Friday, February 9, 2018

EIA Has Released Its 2018 Annual Energy Outlook

Link here.

Many, many data points and many graphics, of course. This one is most interesting -- note that the "outlook" goes out to 2050. It appears that the EIA assumes that California, Washington (state), North Carolina, Maine, et al will ban off-shore drilling and that Alaska will be less than extraordinary. I assume much of the "other" (dark brown) is from the Gulf of Mexico.

The other thing that jumps out at me is in the graphic to the left, the "reference" case. That graphic includes data from 2000 to 2016 (which the two graphics to the right do not): look how much crude oil from shale jumped from 2000 (less than 1 million bopd) to 2016 (almost 6 million bopd). By 2050, the amount of crude oil from shale could more than double (from about 6 million bopd to 15 million bopd).


Ranking US Cities By Their Pizza Restaurants -- Nothing About The Bakken -- February 9, 2018

Posted at The Bismarck Tribune. 
FindTheHome, a real estate intelligence site, set out to find the pizza capitals of America. Using Yelp's API, Yelp Fusion, the data scientists calculated an aggregate "Pizza Score" for all cities with at least 100,000 people.
They used three sub-metrics to measure pizza prevalence, inherent quality and quality compared to other types of food. Those three metrics include:
- Prevalence: The total number of pizza restaurants in a given city
- Inherent Quality: The percentage of pizza restaurants in a given city rated with four or more stars
- Quality Compared to Other foods: The average Yelp rating of pizza restaurants in a given city compared to the average rating of all restaurants in that city
FindTheHome compared the average scores of pizza restaurants to other non-pizza restaurants to ensure that the cities on the list sell pizza that stands out in comparison to other types of food — think Chinese or Mexican food. The list is ranked by the Pizza Score, with the highest score being the No. 1 pizza capital in America. When ties occur, the cities are ordered according to the average rating for pizza restaurants in that city.
 At the bottom of my spreadsheet, the things that jumped out at me.

I added a fourth column that was not in the original poll. Assuming that you were an out-of-town visitor, what are the chances, not knowing anything about the pizza restaurants in town, what are the chances that you would end up at a bad pizza restaurant (actually pretty high, ranging from 24% to 66%)? By that criteria, Philadelphia should have been ranked #1: of all the cities, an out-of-town visitor would be more likely to pick a 4-star or 5-star pizza restaurant than in any other city listed.  Chicago and NYC are ranked #1 and #2 respectively but 66% of pizza restaurants in both cites are 3-star or worse. The cities below are ranked #25 at the top to #1 at the bottom:

City
# of pizza restaurants
# of 4 - 5 star pizza restaurants
Percent chance of finding a bad pizza restaurant
Louisville/Jefferson County, KY
60
27
55%
Mesa, AZ
108
35
68%
Lexington-Fayette, KY
93
45
52%
Chattanooga, TN
38
22
42%
Charlotte NC
164
55
66%
Knoxville, TN
70
28
60%
Stockton, CA
58
25
57%
Los Angeles, CA
799
318
60%
Berkeley, CA
40
22
45%
Tucson, AZ
126
45
64%
Scottsdale, AZ
83
38
54%
Colorado Springs, CO
95
32
66%
Irvine, CA
44
19
57%
San Diego, CA
385
163
58%
Oklahoma City, OK
128
53
59%
Columbus, OH
108
62
43%
El Paso, TX
67
36
46%
Raleigh, NC
125
59
53%
Portland, OR
226
105
54%
Jacksonville, FL
192
75
61%
Seattle, WA
226
110
51%
Philadelphia, PA
87
66
24%
Phoenix, AZ
330
131
60%
NYC, NY
1795
697
61%
Chicago, IL
437
171
61%

Comments:
  • Boston did not make the list! It's a bogus poll if Boston did not make the list
  • not one city in New Jersey! It's a bogus poll if no city in New Jersey was on the list
  • fly-over states? where are they?
  • Tennessee/Kentucky over-represented? Interesting. Not expected.
  • Arizona really, really over-represented: Tucson, Phoenix, Scottsdale, Mesa

Eleven Permits Renewed; Eight New Permits; One DUC Completed; And A Partridge In A Pear Tree -- February 9, 2019

Active rigs:

$59.052/9/201802/09/201702/09/201602/09/201502/09/2014
Active Rigs583640137192

Eight (8) new permits:
  • Operators: EOG (6); Whiting (2)
  • Fields: Alger (Mountrail County); Truax (Williams County)
  • Comments: EOG has permits for a 6-well Ross pad in NWNE/NWNW 8-156-92
Five permits canceled:
  • CLR (4): two Uhlman Federal permits, and two Pittsburgh permits, all in McKenzie County
  • Petro-Hunt: one Overlee permit in Burke County
Eleven (11) permits renewed:
  • EOG (5): five Wayzetta permits in Mountrail County
  • Whiting (5): two Charging Eagle permits in Dunn County; two Olson permits and  a Periot permit, all three in Williams County
  • Enduro Operating: an SND permit in Billings County
One producing well completed:
  • 33209, 1,089, XTO, Lundin Federal 11X-4F, North Fork, t1/18; cum --
Number of partridges in the pear tree: 1

FWIW: Filloon On Encana -- February 9, 2018 -- Wells Showing Massive Improvement -- Case For Many US Operators; Seems To Be Industry-Wide

Link over at SeekingAlpha.

Summary (look at these initial production numbers -- wow!):
  • ECA has 9 horizontals producing over 300 MBO since January of 2016, and a large number that model over 300 MBO within the first year of well life
  • ECA has had several recent locations at or well above the high end of its average, proving well design can continue to improve EURs
  • a comparison of 2015 wells with those completed in 2016 or after shows an increase in oil production of 54 MBO in the first 16 months of well life
The biggest improvements have been seen in Texas. The Permian and Eagle Ford have seen record wells, and production numbers well above the high end locations just a year or two ago.
The issue seems to be how high the bar can be set. Operators are now focused on stimulating each foot in the best manner, and this has helped to keep US production high in the face of lower oil prices. Everyone continues to wonder if shale can keep oil prices lower for longer, or if OPEC can control prices.
Recent wells by Encana show a massive improvement. This is the case for many US operators, and seems to be industry wide.


********************
Cake

Faux Environmentalists Starting To Walk Back AGW -- Bloomberg -- February 9, 2018

This is most interesting. One can read this Bloomberg article many, many ways (link below).

I read it this way: the faux environmentalists are starting to walk back their wild claims that anthropogenic global warming will mean the end of earth as we know it.

Probably not going to happen, though this was predicted in 2008 or thereabouts:


It's behind a paywall, but if you don't subscribe to Bloomberg you should be able to access it by googling key phrases from the article.

Link here.

The beginning of the article:
There are some 20,000 research papers listed on Google Scholar, a search engine for academics, that mention the worst-case scenario for climate change, one where an overpopulated, technology-poor world digs up all the coal it can find. Basically, it’s the most cataclysmic estimate of global warming.
This scenario is important to scientists. It focuses minds on the unthinkable and how to avoid it.
According to a provocative new analysis from the University of British Columbia, it’s also wrong.
The scientific reference:
The new work, published this week in Environmental Research Letters, shows just how much all that phantom coal may be distorting our picture of what the future may look like. It casts “doubt on whether this outlook is still valid,” the researchers write.

The worst-case scenario is one of four siblings. Their names, from bad to worst, are RCP2.6, RCP4.5, RCP6.0 and RCP8.5. They were introduced in 2011 as a way for researchers running different climate-economic models to do comparable studies regarding how high greenhouse gas concentrations might rise by 2100.
These four storylines range from a 2100 in which aggressive global climate policy leads to low warming, to one in which humanity digs up and burns anything that’ll catch fire.
One big problem with the amount of coal burning assumed by RCP8.5 is that there’s probably not enough extractable coal to make the scenario possible. “We don’t think it’s going to happen,” said Justin Ritchie, lead author of the University of British Columbia study and a Ph.D. candidate. “That’s extremely unlikely and also inconsistent with every year since the late 19th century.” [Best example of faux environmentalists walking back their most extreme predictions.]
 A key graphic:




More from the article:
The 2015 Paris Agreement called for limiting warming to from 1.5 degrees to 2 degrees Celsius (3.6 degrees Fahrenheit). Global average temperatures have already risen almost 1C in the past century. The 1.5C goal may already be impossible, and 2C would require major emissions reductions and, later this century, technological advances to pull enough carbon out of the air.
The disconnect between the historical decarbonization trend and the demands of RCP8.5 shed light on the often-ignored foundation of the world’s climate goals: the baseline.
Paying attention to climate goals without studying optimal baselines is like watching the end of a marathon without knowing where or when it started.
The article is quite long; it's a must read (if you can get to it).