Locator: 48262TESLA.
Monday, July 29, 2024
Natural Gas Cut-Off In Southern California -- July 29, 2024
Locator: 48261CALIFORNA.
Tag: natural gas; Ranchos Palos Verdes;
This puts our own electricity bill in perspective.
This was our neighboring neighborhood when we lived out in southern California. This is along the ocean in south Los Angeles.
Personal Utility -- Electricity Bill -- July 29, 2024
Locator: 48260ELECTRICITY.
Electricity rates by state, April, 2024, link here.
Electricity bill, north Texas. Household energy: only electricity, no natural gas. Utility says their electricity is 100% renewable.
My rate runs about 15.6 cents per kWh, slightly higher than the "advertised" 14.25 cents, up slightly from 14.11 cents one year ago.
You can see that it's actually been cooler this year, but I made a conscious decision not to worry about electricity this summer. And you can see the difference.
Average temperature:
- last year: 101°F
- this. year: 96°F
- previous month: 91°F
Usage:
- last year: 507 kWh
- this year: 776 kWh
Average paid this month:
15.6 cents / kWh -- no complaints. ERCOT held -- no blackouts. No real spikes in the price of electricity.
Look at the average daily usage -- how much energy one can really save if interested.
Tesla And Regulatory Credits -- Update -- July 29, 2024
Locator: 48259TESLA.
Cornering the market: one of the talking heads mentioned in passing that Ford was complaining that Tesla was cornering the market on EV regulatory credits.
Time to get back to this story: link here, July 24, 2024. One of two under-reported stories for Tesla, carbon credits, regulatory credits, income from other auto manufacturers:
Links, blog only:
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Reuters
Buried in that article, perhaps the most important data point of which folks are not paying attention:
Regulatory credits -- income:
- CY2023: a record, $1.79 billion
- 2Q24: a record, $890 million; annualized 4 x 0.890 billion = $3.56 billion
Where's that money coming from: Ford, GM, Stellantis, others.
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Other Media Links
This whole story reminds me of the business models of car rental companies like Hertz.
Tesla’s 2023 regulatory credits generated an additional $1.79 billion in revenue, according to its 10-K filed last week.
The money Tesla makes due to other carmakers needing assistance to reach emissions standards continues to accumulate, and since 2009, it has made almost $9 billion in revenue because of the system.
Bloomberg reported this morning that Tesla’s $9 billion in revenue due to the sale of regulatory credits has helped the company obtain what is basically pure profit. Former Tesla Chief Financial Officer (CFO) Zachary Kirkhorn, who left the company last year, said the credits would eventually go away as other automakers caught up to emissions standards.
However, that was in 2020. Tesla has brought in over $1.7 billion in credits in both 2022 and 2023, while 2020’s total was $1.58 billion.
Although many large automakers have pledged to transition to EVs, it has been a much more difficult road than initially imagined.
Volkswagen and General Motors are two companies mentioned in the report that have had trouble reaching EV goals and have, in turn, needed help meeting emissions standards.
One year after the release of its first electric vehicle (EV), the Roadster, Tesla began selling carbon credits to various automakers. While Tesla enjoyed high profits as the pioneer of all-electric passenger cars, the balance in the carbon credit market is about to change. Tesla is no longer the top all-electric producer, and major automakers are changing their strategy from just buying time to updating their zero-emission strategies.
Selling carbon credits has always been a lucrative business for Tesla. In Q4 2020, according to CNBC, Tesla generated $270 million in net income by selling $401 million in regulatory credits. In Q1 2021, Tesla generated $518 million from selling regulatory credits.
Profits continued to grow. According to Tesla's financial reports, revenue generated from carbon credits was $1.46 billion as of the fiscal year 2021, representing 3% of the brand's total revenue. Revenue peaked in 2023, hitting $1.79 billion, according to the brand's Q4 2023 report. Tesla has generated $9 billion from selling carbon credits to other electric vehicle (EV) manufacturers since 2009.
We shall look at the figures from Q3 2023 to note how profitable selling carbon credits is. That quarter, Tesla generated $554 million from selling carbon credits, representing 29% of the company's net income. Notably, carbon credit revenue jumped 94% in that quarter, year-on-year.
CarbonCredits, February 13, 2024:
Elon Musk’s Tesla generated a substantial $1.79 billion from carbon credit sales last year, as revealed in their Q4 2023 and annual financial report, bringing its total earnings from such credits since 2009 to nearly $9 billion. This revenue comes from trading regulatory credits to other automakers unable to meet emission regulations in the US, Europe, and China.
Tesla continues to profit from the need of its rivals to meet emissions standards. It is a lucrative business that was initially expected to diminish. Since the EV giant incurs minimal additional costs to earn these credits, the sales represent almost pure profit.
Ticker: Tesla has become a stock for traders, not necessarily investors:
CLR With Four New Permits; Hess With Two New Permits; WTI Continues To Fall -- July 29, 2024
Locator: 48260B.
WTI: $75.77.
Active rigs: 42. Recent, record high.
Six new permits, #40972 - #40977, inclusive:
- Operators: CLR (4); Hess (2)
- Fields: Beaver Lodge (Williams); Cabernet (Dunn County); Hawkeye (McKenzie)
- Comments:
- CLR has a permit for a Lanved well, SWSW 35-156-95;
- to be sited 300 FSL and 334 FWL;
- CLR also has permits for two Entzel wells and one Rutledge well, SESE 11-144-97,
- all three to be sited 325 FSL with one at 1221 FEL; one at 1285 FEL; and, the third to be sited at 1157 FEL;
- Hess has permits for two HA-Grimestead wells, NWNW 30-152-95;
- to be sited 447 FNL and 962 FWL; and, 432 FNL and 991 FWL
One permit renewed:
- 29041, Formentera Operations, Marshall, Skjermo oil field, Divide County
Four producing wells (DUCs) reported as completed:
- 38160, 0, BR, Lone Beaver 7-1-17TFH, McKenzie County,
- 38217, 0, BR, Lone Beaver 8-1-17TFH, McKenzie County,
- 40109, 1,830, CLR, Lundberg Federal 3-8H1, Dunn County,
- 40110, 2,365, CLR, Lundberg Federal 4-8H, Dunn County,
Manic Monday -- July 29, 2024
Locator: 48258B.
F: drops below $11.
GM: the pain continues.
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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.
Another Great WPX Nokota Well -- July 29, 2024
Locator: 48257WPX.
The well:
- 37134, drl/NC-->F/A, WPX, Nokota 24-13-12HB, Squaw Creek, t30; cum 628K 8/23; cum 659K 5/24; initial production; 69,136K at 13 days extrapolates to 160K over 30 days:
| BAKKEN | 5-2021 | 31 | 26142 | 26211 | 20108 | 61929 | 44087 | 14883 |
| BAKKEN | 4-2021 | 30 | 31921 | 31893 | 22168 | 53189 | 49621 | 0 |
| BAKKEN | 3-2021 | 31 | 41412 | 41373 | 26830 | 54582 | 49894 | 97 |
| BAKKEN | 2-2021 | 24 | 30537 | 30454 | 20670 | 40248 | 32166 | 4696 |
| BAKKEN | 1-2021 | 29 | 39777 | 39846 | 31805 | 52426 | 35692 | 12333 |
| BAKKEN | 12-2020 | 31 | 70137 | 69948 | 48429 | 92442 | 65453 | 19322 |
| BAKKEN | 11-2020 | 30 | 80474 | 80740 | 58188 | 106063 | 60245 | 37051 |
| BAKKEN | 10-2020 | 13 | 69136 | 68691 | 47438 | 91121 | 44375 | 39282 |
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