Investment Article On FANG In The Permian -- Filloon -- April 3, 2017

Line here. 

Mike Filloon has an investment article on FANG in the Permian. I have no interest in the investment angle, but the article does provide a few interesting data points about a) unconventional oil; and, b) the Permian. Beyond that, I don't have much to add.

Mike does not comment on the interesting "oil type curves." The graphic below is from the linked article. It would have been nice for Filloon to explain the "B" and "C" curves. Were they good wells, but fracked late? Were they re-fracked (unlikely -- too early in the life of the well)?

Hess, BR Each Report One Completed DUC; Still At 50 Active Rigs -- April 3, 2017

Should have the post up later this evening (Monday, April 3, 2017).

Active rigs:

	4/3/2017	04/03/2016	04/03/2015	04/03/2014	04/03/2013
Active Rigs	50	29	94	190	185

Seven new permits:

• Operator: CLR
• Field: Elidah (McKenzie)
• Comments: it's purely coincidental my recent comments on Elidah oil field and then this news today, but it is interesting. The CLR Ransom - Omlid wells will be tracked here.

One permit renewed:

• SHD, a Maya permit in McLean County

Two producing wells (DUCs) reported at completed:

• 31999, 2,004, BR, CCU Zephyr 14-34 TFH, Corral Creek, t3/17; cum --
• 32460, 1,380, Hess, BB-Federal 151-95-1708H-11, Corral Creek, t3/17; cum --

The Market And Energy Page -- T+72, April 3, 2017

The market: futures were up a bit, and I think the market opened up a bit, but now, mid-morning, the Dow 30 is down about 40 points. WTI remains above $50.

Tesla: beats expectations -- delivers record 25,000 vehicles in first quarter. The headline is a bit of hyperbole, I suppose. Forecasts ranged between 23,000 and 24,000 which, to me, in the big scheme of things, Tesla pretty much came in as expected. "Missing" expectations would have been devastating. Tesla missed delivery expectations last quarter so it probably was not that "big a deal" to hit / exceed expectations this time around. But had they missed? Wow. These were Model S (13,450) and Model X (11,550). I always find it interesting how Tesla numbers are always a "very round" number.

For the archives: this is an issue that doesn't really interest me at the moment, but it's important for the archieves -- Oilprice.com on record -- an OPEC deal to extend production cuts won't lift oil prices. I disagree. All things being equal, on the day that OPEC announces an extension of production cuts, the price of oil will rise 2/50 or 4% or more.

The Political Page, T+72 -- April 3, 2017

Fretting over Texas. Yesterday, in the Dallas Morning News, there was a long (very long) op-ed lamenting that Texas was no longer #1 in business or something to that effect. I can't recall what the writer was actually lamenting except to say that the Texas economy was no longer what it used to be. Most of the op-ed seemed to be about the "bathroom issue." I do remember that the writer lamented that the state of New York spent $20,000 per student in K - 12, whereas Texas only spent $7,000 per student. The writer was concerned that Texas students were not receiving the education they needed to succeed in the 21st century or compete with students from New York. But today, Platts is reporting that Texas is indeed #1 in something: gasoline consumption. Archived.

• 22nd annual highway report (see page 13), 2016
• "public road length in miles, 2010 - 2014"
• road miles by state, 2010, blog

Fretting over Gorsuch. Mitch McConnell is not used to losing but it's not beyond the pale this time.

Fretting over Trump. Bit by bit, Trump methodically undoing Obama policies -- AP.

April 3, 2017

Active rigs:

	4/3/2017	04/03/2016	04/03/2015	04/03/2014	04/03/2013
Active Rigs	49	29	94	190	185

RBN Energy: the growing LPG-export role of the Marcus Hook Marine Terminal, a Sunoco operation in Pennsylvania.