096536883446117
BAKKEN6-20223021672235202674166802356
BAKKEN5-20223128032936265081827522359
BAKKEN4-20222824502288241267565752753

Random Update Of An Enerplus Owl Pad Well -- Screech -- Just Went Over 500K Bbls Cumulative Crude Oil -- January 21, 2023

Note: all Enerplus owl well pads have been updated.

The well:

  • 30864, 1,285, Enerplus, Screech 147-94-13B-24H, McGregory Buttes, 36 stages, 8.8 million lbs, t5/16; cum 413K 11/19; cum 476K 10/21; cum 504K 11/22; drilled back in 2016, recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN11-20222621922179207834122606322
BAKKEN10-202228223722491725406820581581
BAKKEN9-20222721532168158638663228245
BAKKEN8-20223126302584174646584015173
BAKKEN7-20222825982631181668856255156
BAKKEN6-20223027392744193324851854124
BAKKEN5-202218170517051120126388475
BAKKEN4-202219169917091040140696676
BAKKEN3-20223129642943187027852081136
BAKKEN2-20222725202526166019721429113

Chip War -- January 21, 2023

I'll be posting my notes on the Chip War at this post.

Having just completed the book for the first time, I am absolutely convinced the Pentagon, Silicon Valley, and the national security agencies in Washington are working well together. Considering.

For investors, this is a must-read book. 

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Philadelphia Eagles

I can’t recall seeing such a dominant NFL team as the Philadelphia Eagles tonight. 

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Mercedes Benz -- EV

Link to arena-ev.

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.    

As folks probably know, 5% of my new money investment allotment goes in Mercedes Benz. I believe Mercedes Benz of North America may have the inside track with regard to EV trucks, but I could be wrong.

From autoweek, May 24, 2021.

See also this post on the blog, November 21, 2022.

Bakken Natural Gas Prices Plummeted Last Year -- January 21, 2023

Link here.

For operators in the Bakken and for mineral owners, bad news, but can you imagine this story circulating in Germany right now?


Themes: 2023.

The Over-Riding Themes

Global energy: the 21st century is America's century.

Medicine: it's all about CRISPR, mRNA.

Information: it's all about semi-conductors, automation, robotics.

Inflation Doesn't Appear To Be Affecting K-Cups -- Which Should Raise Questions -- January 21, 2023

I've been tracking and buying K-cups "forever."

The "average" price I pay or the price I expect to pay: 50 cents / cup -- for the past several years, day-in, day-out regardless of headlines about good / bad coffee crops in Central America.

Here is today's screenshot. As inexpensive as 32 cents / K-cup, delivered free to your home.

Starbucks, in store,  a standard "tall" cup of black coffee: $1.85. 

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Taking Down The Tree

Let's See If This Analyst's Forecast Ages Well -- January 21, 2023

Offshore oil business is gushing again. Link here.


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Meanwhile, US Oil Forecasts

Bullet Train Update -- January 21, 2023

Link here.

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Texas Bullet Train
Dallas to Houston
DFW - GBIA

Apparently moving along but still many obstacles. It's impossible for me to find a good update but the general feeling reading many articles suggests less-than-great news. I'm no longer excited abut this project. The project's "CEO" recently departed -- an operations guy and visionary -- apparently burned out and very disappointed and discouraged -- and has been replaced by "business school graduate / consultant" with most experience in bankruptcy and reorganization cases.

Layoffs And Expansion -- January 21, 2023

The big news this past week were the layoffs in the tech industry.

The "work-from-home" movement during the pandemic drove a hiring spree and government grants and "free money" made it possible for tech giants to go on a hiring spree.

Now, things have changed, and the tech companies appear to need to cut staff by 5% to 20%. 

Many of the cuts will affect high-income tech folks (Intel) but to a greater extent, it will affect the minimum-way package movers (Amazon). Riding-sharing (Uber)? Time will tell. 

There will be personnel cuts but that doesn't mean other activity won't go on.



Intel Update -- Quarterly Dividend Likely Secure; Will Likely Raise Its Quarterly Dividend By One, Maybe Two Pennies -- January 21, 2023

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.    

Note: very brief notes, but this is where I will put notes on Chip War: The Fight for the World's Most Critical Technology, Chris Miller, c. 2022.

Intel job cuts:

Back in October, 2022, Intel was one of the first to announce huge cuts, starting with an announcement of cutting 20,000 jobs in late 2022. Previously posted.

With very little fanfare, more cuts were announced two days ago, in California: 

Last year, Intel announced a new facility for Hillsboro, Oregon, but , announced January 20, 2023 (yesterday). 

With regard to Biden's "chip bill" Intel is going to do very, very well


The "US chip bill" will not only allow Intel to "save" its quarterly dividend, but actually announce a two-penny increase in the quarterly payout. Intel has not yet made any announcement regarding its next dividend.

The United States recently passed the chip bill – the “Chip and Science Act”. Analysis of the chip bill points out that American semiconductor manufacturers will be the main beneficiaries. Furthermore, analysts believe that Intel will take the largest share of the subsidies. However, it is still difficult to shake the current wafer foundry competition. In the U.S. chip bill, $39 billion will be to subsidize fab expansion. Also, $11 billion will be for advanced process research and development, and $2 billion will for defence programs.

Of the $39 billion in fab subsidies, Intel should receive no less than 32 per cent. Furthermore, Micron will get 31 per cent while Texas Instruments, Samsung and TSMC will get 14 per cent, 13 per cent and 10 per cent respectively. This means that about 1/3 of TSMC’s $12 billion investment in Arizona will be subsidized by the United States. This can ease the cost pressure of setting up factories there. Unless the United States continues to subsidize, it will still face costs in the medium and long term.

The agency also claims that Intel should receive the most subsidies in this bill. This will help it expand in the foundry field, but TSMC still has advantages in three key aspects: business execution capabilities, technology, and customer relationships. Therefore, although this plan will help the United States increase its share in the foundry market, it is still difficult to return to the market share level of the 1990s. Also, it will not significantly change the current competitive landscape of fabs. TSMC is currently 1-2 generations ahead of Intel.

According to Jon Peddie, an analyst at Jon Peddie Research (JPR), a market research agency, a recent article analyzed Intel’s GPU business. He believes Intel has invested about $3.5 billion in its discrete GPU development — investments that have yet to pay off. Intel’s AXG (Accelerated Computing and Graphics division) has lost $2.1 billion since its official launch in the first quarter of 2021. Given Intel CEO Pat Gelsinger’s track record, JPR thinks Intel will cancel the AXG division. Since early 2021, Pat Gelsinger has cancelled six “underperforming” businesses.

Meanwwhile, over at eetimes

The U.S. Department of Defense (DoD) is Intel Foundry Services’ (IFS’s) “No. 1” customer, IFS president Randhir Thakur told EE Times, noting that IFS plans to be part of the DoD state-of-the-art heterogeneous integrated packaging (SHIP) program. That program will necessitate deep knowledge of gate-all-around (GAA) technology facilitating high-transistor–density 3D chips.

Intel’s new foundry unit has an initial $250 million contract with the DoD to provide chip design and development. The next step, for a much larger and unnamed dollar figure, will include manufacturing if IFS can meet certain national security criteria, Thakur said in an interview on the sidelines of Intel’s latest fab project in Columbus, Ohio.

They [the DoD] produce a few chips, but boy, they better work and be secure,” Thakur said. If IFS hits the stringent quality targets of the DoD, other customers will feel much more relaxed, he said.

Sounds like a cozy relationship.

By the way, the "chips bill" probably saved the new Intel facility in Ohio. Back in August, 2022, Intel questioned the project because the government "was dragging its feet."

Meanwhile, in Germany, "Intel delays construction for an $18 billion German chip fab as it angles foor more government funding." Link here, December 19, 2022 -- just last month.

Intel is using TSMC foundries to produce its 4 nm chips. I've long lost the bubble, but some time ago it was reported that Intel had to farm out its smaller chips to TSMC when Intel was having trouble with its 10 nm and 7 nm chips.

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.    

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TSMC

Following the "chip bill" announcement, Forbes reported that TSMC will triple its Arizona investment to $40 billion, among the largest foreign outlays in US history, link here.

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The Chip War

Intel is nowhere to be found on the wiki graph with regard to new chips. See here, here, and, here. Wiki has updated the chart to 2023 (the new Apple M2 Pro and Max chips (5 nm) and 4 nm (2022). Apple will start shipping hardware with 3nm chips in late 2023. 

The last time Intel showed up on the wiki scoresheet was in 2017, 14 nm. Holy mackerel.