I've Already Filled In The Search Engine Block For You -- December 3, 2018

Click on image if you have difficulty seeing the "search phrase."

Canada Curtails Crude Oil Production -- December 3, 2018

Canada Curtails Crude Oil Production

 
I find this most incredible: free market capitalism and a government steps in and curtails production.

For most of us in our 60's we grew up in a world in which we were told that we would someday run out of oil -- or at "affordable oil."

Now, this. Who would have ever suspected?

And it all began with the "Bakken revolution."

Cay you imagine if the governor of North Dakota said oil at $50 was too low and for that reason was, by executive order, going to curtail crude oil production in the state?

Link here for this graphic from twitter:

Reader Has Question About New Overlapping 2560-Acre Unit In Big Butte -- December 3, 2018

A reader asked this question. It came in as a comment but because it had his e-mail address, etc, I did not post the comment.

Here was the reader's question: The following was on the ND Dockets for Nov 2018:

Case No. 27030: Application of Hess Bakken Investments II, LLC for an order amending the applicable orders for the Big Butte-Bakken Pool to establish an overlapping 2560-acre spacing unit described as Sections 13 and 24, T.157N., R.94W. and Sections 18 and 19, T.157N., R.93W., Mountrail County, ND, and authorize one horizontal well to be drilled on such unit, and for such other relief as may be appropriate. 

Do you know if the drilling of the one horizontal well is on any timeframe ?

My reply: unfortunately I don't have any information. The only way I will know is when I see a permit issued for that drilling unit.

This is the area we are talking about:

Corpus Christi Loading First LNG Cargo? -- Argus Media -- December 3, 2018

Updates

December 30, 2018: the Maria Energy has reached its destination. 

Original Post

Keeping America great!

From ArgusMedia:

The first export from Cheniere Energy's Corpus Christi LNG terminal in Texas is likely being loaded, and the second cargo could be exported soon after that.

The Maria Energy LNG vessel docked at the facility yesterday and the Golar Kelvin LNG vessel has been moored in the northern Gulf of Mexico, just south of Corpus Christi, since 29 November.

The Maria Energy, which has capacity of 174,000m³, equivalent to 3.6 Bcf (102mn m³) of gas, is chartered by Cheniere, while the 162,000m³ Golar Kelvin is chartered by Spain's Naturgy, formerly known as Gas Natural Fenosa. 

Cheniere previously planned to load the first Corpus Christi cargo on the 170,000m³ Golar Tundra that it charters. But on 21 November that vessel left Corpus Christi empty to load a cargo at Cheniere's Sabine Pass LNG terminal in Louisiana.

Gas intake at Corpus Christi increased significantly on 23 November and has averaged 369mn cf/d since then, for a total of about 4.1 Bcf.

Intake averaged 56mn cf/d from 19 October to 22 October, when the storage tank and loading terms were being cooled down before higher production could safely begin. About 10pc of the feed gas is used in the liquefaction process, so enough LNG has likely been produced to load the Maria Energy.

Cheniere has said it expects to export the first cargo from Corpus Christi train 1 and Sabine Pass train 5 in the fourth quarter. It has not commented on when Sabine Pass train 5 would load its first cargo, or if that has already happened.

Much more at the link.

I'll let someone else do all the conversions: mn m³; Bcf; m³; mn cf/d; boe; eieio.

Marine traffic can be tracked here.

ND Active Rig Count Drops Back To 64; Only Three New Permits Issued Today -- December 3, 2018

Gas price wars: earlier today I mentioned that there were signs of a gasoline price war here in north Texas. One of the "teasers" leading into tonight's local evening news: gasoline for $1.00/gallon at local station. Turns out to be $1.19/gallon with purchase of car wash. Nationwide, according to GasBuddy, the top five stations with lowest price for gasoline is in Denton, Texas, just a few miles north of where we live.

Active rigs:

$53.11	12/3/2018	12/03/2017	12/03/2016	12/03/2015	12/03/2014
Active Rigs	64	53	39	63	189

Three new permits:

• Operator: Petro-Hunt
• Field: Little Knife (Dunn)
• Comments: Petro-Hunt has permits for a 3-well Hagen/Sabrosky pad in 13-144-98;

Eight permits renewed:

• Crescent Point Energy: four CPEUSC Ruby permits and four CPEUSC Holmes permits, all in Williams County;

Two permits canceled:
Whiting: one Earl permit in Williams County
Resonance Exploration: one Ballantyne permit in Bottineau County

Five producing wells (DUCs) reported as completed: pending. IPs:

• 30062, 595, Equinor, Banks State 16-21 8TFH, Banks, t10/18; cum 2K over 4 days;
• 30625, 2,096, Equinor, Banks State 16-21 7H, Banks, t11/18; cum -- ;
• 30624, 1,621, Equinor, Banks State 16-21 6TFH, Banks, t10/18; cum 6K over 4 days;
• 30061, 391, Equinor, Banks State 16-21 5H, Banks, t11/18; cum -- ;
• 24244, 1,166, Equinor, Banks State 16-21 2TFH, Banks, t11/18; cum --;