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Tomorrow's Bakken Report
WTI: $92.85.
Wells coming off confidential list:
Tuesday, September 29, 2026: 54 for the month, 134 for the quarter, 491 for the year,
- 42395, conf, KODA Resources, Ale 2436-1BHN,
- 42284, conf, Formentera, Fonda 23-02-BAL N518HF,
Monday, September 28, 2026: 52 for the month, 132 for the quarter, 489 for the year,
- 42283, conf, Formentera, Fonda-23-02-BAL N516HF,
RBN Energy: economics, LNG exporters' needs to determine which gulf coast gas storage gets built. Link here. Archived.
Just a few years ago, natural gas storage capacity along the Gulf Coast was widely available at low cost, but that has all changed. The operators of existing and planned LNG export terminals have locked up most of the old storage surplus and much of the incremental storage capacity on the drawing boards. But more storage is needed, and the competition among developers to provide that space is heating up. There will be winners and losers. In today’s RBN blog, we begin an in-depth series on Gulf Coast gas storage — why the market flipped from bust to boom, what’s being planned, and how to predict which projects will make it over the finish line.
The scale is enormous. More than 350 Bcf of new gas storage capacity — most of it salt cavern storage with high injection and withdrawal rates — is known to be under active development in Texas, Louisiana and Mississippi, and it’s safe to say that at least a couple more projects are still flying under the radar. There are several drivers behind this ongoing, multibillion-dollar buildout, chief among them (1) the proliferation of new and expanded LNG export terminals along the Gulf Coast and (2) terminal operators’ need for a place to quickly store large volumes of gas in the event of a liquefaction plant outage.
This is key: Without nearby storage capacity to serve as an at-the-ready buffer for gas supply, terminals could expose themselves to major financial losses, either by not having the gas they need to operate or, most ominously, by being forced to dump billions of cubic feet of gas into the market during an outage event. In essence, gas storage serves as relatively low-cost insurance. (Note that, as a rule of thumb, an LNG export terminal requiring 800 MMcf/d of feedgas should have 15 to 20 days of storage capacity — that is, 12 to 16 Bcf — under contract.)
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Daily Activity Report
Monday, September 28, 2026
WTI: $93.97. What is Trump waiting for.
Active rigs: 33.
Five new permits, #43347 - #43351, inclusive --
- Operator: Hess
- Field: Rainbow, Williams County
- Comments:
- Hess has permits for four GO-Beyer permits and one GO-Binde permit, lot 2, section 3-157-98,
- to be sited 350 FNL and 1916 / 2048 FEL.
Two producing wells (DUCs) reported as completed:
- 42314, 1,631, EOG, Hawkeye 33-1324H, McKenzie County;
- 42324, 1,901, EOG, Hawkeye 31-1336H, McKenzie County.
