Locator: 51187B.
Something spooked someone: early last evening (July 16, 2026), all major markets suddenly turned red -- upwards of 250 - 350 points. Later, futures, 7:38 a.m., July 17, 2026 -- huge rotation -- chips down 2%; energy up 2%.
WTI: oil was back up about a dollar, but still under $80. Trading at $79.88.
Mideast: another night of Allied attacks on Iran. Iran hitting US-associated sites in neighboring Mideast countries.
Iraq: as previously announced --- this is pretty amazing -- the leader of the country of Iraq visiting Houston, TX --
More on Iraq,
link here --
More from the link:
Chevron is taking another step toward expanding its footprint in Iraq,
and is set to sign two memoranda of understanding on Friday that will
move the U.S. supermajor closer to developing the giant West Qurna 2
oilfield and the Nassiriya project. The agreements aren't binding, but
they push negotiations forward on what could become one of Chevron's
biggest upstream investments in years.
West Qurna 2 is no small prize. The southern Iraqi field currently
produces about 460,000 barrels per day after Iraq nationalized the asset
earlier this year following U.S. sanctions on Russia's Lukoil. Chevron
entered exclusive talks for the field in February, and Friday's
agreement advances negotiations on the commercial terms needed for a
final deal.
Nassiriya is smaller today but comes with significant exploration
upside. Chevron and Iraq also signed an agreement in principle last year
covering the field and four surrounding exploration blocks, giving the
company another potential long-term growth platform in one of OPEC's
largest producers.
The oilfields aren't the only reason Chevron is talking to Baghdad.
The company is also working with Iraq on technical studies for new
export pipelines that would allow crude to reach the Mediterranean
without passing through the Strait of Hormuz. Chevron is part of a
consortium that signed an agreement earlier this month to evaluate
possible routes, including options that could connect Iraq's producing
fields with Syria or other regional export corridors.
Comments: This is pretty impressive -- ever since CVX acquired Hess, I've been very, very impressed with what CVX has done.
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Back to the Bakken
WTI: $79.88.
New wells reporting:
- Sunday, July 19, 2026: 32 for the month, 32 for the quarter, 385 for the year,
- 42471, conf, Petro-Hunt, Hoiby 158-94-4C-3-3H,
- the parent Hoiby well (#19039) drilled in 10/10, has produced 210K bbls crude oil cumulative, and is currently producing 1,000 bbls/month;
- 42019, conf, Murfin Drilling, LC Rambousek 1-15H,
- 41984, conf, Murfin Drilling, LC Rambousek 1-16H
- Saturday, July 18, 2026: 29 for the month, 29 for the quarter, 382 for the year,
- 41539, conf, Devon Energy, Stallion 33-28 XE 1H,
- Friday, July 17, 2026: 28 for the month, 28 for the quarter, 381 for the year,
- 42446, conf, Petro-Hunt, Hoiby 158-94-4C-3-4H,
- 22057, conf, Devon Energy, Wagenman 29-32 1H,
- 22056, conf, Devon Energy, Wagenman 29-32 2H,
RBN Energy: for now at least, US LPG, ethane exports can't grow without it. Link here. Archived here.
Over the past 18 months, Gulf Coast dock capacity capable of
handling either LPG or ethane has grown significantly. It’s something
relatively new called “flex capacity,” and it’s a darned good thing it’s
online. Without it, both LPG and ethane export capacity would already
be maxed out. That would leave U.S. producers with no ability to
increase exports — or production that depends on those exports — by
another single molecule. As it is, flex capacity is allowing both the
LPG and ethane export markets to continue growing, at least for now. But
how that flex capacity is allocated between LPG and ethane will have an
increasingly important influence on exports and ultimately on the flow
dynamics of both markets. In today’s RBN blog, we’ll review how rapidly
LPG and ethane exports have grown, how flex export facilities work, the
impact of export capacity constraints we are seeing in the markets
today, and what all of that means for the next phase of U.S. LPG and
ethane export growth.
LPG and Ethane Exports Soar
As
shown in Figure 1 below, U.S. exports of LPG and ethane have expanded
dramatically over the past several years, with almost all of that growth
occurring on the Gulf Coast. The left graph shows U.S. LPG exports,
with the green layer showing exports from PADD 3 (Gulf Coast) and the
blue layer showing LPG exports from the other PADDs, mostly from Energy
Transfer’s Marcus Hook terminal on the East Coast and AltaGas’s Ferndale
facility on the West Coast. Similarly, the orange layer in the right
graph shows ethane exports from the Gulf Coast and the purple layer
shows ethane exports from elsewhere (again, from Marcus Hook). U.S. LPG
exports have more than doubled from about 1.2 MMb/d in 2018 to 2.6 MMb/d
so far in 2026 (for an 11% compound annual growth rate, or CAGR), while
ethane exports have climbed even faster, from roughly 0.25 MMb/d to
nearly 0.7 MMb/d (13% CAGR) over the same period. About 90% of that
growth has come from PADD 3, underscoring the Gulf Coast's position as
the epicenter of the world’s NGL export market.
