Notes From All Over, Midnight Edition -- June 4, 2020

Bolshevik Bob: This was worth staying up for: Russia's energy minister sees shortage in oil market next month. Link here. I guess that's why Brent just spiked to $175.43 / bbl.

Just kidding: Brent is currently up 19 cents, trading at just over $40/bbl.

China recovery:

From oilx:

Saudi imports:

Must be another great night of rioting. Since the riots began, the Dow has surged more than a thousand points. Futures tonight: up another 200 points.

From social media:I don't know why, but every once in a while I get a random urge to listen to this, and then I do, and then I'm happy.

Notes From All Over, Late Afternoon Edition -- Musk Doesn't Have Authority To Break Up Amazon -- Reuters --Thursday, June 4, 2020

I don't even know where to file this, link here:

Open wheel racing: this weekend --

• June 6, 2020
• 7:00 p.m. CST (sic) on NBC
• Texas Motor Speedway
• Are you kidding me? CST -- Texas, like most of the nation, switched to daylight savings time back in March, 2020 -- CST?

Musk doesn't have authority to break up Amazon -- Reuters -- screenshot:

Saudi raises import fees, see link here:

Let's do the math.

Saudi Arabia imports about $30 billion each quarter, link here. Import fees will range from 0.5% to 15%. Let's assume 15% on all imports. $30 billion x 0.15 = $4.5 billion / quarter or $1.5 billion / month.

PIF generates $5 billion / month on a 10% annual return.

Trump Administration Reverses Obama Administration Regarding Tribe's Mineral Rights Under The River -- June 4, 2020

Just when I think I have a slow news day, an alert reader wakes me up.

This should get one's attention:

At stake is an estimated $100 million in oil royalties waiting in escrow to be claimed as well as any future payments. Three Affiliated Tribes Chairman Mark Fox said he plans to take legal action “ASAP,” likely with a federal lawsuit.

From the reader:

I haven't seen anything about this in your blog. An "M-Opinion" was issued by the Dept. of Interior last week - May 26th.

It is huge news because it reverses an eleventh hour M-Opinion issued by the Obama Administration just days before the end of his term and concludes that the State of North Dakota owns the minerals under the Missouri Riverbed on the Fort Berthold Reservation. Keep in mind that the Riverbed refers to the land prior to the construction of the Garrison Dam.

The issue of mineral ownership has languished for years. Many felt that Obama waited so long to issue the M-Opinion because it was not well supported by the law and precedence. However, there are arguments on both sides of the issue and it is likely that the Tribe will initiate legal action to pursue their contention of ownership.

Screenshot of from the second link below:

Links:

• https://www.doi.gov/sites/doi.gov/files/uploads/m-37056.pdf  
• https://ourriverourhome.com/press-releases/mha-nation-responds-to-doi-opinion
• https://yourvalley.net/stories/north-dakota-tribe-to-fight-ruling-giving-minerals-to-state,162903

I haven't  had time to look at all three links but will get them posted, since I was already late with this story.

I immediately checked Geoff Simon's top ND stories for last week, dated May 29, 2020. Unless I missed it, I didn't see this story at his newsletter, either.

Interestingly, the story was published in the San Antonio (Texas) Express-News yesterday, June 3, 2020. I will archive the entire article so it's not lost. Archived here.

See also this post from December 28, 2013.

NDARC Holds Steady At 12 -- June 4, 2020

Saudi Arabia: raises import duty to offset plunging oil prices. Link here.

The Saudis will be lifting import duties on products ranging from meat, dairy, and vegetables to chemicals, vehicles, and building materials. The import fees on those products will be raised by between 0.5 percentage point and 15 percentage points, starting next week.   

OPEC basket:  $35.46

Urals up 4.39%; now at $39.25.

Brent: no major blend settled above $40 today but Brent came close at $39.87.

Rebound:

China’s crude oil imports jumped by 13 percent from April to near record-highs of 11.11 million bpd in May, due to favorable spreads of the Shanghai-traded yuan-denominated oil futures and a ramp-up in refinery throughput, oil analytics firm OilX said in a report this week.

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Back to the Bakken

Active rigs:

$37.33	6/4/2020	06/04/2019	06/04/2018	06/04/2017	06/04/2016
Active Rigs	12	64	61	51	25

One new permit, #37613 --

• Operator: BR
• Field: Bear Creek (Dunn)
• Comments:
• BR has a permit for a Pullman well in SESW 18-147-95, Bear Creek; the daily report says this one is in Bear Creek, as a section line well, but from its description, it's clearly in Corral Creek based on section SESW 18-147-95 (maybe I'm misreading something) 

One producing well was reported as completed:

• 36133, SI/A, XTO, Arlys Federal 34X-31C, Siverston, t--; cum --; 
• a neighboring well, #21598, is off line; was taken off line 1/20; remains off line 4/20;

Perhaps St Greta Can Explain This -- June 4, 2020

Charting Sweden's disastrous no-lockdown strategy, link here.

Corona virus update for Sweden, link here.

From yesterday, for comparison, Norway reported 22 new cases, and no new deaths.

But look at these graphics.

New cases:

Sweden, new cases:

New deaths:

Sweden is in a very tough spot. Their "health director" says their response to Covid-9 failed, previously reported -- yesterday, I believe.

Now with this huge spike in new cases, new deaths, and a per capita rate exceeding countries like Canada, Sweden needs to re-think their strategy. It will be interesting to see what comes of this.