The Scanlan - P Scanlan - King Wells Updated -- January 10, 2022

I promised a reader I would get back to these wells and look at them again. 

Note: in a note like this there may be typographical and/or content errors.

Graphics:

The wells, to the north:

• 18770, 819, Whiting, Scanlan 3-5H, Truax, t9/10; cum 391K 11/21; cum 397K 11/22;
  
• 33294, 1,600, Whiting, Scanlan 11-5-2TFH, Truax, t1/18; cum 235K 11/21; cum 256K 11/22;
  
• 33295, 1,595, Whiting, Scanlan 11-5TFH, Truax, t1/18; cum 272K 11/21; cum 285K 11/22;
  
• 33296, 2,095, Whiting, Scanlan 11-52H, Truax, t12/17; cum 240K 11/21; cum 253K 11/22;
  
• 33297, 1,591, Whiting, Scanlan 11-5H, Truax, t12/17; cum 305K 11/21; cum 325K 11/22;
  
• 33404, 2,053, Whiting, Thomas 43-4H, Truax, t1/18; cum 247K 11/21; cum 257K 11/22;
  
• 33405, 1,229, Whiting, Thomas 43-4TFH, Truax, t1/18; cum 230K 11/21; cum 239K 11/22;
  
• 33406, 2,502, Whiting, Thomas 43-4-2H, Truax, t1/18; cum 208K 11/21; cum 219K 11/22;
  
• 33407, 1,633, Whiting, Thomas 43-4-2TFH Truax, t9/10; cum 257K 11/21; cum 267K 11/22;
  

The wells, to the south:

• 20856, 1,349, Whiting, King 3-8H, Truax, t1/12; cum 398K 11/21; cum 407K 11/22
  
• 33455, 2,454, Whiting, King 11-8H, Truax, t12/17; cum 261K 11/21; cum 274K 11/22;
  
• 33456, 2,252, Whiting, King 11-8H-2H, Truax, t12/17; cum 237K 11/21; cum 248K 11/22;
  
• 33457, 1,525, Whiting, King 11-8TFHU, Truax, t12/17; cum 254K 11/21; cum 269K 11/22;
  
• 33409, 1,102, Whiting, Scanlan 42-9TFH, Truax, t12/17; cum 227K 11/21; cum 240K 11/22;
  
• 33410, 1,947, Whiting, Scanlan 42-9-2TFH, Truax, t12/17; cum 176K 11/21; cum 185K 11/22;
  
• 33411, 1,980, Whiting, Scanlan 42-9-3TFH, Truax, t12/17; cum 183K 11/21; cum 194K 11/22;
  
• 25602, 2,631, Whiting, P Scanlan 153-98-16-9-5-5H, t3/14; cum 336K 11/21; cum 338K 11/22;
  
• 25600, 2,665, Whiting, P Scanlan 153-98-16-9-5-12H, t3/14; cum 345K 11/21; cum 353K 11/22;
  
• 20856, 1,349, Whiting, King 3-8H, t1/12; cum 398K 11/21; cum 502K 7/22; off line;
  

Child Tax Credit Could Pivot To Gasoline Vouchers By Memorial Day -- January 10, 2022

Some are now predicting that the US government will "print" gasoline vouchers for those with "qualifying incomes." Pilot program would likely begin in California, New York, Illinois, and states where incumbents are most vulnerable. 

For investors bullish on oil, this is not a bad idea. I could support it.  

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BRK-B: the ultimate Warren Buffett stock? IBD. 

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Traditional IRAs Vs Roth IRAs

There are a lot of articles right now discussing the pros and cons of traditional IRAs vs Roth IRAs. From an earlier post, October 9, 2021:

Investing: re-posting -- see this post:

Roth vs traditional IRAs: see if you can find the fallacy in the argument presented by this writer -- "why I won't do a Roth IRA conversion -- even  if this is the last chance." Brett Arends is very, very knowledgeable and has been around for quite some time. How he missed this fallacy is beyond me. His argument:

• most of us -- including the writer, Arends -- are almost certainly going to be better off in a traditional IRA
• his fallacy: see if you can find it

This article really, really "haunts" me -- the writer is so off the mark. Roth vs traditional IRA? This is a no-brainer. 

If I only knew then what I know now.

The writer assumes lower middle class and middle class are big investors. No. Living month-to-month. The "investor class" will be much better off with Roth IRAs. 

Just wait until investors who got a very, very small tax break at the front end and then see how huge the RMDs will be at the other end, regardless of the tax bracket. At the front end, getting a tax break on a $6,000 investment; at the other end, being taxed on a $25K RMD.

At the front end one has a choice, contributing to a Roth IRA or a traditional IRA.

At the back end, with a traditional IRA, you have no choice. The government decides for you how much you must "liquidate" and how much tax you will pay on that distribution. With a ROTH IRA the decision is all yours. At least until the government changes the law.

Fracking's Economic Effect On Ohio -- January 10, 2022

From "Focus on Fracking" overnight:

Utica Shale Saves Eastern Ohio Counties from COVID Recession | Marcellus Drilling News -

Economists are still analyzing the impact of the coronavirus pandemic from 2020, let alone assessing impacts from 2021.

Cleveland State University researchers have run the numbers and have discovered something interesting.

Of Ohio’s 88 counties, only 18 grew their economies in 2020. Of those 18, two counties stood head and shoulders above the rest for increases in economic activity. Both counties have something in common: Utica Shale drilling.The two counties that soared in 2020 due to Utica drilling were Monroe and Harrison. Other Utica-drilling counties were also on the list of 18 counties improving in 2020, including Belmont and Jefferson. Beginning to see a trend here?

We laugh at anti-fossil fuel fools who yammer on that “there is no increase in jobs or economic activity from shale oil and gas drilling.” What planet do they live on?!

The Utica pulled Ohio eastern counties’ bacon out of the fire in 2020, and (we suspect) in 2021 as well.

Hydraulic fracturing has buoyed the economy in eastern Ohio.Two small eastern Ohio counties in the heart of Ohio’s natural gas country posted the biggest economic gains among the state’s counties in 2020.The big gains in Harrison and Monroe counties came even as COVID-19 plunged most of Ohio’s 88 counties and its biggest metro areas into a brief, but steep, recession.

Only 18 counties had growth last year.Harrison and Monroe counties each posted a 20.5% increase in their economy in 2020, according to federal data released this month.

Both counties are small so even a minimal increase in the economy can produce big change.Monroe County’s economic activity was measured at $1.9 billion in 2020, while Harrison’s was measured at $1.6 billion.

Both counties have benefited from the surge in natural gas and oil drilling in Appalachia over the past decade that has helped offset the decline in coal use.

Total investment in the region has hit $93 billion from 2011 through 2020, according to Cleveland State University researchers who track oil and gas spending in the region. Monroe County also has benefited from the redevelopment of the old Ormet aluminum smelter site in recent years that includes the new natural gas power plant at the Long Ridge Energy Terminal, which one day could run on hydrogen as well as gas.Harrison County also is developing a power plant.Monroe County’s gain follows a 23.7% increase in 2019 and 7.7% in 2018.Other counties in Appalachia also were among the 2020 winners.The county in between Monroe and Harrison, Belmont, had the fifth-highest growth rate in 2020, 5.4%. That county also has benefited from the natural gas boom.The economy of Jefferson County, north of Belmont County and also a benefactor of the energy investments, grew by 5.6% in 2020.In the northwest part of the state, Paulding County posted a 7.7% growth rate, the third highest in Ohio.

It would be interesting to see if UND would consider researching the economic effect fracking has had on four counties in North Dakota: Williams, McKenzie, Dunn, and Mountrail.

Corky Trying To Reach Her Broker To Put In A Buy For Zynga -- January 10, 2022

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Back to the News

Speaking of bananas: a banana worth squeezing. This whole story makes me very, very nervous about Daimler. 

Second best sports story all day: Tom Brady defies coach; goes back in to get Gronk his final catch for a $500K bonus. After the Antonio Brown story, this speaks volumes about Brady; speaks volumes about the coash.

Chips: Apple make TSMC sets another quartely sales record on strong demand. Theme for 2022.

PFE: looking good this morning. Announces new deals. 

Two words one doesn't like to see in same sentence: Mexico auto production plunges to lowest annual level since 2014 amid chip shortage. The whole country is producing three million vehicles on an annual basis. Is Tesla producing 500,000 on an annual basis? Actually, much more. 

EOG: appears to have gotten two thumbs up from Simply Wall St.

WTI Slips Below $79; Thirty-four Active Rigs; Three Wells Coming Off Confidential List -- January 10, 2022

EPD: announces a $3.25 billion acquisition of Navitas Midstream. Accretive in 2023.

• provides an entry point into the Midland Basin for EPD
• 1,750 miles of pipeline; 1 billion cubic feet/day of cryogenic natural gas processing capacity with the completion of the Leiker plant, expected to be completed 1Q22;
• should be immediately accretive to distributable cash flow
• DCF accretion in the rand of 18 cents to 22 cents / unit in 2023
• EPD just announced a 3.3% dividend increase; has the highest credit rating within the midstream sector according to at least one analyst;

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Back to the Bakken

Active rigs:

$78.44	1/10/2022	01/10/2020	01/10/2019	01/10/2018	01/10/2017
Active Rigs	34	55	66	53	36

Monday, January 10, 2022: 11 for the month, 11 for the quarter, 11 for the year

• 37234, conf, Bruin, Wm Polar 157-101-24C-13-7B,

Sunday, January 9, 2022: 10 for the month, 10 for the quarter, 10 for the year

• None.

Saturday, January 8, 2022: 10 for the month, 10 for the quarter, 10 for the year

• 38351, conf, Resonance Exploration, Resonance Wilmot 8-27H,
• 27002, conf, CLR, LCU Reckitt Federal 5-22H1,

RBN Energy: US LNG feedgas demand looks primed to build on record highs. 

Global natural gas prices went through the roof in December, and while prices are back down from those highs, they remain incredibly strong compared to years past and the economics for U.S. 

LNG exports are riding high. LNG exports have been in the money for quite some time, but feedgas deliveries to U.S. export terminals throughout the spring and summer of 2021 were somewhat lackluster as maintenance and operational issues at terminals and nearby pipelines kept feedgas from hitting its full potential. 

Gas deliveries to those terminals began climbing in the fall, first back to full utilization levels, and then beyond. 

Much of the record feedgas demand has been from commissioning activity at Sabine Pass Train 6, which produced its first LNG in December and is on track to begin full service early this year. But beyond that, operators have been pushing the existing fleet of terminals to operate at peak levels and produce additional cargoes, likely for sale in the spot market or on short-term contract, an extremely profitable endeavor given the prices in Europe, where most if not all destination-flexible cargoes have headed. In today’s RBN blog, we look at what’s driving LNG feedgas demand to its recent highs and how much higher it could go.