Notes From All Over -- September 5, 2020

Top stories for the week posted earlier: link here. 

Albany, NY: school district cutting more than 200 jobs after revenue loss --

The school district is facing a revenue loss of up to $25 million due to a lack of state and federal aid for the 2020-2021 school year related to the coronavirus pandemic, the district said in a Wednesday press release. Google link.

U-Haul prices jump amid high-tax city, state exodus -- google link -- this is one story CNBC  has not been reporting -- note Albany to Orlando --

Which, by the way, brings up another point: a lot of chatter about when this (Covid-19 pandemic) will be all over. First milestone: end of this school year -- May, 2021. Now that kids are going back to school -- kindergarten to college -- things are set. Even if the pandemic ends tomorrow, folks have re-located for the (school) year. 

Finally: Warren Buffett slashes stake in Wells Fargo. Still owns 137.6 million shares, but that's down about 100 million from end of June, 2020. Google link.

Tesla voted off the island; actually TSLA was never on the island, but now it's official: TSLA doesn't get "into the S&P 500." Google link.

And the winner is ... Microsoft. DoD review concludes Microsoft's offer is the best value to the US government -- wins the JEDI contract over Amazon. A "DoD review." I'm shocked. I'm shocked. DoD is a department run by the president. Google link. 

Texas flaring: ConocoPhillips withdrew its request to extend flaring permits at 41 of its sites in west Texas. No good deed goes unpunished. Link here.

Navajo humor:

Global Warming Smacks Indian Summer -- September 5, 2020

Link here. 

Northern Border Pipeline Could Reject US Natural Gas If ND Producers Don't React -- September 5, 2020

 From Geoff Simon's top stories of the week:

A tariff pending before the Federal Energy Regulatory Commission may place limits on the heat content of natural gas in the Northern Border Pipeline.

Justin Kringstad, director of the ND Pipeline Authority, told members of the ND Industrial Commission this week that the tariff would allow Northern Border to reject any gas that exceeds 1,100 BTU per cubic foot.

That could be a problem for North Dakota producers because natural gas produced in North Dakota is rich in ethane and other natural gas liquids.

Kringstad said the gas must be processed to remove those NGLs to reduce its heat content to the 1,100 BTU level.

North Dakota gas now makes up about 80 percent of the total moving through the Northern Border Pipeline, and "signs are pointing toward North Dakota being almost the exclusive shipper in the next three to six years," Kringstad said. He said achieving the 1,100 BTU threshold would require the removal of additional 80,000 bbl/day of ethane by the year 2027.

Industry sources say the ideal heat content for natural gas is between 950 and 1,100 BTU/cubic foot. Gas that burns hotter can damage appliances and other equipment that burn it. Kringstad said Northern Border interconnects with several downstream pipelines that limit heat content to 1,100 BTU or less.

"The downstream folks are concerned that North Dakota's gas is getting too hot," Kringstad said. "The marketability and safety issues downstream are what's driving pressure on Northern Border to implement the tariff change."

North Dakota may have a little time to adapt if FERC approves the new tariff. Kringstad said the change would not be immediate because the tariff would be phased in, starting at 1,155, stepping down to 1,140 and eventually down to 1,100. He said the near-term solution is balancing the hotter gas going into the pipeline with dryer gas that has had most of its liquids removed. Kringstad said one other possibility he's exploring that could provide opportunity to electric generators is injecting hydrogen gas in the pipeline.

Fascinating story on so many levels. 

 

Week 36: August 30, 2020 -- September 5, 2020

Top story of the week:

• US sets natural gas power production;
• US productivity surges 10.1%;
• WTI in free-fall; drops below $40 at end of week;
• Schlumberger abandons fracking in North America;

Top international non-energy story:

• Saudi Aramco resets;
• Saudi Arabia's problems worsen;

Top international energy story:

• Bottom falling out of Mexican oil production faster than you can say Andrés Manuel López Obrador;
• Saudi Aramco shelves $20 billion petrochemical plant;
• Saudi Arabia slows diversification; short on cash; foreign exchange reserves posted;
  
• Saudi Arabia cutting crude oil deliveries to the US;
• Saudi oil shipments plunge to 35-year low;
• Chinese and Saudi oil giants book mammoth losses;
• UK: interest in buying a new EV falls from 16% to 4%;
• Tesla losing ground in Europe; July registrations collapse;

Top national non-energy story:

• Residents fleeing NYC; parking garages empty in NYC;

Top national energy story:

• US ethane production hits record;

Top North Dakota non-energy story:

Top North Dakota energy story:

• Active rigs drop to 9 -- first time since Bakken revolution?

Geoff Simon's top North Dakota stories:

• Northern Border Pipeline may reject "hot gas";
• Feds want deal with ND over pipeline protest costs;
• Trump administration to remove hurdles to oil drilling in ND grasslands;
• Judge dismisses lawsuit questioning governor's executive order authority;
• Long X Bridge project south of Watford City on track to finish in July, 2021;
• Stark County approves $350,00 for runway project at TR regional airport;
• US gasoline prices heading into Labor Day weekend are the lowest since 2004;

Operators:

• NOG announces 10 - 1 reverse split;
• Whiting emerges from bankruptcy;
• Enerplus with nine new permits;

Operations:

• Zavanna's Panther wells production updated;
• CLR's Anna wells back on line;
• MRO's Antelope-Sanish wells;

Fracking:

Advantaged oil:

• An Enerplus Like Eagle well had huge jump in production;
• An MRO Jacob Madison well;
• Slawson, Alamo, Big Bend;

500 K wells:

• Equinor, Richard, Banks;
• Newfield, Moberg Federal, Bear Den;
• Several 19XXX wells;
  

Bakken economy:

• American Airlines to begin seasonal flights from Bismarck to Phoenix;
• The Bismarck Tribune eliminates the Sunday edition;
  

Commentary:

• Fossil fuels are here to stay;
• Why are refiners continuing to produce so much distillate fuel?

New EV Battery Gigafactory Manufacturer In Europe -- September 4, 2020

Link to Tsvetana Paraskova:

Supermajor Total continues to invest in clean energy by creating a joint venture with automaker Groupe PSA to manufacture batteries for electric vehicles in Europe—a project expected to mobilize investment of more than US$5.9 billion (5 billion euro). 

Total, via its subsidiary SAFT, will contribute to the project with industrialization and research and development (R&D) expertise, while PSA will contribute its automotive production experience. 

An R&D center in Bordeaux and a pilot site in Nersac, France, have already launched work to develop new high-performance lithium-ion technologies. The companies plan to launch mass production after the R&D phase ends at two gigafactories in Europe, one in Douvrin, France, and one in Kaiserslautern, Germany.

I've run out of fingers and toes to count all these EV and EV battery manufacturers.