Wednesday, November 5, 2025

WTI Drops Below $60 -- November 5, 2025

Locator: 49353AI.

Tech / AI / investing: if one is having difficulty understanding how CoreWeave fits into the "AI data center value chain," link here

How did AWS become the leader in "cloud" or "compute"? Link here. When it comes to "cloud" and "compute" right now, it is clearly the fact that Jeff Bezos and Jensen Huang were in the right place at the right time, but so were others, but Jeff Bezos and Jensen Huang saw well before anyone else how they had tapped into something that would be beyond anyone's imagination. 

In neither case, especially with regard to Jeff Bezos, was it initially about making money. For Jensen Huang it was an existential issue (which is a bigger issue than money) and for Jeff Bezos it was recognizing that while he was "solving" his own problems, he could use the same "business model" and "rent it out to others." Which, by the way, whenever I see the word "rent" in all of this, I think immediately of Larry Ellison and Oracle. 

There's a reason there are a handful of companies that make up the Mag 7. The moats are just too big: money, expertise, human resources.

Harvard: Jim Cramer was at Harvard University today and took questions from some of the students. I was dismayed how "mundane" (for lack of a better word) or "lame" their questions were; I expected more.

The first question was the same question that everyone on CNBC is asking with regard to AI. Is this a bubble? What happens if this (AI) doesn't pan out?

This is like:

  • someone asking in 1760, what if this "steam power" thing doesn't work out?
  • someone asking Cornelius Vanderbilt in 1853, what if this New York Central Railroad thing doesn't work out?
  • someone asking William H Seward in 1867 what if this Alaska purchase thing doesn't work out?
  • someone asking JFK in 1961, what if this space (program) thing doesn't work out? 

It gets tedious. What if this AI thing doesn't work out? 

Jensen Huang had it exactly right today. He said the Chinese, in the end, are going to beat the US at this "AI thing" because the Chinese, he said, are incredibly optimistic; the US is pessimistic. 
Energy is going to be the choke point in both countries and China has already said: it will build as many coal plants as needed until their nuclear power plants come on line -- and they're building both -- coal and nuclear -- as fast as they can. Meanwhile, .... well, you get the picture. 
Even Saudi Arabia has it figure out. By the way, I think that every OPEC country will take the Saudi route developing their own AI program, starting with ADNOC and Qatar.

Nuclear: link here -- breaking now --  

Meanwhile, in the US, we can't get a simple pipeline built without the environmentalists shutting it down. 

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Back to the Bakken 

WTI: $59.65.

Active rigs: 33.

Five new permits, #24256 - #24260, inclusive:

  • Operators: Formentera Operations (4); Phoenix Operating
  • Fields: Larson (Burke County); Zahl (Williams)
  • Comments:
    • Formentera Operations has permits for four Piper wells, SWSE 18-162-94, 
      • to be sited 475 FSL and 2231 / 2336 FEL;
    • Phoenix Operating has a permit for an Haefele well, NWSW 34-159-101, 
      • to be sited 2167 FSL and 475 FWL.

Six permits renewed:

  • CLR (4): four Durham permits, lot 4, section 2-151-99; North Tobacco Garden, McKenzie County; and,
  • Hunt Oil (2): two Halliday permits, lot 1, section 30-146-92, Werner oil field, Dunn County.

One producing well (a DUC) was reported as completed

  • 41556, 1,984, CLR, Kanyer 5-15H, Williams County.

AI, LDC, LLMs, Nvidia, CoreWeave -- It's All Here -- November 5, 2025

Locator: 49352AI.

This is all tracked at the blog at this site

Great, great background in two most recent issues of The New Yorker

Previously posted.

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AI

The exhibits continue: the fourth industrial revolution is not a bubble. AI is not a bubble. It's the only thing in which big investors are interested.  

The New Yorker
November 3, 2025, p. 2025

Link here


Stephen Witt: recently published The Thinking Machine, a history of Nvidia.

"AI Is Thinking"

Link here

James Somers a writer and a computer programmer, who has been contributing to The New Yorker since 2018.

The reviews above led me to this AI Prompt

I understand this, that CoreWeave is the largest AI / LDC operator in the US, and that Cisco is huge in wiring serves, so one would think that the two (CoreWeave and Cisco) are competitors, but my hunch is that CoreWeave is the "Big Kahuna" responsible for the overall LDC from start to finish and Cisco is simply one of the many subcontractors. Thoughts?

ChatGPT reply, link here

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Disclaimer
Brief Reminder 

Briefly:

  • I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken.
  • I am inappropriately exuberant about the US economy and the US market.
  • I am also inappropriately exuberant about all things Apple. 
  • See disclaimer. This is not an investment site. 
  • Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 
  • All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything.
  • If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 
  • Many posts are not proofread for several days after they've been posted.  
  • Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.
  • I am also inappropriately exuberant about all things Apple. 
  • And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution.
  • I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom.
  • And Oracle. 
  • Longer version here.

Charles Kennedy: You Can Take It To The Bank -- ADNOC, SLB Partnership -- November 5, 2025

Locator: 49351BEARMARKET.

The market: wow, that was a short bear market. One day?

COTD: did we do chart of the day yet? LOL. This is pretty amazing. Of my "tech" investments, this was my last choice, and one I really, really questioned.

 

SIR

Yet another reason why the fourth (sixth?) industrial revolution is not a bubble.  

Link here

The announcement, made at ADIPEC 2025 in Abu Dhabi, marks the start of a phased deployment across all 25 of ADNOC’s onshore and offshore oil and gas fields by 2027.

The AiPSO platform, powered by SLB’s Lumi data and AI platform and Cognite Data Fusion, integrates millions of real-time data points from wells and processing facilities. It uses advanced analytics and proprietary machine learning models developed by ADNOC to predict issues, optimize performance, and enhance production capacity.

Currently active at eight ADNOC fields, AiPSO connects office and field operations in real time, enabling engineers to diagnose issues and optimize wells within minutes—tasks that previously took days. The result, according to ADNOC, is a dramatic improvement in workforce productivity and operational efficiency.

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Qualcomm and India

And another exhibit if you need more convincing. 

Link here

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The Magazine Page 

The exhibits continue: the fourth industrial revolution is not a bubble. AI is not a bubble. It's the only thing in which big investors are interested.  

The New Yorker
November 3, 2025, p. 2025

Link here


"AI Is Thinking"

Link here

You Know It's A Slow News Day When I Post The Weather Forecast -- LOL -- November 5, 2025

Locator: 49350WINTER.

Meanwhile, here in north Texas -- DFW metro -- we're looking forward to a high of 82°F later today.

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Christmas

Lego 42206
1,639 pieces 


 

Really, Really Slow Day -- After My Palantir Investment Yesterday -- No More Cash -- LOL -- November 5, 2025

Locator: 49349PALANTIR.

Ticker:

**********************************
Disclaimer
Brief Reminder 

Briefly:

  • I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken.
  • I am inappropriately exuberant about the US economy and the US market.
  • I am also inappropriately exuberant about all things Apple. 
  • See disclaimer. This is not an investment site. 
  • Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 
  • All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything.
  • If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 
  • Many posts are not proofread for several days after they've been posted.  
  • Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.
  • I am also inappropriately exuberant about all things Apple. 
  • And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution.
  • I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom.
  • And Oracle. 
  • Longer version here.

Skyworks -- November 5, 2025

Locator: 49348SKYWORKS.

I recently wrote that my biggest investing mistake over the years has been selling.

Most recent example: I really made a mistake selling Skyworks. 


 

Random Post: Canada's Budget / Economy -- November 5, 2025

Locator: 49347CANADA.

Ovintiv To Acquire More Acreage In The Montney -- British Columbia -- November 5, 2025

Locator: 49347CANADA.

Ovintiv: inks $2.7 billion Canada deal; plans Anadarko sale process. 

  • will acquire NuVista Energy 
  • 50% cash. 50% stock deal 

The Montney is tracked here

The Tech Sell-Off -- November 5, 2025

Locator: 49346AMZN.

Amazon.

Five days:

Six months

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AMD

This is a sell-off?

BRK-B -- The Chart Of The Day -- November 5, 2025

Locator: 49345B.

COTD:  

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Back to the Bakken

WTI: $60.32. Link here.

New wells reporting: link here.

RBN Energy: link here. SM Energy and Civitas to merge. Archived. Article vailable for a short time.