Locator: 44737NYISO.
Tuesday, January 21, 2025
Seven New Permits; Devon Getting Active Again; Four DUCs Reported As Completed -- January 21, 2025
Locator: 44736B.
Big Oil:
- Chevron + Hess
- XOM + PXD
Trump trade: Trump pushes for early renegotiation of North American (Canada, Mexico) trade deals with emphasis on moving automobile manufacturing back to the states. Leverage? Tariffs.
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Back to the Bakken
WTI: $75.89.
Active rigs: 31.
Seven new permits, #4150 - #41536, inclusive:
- Operators: Devon (6); CLR
- Fields: Todd (Williston, Williams); Banks (McKenzie)
- Comments:
- CLR has a permit for a Garfield Federal well, SESE 5-152-99,
- to be sited 280 FSL and 16 FEL (that's about as close to the section line as I've seen)
- Devon Energy (Grayson Mill) has permits for six wells, SWSE 33-155-101: Orville, Charles, Borsheim (3), and Cherrey (sic);
- to be sited 477 FSL and 2116 / 2236 FEL.
One permit renewed:
- 30568, Formentera Operations, LLC, Marauder 1324-5H, Blooming Prairie, Divide County.
Four producing wells (DUCs) reported as completed:
- 40747, 3,005, MRO, Sigrid 41-27H, Dunn County;
- 40776, 789, Koda Resources, Stout 2203-3BH, Divide County;
- 40777, 694, Koda Resources, Stout 2203-2BH, Divide County;
- 40778, 832, Koda Resources, Stout 2203-1BH, Divide County;
Netflix -- 4Q24 -- Earnings -- Ticker Surges -- Welcome To The US Economy, Mr Trump -- January 21, 2025
Locator: 44735NETFLIX.
Netflix market cap growth over the years: link here.
Netflix: the next big thing -- the tag more than a decade old. Started noting Netflix as the next big thing with the first post, March 21, 2013.
Strong quarter, link here:
Netflix earnings, 4Q24:
- raises subscriber prices
- reports record subscriber growth
Earnings, link here: margins of 18%.
US Bonds? Worst Decade In 90 Years -- January 21, 2025
Locator: 44734USBONDS.
Even when professionals can't succeed .... worst decade in 90 years ...
From Barron's.
From the linked article, the lead:
Treasury bonds are having one of their worst performances in nearly a century.
That could mean a big buying opportunity for investors willing to bet that interest rates will decline. But it is bad news for anyone merely looking for a safe and steady way to diversify their investment portfolio.
Investors have long relied on Treasuries to deliver consistent returns, offsetting more volatile stocks. Lately, those bonds have failed to do this basic job: Over the past 10 years, long-term Treasuries have posted a negative return. It was the first time they have done so in 90 years, according to research published last week by Bank of America Securities.
Sir Trump -- LOL -- Trump Has Been In Office Less Than 24 Hours -- The Texas Connection -- January 21, 2025
Locator: 44732SIRTRUMP.
Theme, 2025: link here, the sixth industrial revolution.
New tag: SIRTRUMP -- SixthIndustrialRevolutionTrump.
And while reading .... remember the old saying, a rising tide raises all boats ...
Trump has been in office less than 24 hours.
The Sixth Industrial Revolution. Talked about often on the blog.
Stargate: $0.5 trillion. HQ: Texas -- but no more specific than that. Most likely: somewhere along I-35 north of Austin towards Round Rock / Georgetown.
The Verge, link here:
A plan to build a system of data centers for artificial intelligence has been revealed in a White House press conference, with Masayoshi Son, Sam Altman, and Larry Ellison joining Donald Trump to announce The Stargate Project. Their companies, Softbank, OpenAI, and Oracle (respectively), along with MGX are listed as “initial equity funders” for $500 billion in investments over the next four years, “building new AI infrastructure for OpenAI in the United States.
Getting bigger, every update:
Link here. Microsoft apparently involved in this project -- unnamed source.
More:
Ticker:
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Links
- https://www.nytimes.com/2025/01/21/technology/trump-openai-stargate-artificial-intelligence.html
- https://finance.yahoo.com/news/oracle-stock-jumps-6-after-report-says-trump-to-announce-new-500-billion-ai-investment-184543210.html
- https://www.cbsnews.com/news/trump-announces-private-sector-ai-infrastructure-investment/
- https://www.reuters.com/technology/artificial-intelligence/trump-announce-private-sector-ai-infrastructure-investment-cbs-reports-2025-01-21/
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Oracle Headquarters / Locations
Google maps identifies two Oracle sites in Austin:
Updating The WPX Mason Wells In Van Hook Field -- January 21, 2025
Locator: 44731EVS.
Updates
January 21, 2025: production data updated.
Original Post
- 18737, 1,034, WPX, Mason 2-11, Van Hook, t2/11; cum 288K 10/16; cum 360K 11/24;
- 22129, 196, WPX, Mason 2-11HA,Van Hook, t7/12; cum 146K 10/16; cum 202K 11/24;
- 22130, TA-->AB, WPX, Mason 2-11HW, Van Hook, "well bore issues" noted May 3, 2012; temporarily abandoned that date with plans for possible SWD;
- 22131, 502, WPX, Mason 2-11HX, Van Hook, t10/12; cum 222K 10/16; cum 374K 11/24;
- 22908, 235, WPX, Mason 2-11HWR, t8/12; cum 293K 10/16; cum 482K 11/24;
Three of the wells (22129, 22130, 22131) are on the same pad. All are in line, running west to east about 255 feet from the north line of the section.
A long lateral just to the north of these five wells:
- 19047, 1,770, Slawson, Revolver 1-35H, t11/10; cum 256K 10/16; cum 438K 11/24;
It's going to be interesting to see if IPs are affected much by multiple wells in the same section, especially when we start seeing six to eight wells in a 640-acre spacing unit.
The Day The Music Died -- January 21, 2025
Locator: 44730EVS.
And this was before Trump was sworn in. Link here.
Six hours ago: link here if unable to access Bloomberg:
(Bloomberg) -- European car sales barely grew last year as persistent inflation, higher borrowing costs and apathy toward electric models led consumers to hold off on buying vehicles.
New-car registrations in the region edged up 0.9% to 13 million units from a year earlier after a bounce in December. Sales of fully electric vehicles fell 1.3% after countries including Germany ended subsidies, dragging their share of the total market down to 15%.
Europe’s automakers are braced for another tough year in 2025, with stricter European Union emissions targets forcing them to sell more EVs despite the drop in demand.
Having suffered from falling sales in China, the world’s largest car market, they now also face the threat of additional tariffs in the US under President Donald Trump.
Price pressure, market-share losses in China, tighter emissions regulations, tariff risks and continued lackluster demand are creating a “perfect storm” for European manufacturers this year.
New-car sales in Europe could fall in the first six months of 2025 but price cuts in the second half of the year could lift them slightly.
While sales of fully electric cars have struggled, consumers are increasingly choosing models that combine a battery and a combustion engine as range anxiety persists. Plug-in hybrid sales in Europe fell over the course of the year but gained in December. Consumers’ preference for plug-in hybrids over fully electric cars in the US and Europe has complicated carmakers’ EV strategies and led some to add more hybrid models.
Demand for fully electric cars was particularly weak in the European Union in December, with a 10% drop in registrations when excluding countries like the UK. That contrasts with a 5.1% rise in overall EU car sales last month — or 4.1% when including all European countries.
The EU’s stricter limit on CO2 fleet emissions this year is piling pressure on carmakers to lift their share of battery-powered car sales or pay heavy fines. Germany’s VDA car lobby cited the new rules in its forecast that in-country production of fully-electric cars will rise 30% this year, and that registrations will leap 75%.
The ACEA, now led by Mercedes-Benz Group AG Chief Executive Officer Ola Källenius, has called on the EU to revise the CO2 regulations and also strike a “grand bargain” with the Trump administration rather than impose tit-for-tat tariffs on imported goods.
After the removal of EV state subsidies in Germany led battery-powered car sales to collapse last year, local automakers are calling for more support for the industry ahead of early elections in February. VDA chief Hildegard Müller said partnerships and trade agreements would be crucial to support Germany’s competitiveness and growth.
Graphics:
More at the link.
Back To The Bakken -- January 21, 2025
Locator: 44729B.
Cold: here in Texas, the cold will move out by tomorrow, and we will be seeing 60°-weather by Friday.
- The grid? Not even a speed bump.
TKI: a new international airport in DFW area?
- Texas McKinney National airport --> TexasMcKinneyInternational?
- could begin operations as early as 2026 but requires a lot of infrastructure -- highways, roadways, parking lots, terminals, regulatory clearances
- Compare:
- DC area has three airports: Ronald Reagan, Dulles, Baltimore-Washington
- NYC area: JFK, LaGuardia, and Newark Liberty
- Chicago area: O'Hare, Midway, and Chicago-Rockford
- Los Angeles: TNTC
- Texas will become nation's focal point for border security, immigration control
New link: The White House.
Politics: liberal media --
- headlines: Trump pardons "J-6"(after news that Biden pardoned Biden's entire extended family) --
- by the way the Federal Bureau of Prisons has never reacted so quickly; video released showing prisoners being released last night
- can normally take weeks
- crickets: Biden pardons entire extended family; Dr Fauci; Adam Schiff, General Milley, Congressional J-6 committee; commutes all but three Federal murderers on death row;
Politics:
- Trump revokes / suspends security clearances held by 51 intelligence officials who signed Hunter Biden laptop letter
- some of these folks have big white collar jobs requiring security clearances
- memo to self: insert image of $100-bills flying away
The good news first:
- ENB: up 2.7% today; pays 5.87% for new buyers;
- EPD: up 2.23% today; pays 6.24% for. new buyers;
- SRE: up 1.56% today; pays 2.87% for new buyers;
EVs: most interesting today --
- LCID: down almost 5% today;
- RIVN: down over 6%;
- Canoo (GOEV): down 70% today; market cap: $5.6 million; filed for bankruptcy earlier this month -- before Trump's EOs.
AAPL: continues to fall.
NVDA: back on top --- with regard to market cap leader.
The grids:
- ISO-NE: $280
- ISO-NY: $210
- ERCOT: producing way more than needed; $43
The grids: resource mix -- ISO-NE resource mix -- oil rises to the top!
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Back to the Bakken
WTI: $76.61.
New wells:
- Tuesday, January 21, 2025: 36 for the month, 36 for the quarter, 36 for the year,
- 38407, conf, Petro-Hunt, USA 153-95-13D-1HS,
- Monday, January 20, 2025: 35 for the month, 35 for the quarter, 35 for the year,
- 40794, conf, CLR, Anheluk 4-26HX,
- 40100, conf, Silver Hill Operating, LLC, Storsul Federal 158-93-8-5-1MBH,
- 37976, conf, BR, Concord 3A,
- Sunday, January 19, 2025: 32 for the month, 32 for the quarter, 32 for the year,
- 40296, conf, BR, Kellogg Ranch 2A TFH,
- 40101, conf, Storsul Federal 158-93-8-5-2MBH,
- 40082, conf, Hess, EN-Halvorson-157-93-3229H-7,
- 37975, conf, BR, Concord 3B,
- Saturday, January 18, 2025: 28 for the month, 28 for the quarter, 28 for the year,
- 40098, conf, Silver Hill Energy Operating, LLC, Paige Federal 158-93-18-19-4MBH,
- 33070, conf, BR, Mancord 14-10 MBH-ULW,
RBN Energy: wholesalers play a vital role in the domestic propane market.
The domestic U.S. propane market annually accounts for roughly 9 billion gallons of demand. The pathway from the wellhead to an end user is complex, involving pipelines, railcars, trucks and tankers, and wholesalers are essential in moving all that propane from fractionators and refineries to propane terminals. A wide variety of players fulfill this role, from large publicly traded companies to smaller private ones, but as we detail in today’s RBN blog, they all do one thing — move propane one step closer to its retail destination.
This is the second blog in our series about propane markets. Earlier, we outlined the journey of propane from wellhead to burner tip and discussed the various segments of the domestic propane market, including industrial, petrochemical, commercial, residential and agricultural demand. We also introduced the role of wholesalers and retailers. In today’s blog, we will review wholesalers’ role and purpose in the market in more detail.
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