Random Update Of The XTO Sorkness State Wells -- October 20, 2021

I'm not going to update this page. The wells are tracked elsewhere.

However, I was curious if there was anything new with regard to the XFTO Sorkness State wells. 

The wells are listed below and updated. There is no real change except for the fact that one of the older, producing, active wells is now off line, suggesting XTO is getting ready to frack the newer Sorkness wells, or not:

The wells:

• 24945, off line 7/21, 1,359, XTO, Sorkness State 24X-36A, Sorkness, t11/13; cum 247K 9/20; cum 259K 7/21; off line 7/21; remains off line 8/21;
  
• 24944, 1,595, XTO, Sorkness State 24X-36B, Sorkness, t11/13; cum 215K 9/20; cum 229K 8/21;
  
• 18959, AB/IAW/378, XTO, Sorkness State 34X-36. Sorkness, t10/10; cum 251K 9/20; remains off line 8/21;
  
• 36135, conf-->SI/IAW, API: 33-061-04428, no FracFocus data; XTO, Sorkness State Federal 34X-36G, API: 33-061-04429, no FracFocus data;
• 36135, conf-->SI/IAW, API: 33-061-04429, no FracFocus data; XTO, Sorkness State Federal 34X-36C, Sorkness, t--; cum --;
• 36137, conf-->SI/IAW, API: 33-061-04430, no FracFocus data; XTO, Sorkness State Federal 34X-36H, Sorkness, t--; cum --;
• 36138, conf-->SI/IAW, API: 33-061-04431, no FracFocus data; XTO, Sorkness State Federal 34X-36D, Sorkness, t--; cum --;

Notes From All Over -- Dow Hits Record High -- October 20, 2021

I need to start a new series, most ridiculous "things" coming out of Washington, DC. I guess the reason I don't want to start such a series, it would be never-ending. LOL.

However, having said that, the suggestion that Washington, DC, would release oil from the SPR to bring down the price of gasoline would made that list. First of all, that would be illegal. The "law" actually specifically says the SPR cannot be used as a tool to manipulate the price of oil / gasoline. But, if the administration "broke the law" on this one, who would sue? LOL. 

But the bigger problem is that US refiners are already well-supplied. The refiners might benefit but everyone knows the price of gasoline would not drop much, with everything else staying equal.

Inflation: being interviewed now, another talking head says the same thing -- some inflation is good. Period. Dot. Nelson Peltz, chairman of the board, Wendy's. Wendy's is now #2 in that group, finally displacing Burger King. Peltz is not worried about inflation; not worried about labor shortage. As an individual, he worries about inflation, departing Afghanistan too early, about a million things. But as an investor, he's not all that concerned about headlines.

Vaccines: this will be fun to watch. Resident Biden says companies with federal contracts will lose those contracts if they don't mandate vaccines. Southwest Airlines has not backpedaled; mandates no longer required. Southwest Airlines with huge federal contracts. Let's see who blinks. Compare December 15, 2021, let's see if Southwest Airlines still has those federal contracts. Right before Christmas travel.

Millennials: have never seen a down market.

Bitcoin: up an astounding $2,500. Now trading at $66,500.

Dow: surging. Up another 200 points. At an all-time record.

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Twitter Tweets Today

Just sayin':

• "Crude on fire" after today's EIA report.
• China considering market intervention on coal.
• XOM debates abandoning some of its biggest oil and gas projects. Link to WSJ.
• US oil stockpiles at Cushing at lowest since October, 2018. Does it matter?
• Exactly correct, the Saudi position: Saudi energy minister, "Even if we made the crude available in tons and tons, who is going to burn it? Where are the refineries that will convert it? And who is in need? Are they in need of crude? Or natural gas?"
• Saudi energy minister: demand from gas-to-oil switch, up to 600,000 bpd from 500,000 just a week ago.
• US implied oil demand rose by almost two million bbls w/w to 21.832 million bpd.
• India: long-term oil demand from 4 million bpd today to 9 million bpd in 2040. They should have plenty of oil; the rest of the world -- other than China -- have said they will end need for oil by 2050. LOL. Link here. Direct to Platts here.
• Dow sets new all-time record.

On Tap Today -- October 20, 2021

Opening thought: folks are way too concerned about inflation. Way too concerned. In fact, some types / some amount of inflation is very good. 

Labor shortage? Self-inflicted. What's this all about? Link here. 

• 80,000 green cards are about to disappear from the US.
• it's this sort of garbage that makes me re-think my position on the southern surge

Rick Rieder, BlackRock CEO: incredibly bullish interview, yesterday over at CNBC; a must-hear interview for any investor. 

Legacy fund: deposits for October, 2021, pending. 

Weekly EAI petroleum report, link here:

• US crude oil in storage decreased by 0.4 million bbls, a rounding error.
  
• US crude oil in storage stands at 426.5 million bbls, 6% below the five-year average. It should be noted that the five-year average has been very "fat" so 6% below is "overstated."
  
• US refiners are operating at 84.7% of their operable capacity (yawn -- again).
  
• US crude oil imports averaged 5.8 million bbls per day; down by 169,000  bopd from the previous week; over the past four weeks, imports average 6.4 million bpd, about 20% more than same four-week period last year;
  
• distillate fuel inventories decreased by 3.9 million bbls; ten percent below the five-year average.
  
• total products supplied, at 21%, is up 14% from same period last year; need data from 2019 for better comparison;
  
• jet fuel supplied was up 50% from same four-week period last year; again, we need data from 2019for better comparison;
  

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Sunrise Over Flathead Lake

***************************
Twitter Tweets Today

Just sayin':

• "Crude on fire" after today's EIA report.
• China considering market intervention on coal.
• XOM debates abandoning some of its biggest oil and gas projects. Link to WSJ.
• US oil stockpiles at Cushing at lowest since October, 2018. Does it matter?
• Exactly correct, the Saudi position: Saudi energy minister, "Even if we made the crude available in tons and tons, who is going to burn it? Where are the refineries that will convert it? And who is in need? Are they in need of crude? Or natural gas?"
• Saudi energy minister: demand from gas-to-oil switch, up to 600,000 bpd from 500,000 just a week ago.
• US implied oil demand rose by almost two million bbls w/w to 21.832 million bpd.
• India: long-term oil demand from 4 million bpd today to 9 million bpd in 2040. They should have plenty of oil; the rest of the world -- other than China -- have said they will end need for oil by 2050. LOL. Link here. Direct to Platts here.
• Dow sets new all-time record.

Notes From All Over -- The Random Wiki Entry Note -- October 20, 2021

US equity markets: it's possible we could see an all-time high on the S&P 500 today.

• Bitcoin: up another $1,700 and now trading over $65,500 -- this is, of course, another new all-time high;
• ten-year treasury: hit 1.67% overnight; dropped back slightly in early morning trading
• Dow: after being flat to slightly negative overnight, up 100 points out of the gate this morning, and now up over 104 points. (8:52 a.m. CT)
• bellwether stocks for me;
• AAPL: green, up 0.35%;
  
• ENB: red, down 0.26%;
  
• SRE: very green, up 0.80%
• OKE: red; own 034%
  

Random observation / question:

• surging price of natural gas pulling price of oil upward;
• is gamification of trading (Robin Hood) and fervor of Bitcoin pulling US equity markets upward, also?

Labor shortage? Self-inflicted. What's this all about? Link here. 

• 80,000 green cards are about to disappear from the US.
• it's this sort of garbage that makes me re-think my position on the southern surge
  

Prussic acid: at wiki.

• hydrogen cyanide
• highly poisonous
• highly valued precursor to many chemical compounds
• first isolated from a blue pigment: Prussian blue, 1706; at time, structure unknown;
• an acid that did not contain oxygen ("acid-former"): upset acid theory
• cyan: ancient Greek word for blue --> cyan-ide
• apricot pits, as well as other fruit pits
• possibly a precursor to amino and nucleic acids, possibly playing a part in origin of life;
• prussic acid poisoning and livestock: SDSU -- link here.

*Transistors on a chip, wiki has just update the table at this site; tracked here on the blog;

• 2020, Apple M1: Apple has record with 16 billion transistors on a chip
• also, HiSilicon Kiri 9000, 15.3 billion transistors on a chip, Huawei
• 2021: AMD Ryzen 7 5800H: 10.7 billion
• 2021: Apple M1 Pro: new record, 37 billion transistors on a chip;
• 2021: Apple M1 Max: new record, 55 billion transistors on a chip;
  

Again, this graphic was updated overnight by wiki:

CP-KSU rail:

-- increased CBR traffic through Minnesota with CP-KSU merger
-- western Canadian sands oil all the way to Mexico on same, uninterrupted line;
-- DRUbit less hazardous than most other hazardous material shipped by rail

Looks Like A Quiet, Boring Day -- Oh, That's Right -- Tesla Reports At Close -- October 20, 2021

China:

• oil: building inventories during the year of the plague, while rest of world was drawing down; now China is drawing down; since May, China drew down by 550,000 bpd, roughly have the world pace; last week it drew by 2 million b/d, twice the word pace; link here.
• coal: aims to raise coal output to 12 million tons per day; back in May had said it would cap coal to 11.2 million tons/day, link here;
• never in history has a ton of coal cost more -- Bloomberg

That climate warming conference in Glasgow? "No one" is going. World leaders not attending: Biden, Putin, Xi, Queen Elizabeth. It looks like John Kerry will be the headliner. 

Facebook: website stays, but "holding company" re-brands itself. 

Tesla earnings at close today. Link here. 

On tap today: CP, CSX,  KMI, IBM.

Bitcoin: up a bit. Up about $400, trading solidly above $64,000.

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Let's Go, Bakken

Active rigs:

$81.98	10/20/2021	10/20/2020	10/20/2019	10/20/2018	10/20/2017
Active Rigs	28	15	61	71	54

No wells coming off confidential list.

RBN Energy: Mexico's Pacific Coast LNG export projects gain traction, part 3. Archived.

After years of waiting on the so-called “second wave” of North American LNG, 2022 could finally be the year that sees multiple LNG export projects reach a final investment decision (FID). Global gas fundamentals have been bullish for about a year, and prices hit record highs throughout the summer and fall. Offtakers around the world are clamoring and competing for LNG cargoes, anticipating a volatile and undersupplied winter. But with Russian piped exports to Europe expected to increase dramatically as the controversial Nord Stream 2 pipeline finally comes online, likely early next year, North American LNG is looking for ways to be more attractive to Asian offtakers. One option on the table for North America is to go west and export from the Pacific Coast, which cuts the voyage time to Asia in half. Exporting from the Pacific Coast is not without its challenges, however, including where and how to source the feedgas required for liquefaction. In today’s RBN blog, we continue our series looking at Pacific Coast LNG export developments, this time focusing on feedgas and infrastructure for the LNG projects in Mexico.