Manic Monday -- July 29, 2024

Locator: 48258B.

F: drops below $11.

GM: the pain continues.

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

NOG: increases dividend. Link here. Company says the increase is a 5% increase. If so, it exceeds current rate of inflation.

WTI: $77.32. Long-running theme on the blog -- the SPR no longer matters. Don't take that out of context. The new SPR: the Permian, the Bakken, the Eagle Ford. And has been that way since 2016.

Tuesday, July 30, 2024: 52 for the month; 52 for the quarter, 378 for the year
40413, conf, CLR, Hellickson Paluck 2-25H,
40087, conf, Phoenix Operating, Jean Ferrari 26-35-2-2H,
39515, conf, Liberty Resources, Haley E 158-93-29-32-5MBH,

Monday, July 29, 2024: 49 for the month; 49 for the quarter, 375 for the year
40414, conf, CLR, Urban 2-36H,
40175, conf, Slawson, Cyclone 4-21-16H,

Sunday, July 28, 2024: 47 for the month; 47 for the quarter, 373 for the year
40301, conf, Whiting, Sanish Bay E Federal 5292 22-7 6B,
40174, conf, Slawson, Cyclone 3-21-16H,

Saturday, July 27, 2024: 45 for the month; 45 for the quarter, 371 for the year
40300, conf, Whiting, Sanish Bay E Federal 5292 22-7 7B, 

RBN Energy: the push to consume more natural gas close to where it's produced.

There are two primary drivers for consuming more natural gas close to where it emerges from production wells. One is to eliminate routine gas flaring, which is wasteful and environmentally detrimental, and the other — especially true in takeaway-constrained plays like the Permian — is to add value to gas that otherwise would be sold downstream at steeply discounted prices. In today’s RBN blog, we discuss some innovative approaches to maximizing gas value by consuming it “in-basin” — and the potential for a lot more gas to be used in West Texas and southeastern New Mexico.

We first blogged about gas flaring a dozen years ago, in the RBN blogosphere’s Stone Age, noting that one-third — yes, one-third! — of the associated gas then being produced in the booming Bakken was being flared. The main culprit was a dire lack of gas gathering systems, gas processing plants and long-haul gas pipelines, whose development was far outpaced by the increases in crude oil and associated gas production. Gas flaring wasn’t a new thing, of course. In fact, crude-oil-focused E&Ps have been flaring gas in the U.S. since the first oil was produced in western Pennsylvania more than 160 years ago, both for safety reasons and — then as now — for lack of infrastructure.