Mid-Atlantic gasoline supplies are now more than 5 million barrels lower than year-ago levels, an impressive decline considering stockpiles in the region swelled to 42.3 million in February -- the highest level in government records going back to 1990.One swallow does not a spring make. Check back next week.
“East Coast importers are being much more disciplined in terms of their purchases, mindful of avoiding a replay of the supply glut we saw last summer,” said Matt Smith, ClipperData LLC’s director of commodity research.
This time last year, gasoline futures traded on the New York Mercantile Exchange signaled the East Coast gasoline glut wasn’t going anywhere as August futures were cheaper than September for the first time in eight years. That spread is back to its typical backwardated structure this July, which is a relief to suppliers ready to flip their tanks to winter-grade fuels.
Total U.S. gasoline demand slowed in the first three months of this year after reaching a record high 9.66 million barrels a day in June 2016. This trend finally reversed in April as consumption rose 0.1 percent from the prior year.
Friday, July 14, 2017
Early Signs Of Gasoline "Re-Balancing" Seen In New York State -- July 14, 2017
Link at Bloomberg.
Director's Cut Is Out -- May, 2017, Data
Updates
July 17, 2017: PennEnergy story here.
July 15, 2017: NDIC says the reason for all the DUCs -- oil producers are drilling Bakken wels faster than they can bring them in due to a shortage of experienced workers. One wonders if the Permian is attracting the workers? But this wouldn't explain the 1500 shut-in wells, I wouldn't think.
Also, NDIC says it will be another month before the impact of the DAPL will be known. The most recent data (May, 2017, data) shows that CBR accounted for about one-fourth of North Dakota oil, but in June that percentage should drop as DAPL data starts showing up. How much does transportation cost ND operators? WTI: $46/bbl; Bakken sweet oil: $35. Ouch. Once DAPL hits its stride, NDIC sees the spread closer to $6 or $7. See discussion regarding this pricing at the link.
Original Post
Usual disclaimer: done quickly; assume factual and/or typographical errors; if this information is important to you, go to the source.
Note the jump in "inactive wells" -- now, over 1,500 -- and this does not count the 850 DUCs. Over 1,500 completed and producing wells have been taken off-line for various reasons. Many of them are taken off-line simply because neighboring wells are being fracked. Had these 1,500 wells remained on-line one could imagine that North Dakota would have had another record-breaking crude oil production number. Which brings us, once again, to the blog's theme song, it's only make believe ...
From The Director's Cut
May, 2017, Data
Oil production
- May, 2017: 1,040,131 bopd
- April, 2017: 1,050,476 bopd
- Delta: -0.98% or - 10,345 (per day, that amounts to 344 bopd; insignificant)
- May, 2017: 13,876
- April, 2017: 13,716
- Delta: -+160 wells or 1.2%
- May, 2017: 100 (huge jump)
- April, 2017: 58
- today: $35.25
- June: $34.72
- May: $37.85
- April: $39.76
- today: 58
- June: 55
- May: 50
- April:50
- waiting on completion: 830; unchanged from the end of April to the end of May
- estimated inactive well count: 1,511; up 45 from the end of April to the end of May
- including CBR to coastal refineries is more than adequate (major change in verbiage)
- statewide: 90%
- FBIR: 84%
- goal: 88% through October 31, 2020; then 91%
- comment: this is one of the bigger deltas between "statewide" and "FBIR" that I've seen in a long time
Wow, I'm Irritated -- But In A Good Way -- July 14, 2017
I leave home for a few hours and am now away from cable television and I see that the stock market indices all soared to close the day:
From an April 2, 2017, post, from a March 29, 2017 interview, the Fed: at T+70, the US is in a "Goldilocks" economy.
Hmmm, T+70 then. T+175 now and the market is hitting record-setting highs. "Sell in May, go away" may not have been the best advice back in March. My two favorite posts in the past two weeks:
In addition to everything else, perhaps the best camera work ever.
Cry Me A River, Mad Dogs and Englishmen</center>
- S&P 500: up 11 points
- Dow 30: up an astounding 115 points before dropping back to an 85-point gain for another record close (on top of previous record-setting highs)
- Nasdaq: up over 38 points
From an April 2, 2017, post, from a March 29, 2017 interview, the Fed: at T+70, the US is in a "Goldilocks" economy.
Hmmm, T+70 then. T+175 now and the market is hitting record-setting highs. "Sell in May, go away" may not have been the best advice back in March. My two favorite posts in the past two weeks:
- https://themilliondollarway.blogspot.com/2017/07/market-energy-and-political-page-t173.html
- https://themilliondollarway.blogspot.com/2017/07/the-political-page-part-ii-t168-july-7.html
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Irritated? Cry Me A River
In addition to everything else, perhaps the best camera work ever.
Hyperdrive: Now It's New Mexico -- July 14, 2017
Texas, actually New Mexico in this case, hyperdrive. It never quits.
From bizjournals:
The Woodlands-based Summit Midstream Partners LP and XTO Energy Inc., a subsidiary of Exxon Mobil Corp., announced July 7 a deal for the creation of a new natural gas gathering and processing system. Data points:
Meanwhile, also from bizjournals, Linn Energy subsidiary changes name and is building a gas plant in SCOOP/STACK.
From bizjournals:
The Woodlands-based Summit Midstream Partners LP and XTO Energy Inc., a subsidiary of Exxon Mobil Corp., announced July 7 a deal for the creation of a new natural gas gathering and processing system. Data points:
- Summit: develop, own and operate a new natural gas gathering and processing system
- price: $110 million
- where: New Mexico portion of the Permian Basin's north Delaware Basin
- initial phase should be operation by this time next year (making America great again)
- capacity: 60 million cubic feet per day
- could be expanded to (a whopping) 600 million cubic feet per day
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Linn Expanding In SCOOP/STACK
Meanwhile, also from bizjournals, Linn Energy subsidiary changes name and is building a gas plant in SCOOP/STACK.
- Linn Midstream LLC, a subsidiary of Houston-based Linn Energy: renamed Blue Mountain Midstream LLC
- BCCG Engineering, Midland,TX-based, will build a cryogenic gas processing facility in central Oklahoma
- capacity: 250 million cubic feet/day
New Book On Williston, Boomtown -- July 14, 2017
A reader sent me this link, a new book on Williston, boomtown. Over at Amazon: https://www.amazon.com/New-Wild-West-Fracking-Boomtown/dp/1250064929.
Based on the information at Amazon regarding this book, I would heartily recommend reading or watching the movie Dr Zhivago to help put the Williston/Boomtown book into perspective.
From The Wall Street Journal.
Based on the information at Amazon regarding this book, I would heartily recommend reading or watching the movie Dr Zhivago to help put the Williston/Boomtown book into perspective.
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Meanwhile In Texas ... At My Favorite Hamburger Restaurant
From The Wall Street Journal.
One of Whataburger’s most popular items isn’t on the takeout menu, but diners walk out with it all the time.
The Texas-based burger chain is so beloved in the South that its “table tents”—the little plastic A-frame order numbers customers get as they wait for their food to be delivered—often don’t make it back to the stack at the cash register.People pilfer them constantly. Some swipe their lucky numbers, others their birthday or anniversary digits. Athletes go for their jersey numerals. Die-hards want a complete set of 1 through 96.
Misappropriating an orange-and-white-striped Whataburger order number has become a rite of passage of sorts in the Lone Star State, where some posit you can’t be truly Texan unless you’ve filched a tent or two…or 10.And, no, I don't have any.
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