Great Example Of High-Price-Demand Destruction -- October 4, 2023

Locator: 45649GASOLINEDEMAND.

I'm sure there have been many examples of this over the years, but I do not recall seeing it to this extent. This is really quite something. Link here to Reuters.

And then look at the build of gasoline stores reported this month. One source suggested torrential rains in NYC area this past week -- I don't think so. I think it's all about the high price of gasoline in southern California. This has huge implications for the oil sector as EV penetration continues to increase in California. 

And, as long as I've digressed this far, let me re-ask the question I asked earlier today:

• poll: all things being equal -- price and range; would you rather buy:
• a Tesla
• a Ford EV
• if you answered Ford EV, you are not paying attention
• like the Barbie movie, let's ask the question again
  
• poll: all things being equal -- price and range; would you rather buy:
• a Tesla
• a Ford EV

Earlier, I asked this question.

Say what? Is $6-gasoline in California part of the problem?

Gasoline demand:

Then, taking my own advice, when no one offered a reason, I googled the question, and here's the answer.

And, then look at all the incredible data points in this story:

The Energy Transition Is Already Dead -- We Just Don't Know It Yet -- Peter Zeihan -- October 4, 2023

Locator: 45648ESG.

Saudi Arabia: killing the renewable energy sector. Link here. 

Also, "energy transition is dead, we just don't know it yet" -- Peter Zeihan, link here. 

Re-posting: Javier's observation is 99% of the reason for the re-post but the comments are very important. At the link (first link above).

Not enough folks are talking about the observation by some that Chinese dumping US Treasuries is contributing to the problem.

Amazing Drop In Gasoline Demand This Past Week -- October 4, 2023

Locator: 45647GASOLINEDEMAND.

Say what? Is $6-gasoline in California part of the problem?

Gasoline demand:

Hess With Four New Permits; Seven Permits Renewed; Four DUCs Reported As Completed -- October 4, 2023

Locator: 45646B.

Saudi Arabia: killing the renewable energy sector. Link here. Also, "energy transition is dead, we just don't know it yet" -- Peter Zeihan, link here.

*****************************
Back to the Bakken

WTI: $84.46.

Four new permits, #40238 - #40241, inclusive:

• Operators: Hess
• Field: Beaver Lodge (Williams)
• Comments:
• Hess per permits for four BL-Kerbaugh wells, lot 3, section 3-155-96; 
• to be sited 805 FNL and between 1888 FWL and 1987 FWL

Seven permits renewed:

• Enerplus: seven Fort Berthold permits; Eagle Nest oil field, Dunn County;

Four producing wells (DUCs) reported as completed:

• 39241, 1,423, CLR, Meadowlark 4-6HSL,
• 39239, 1,029, CLR, Skanchenko FIU 5-31H1,
• 27883, 746, CLR, Jersey Federal 21-6H,
• 39238, 1,410, CLR, Skanchenko 4-3HSL,

The Dreaded Bakken Decline Rate -- An Ovintiv Calhoun Well -- October 4, 2023

Locator: 45645B.

The well:

• 38721, conf-->drl/A, Ovintiv, Calhoun 149-98-3-10-12H, Pembroke, Three Forks, first bench; t--; cum 172K 8/23; stimulated 12/19/22; 32 stages; file report did not include amount of frack fluid/ pounds proppants; drilling was completed with 8 drill bits; 209.75 drilling hours; average penetration rate of 108.9 feet / hour; lateral was within the 20' target window for 80.46%; 12.48% drilled above zone; 7.06% drilled below zone.
  

Production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	8-2023	31	6786	6825	13842	38128	37129	999
BAKKEN	7-2023	31	8425	8331	15738	20783	20683	4
BAKKEN	6-2023	30	7946	8104	15308	26422	22120	4177
BAKKEN	5-2023	31	11727	11654	20759	38012	36146	1735
BAKKEN	4-2023	30	16364	16389	24271	43467	43056	279
BAKKEN	3-2023	31	23122	23143	32770	41839	41681	44
BAKKEN	2-2023	27	27864	27953	36132	43937	43452	369
BAKKEN	1-2023	31	53537	53648	62244	95326	94050	1077
BAKKEN	12-2022	14	16117	15703	17002	11180	8406	2497