Prior: diagnosed with throat cancer in 2014; recovered. Obviously survived the Covid scare.
Another movie, like Dr Zhivago, I can never watch again -- Top Gun -- way too sad for me to watch. A handful of movies had a huge effect on me. Top Gun was one of those movies. That movie came out while I was assigned to an F-15 squadron in Germany. 1986. Seems like yesterday.
Interestingly, one might think Casablanca would fall into that category, but I never get tired of Casablanca.
Chart of the day: because this is April 1st, we may want to check back in, let's say in 24 hours to see if this is truly accurate. (It is.) Link here. Now, valued more than Reddit. Shortly after the market close it was up another $15 but then later, was down a bit.
Five days:
****************************** Meanwhile
Politics: the WSJ called it a "closer-than-expected" race but the fact is the winner won by a landslide. Despite very, very low voter turnout in a solidly red district.
Politics: the GOP had a chance to change things, but then they screwed things up. Google Anna Paulina Luna for the story. Now watch the President continue to run the country by executive order and the shadow president, Judge Jim, fight him at every step. But if I get discouraged, I just watch this video.
Looks like a record high (demand) -- in the chart below -- just when it's being reported that American crude oil production has hit an 11-month low. Wow, that production metric: completely wrong on so many levels. We posted this yesterday with regard to US crude oil production. US crude oil production set a new all-time January record; twelfth consecutive month above 13.1 million bopd, field production. Link here.
Folks are concerned about shale oil production dropping / declining: let's see what WTI does if WTI were to hit $100. That solid dark green line in the graphic below? The year before Covid-19 lockdown, 2019. The month I'm watching: August. Will the US set a new all-time record?
******************************* Back to the Bakken
WTI: $70.21.
Active rigs: 35.
Five new permits, #41759 - #41763, inclusive:
Operators: KODA Resoures (4); Denbury Onshore;
Fields: Fertile Valley (Divide County); a wildcat in Bowman County;
Comments:
Denbury Onshore has a permit for a CHSU well, SWSW 20-131-105, Bowman County, a wildcat,
to be sited 351 FSL and 1002 FWL:
KODA Resources has permits for four Amber wells, Divide County, NENW 22-160-103;
to be sited 400 FNL and 2433 / 2538 FWL.
Changes:
39741, Grayson Mill, Darlene 13-24F 4H; spacing changed from four-section to two sections.
Three producing wells (DUCs) reported as completed:
Inflation watch: 2-liter Diet Coke. The best I can do at Walmart is $2.79. Target generally runs about $3.29. Today, at our local big box beverage store, three for $7,00 or $2.33 / 2-liter bottle. Even without the "special" today they have prices that meet or beat Walmart's price for Coke products.
Tariffs: I assume the $11.99 I spent for a bottle of German white wine today will be significantly more expensive a few weeks from now. Regardless, $11.99 for a bottle of German white wine is probably less expensive than what it would cost me in Germany.
As crude oil pipelines from the Permian to the Gulf Coast edge closer to
full utilization, it’s becoming a challenge for producers and shippers
alike. Amid this capacity crunch, converting Enterprise’s Midland to
ECHO 2 (M2E-2) pipeline back to crude oil service can’t come quickly
enough. In today’s RBN blog — the latest in our series on Permian crude
oil pipelines — we discuss Enterprise’s crude oil footprint from West
Texas to Houston.
In Part 1 and Part 3 of this series, we looked at the Longhorn and
BridgeTex pipelines, respectively, and what ONEOK has accomplished with
these systems since it acquired Magellan Midstream in 2023 (see Tulsa
Time). In Part 2 and Part 4, we looked at the EPIC Crude and Gray Oak
pipelines, respectively, to the Corpus Christi area, which have both
been operating at full capacity. Today, we’ll cover Enterprise’s Midland
to ECHO (M2E) pipelines.
Enterprise has two major oil pipelines from the Permian to the Gulf
Coast — soon to be three (again)! To the Houston area, the long-hauls
include the company’s Midland to ECHO 1 (M2E-1, pink line in Figure 1
below) and Midland to ECHO 3 (M2E-3, which represents the company’s 29%
undivided interest in the Wink to Webster — or W2W — system shown in
orange). Together, these give Enterprise 1.07 MMb/d of crude takeaway
capacity. Further, Enterprise’s Midland to ECHO 2 (M2E-2; blue line)
will soon be returned to crude oil service. (More on that in a moment.)
M2E-1 and M2E-2 twin each other (meaning they follow the same path),
originating at Midland and flowing to Sealy (black dot west of ECHO).
Then, at Sealy, M2E-1 and M2E-2 utilize Enterprise’s Rancho II pipeline
(green line) to its ECHO terminal (pink tank icon). While the
ExxonMobil-operated W2W follows the same path for a portion of the line,
it flows from Midland directly to ECHO, bypassing Sealy and the Rancho
II line. (Enterprise is also a non-operating JV partner in Basin
Pipeline from the Permian to Cushing, which we’ll discuss in a future
blog.)
TG Natural Resources: a company "indirectly owned by" Tokyo Gas CO -- "Tokyo Gas" Natural Resources is the buyer along with Castleton Commodities International LLC; CVX the seller. Both are headquartered in Houston. CVX moved its HQ from northern California to Houston a year ago.
Chevron U.S.A. Inc. announced that it has closed on a transaction to sell a 70% interest in its East Texas gas assets to an affiliate of TG Natural Resources LLC a company indirectly owned by Tokyo Gas Co., Ltd. and Castleton Commodities International LLC, for $525 million, with $75 million paid in cash and $450 million as a capital carry to fund Haynesville development.
Chevron will retain a 30% non-operated working interest in a joint venture with TGNR and an overriding royalty interest in the assets. Tokyo Gas and CCI own an approximate 93% and 7% interest in TGNR, respectively.
The transaction is anticipated to generate over $1.2 billion in value to Chevron at current Henry Hub prices. Chevron expects to maintain future upside through the joint venture structure while accelerating development of a non-core asset through a capital efficient approach.
This transaction supports Chevron’s previously announced plans to divest $10-15 billion of assets by 2028 in order to optimize its global energy portfolio.
***************************** Palantir
This tells me all I need to know about the stock market. Much could be said, but this is not an investment site. A p/e of 450.
I am
inappropriately exuberant about the Bakken and I am often well out front
of my headlights. I am often appropriately accused of hyperbole when it
comes to the Bakken.
I am inappropriately exuberant about the US economy and the US market.
I am also inappropriately exuberant about all things Apple.
See disclaimer. This is not an investment site.
Disclaimer:
this is not an investment site. Do not make any investment, financial,
job, career, travel, or relationship decisions based on what you read
here or think you may have read here. All my posts are done quickly:
there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything.
If anything on any of my
posts is important to you, go to the source. If/when I find
typographical / content errors, I will correct them.
Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.
I am also inappropriately exuberant about all things Apple.
And
now, Nvidia, also. I am also inappropriately exuberant about all things
Nvidia. Nvidia is a metonym for AI and/or the sixth industrial
revolution.
I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom.
I've now added Oracle to the disclaimer. I am also inappropriately exuberant about all things Oracle.
