Nvidia: The Story To Follow -- SK Hynix -- November 4, 2024

Locator: 48708TECH.

This story is being reported everywhere -- easy to find.

After a fairly deep dive into chips and nodes today over the past 72 hours, there are three variables to watch: the product; the customer; and, time. Someone else came with up that, not me. For an investor, knowing the customer is just as important. Of the three, time may be as critical as the product and the customer.

Time. Moore's law: the number of transistors on a microchip doubles every two years (1965).

Somewhere along the line, "time shrunk." Perhaps it was Apple's product cycle: Apple tended to refresh their cell phones every year. 

We're now seeing the same thing with chips. But now,  one year has now changed to six months.

That brings us to SK Hynix. 

Hynix (Hyundai-roots). Wiki.

SK Hynix Inc. is a South Korean supplier of dynamic random-access memory (DRAM) chips and flash memory chips. SK Hynix is one of the world's largest semiconductor vendors.

Founded as Hyundai Electronics in 1983, SK Hynix was integrated into the SK Group in 2012 following a series of mergers, acquisitions, and restructuring efforts. After being incorporated into the SK Group, SK Hynix became a major affiliate alongside SK Innovation and SK Telecom.

The company's major customers include Microsoft, Apple, Asus, Dell, MSI, HP Inc., and Hewlett Packard Enterprise (formerly Hewlett-Packard). Other products that use Hynix memory include DVD players, cellular phones, set-top boxes, personal digital assistants, networking equipment, and hard disk drives.

From CNBC today:

The big question: where does Micron fit in this equation? Link here.

Northern Israel, South Lebanon, Hezbollah And Iran -- November 4, 2024

Locator: 48707ISRAEL.

Geopolitics: northern Israel and the Lebanese border. The fog is beginning to clear. From Simon Watkins who is always worth listening to:

The logical conclusion to the train of events that was put in place when Iran first gave the go-ahead in June for Hamas’s attacks on Israel on October 7, 2023, is three-fold.

First, Israel will attempt to secure and hold the area in the northern part of its country that abuts southern Lebanon, from which 60,000 or so Israelis who were evacuated last year.

As they were moved from the region due to ongoing missile attacks from Hezbollah, this can only be achieved with the neutralisation of the Iranian-backed group within a certain distance of these Israeli residents. This will require an ongoing big push over many months at minimum from troops, tanks and other support vehicles on the ground in Lebanon.

Legally, this would accord with the terms of UN Resolution 1701 that prohibits the terrorist organisation from operating south of the southernmost stretch of the Litani River that runs 15 to 20 miles north of the Israeli-Lebanon border. This Resolution remains in play, although it has never been properly enforced by the UN and has been completely disregarded by Hezbollah ever since it was put in place.

Second, Israel will push for much more help from the U.S. to keep this Resolution active, and much greater support from it too in leveraging its remaining influence over key Arab states, most notably Saudi Arabia and the UAE, to maintain a distance from the actions of Israel’s most immediate enemies.

And third, Israel will want to destroy several of Iran’s key nuclear sites. Some of this could be done through a combination of technology and human intelligence mechanisms, but some will have to be done through air strikes.

BR With Two New Permits -- November 4, 2024

Locator: 48706B.

WTI: 471.47.

Active rigs: 38.

Two new permits, #41308 and #41309:

• Operator: BR
• Field: Elidah (McKenzie)
• Comments:
• BR has permits for two Sandie wells, SESW 21-151-97, 
• to be sited 510 FSL and 2342 FWL and 496 FSL and 2373 FWL;

Four permits renewed:

• CLR, #34272 - 34275, inclusive: four Durham permits, North Tobacco Garden, McKenzie County.

Jump In Production -- Petro-Hunt -- Little Knife Oil Field -- November 4, 2024

Locator: 48705B.

The well:

• 32170, 1,425, Petro-Hunt, Dolezal 146-97-31D-30-1H, Little Knife, t7/17; cum 499K 9/24; recent production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	9-2024	26	10277	9964	16970	9463	9198	84
BAKKEN	8-2024	10	770	876	1167	1381	1311	0
BAKKEN	7-2024	31	2498	2512	3735	4097	3879	2
BAKKEN	6-2024	30	2989	2877	4212	5140	4910	21
BAKKEN	5-2024	31	2759	2773	4188	4384	3768	400
BAKKEN	4-2024	30	2665	2721	4715	4338	3586	543
BAKKEN	3-2024	31	2699	2632	5230	4780	3479	1085
BAKKEN	2-2024	29	2477	2519	4539	5937	5308	427
BAKKEN	1-2024	31	3854	3860	5400	11018	10787	15
BAKKEN	12-2023	31	3818	3781	5067	9678	8994	468
BAKKEN	11-2023	30	4320	4398	8092	10698	10409	80
BAKKEN	10-2023	31	4944	4866	5780	8940	8709	15
BAKKEN	9-2023	30	3009	3057	3868	3867	3657	1

Wells of interest:

• 35581, 770, Petro-Hunt, Dolezal 146-97-31C-30-4H, Little Knife, t6/19; cum 299K 9/24;
• 32171, 1,529, Petro-Hunt, Dolezal 146-97-31D-30-2H, Little Knife, t7/17; cum 380K 8/24; off line 9/24;
• 32172, 851, Petro-Hunt, Dolezal 146-97-31D-30-3H, Little Knife, t8/17; cum 305K 9/24; remains on line;

Increased Natural Gas Takeaway For The Bakken -- TC Energy, Kinder Morgan; Bakken Xpress Pipeline -- ND, MT, WY To Colorado -- Novermber 4, 2024

Locator: 48704PIPELINES.

A huge thank you to a reader for sending me this. Link here.

FERC this month cleared a pair of natural gas pipeline projects by TC Energy Corp. and Kinder Morgan Inc. designed to add Bakken Shale takeaway capacity with access to natural gas trading markets in Colorado.

A map of Kinder Morgan's Bakken Xpress Pipeline from North Dakota, Montana and Wyoming to Colorado, with key NGI spot prices for the region listed in a table.

Kinder Morgan’s Wyoming Interstate Co. LLC (WIC) would provide 300,000 Dth/d of firm transportation capacity along its system and three other pipelines in a project dubbed Bakken Xpress. Hess and Oneok Rockies Midstream LLC signed on as shippers during an open season for 430,000 Dth/d in 2023.

Under a certificate approved by the Federal Energy Regulatory Commission (No. CP23-543), WIC will lease capacity on TC’s Northern Border and Bison pipeline systems and Fort Union Gas Gathering.

Opening up the new route, FERC approved a certificate (No. CP23-544) that would allow TC to reverse the idled Bison pipeline originally built to transport gas from the Powder River Basin in Wyoming into Midwestern markets. TC’s Bison Xpress project would upgrade three Northern Border compressor stations (CS) and modify the Bison system to allow for bidirectional flows.

Fort Union and WIC would ship the Bakken gas further south to the Cheyenne Hub in Colorado.

Bakken Xpress was expected to be in service by March 2026, WIC said in its application.