It Never Quits -- June 6, 2017

Platts: US crude #oil production will, for first time in nearly 50 years, climb to 10 mil b/d by March 2018 -- US EIA. The previous record was 9.6 million bopd in 1970.

Priceless! What a doofus!
EIA: global oil oversupply could return in 2018.  Well, duh.

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Homer Simpson

We now know what happened to British Airways when the entire system went down for 72 hours.

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Ohio's Out

From The Washington Post:

One of the nation’s biggest health insurers says it will not return to Ohio’s public insurance exchanges next year, a decision that could open more holes in the Affordable Care Act’s increasingly thin system for helping people buy coverage.

The move announced Tuesday by Anthem Inc. could leave shoppers in 20 counties without an option for buying individual coverage on the exchange unless another insurer steps in, according to data compiled by The Associated Press and the consulting firm Avalere.

Global LNG -- Check Out The Graphic At The WSJ -- June 6, 2017

Link here.

Behind the evolution is improving technology for moving gas as a liquid, which means it can go to many more places rather than simply where a pipeline runs. In addition, a glut of gas has producers working to develop new consumers all over the world. The result is growing flexibility in once-rigid gas contracts and a convergence in prices long dictated by local factors such as weather.

Due to the nature of the graphic, I can't bring it to the blog; you will have to go to the linked article.

Williston New Airport -- Things Keep Moving Along -- June 6, 2017

Williston Herald: FAA, city OK new use for grant money. Agency will direct almost $20 million of remaining land grant money to other areas of new airport. This probably would have happened regardless of who was president, but my cynical nature wonders if it might have been held up had Hillary been president. There's a new sheriff in town, a new philosophy in Washington, and I think that it trickles down. I may be wrong.

From the linked article:

The FAA’s initial land grant totaled $27 million, which was intended to be a ceiling on the amount the federal agency would make toward siting costs. These included not just land acquisition but site consultation and design engineering fees.

Williston ended up not needing quite as much as expected in the way of consulting and design fees. However, the land itself ended up costing a significant amount more than the market appraisal, which was $5,500 an acre.

“We all knew we had two tasks,” Mayor Howard Klug said. “One was to buy the land and the other was to be fair with the landowners. We always said we were going to be fair to the landowners out there. The price we finally paid reflects those two philosophies that we had.”

That leaves a remaining $18.6 million in the land grant. That money is available this budget year, and the FAA has now agreed it can go toward other areas of the project, including building the airport terminal.

“They don’t typically do that,” Tuan told Commissioners.

However, the timeline for getting this leftover money apportioned to the project is tight.

“Their fiscal year ends in September and they want to get this paperwork done right away,” Tuan said.

In general, however, the FAA will not pay much more than the market appraisal for the land — but in this case they have agreed to pay 61 percent of the acquisition costs, for a total of $8.4 million.

Tuan is earning his pay. Good for him.

At 52 Active Rigs; Hess Reports Three Completed Producing Wells (DUCs) -- June 6, 2017

Active rigs:

$48.06	6/6/2017	06/06/2016	06/06/2015	06/06/2014	06/06/2013
Active Rigs	52	26	82	194	189

Two new permits:

• Operators: Resonance Exploration, WPX
• Fields: Westhope (Bottineau), Reunion Bay (Mountrail)
• Comments:

Three producing wells completed:

• 31761, 736, Hess, HA-State-LW-152-95-1621H-1, Hawkeye, t5/17; cum --
• 32484, 1,213, Hess, BB-Chapin A-151-95-0403H-4, Blue Buttes, t5/17; cum --
• 32485, 1,016, Hess, BB-Chapin A-151-95-0403H-5, Blue Buttes, t5/17; cum -- 

Well recompletion:

• 13428, no new data, Rim Operating, Skurdal 6-24, Hardscrabble oil field, Red River and Stonewall
• Red River, t4/94; cum 591K 5/14;
• Stonewall, t10/97, cum114K 12/13; now PNA

Historical Look At EIA Forecasts For 2017 US Crude Oil Production -- June 6, 2017

This is a most interesting graph, from John Kemp, via Twitter. This graph shows EIA forecasts for US crude oil production in 2017 beginning last January, 2016.

This graph speaks volumes.

For me, it speaks to the ingenuity and the entrepreneurial spirit of US companies and their workers.

And this is the current EIA forecast for US production of crude oil in 2018.