Kraken: Three New Permits In The Rainbow Oil Field, Williams County -- January 30, 2023

I've long forgotten the particulars, but a reader "recently" asked about the Rainbow Oil Field in Williams County. See map here.

In today's Daily Activity Report:

The "Struggling" American Consumer -- January 30, 2023

Link here. Yes, I have this one. Well, I used to have it. I gave it to my son-in-law. I've long forgotten how much I paid, but it must have been less than $300 because that's pretty much my limit when it comes to Lego, and that's very rare for me to buy sets that expensive. 

From Amazon:

Now, from The Wall Street Journal today:

"The Natural Gas King" Grew Natural Gas Proved Reserves To A New Record -- 600+ Trillion Cubic Feet -- No Wonder The Elitists Want To Ban Natural Gas Ovens / Stoves -- January 30, 202

See this post: the US remains "the natural gas king."

Now, this today, from the EIA:

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Archived

I wouldn't pay to much attention to any of the numbers below but it helps put things in perspective. The numbers below simply tell me how fast natural gas reserves grew with the "Bakken revolution."

How does this compare to the earlier note, from 2018?

From oilprice, the data comes from BP's annual review, 2017 data.

• US natural gas production (flat over the past three years):
• 2017: 71.1 billion cubic feet per day
• 2016: 71.1 billion cubic feet per day
• 2015: 71.6 billion cubic feet per day

US natural gas reserves, February 13, 2018, EIA:

• 341.1 trillion cubic feet; increased by 5% over 2016
• Pennsylvania: added 6.1 tcf natural gas reserves, the largest net increase of all states in 2016 as a result of the Marcellus)
• next largest net gains, after Pennsylvania: Oklahoma (3.7 tcf); Ohio (3.1 tcf); SCOOP, STACK, Utica
• natural gas from shale as a percentage of total production: increased from 54% in 2015 to 62% in 2016
• additions exceeded consumption by 30%

What about the rest of the world back in 2013?

• Russia: 6,000 trillion cubic feet 
• another 11 TCF discovery, 2018; the Arctic
• Iran: 1,000 trillion cubic feet
• Qatar: 900 trillion cubic feet
• Turkmenistan: 600 trillion cubic feet
• US: 350 trillion cubic feet
• #11: Australia: 152 trillion cubic feet (as of January, 2014). (See this post.) 
• Beetaloo Basin could add 500 trillion cubic feet (2019)
• Pakistan: 10,000 trillion cubic feet (highly unlikely, something tells me we are mixing apples and oranges, reserves vs technically recoverable.

Three New Permits; Twelve Permits Renewed; Six Permits Canceled; And Three DUCs Repoorted As Completed -- January 30, 2023

Active wells: 46.

WTI: $77.93.

Natural gas: $2.691.

Three new permits, #39613 - #39615, inclusive:

• Operator: Kraken
• Field: Rainbow (Williams)
• Comments: Kraken has permits for three Gladys wells, NENE 32-158-98, to be sited 437 FNL and between 1003 FEL and 1069 FEL;

Twelve permits renewed:

• Petro Harvester (6): FLM1 and LFM2; Leaf Mountain; Burke County
• EOG (3): three Liberty LR permits, Parshall oil field, Mountrail
• Lime Rock Resources (2): two State permits, Cabernet oil field, Dunn County
• Enerplus: a Wm Ann Thome permit, Strandahl oil field, Williams County;

Six permits canceled:

• Crescent Point Energy: six Ruby permits, Winner oil field; Williams.

Three producing wells (DUCs) reported as completed:

• 38590, 3,854, MRO, Cheryl 41-18H,
• 38621, 3,417, MRO, Fallstrom 14-20TFH,
• 38720, 3,857, MRO, Claude 14-20H,

Why Middle East Producers Cut Prices In The Face Of Soaring Chinese Demand -- Gerald Jansen -- January 30, 2023

Link here.

Lots of interesting background information.

This particular paragraph (which I broke up into smaller bites) caught my eye and why I'm linking/posting the story:

When pricing its grades into Asia, Aramco cut the lighter ones much more than the heavies, a trend that it also followed with its European prices where Arab Light was lowered by $1.40 per barrel, coming in at a -$1.50 per barrel discount to ICE Brent.

In just six months since September 2022, the average formula price in Asia plummeted by $8 per barrel, whilst in Europe the decline was milder, only $5-6 per barrel.

Just as Saudi Aramco finalized the merger of Aramco Trading and Motiva Trading, moving all of its trading activity under one umbrella, prices of US-bound cargoes continue to boggle the mind as the Saudi NOC rolled over the same prices for the fourth straight month.

Hardly a surprise than exports to the United States are a mere quarter of what they were in early autumn, competing with late 2020 readings for the title of weakest flows on record with only three tankers departing towards the US this month.

See US-Saudi imports, this link.