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Wednesday, May 29, 2024

Dicks, Abercrombie, COP, TSA -- Sure Doesn't Look Like Recession, Stagflation -- Except For Commercial Real Estate Depression Could Lead To Regional Bank Failures -- May 29, 2024

Locator: 47977B.

Today:

  • TSA: record screening
  • COP-MRO: $17 - $21 billion all stock deal
  • Hess shareholders approve CVX-Hess deal
  • Dicks: setting records
  • Abercrombie: setting records; best quarter all-time

Jamie Dimon: continuing to misuse the definition of "stagflation." 

  • unless he's suggesting the worst of the worst, he seems to be using "stagflation" as a meme for "sticky inflation"
    • stagflation: "serious" inflation; "serious" unemployment; and, "no growth"
  • we currently have "sticky inflation" but it's still contributing to a "Goldilocks" economy
  • biggest problem: not understanding "reason" for "sticky inflation" and how "inflation" is defined, measured

Texas heat:

  • for all the media-induced anxiety, the grid is doing very, very well;
  • expensive yes, but that's what folks wanted (they just didn't know because they didn't read); but the grid holds

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

WTI: $80.24.

Friday, May 31, 2024: 43 for the month; 107 for the quarter, 306 for the year
None.

Thursday, May 30, 2024: 43 for the month; 107 for the quarter, 306 for the year
39655, conf, Hess, GO-Bergstrom-156-98-2734H-3,

Wednesday, May 29, 2024: 42 for the month; 106 for the quarter, 305 for the year
40184, conf, CLR, Sloan 5-8H,
39383, conf, BR, Devils Backbone 3A UTFH,
39326, conf, Hunt, Alexandria 161-100-22-15H3,

RBN Energy: Pembina inks ethane supply deal with Dow's Alberta ethane cracker expansion. Archived.

With an announcement in late 2023 by Dow Chemical that it would be undertaking an enormous expansion of its ethylene production site in Fort Saskatchewan, AB, it was immediately clear that Alberta’s ethane supplies would need to increase by a significant 110 Mb/d. As we’ll discuss in today’s RBN blog, a deal was signed in February between Dow and Pembina Pipeline Corp. that calls for the midstreamer to provide up to 50 Mb/d of additional ethane supplies and, according to executives at Pembina’s investor day earlier this month, will require the company to invest between C$300 million (US$220 million) and C$500 million (US$367 million) to build out its existing NGL/ethane infrastructure.

Alberta, Canada’s energy-producing powerhouse, is also home to a large and sophisticated petrochemical industry. Since the 1970s, the industry has relied on an abundance of ethane, which like other NGL “purity products” is extracted from the raw (or unprocessed) gas that also contains a mix of methane (the primary component of natural gas) along with other liquids such as propane, butane and condensate (with that last one usually referred to as natural gasoline in the U.S.). The extraction of some portion of these purity NGL products from the raw gas stream is necessary to meet specifications for transportation in pipelines and for use by downstream consumers. Ethane typically accounts for the largest portion of the liquids that can be extracted from the raw gas and can be sent to nearby petrochemical plants for use as a feedstock for more complex chemical molecules such as ethylene. Ethylene forms the basis for the manufacture of everyday plastics such as bottles, grocery bags, food packaging and many other products.

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