Sinclair (6): six Lizzie Rae permits in McKenzie County
Two producing wells (DUCs) reported as completed:
32458, 1,084, Hess, BB-Federal 151-95-1708H-9, Blue Buttes, t2/17; cum --
32459, 990, Hess, BB-Federal 151-95-1708H-9, Blue Buttes, t2/17; cum --
One well recompleted:
14876, 655, White Rock, Federal 16-28, Mondak, Red River pool, t2/24/2000, cum 605K 2/16; re-completed, 3/17; target - Stonewall; no production from Stonewall noted; file report: sundry form received January 20, 2017: "White Rock... plans to recomplete the subject well to the Stonewall/Duperow formations ... 160 acres (I believe); commingling of pools not approved at this time; previously an SM Energy well; section SESE 28-148-104;
Note: the Duperow can produce some nice wells. There are two Duperow wells noted on "Monster Wells" post.
Oil: drops to lowest price since November (2016) as US inventories swell.These are the only two numbers I need to know:
rebalancing: IEA sees 0.5 million bopd shortfall in oil production by end of 2017
US reserves: 500 million bbls (increased another 5 million bbls in latest report to 533 million bbls)
By the way, the most recent 5-million-bbl increase far outpaced the forecast of about half that amount -- 2.8 million bbls were forecast.
The 533 million bbls in US storage does not include the US SPR.
My hunch: the IEA will revise its figures before the end of the year, on the bearish side for the price of oil, i.e., the shortfall will be less than 0.5 million bopd, and could disappear altogether.
From an earlier post: This is the most recent graphic of Saudi Arabia's cash reserves:
************************
Other Notes With Regard To Increasing Stocks Of Crude Oil
Producers in the United States are partially responsible for the current oversupply
in oil. Global supply increased by 260,000 barrels per day in February,
to 96.52 million barrels per day, and U.S. production is the highest it
has been in a year, at 9.1 million barrels per day, roughly the amount
Saudi Arabia produced in February.
Frequent Internet users are getting emails about the Bakken Formation
in North Dakota and Montana, supposedly a great oil bonanza just
waiting to be tapped if only nasty enviros would let it happen. The
emails and websites say that Bakken would solve all our petroleum
“needs.” (What, me worry about global warming?)
Don’t believe it. There’s some oil to be gotten out of Bakken, and it’s going to be exploited. But the “bonanza” is nothing but hype.
My favorite quote in ten years of blogging: "There's some oil to be gotten out of Bakken, and it's going to be exploited, But the 'bonanza' is nothing but hype."
Oil: drops to lowest price since November as US inventories swell.These are the only two numbers I need to know:
rebalancing: IEA sees 0.5 million bopd shortfall in oil production by end of 2017
US reserves: 500 million bbls (increased another 5 million bbls in latest report to 533 million bbls)
By the way, the 5-million-bbl increase far outpaced the forecast of about half that amount -- 2.8 million bbls were forecast.
The 533 million bbls in US storage does not include the US SPR.
******************************
Earlier Notes
MarketWatch asks: what next after "market's sharp drop"? What was it, 1.4% after a run from 18,000 to 21,000? Utilities did fine. Saudi Arabia counting on two things for a successful IPO:
strong US equity market
high oil prices
May not see either. But, hey, in life it's the journey, not the destination, that makes it interesting.
Poll. Closing out the earlier poll in which we asked whether Dennis Gartman was wrong, or was he early, when he turned bullish on oil (when he predicted $55 would be the new floor) and oil immediately trended down to $47, where it languishes today. The results:
wrong: 39%
early: 61%
If by "early," Dennis may yet be correct -- by 2020.
Getting ready for her flight home yesterday:
********************************
Late Morning
Both AAPL and SRE are up nicely in a down market.
********************************
Opening
Dow: Continues where it left off yesterday: opens down 40 points.
WTI: down a bit. At $47.86. Is $45 the new floor?
**************************
Five Kingdoms: An Illustrated Guide to the Phyla of Life on Earth Third Edition Lynn Margulis and Karlene V. Schwartz
foreword by Stephen Jay Gould
c. 1988 (1982)
DDS: 570.12 MAR
My first note on this book was earlier this week.
This may be the best book on this subject. As far as I know, the third edition was the last edition. Obviously a lot has happened since 1988 but this is not a bad classification method.
Carl Woese's three-domain system is probably more acceptable these days than Margulis' five-kingdom classification system but once you get to the phylum level, it probably matters not.
If you have a child/grandchild interested in biology heading off to college in the next year or so, I would recommend this book. A mentor (parent/grandparent/teacher) could spend some time with this book, get a feel for it, and then in one or two 30-minute sessions "speed-read" the book with the college-bound student. After that, it becomes a great reference book. This book is not to be read cover-to-cover.
Meanwhile, the book is filled with cocktail party trivia.
Fungi are more closely related to animals than plants: the chitin that forms the fungal spores is the same/similar as the chitin exoskeleton of insects.
Fossils: oldest, of course, the bacteria, show up almost 4 billion years ago. But then, the real fun starts. The protists show up about 1.2 billion years ago; animals, about 600 million years ago; fungi, about 500 million years ago; and, finally, plants, about 430 million years ago.
Of the bacteria, there are 14 phyla.
The really nasty bacteria -- as far as humans are concerned -- are the first two phyla, the "purple bacteria" and the spirochetes. The "purple bacteria" include the largest number of genera of any phylum -- by a large number (too great to count): Enterobacter (E. coli); Klebsiella; Neisseria; Pseudomonas; Rickettsia; Salmonella; Shigella; Vibrio; -- to name just a few. The spirochetes, of course, include Spirochaeta and Treponema.
Margulis' 13th phylum among the bacteria: Deinococci. Because they tolerate as much as 3,000,000 rads of ionizing radiation, they are easily isolated by bombardment with radiation, a procedure that kills everything else. (The human lethal dose is about 500 rads, and bacteria [other than Deinococci] are killed by 100 rads.)
Among the protists, 30 phyla. Those that affect humans: Trichomonas, Amoeba, Toxoplasma, Leishmania, Plasmodium (malaria).
Of the 37 phyla of Animalia, most interesting might be the 27th -- the tardigrades (water bears).
Fungi with 3 phyla.
Plants with 12 phyla are the most confusing, by far.
By the way, in the past week I've finally gotten the "picture" of the malaria life-cycle etched in my brain -- and will finally, perhaps, never forget it. I think if a professor that identified the "adult" phase and then the "embryo" phase of the malaria life-cycle for me I would have remembered it. Not that it matters. (I've looked at several YouTube versions of the malaria life cycle; this may be one of the best such videos.)
I'm Movin' On [Hank Snow], Johnny Cash [and Waylon Jennings]
Double-down again. It looks like Trump can double-down again -- it is very, very clear that he was correct, that, in fact, he and his family were under surveillance after the election. Even Bloomberg is reporting it, though trying to downplay it as much as possible. But this story will have legs. We now know that the conversations of Trump and/or his family were picked up by (most likely) the NSA.
Really? Maybe now the courts will understand why Trump wanted some time to more seriously vet folks coming from certain countries. Nope. Not gonna happen. Terror attack on British parliament reported.
*********************************
Original Post
Poll. New poll at the sidebar at the right. A big "thank you" to a reader for suggesting it.
NOKO: people are asking -- did NSA sabotage NOKO's missile on the launchpad?
Shale revolution. Oil giants "upending" shale turf where wildcat drillers once ruled -- Bloomberg. From the article: (with snarky comments)
drilling 10,000 feet down (imagine that)
then drilling horizontally for a mile (imagine that; in the Bakken, 2-mile laterals for the past decade with a few 3-mile laterals)
blasting through rock to capture light crude oil (imagine that, blasting through rock)
they've turned shale drilling from art into science (imagine that; ND with the world's largest microseismic array)
shale wells for as little as $5 million each (that's a bit of a stretch)
Shell says they can make money in the Permian with oil at $40/bbl; new wells are profitable at $20/bbl (awesome)
Russian LNG. Rosneft signs deal to supply ten (10) LNG cargoes to Egypt in 2017 -- Reuters. Rosneft must have read the blog. At the link: Egypt: imported more LNG than India in 2015; second only to China in LNG imports. Also:
Jordan: a new entrant -- imported as much LNG as France in 2015
Pakistan: a new entrant -- imported twice as much LNG as France in 2015
Egypt: a new entrant -- imported more LNG than India in 2015
