Holy Mackerel! Is Anyone Paying Attention? WTI Is Up Over 1% Today — Trending Toward $80 (Again) — June 17, 2024

Locator: 47871WTI.

WTI: at $80. Link here. 

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Saudi

Saudi crude oil: domestic consumption. Wow, I don't know how many times we've discussed this on the blog. Look at this, absolutely amazing:

The Shoaiba power plant, a sprawling complex of giant boilers and towering chimneys, is the improbable ground zero of the forces reshaping the energy market. Located in Saudi Arabia, it’s the world’s largest oil-fired electricity generator. At its peak, it gulps about 200,000 barrels a day, more than enough to meet the daily consumption of a small European nation like Portugal. 

If global oil demand is to peak within the next five years, as the International Energy Agency just predicted, it will require more than mass adoption of electric vehicles. Ironically, Riyadh will have to slash its own use of its homemade power source, making the Shoaiba and similar power plants the stuff of yesteryear. 

The staggering amount of oil the Saudis consume – 3.7 million barrels a day, the world’s fourth most, behind only the US, China and India — means the kingdom would play a key role in shaping demand to 2030, potentially accelerating peak consumption – or delaying it.

Some numbers:

• population, Saudi Arabia: 36 million 
• consumes 3. 7 million bopd
• population, California: 39 million
• consumes 1.8 million bopd

Alternate energy sources:

• Saudi gives lip service to alternate energy sources to production electricity (most recently: nuclear) but in fact there is nothing so cheap as Saudi's oil for domestic consumption;
• nuclear sounds nice, but we're talking years and a major transformation in thinking

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Back to the Bakken

WTI: $79.82.Whoo-hoo!

Tuesday, June 18, 2024: 68 for the month; 132 for the quarter, 331 for the year
40096, conf, Whiting, Sanish Bay W 5293 34-1 8B,

Monday, June 17, 2024: 67 for the month; 131 for the quarter, 330 for the year
40095, conf, Whiting, Sanish Bay W 5293 34-1 7T,
39226, conf, Hess, BL-Herfindahl-156-95-3031H-5,

Sunday, June 16, 2024: 65 for the month; 129 for the quarter, 328 for the year
40094, conf, Whiting, Sanish Bay W 5293 34-1 6B,

Saturday, June 15, 2024: 64 for the month; 128 for the quarter, 327 for the year
40093, conf, Whiting, Sanish Bay W 5293 34-1 5T,
39225, conf, Hess, BL-Herfindahl-156-95-3031H-4,

RBN Energy: an update on "sweetening" high-H2S, High-CO2 associated gas in the Permian.

Some of the most prolific, crude-oil-saturated rock in the Permian’s Delaware Basin and Central Platform comes with a nasty complication — namely, associated gas with very high levels of hydrogen sulfide (H2S0 and carbon dioxide (CO20. But rather than walking away from all those potential barrels, one midstream company saw the treatment of high-H2S high-CO2-gas as a market niche worth pursuing. Backed by commitments from Black Bay Energy Capital and an area E&P, Piñon Midstream has been expanding a system in southeastern New Mexico that not only gathers the super-corrosive gas and removes almost all the H2S and CO2, it also permanently sequesters the stuff deep underground through a pair of 18,000-foot-deep, Class II injection wells. In today’s RBN blog, we will provide an update on Piñon’s Dark Horse Treating Facility and the company’s plan for a further build-out of its sour gas system.