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Monday, January 23, 2023

IRS $600-Reporting Threshold — Update — IRS Update — December 23, 2023 -- First Posted January 23, 2023

Updates

January 29, 2023: tea leaves -- the $600 Form 1099-K is dead. 

January 24, 2023: Forbes weighs in. Adds nothing new to the conversation. For me, this is much ado about nothing. The IRS memo is very, very clear. Both CNN and Forbes have only added to the confusion; the IRS did not add to the confusion. On the other hand, taxpayeradvocate is very, very, clear.

Original Post 

In case you missed it: https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k.

CNN’s interpretation here: https://www.cnn.com/2022/12/23/investing/irs-delays-threshold-increase-for-business-transactions/index.html.

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Personal Note For The Family

I am now fully vaxxed, with one exception. I still need a tetanus shot -- one of those shots recommended to be taken every ten years.

Covid: two primary and two boosters.

"Seasonal flu": yes. First time I've taken the "seasonal flu" shot since 2006, my last full year in the US Air Force. 

Shingles: this was the big one. It's a two-series primary series and I had put it off for almost ten years, but finally got it done. Second one last Friday. They say the second shingles shot is the "worst" of them all. The first is generally no problem but if one is going to have a problem with the shingles shot, it will be the second one. The pharmacist recommended drinking lots of water, to maintain normal amount of activity, and take "Tylenol" every four to six hours, all of which I did. I had a really sore / stiff arm for the first twelve hours and then generalized musculoskeletal discomfort for 36  hours but by 72 hours, completely pain-free, even at the site of injection.

Tetanus: that leaves only Tetanus. Probably in late February.

An Old BR CCU Gopher Well Taken Off Line After 500K Bbls Crude Oil Cumulative -- January 23, 2023

The well:

  • 30780, 2,525, BR, CCU Gopher 2-2-15MBH, Corral Creek, t9/15; cum 308K 3/20; taken off line 3/20; remains off line 10/20; back on line 2/21; a huge well; cum 419K 9/21; cum 507K 9/22; off line 9/22;

Recent production, since 2019, with jump in production:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN11-202210250000
BAKKEN10-202251240129810072205203172
BAKKEN9-20222244364377407375206904257
BAKKEN8-20225110711269431788161565
BAKKEN7-202214268127162209453826071763
BAKKEN6-2022306129613352951031185901289
BAKKEN5-2022317179718660221289411891507
BAKKEN4-20222865696574604510481104760
BAKKEN3-202231814181327245123871230279
BAKKEN2-2022287915794271851207611938132
BAKKEN1-20223191799297834015260152520
BAKKEN12-202131108401068710316167171661098
BAKKEN11-20213011008110121039415799157849
BAKKEN10-20213111408114291182415427154210
BAKKEN9-20212273977353835059355722208
BAKKEN8-2021267481749893118533847554
BAKKEN7-20213110410104021376113071108252241
BAKKEN6-2021247893784010753945177021745
BAKKEN5-202153038317253463391332862
BAKKEN4-20213024767248203759729574295620
BAKKEN3-20213136792367763794845281452570
BAKKEN2-20211013578133937288919791860
BAKKEN1-20210000000
BAKKEN12-20200000000
BAKKEN11-20201000000
BAKKEN10-20200000000
BAKKEN9-20200000000
BAKKEN8-20200000000
BAKKEN7-20200000000
BAKKEN6-20200000000
BAKKEN5-20200000000
BAKKEN4-202010300000
BAKKEN3-2020134916143704364330
BAKKEN2-2020292053214312824154120
BAKKEN1-202031257925301502731481246
BAKKEN12-20193125872587187464856679
BAKKEN11-20193023972368167886378376 

WTI Holds Near $82; Active Rigs At 45; Four New Permits; One DUC Reported As Completed; Oasis With Two Dry Hooles -- January 23, 2023

Active rigs: link here. 45.

  • Bowline: 1    BR: 3    CLR: 9
  • Crescent Point: 2    Enerplus: 3
  • Grayson Mill: 2       Hess: 4
  • Hunt: 1                Kraken: 2
  • Liberty Resources   2            Lime Rock Resources: 1
  • Marathon Oil: 3    Oasis: 2
  • Ovintiv: 2            Petro-Hunt: 1
  • Sinclair: 1            Slawson: 2
  • Stephens Williston: 1    Whiting: 2
  • WPX: 1

WTI: $81.62.

Natural gas: $3.447.

Four new permits, #39583 - #39586, inclusive:

  • Operators: Whiting (3); WPX
  • Field: Sanish (Mountrail); Van Hook (Mountrail)
  • Comments:
    • WPX has a permit for a Spotted Rabbit well, SWSW 23-150-92, 
      • to be sited 237 FNNLL and 1020 FWL.
    • Whiting has permits for three De Bud wells, SESE 32-154-92, 
      • to be sited between 634 FSL and 694 FSL and 10019 FEL.

One producing well (a DUC) was reported as completed:
39076, 41, Wesco Operating, Hall Fed 21-12,

Two dry holes:

  • 34747, dry, Oasis, Njos Federal 5602 44-12 5B, Tyrone,
  • 28635, dry, Oasis, Chalmeers 5300 21-19 7T2, Baker,

Random Update Of An Older Slawson Machete Well In Big Bend -- January 23, 2023

New Slawson wells are starting to come off the confidential list. Older wells with halo effect? Here's one, subtle but definite:

The well:

  • 18207, 1,215, Slawson, Machete 1-19H, Big Bend, t3/10; cum 425K 11/22;

Recent production:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN11-20223030473020353324981544804
BAKKEN10-20223030042948414424932121221
BAKKEN9-2022302496251554272253201588
BAKKEN8-20225109012311578350
BAKKEN7-20220000000
BAKKEN6-20222940644154364435392936458
BAKKEN5-2022314390472044363809364411
BAKKEN4-20222639203643363734212850440
BAKKEN3-20223142944503621137813176450
BAKKEN2-20221317291255253914371149223
BAKKEN1-20222842275049558353965051205
BAKKEN12-20213156535085699751694912102
BAKKEN11-20213065847019913060534982921
BAKKEN10-2021317910760315904697351931625
BAKKEN9-202138755241629673363297
BAKKEN8-202129154515957102986283011
BAKKEN7-202131192919288433137291666
BAKKEN6-20213017011803821251423640
BAKKEN5-202131229323841111392037650
BAKKEN4-2021292242227492429622638179

This well has done this more than once:

BAKKEN9-201430599757392240486047100
BAKKEN8-201428571956451973459144510
BAKKEN7-201431970895704140793477790
BAKKEN6-201413365334482914152714620
BAKKEN5-20141376914312516605950
BAKKEN4-20143017751410597151213620
BAKKEN3-20143118911858602177416190
BAKKEN2-20142817531670565138212420
BAKKEN1-20143123952316584159414390
BAKKEN12-20133114671584518164014850
BAKKEN11-20133019292274558166115110
BAKKEN10-20132516691181676138212570
BAKKEN9-20132918052059653184817030

Microsoft Makes New Multi-Billion-Dollar Investment In ChatGPT-Creator Open AI -- January 23, 2023

Updates

Later, 7:30 p.m. CT, link to The WSJ: 

Microsoft Corp. said Monday it is making a multiyear, multibillion-dollar investment in OpenAI, substantially bolstering its relationship with the startup behind the viral ChatGPT chatbot as the software giant looks to expand the use of artificial intelligence in its products.

Microsoft said the latest partnership builds upon the company’s 2019 and 2021 investments in OpenAI.

The companies didn’t disclose the financial terms of the partnership. Microsoft had been discussing investing as much as $10 billion in OpenAI.

OpenAI was in talks this month to sell existing shares in a tender offer that would value the company at roughly $29 billion, The Wall Street Journal reported, making it one of the most valuable U.S. startups on paper despite generating little revenue.

The investment shows the tremendous resources Microsoft is devoting toward incorporating artificial-intelligence software into its suite of products, ranging from its design app Microsoft Designer to search app Bing. It also will help bankroll the computing power OpenAI needs to run its various products on Microsoft’s Azure cloud platform.
Original Post

Yesterday I posted this, including the map. I couldn't have been much more direct. LOL.

Now, less than 24 hours later, this:


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The Book Page

The Age of Entanglement: When Quantum Physics Was Born, Louisa Gilder, c. 2008.   

This was Ms Gilder's first book. 

My first copy was loaned to me by my Hispanic brother-in-law. I returned it and then bought my own copy, which over the years was misplaced or given away. 

Having just read this book for the first time, I needed to re-read The Age of Entanglement, so I bought another copy. 

A Metric No One Else Tracks -- January 23, 2023

Permitting Per Year and Total Annual Production

Data for 2022: total annual production is accurate only through November, 2022; December data is yet to be provided but total annual production is estimated below.

The number of permits will not be completely accurate; close but not completely accurate, partly because of the way NDIC started a new procedure for numbering permits for SWD wells that was changed sometime in the past several years.

Starting in the mid- to late-teens, NDIC changed the maximum time that a spudded well could be completed without requiring a waiver; it went from one year to two years.

Once permitted, a well must be spud within a year, but it is inexpensive and easy to renew a permit on an annual basis.

The "initial" lease in North Dakota "is good for" five years. If the first well is not spud within five years of the lease being, the lease becomes null and voidl

Disclaimer: this is my shorthand (above) to remind me of some important dates / rules. They are not "exact." If this "stuff" is important to you, go to the source. In addition, there may be additional typographical and content errors.  

Past years, total number of oil and gas permits, followed by annual crude oil production -- and then production that year / permits issued that year. Permits do not mean the wells were drilled. In fact, the majority of wells drilled in any given year were permitted at least a year earlier.

  • 2022: 793 --    393,520,643 bbls (estimate) --  496,243 bbls / new permit (estimate);
  • 2021: 668 --    409,103,885 bbls -- 612,431 bbls / new permit;
  • 2020: 747 --    438,546,730 bbls -- 587,077 bbls / new permit
  • 2019: 1,397 -- 524,444,348 bbls -- 375,408 bbls / new permit;
  • 2018: 1,466 -- 466,419,743 bbls -- 318,158 bbls / new permit;
  • 2017: 1,189 -- 394,759,760 bbls -- 332,010 bbls / new permit;
  • 2016: 818 --    380,372,587 bbls -- 465,003 bbls / new permit;
  • 2015: 2,055 -- 432,526,847 bbls -- 210,475 bbls / new permit;
  • 2014: 3,012 -- 397,209,473 bbls -- 131,875 bbls / new permit;
  • 2013: 2,671 -- 314,043,664 bbls -- 117,575 bbls / new permit;
  • 2012: 2,522 -- 243,363,503 bbls -- 96,496 bbls / new permit;
  • 2011:1,916  -- 153,075,204 bbls -- 79,893 bbls / new permit;

Mostly For Investors -- Nothing About The Bakken -- January 23, 2023

Updates

Later, 2:27 p.m. CT

Original Post

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.    

Personal investing:

I'm keeping my same "new money" allocation the same as it has been for the past year, but I sold out one of my Big Pharma positions, to replace it with another Big Pharma position at a later date. However, taking the cash from that Big Pharma sale, I added a significant position in a semiconductor company. 

The top seven: link here.

  • AAPL, NVDA, AMZN, BRK-B, DXCM, GOOG, COST

Dividend cuts: ten biggest in 2022 --

  • ILPT; PPL, DEI, UG, DVN, SWZ, SLG, RIO, SBLK, NCMI

PFE: raised its dividend

"[Pfizer]will be increasing its periodic dividend on the 3rd of March to $0.41, which will be 2.5% higher than last year's comparable payment amount of $0.40. This will take the annual payment to 3.5% of the stock price, which is above what most companies in the industry pay.

CVX: likely to raise its dividend before next earnings release. Link here.


DVN: earnings forecast. Link here.

Digital wallet: link here

Major banks in the US are combining forces to take on Apple Pay. Zelle. This is a huge story. Coming on the heels of incredibly poor earnings being reported by some major banks. 

Apple is not a bank. This tells me how threatening the major banks see Apple. See this recent post, one of two big stories reported that week. 

Last year we started receiving information from our regional bank regarding their new service, Zelle. It appeared the Zelle was our only way to transfer money from our bank account to outside accounts where automatic withdrawal exists (other than paper checks). I don't think that's true but it felt that why. Whatever. The big problem: I don't trust my regional bank (transactions fees, etc) and I certainly don't trust an outside app with which I have no experience.

For me, Apple and "trust" are linked in the library.

See yesterday's note on CBDC, also.

Art: contemporary discoveries. Something a little different.

Life: best ten cities in the US in which to buy a home (not necessarily best place to raise a family). * = places we've lived. Not in same order as at the link:

  • Texas: DFW area*
  • Texas: San Antonio area*
  • North Carolina: Raleigh
  • South Carolina: Greenville-Anderson-Mauldin area
  • South Carolina: North Charleston, South Charleston*
  • Tennessee: Knoxville
  • Florida: Jacksonville
  • Arkansas / Missouri: Fayetteville-Springdale-Rogers area
  • Georgia: Atlanta area
  • Alabama: Huntsville (*Montgomery, AL)

WTI At $82 -- January 23, 2023

BKR: earnings out. Missed on top and bottom line but shares holding in pre-market trading. In fact, now moving up.

Anticipation: CVX

Timely: Nvidia to win big from ChatGPT hype. NVDA already moved last Friday. My last big post yesterday.

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Back to the Bakken

The Far Side: link here.

Active rigs: link here.

WTI: $82.15. Up 0.6%; up 51 cents to start the week.

Natural gas: $3.440. Up 8.4%; up 27 cents.

Tuesday, January 24, 2023: 54 for the month; 54 for the quarter, 54 for the year
38999, conf, Hunt, Alexandria 161-100-24-13H-3,
38889, conf, Koda Resources, Stout 2918-3BH,
38888, conf, Koda Resources, Stout 2918-4BH,

Monday, January 23, 2023: 51 for the month; 51 for the quarter, 51 for the year
38998, conf, Hunt, Alexandria 161-100-24-13H-3,
38997, conf, Slawson, Blizzard Federal 1-13H,
38732, conf, Hess, EN-Neset-156-94-1819H-1,
31325, conf, Oasis, Slagle 5101 41-12 2B,

Sunday, January 22, 2023: 47 for the month; 47 for the quarter, 47 for the year
None.

Saturday, January 21, 2023: 47 for the month; 47 for the quarter, 47 for the year
39012, conf, Kraken, Wilhelm 16-21 5H,
30868, conf, Prima Exploration, Smokey Bear State 3H,
27898, conf, CLR, Jersey FIU 15-6H,

RBN Energy: US LNG, underground storage help save Europe from another tough winter. [But at wwhat expense? Deindustrialization?]

With the war in Ukraine ongoing and Europe largely cut off or quitting Russian natural gas imports, many feared that global gas prices would skyrocket this winter, but prices have fizzled out instead and are at their lowest level since September 2021. That’s not to say gas prices are low, as they are still well above historic norms and high enough to incentivize LNG imports and the development of future LNG capacity. But despite losing its largest gas supplier, and prices running up in the months ahead of this winter, Europe appears to be in much better shape than it was last winter and gas prices have been relatively calm and on the downswing. So why is that? The difference between this winter and last largely boils down to storage inventories and the ability to attract LNG cargoes. In today’s RBN blog, we look at the European gas market, the impact of U.S. LNG supplies, and what it all means for developing LNG projects.