Two Wells Coming Off Confidential List -- December 2, 2021

Heads are exploding. SCOTUS and Susan Sarandon, the new Jane Fonda. Link here.  

Top story of the month: less than a month since COP26 and Japan is now quietly backing oil and gas. Link to Bloomberg here. 

Comment: I think even the blind may start to see a trend here .

US to become "energy dominant." Hellooooo ... we're already there. Link to Julianne Geiger. 

Spare capacity. Old story. Still true. Link to Tsvetana Paraskova.

DUCs. Drilling is picking up as DUCs decrease. Link to Tsvetana Paraskova. 

Covid-Omicron: looney. We just have to hope this lasts to December 31, 2021. RMDs for 2022 based on value of IRAs on last day of the year. 

Gasoline demand: link here. Not a good sign; dropping, trending toward 9.0 million bbls/day.

Shell: completes $9.5 billion sale of Permian business to COP. Whoo-hoo!

Climate change franchise: if a movie is ever made on climate change, it needs to be a fantasy epic like Lord of the Rings where natural gas is the wizard Gandalf, coal is Sauron (danger) and wind is that useless Frodo. Not mine; over at twitter. 

Biden, Kamal, and Pete: I often have the same question, when watching the administration these days, "What's the vector, Victor?"

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Back to the Bakken

Active rigs:

	12/2/2021	12/02/2020	12/02/2019	12/02/2018	12/02/2017
Active Rigs	31	14	56	66	53

Thursday, December 2, 2021: 48 for the month, 51 for the quarter, 302 for the year:

• 38266, conf, CLR, Dvirnak 12-7HSL1, Chimney Butte, no production data,
• 38047, conf, Slawson, Muskrat Federal 5-28-33TFH, Big Bend, no production data,

RBN Energy: the battle to define carbon-neutral and GHG-neutral LNG. 

There’s been a slew of high-profile shipments of “carbon-neutral LNG” the past few months, typically involving the use of carbon credits to offset, ton-for-ton, the carbon dioxide equivalent of greenhouse gases released during the production, piping, and liquefaction of natural gas, the shipping of LNG, and often the regasification and ultimate consumption of the gas too. 

The problem is, there is no widely agreed-to definition for carbon neutral, nor is there a consensus on how to quantify and validate the GHG “footprint” of a specific LNG cargo. Now, an international group representing the world’s LNG importers has established a framework for “GHG-neutral LNG” that it hopes will gain widespread acceptance. Elements of the proposal are sure to be controversial, however, as we discuss in today’s RBN blog.

Trees: the metric for measuring carbon-neutral is not by how much oil one uses, but how many trees one plants. CVX/CEO pointed that out several weeks ago. If I read my electricity bill correctly for the month of November, 2021, if I planted 50 trees I would have been carbon-neutral for the month of November.

Hess With Four New Permits; Three DUCs Reported As Completed -- December 1, 2021

The definitive rig count report will be provided later. The NDIC is reporting 34 active rigs (which I doubt). T&S Drilling 1, for example, is shown drilling two different sites for two different companies. And one site is not even an oil and gas site.

Active rigs:

$66.58	12/1/2021	12/01/2020	12/01/2019	12/01/2018	12/01/2017
Active Rigs	31	14	57	66	54

Four new permits, #38683 - #38686, inclusive:

• Operator: Hess
• Field: Wheelock (Williams)
• Comments:
• Hess has permits for four GO-Ron Viall permits in Wheelock oil field; the four wells will be sited in SWSE 25-156-98; 
• the wells will be sited between 702 FSL and 778 FSL and 1929 FEL and 1993 FEL;

Three producing wells (DUCs) reported as completed:

• 37218, 1,474, Slawson, Zephyr Federal 4-36H, Big Bend, first production, 9/21; t--; cum --;
• 37426, 2,222, Slawson, Orca Federal 2-23-36H, Big Bend, no production data,
• 37500, 1,682, Harrisburg 7-34HSL, Indian Hill, no production data,

This May Be The Most Interesting Stat All Day -- US Crude Oil Supply In Days Drops Below 28 Days -- OMG! We're Running Out Of Oil -- December 1, 2021

All things being equal, if the amount of crude oil in storage drops below 28 days, will the price of gasoline go up or go down?

Link here.  US crude oil in storage dropped from 28.3 days to 27.9 days.

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Cornish Hen

Overview:

• one Cornish hen per adult
• serve half of hen per adult with other half kept warm
• preparation time: five minutes
  oven time: one hour fifteen minutes
  rest before serving: ten minutes
  

Pre-heat oven: 350°

Cornish hen:

• wash Cornish hen under running water
• pat dry
• truss
• dry rub: we used Weber Kick 'N Chicken seasoning
  
• salt, pepper
• forty-five minutes at 350°
• set timer for forty-five minutes
• starting at forty-five minutes, start basting with "duck sauce" every five minutes or so
• once basting starts, set time for fifteen minutes (full hour of cooking)
• at one hour, set time for final eight minutes
  
• at one hour eight minutes turn off the oven but leave the hen inside the oven for the full one hour fifteen minutes
• remove from oven and let rest for ten minutes
• cut hens in half with scissors; serve one half of hen to each guest

Sides:

• cottage fries
• salad

It Appears CLR's Harrisburg Wells On Indian Hill Have Been Fracked -- December 1, 2021

I did this for a reader, and I'm not in the mood to post all the information now, but it appears the CLR Harrisburg wells on Indian Hill across the river from Williston have been fracked.

I only checked one well, the section line well that is on the four-well pad. It's been fracked and I assume the others have been fracked or will soon be fracked:

The well:

• 37661, 33-053-09474, conf, CLR, Harrisburg 2-27HSL, Indian Hill, fracked 9/17/21 - 9/23/21; 7.61 million gallons of water. 87.388% water by mass; note: this well remains confidential so I do not know for sure if it's a section line well, but all the data suggests it is.
  

The four wells on this CLR four-well Harrisburg pad, NDIC file numbers:

• 37661,
• 37660,
• 37659,
• 37658,
  

And with that, I'm off the net; off to get some sushi. A nice short bike ride on a beautiful day.

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But We'll Leave You With This

Ringo Starr On Drumming

Notes From All Over -- December 1, 2021

EU energy crisis: warnings of rolling blackouts.

Weekly EIA petroleum report, link here:

• US crude oil inventories decreased by 0.9 million bbls week/week. Yawn.
• US crude oil inventories now stand at 433.1 million bbls. Yawn.
• US crude oil imports were up by 168,00 bopd, still averaging 6.3 millio bopd, almost 20% more than the same four-week period last year -- last year was the year of the plague; a better comparison would be with 2019;
• refineries are operating at 88.8% of their operable capacity
• distillate inventories increased by 2.2% million bbls; 9% below the five-year average;
• jet fuel supplied was 34.5% y/y -- one of the smallest changes in the past several months;

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Monthly Personal Electricity Statement

We do not have natural gas in this apartment, only electricity.

This will, no doubt, be our low month for the year. This is in our new apartment, slightly smaller than our previous apartment, billing period ending November 22, 2021:

This is from a year ago, in our previous apartment, slightly larger than our current apartment, billing periods ending November 4, 2020, and December 6, 2020: