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Ken Feldman

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Re: Oil and Gas Issues
« Reply #3700 on: April 07, 2020, 08:23:31 PM »
Ken, just for clarification:

In a civilized country, owners of rigs like these would be paid to scrap them, now they just stand idle waiting for the next boom in business. Is that correct?

An uncivilized country would carry on building pipelines in order to get the rigs into action again. Is that correct?

All the scrap metal from these rigs and pipelines would make for some mighty fine turbine towers, but that would be somewhat outlandish - wouldn't?

Instead of using a lot of energy to scrap the rigs and recycle them into parts for windmills, it would probably be better to use them to create geothermal energy wells to provide 24/7 baseload for intermittent renewables like solar and wind.  It appears that the same type of rigs used for oil and gas can be used for geothermal wells.  In fact, there have been times when abandoned oil or gas wells have been converted to geothermal wells.

https://www.quora.com/Can-dry-oil-gas-exploration-wells-be-converted-to-geothermal-wells-Is-this-happening-in-any-place-in-he-world-For-example-in-Morocco-where-exploration-has-been-run-for-decades-with-only-dry-wells

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Can dry oil&gas exploration wells be converted to geothermal wells? Is this happening in any place in he world? For example, in Morocco where exploration has been run for decades with only dry wells.

1 Answer
Roar Nybø
Roar Nybø, Research Scientist at SINTEF Petroleum Research
Updated Aug 13, 2014 · Author has 151 answers and 351.7k answer views
It could happen where petroleum and geothermal activities overlap, but a more common scenario is re-purposing a "spent" oil & gas well. The subsurface conditions are well-known for a spent well and it has a proven permeability, which is essential if you plan for a geothermal well that circulates fluids through cracks in the rock. Abandoned wells don't necessarily have this. The "dry wells" are also commonly exploration wells, which may not be ideal as long-term geothermal production wells.

Re-purposing spent wells for geothermal energy is also attractive because you avoid the cost of plugging and abandonment (P&A) for old wells. This is a costly procedure both on- and off-shore [5,6] and several companies are poised to take over those wells for geothermal purposes [7-9, 13]. It has even been considered to use otherwise abandoned offshore platforms in the North Sea as geothermal power plants [10]. There's some advantages to this, but a lot further off than onshore re-purposing. The equally surprising idea of drilling for fresh water from offshore rigs [11] is probably easier in terms of existing technology.

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In The Netherlands, a typical geothermal well also tends to produce some oil and gas. This is an issue of concern, as it means the geothermal operator need to aquire the same set of safety equipment and know-how as oil and gas operators, to avoid spills and blowouts [2]. This wouldn't be a problem if those drilling the well work in both the geothermal and oil & gas regime. In fact it has been suggested that drilling locations in The Netherlands should be aimed at hitting both petroleum and geothermal heat, so that the inevitable dry wells will at least be in a favourable spot for geothermal heat. As far as I've gathered, this business case is being hampered by Dutch law, where you apply for separate licenses for a geothermal and an oil & gas well. There is no "I'd like to drill a hole and see what I find, please" license.

gerontocrat

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Re: Oil and Gas Issues
« Reply #3701 on: April 07, 2020, 09:43:48 PM »
The US President will let the markets decide.  As the price of oil is currently lower than the cost to produce it in most US oil patches, this is not good news for the fossil fuel extractors.

https://oilprice.com/Energy/Energy-General/Trump-Free-Markets-Will-Determine-US-Oil-Production.html

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Trump: Free Markets Will Determine U.S. Oil Production
By Irina Slav - Apr 07, 2020

U.S. President Trump believes local oil production output cuts will happen automatically thanks to the nature of the free market, he told reporters this week.

“I think the cuts are automatic if you are a believer in markets,” Trump said at his daily coronavirus press briefing. He also added that the U.S. had not been officially asked to take part in any production cuts.

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One could argue that Trump’s call on OPEC and Russia to cut production goes counter to his belief in the free market, but it is also true that U.S. producers would be forced to cut output with or without an international agreement if their breakeven prices are higher than the price at which oil is actually trading.
Trump - he speak with forked tongue.
"Para a Causa do Povo a Luta Continua!"
"And that's all I'm going to say about that". Forrest Gump
"Damn, I wanted to see what happened next" (Epitaph)

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3702 on: April 08, 2020, 12:46:21 AM »
Here's a good article explaining how the Covid-19 recession and the economic stimulus to combat it will result in an increased market share for renewables over gas and oil.

https://www.reuters.com/article/us-column-russell-health-coronavirus-cli/renewable-energy-wins-over-oil-and-gas-in-post-coronavirus-world-russell-idUSKBN21P0L5

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April 6, 2020
Renewable energy wins over oil and gas in post-coronavirus world: Russell
Clyde Russell

LAUNCESTON, Australia (Reuters) - Imagine waking up one morning with a deadly tiger snake in your bed. To make matters worse out of the window you notice an approaching bushfire.

Both are a threat to your life, but you are going to deal with the imminent danger of the snake first, and then tackle the more distant but still serious fire. It’s the same with the new coronavirus and climate change.

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But this ignores the fact that at some point the world will contain the pandemic, and climate change will once again become a driving influence in the debate on the future of energy.

The coronavirus is also likely to change the market dynamics of the various types of energy, and mostly in favour of renewables such as wind, solar and hydropower.

The outbreak had already wrought radical change in two different ways. The first is that the oil and gas industry has been shaken to its core, while the second is that the cost of capital is at record lows, and there will be billions of dollars of stimulus spending looking for a home.

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While it’s likely that both crude and LNG prices will recover in the coming months and years as demand growth resumes, it’s also likely that the trajectory will be lower.

Previous experience of price collapses shows it takes several years for a full recovery to eventuate, mainly as demand has to recover, or supply has to adjust lower in order to achieve a balanced market.

For crude and LNG what this means is that much of the investment that had been planned before the coronavirus struck will be delayed or even scrapped.

Up to $210 billion of planned oil and gas investments are now at risk from the coronavirus, consultants Wood Mackenzie said in an April 2 research note.

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The biggest costs for utility scale wind, solar and battery storage projects are the upfront capital, given that once these projects are operating costs tend to be minimal.

With central banks flooding the system with cheap cash and governments likely to be keen to pursue stimulus projects once the coronavirus lockdowns are lifted, renewables should be able to capture an increasing share of this investment.

In Western countries, renewables are popular with the most of the populace, while fossil fuel plants such as coal and natural gas units have largely lost the public relations battle and are seen as part of the carbon emissions problem.

In developing nations such as India, Vietnam and others in Asia and Africa, renewables will likely be significantly cheaper and faster to build and connect to electricity grids than conventional fossil fuel power plants.

kassy

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Re: Oil and Gas Issues
« Reply #3703 on: April 08, 2020, 06:41:57 PM »
Thanks for keeping up the service in these times!  ;)

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The task force recommended shutting down the last coal-fired power plant by 2038 at the latest. The government has since moulded the proposal into legislative drafts. The coal exit law does not require the consent of federal states. The legislative process is currently held up by the impacts of the coronavirus pandemic. Zaremba writes that it is unlikely that the law will undergo major changes in the Bundestag.

https://www.cleanenergywire.org/news/government-rejects-state-demands-changes-coal-exit-law

So there is some fight between the states and the German government about the coal exit.
If any german member could chime in on more specifics that would be great.
Þetta minnismerki er til vitnis um að við vitum hvað er að gerast og hvað þarf að gera. Aðeins þú veist hvort við gerðum eitthvað.

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3704 on: April 08, 2020, 08:40:08 PM »
The production declines are starting in the North Dakota (mainly Bakken) oil patch.

https://www.jamestownsun.com/business/energy-and-mining/5034716-ND-oil-production-slumps-from-coronavirus-crisis-price-war

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ND oil production slumps from coronavirus crisis, price war
Written By: Patrick Springer | Apr 8th 2020

FARGO — Production in North Dakota’s Oil Patch has slumped by an estimated 175,000 barrels daily — down from 1.4 million barrels daily — from the “double whammy” of plunging demand from the coronavirus crisis and a glut caused by a price war.

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The number of drilling rigs operating in the Oil Patch has dropped 35%, from 53 to 35, with an optimistic forecast that the rig count could hold between 25 to 29 as producers struggle with low prices and demand, said Ron Ness, president of the North Dakota Petroleum Council.

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Operators will need access to capital — $120 million, by Ness’ estimate — to maintain oil production, a lifeline that is difficult to sustain with low prices and demand, Ness said.

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3705 on: April 11, 2020, 12:17:42 AM »
The US rig count continues to decline.

https://oilprice.com/Energy/Energy-General/Rig-Count-Collapse-Continues-Despite-Historic-Global-Oil-Deal.html

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Rig Count Collapse Continues Despite Historic Global Oil Deal
By Julianne Geiger - Apr 10, 2020

Baker Hughes reported on Thursday that the number of oil and gas rigs in the US fell again this week by 62, falling to 602, with the total oil and gas rigs clocking in at 420 fewer than this time last year.


vox_mundi

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Re: Oil and Gas Issues
« Reply #3706 on: April 12, 2020, 08:02:01 PM »
Oil Price War Claims Another Victim
https://oilprice.com/Energy/Natural-Gas/Oil-Price-War-Claims-Another-Victim.amp.html

The oil price war has already claimed its first victim.

Whiting Petroleum Corp., once the largest oil and gas producer in North Dakota's Bakken Shale, has filed for Chapter 11 bankruptcy becoming the first major shale producer to do so in the current year. Whiting has cited the "severe downturn" in oil and gas prices courtesy of the Saudi Arabia-Russia oil price war and COVID-19-related impact on demand.

But this shale producer has no plans to go into a state of suspended animation: Whiting has announced that it will go ahead with full production claiming it has ample liquidity with $585M of cash on its balance sheet and has reached an agreement in principle with certain noteholders for a comprehensive restructuring.

In short, Whiting’s playbook is to buy more time hoping for a rebound in energy prices to bail it out.
“There are three classes of people: those who see. Those who see when they are shown. Those who do not see.” ― Leonardo da Vinci

Insensible before the wave so soon released by callous fate. Affected most, they understand the least, and understanding, when it comes, invariably arrives too late

Sigmetnow

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Re: Oil and Gas Issues
« Reply #3707 on: April 14, 2020, 03:30:41 PM »
.
People who say it cannot be done should not interrupt those who are doing it.

Sigmetnow

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Re: Oil and Gas Issues
« Reply #3708 on: April 14, 2020, 07:02:51 PM »
The weekend Russia-Saudi agreement to cut 10% does not make up for the 20-30% drop in demand,
“virtually guaranteeing a flood of crude and products heading into storage in the short and medium-term.”

Oil loses ground as focus shifts from output cuts back to demand hit
Published: April 14, 2020 at 12:25 p.m. ET
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Traders remain skeptical that the output cut deal avert significant oversupply in the months ahead as evidenced by a steep contango for Brent and WTI forward prices.

West Texas Intermediate crude for May delivery fell $1.34, or 6%, to $21.07 a barrel on the New York Mercantile Exchange, with prices on pace to settle at their lowest since April 1.

The global economic outlook is still bearish for oil also, with the International Monetary Fund on Tuesday forecasting a contraction in the global economy at a 3% annual rate this year, followed by a 5.8% rebound in 2021. That’s a deeper recession than during the 2008-2009 financial crisis. The IMF said the U.S. economy would shrink 5.9% this year.

The Railroad Commission of Texas was holding a hearing on Tuesday to discuss a potential 20% reduction in oil output for the state, which would equate to roughly 1 million barrels a day out of total production of around 5 million barrels a day in Texas. The state accounts for about 40% of total U.S. output.
https://www.marketwatch.com/story/oil-loses-ground-as-focus-shifts-from-output-cuts-back-to-demand-hit-2020-04-14
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Ken Feldman

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Re: Oil and Gas Issues
« Reply #3709 on: April 14, 2020, 08:16:27 PM »
^^^

Yes, here's another look at the OPEC+ deal to cut production, summarized as too little and too late.

https://oilprice.com/Energy/Oil-Prices/OPEC-Deal-Is-Too-Little-And-Too-Late.html

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OPEC+ Deal Is “Too Little And Too Late”
By Nick Cunningham - Apr 13, 2020

The historic agreement that we saw…is only 10 mb/d. But that is only half of the story,” U.S. Secretary of Energy Dan Brouillette said on Fox Business. “When you add up all of the production cuts around the world, we are going to be much closer to 20 mb/d coming off the market.”

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The deal mitigates some of the destruction in the U.S. shale patch. Bank of America predicted that U.S. oil production would have fallen by as much as 3.5 mb/d by the end of next year absent a deal. The cuts announced by OPEC+ could translate into a drop in U.S. production by a more modest 1.8 mb/d instead.

Nevertheless, the current meltdown is already having an effect. The North American oil industry has announced roughly $50 billion in spending cuts over the past month, according to the Wall Street Journal. The U.S. and Canada have shelved more than 300 rigs since mid-March.

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Shut ins have already begun. Continental Resources said it would cut output by 30 percent for April and May. Concho Resources began shutting in wells in the Permian last week. Parsley Energy has shuttered production at 150 wells. As the WSJ notes, many other smaller companies are shutting in.

The drop in demand is simply too large. In the short run, demand is down by 25 to 30 mb/d, according to an array of analysts. Bank of America sees demand falling by 9.2 mb/d for the full year in 2020, a larger decline than the 4.4 mb/d the bank previously predicted. “The demand implosion is immediate and deep, while the supply decline will likely happen in stages,” Bank of America said. “So plenty of downside risks remain.”

Sigmetnow

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Re: Oil and Gas Issues
« Reply #3710 on: April 15, 2020, 05:06:56 PM »
Chesapeake Energy's stock tumbles toward record lows, even as large reverse split boosts price by 200 times
April 15, 2020 at 8:45 a.m. ET
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Shares of Chesapeake Energy Corp. (CHK, -39.12%) have a new lease on its NYSE listing, as a large reverse stock split has taken effect, but the stock continued to tumbled toward record lows.

The stock had dropped 18% on Monday to close at a record pre-split-adjusted price of 13.12 cents, before a 1-for-200 reverse split went into effect to adjust the record-low closing price to $26.24. The oil and gas company's stock plunged 28% in premarket trading Wednesday, while crude oil futures CL00, -0.89% slid 2.1%.

Chesapeake Energy set the reverse split to bring it back into compliance with NYSE-listing requirements. Over the past three months, the stock has plummeted 80.8% through Tuesday, while crude oil futures have dropped 66.0% and the S&P 500 SPX, -2.52% has lost 13.5%.
https://www.marketwatch.com/story/chesapeake-energys-stock-tumbles-toward-record-lows-even-as-large-reverse-split-boots-price-by-200-times-2020-04-15
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blumenkraft

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Re: Oil and Gas Issues
« Reply #3711 on: April 15, 2020, 05:42:49 PM »
Sharp drop in LNG exports, but Novatek says new Arctic projects will proceed as planned

Link >> https://thebarentsobserver.com/en/industry-and-energy/2020/04/sharp-drop-lng-exports-novatek-says-building-new-arctic-projects-will

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3712 on: April 15, 2020, 08:59:52 PM »
The US Energy Information Agency (EIA) has called peak US oil and gas production.

https://oilprice.com/Energy/Crude-Oil/US-Oil-Drilling-Grinds-To-A-Halt-At-Key-Shale-Hotspots.html

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U.S. Oil Drilling Grinds To A Halt At Key Shale Hotspots
By Nick Cunningham - Apr 14, 2020

Oil and gas production in the United States has peaked and is already in decline.

The latest data from the EIA’s Drilling Productivity Report sees widespread production declines across all major shale basins in the country. The Permian is set to lose 76,000 bpd between April and May, with declines also evident in the Eagle Ford (-35,000 bpd), the Bakken (-28,000 bpd), the Anadarko (-21,000 bpd) and the Niobrara (-20,000 bpd).

Natural gas production is also in decline, a reality that occurred prior to the global pandemic but is set to accelerate. The Appalachian basin (Marcellus and Utica shales) are expected to lose 326 million cubic feet per day (mcf/d) in May, a loss of 1 percent of supply. In percentage terms, the Anadarko basin in Oklahoma is expected to see an even larger drop off – 216 mcf/d in May, or a 3 percent decline in production.

The sudden declines in production illustrates the fatal flaw in the shale business model. Once drilling slows down, production can immediately go negative due to steep decline rates. Shale E&Ps have to keep running fast on the drilling treadmill in order to keep production aloft. But the meltdown in prices has forced the industry to idle 179 rigs since mid-March.

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The OPEC+ deal won’t rescue a lot of shale companies. The demand destruction is simply too large for the OPEC+ cuts. With WTI at $20 per barrel on Tuesday, Permian drillers are actually receiving quite a bit less than that.

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The WSJ says that oil storage in Cushing, OK could be full by the end of the month, which could abruptly force production shut ins in Oklahoma and Texas. That suggests the EIA estimate for a decline in U.S. shale production of 183,000 bpd in May could be optimistic.


Ken Feldman

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Re: Oil and Gas Issues
« Reply #3713 on: April 15, 2020, 09:03:40 PM »
You can buy a barrel of Canadian oil for less than the cost of a beer.  This is not good news for the tars sands producers.

https://oilprice.com/Latest-Energy-News/World-News/Western-Canadian-Select-Falls-Below-5.html

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Western Canadian Select Falls Below $5
By Michael Kern - Apr 15, 2020

Canadian oil is struggling. And I mean really, really having a tough time. Alberta's benchmark, Western Canadian Select, is now cheaper than a pint of beer. Sitting at $4.71 at the time of writing, WCS is facing a nightmare scenario.

mitch

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Re: Oil and Gas Issues
« Reply #3714 on: April 15, 2020, 11:27:22 PM »
Given price of Canadian Tar Sands oil, maybe this means the end of the Keystone XL pipeline. One can only hope.

blumenkraft

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Re: Oil and Gas Issues
« Reply #3715 on: April 16, 2020, 07:25:24 AM »

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3716 on: April 16, 2020, 07:50:47 PM »
Covid-19 and the recession it's caused has erased about a decade of oil demand growth.

https://oilprice.com/Energy/Crude-Oil/Coronavirus-Has-Wiped-Out-A-Decade-Of-Oil-Demand-Growth.html

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Coronavirus Has Wiped Out A Decade Of Oil Demand Growth
By Nick Cunningham - Apr 15, 2020

Just days after the largest production cut in history, WTI fell below $20 per barrel.

The oil world was hyper-focused on what OPEC+ might do over the past week, and on what the Texas Railroad Commission might do as a follow-up measure. The cuts are massive. OPEC+ alone will cut by nearly 10 million barrels per day (mb/d). The market-induced contraction will make the output declines even larger.

But the destruction in oil demand is both larger and much more immediate. April demand is expected to be down by 29 mb/d, according to the International Energy Agency (IEA). Oddly, so many forecasts from investment banks have predicted a V-shaped recovery for the global economy, but that scenario appears increasingly optimistic.

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The IEA assumes a version of a V-shaped recovery, although it says demand will be down for the rest of the year, including down 26-mb/d in May. For the full-year, the IEA sees demand contracting by 9.3 mb/d.

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Because the OPEC+ deal falls far short of the decimation in demand, more supply cuts are coming, whether or not governments mandate them. With pipelines and storage tanks filling up, local prices are crashing. Western Canada Select has been trading in single digits since late March – WCS is currently below $5 per barrel.

WTI in Midland is as low as $10 per barrel, while West Texas Sour in Midland has plunged to $7 per barrel. These are prices that force immediate shut ins.

The U.S. shale industry spent Monday arguing over whether or not the Texas Railroad Commission should regulate production. “Nobody wants to give us capital because we have all destroyed capital and created economic waste,” Scott Sheffield of Pioneer Natural Resources told the Texas Railroad Commission. “If the Texas Railroad Commission does not regulate long-term, we will disappear as an industry like the coal industry,” he said. That comment comes after years of shale executives boasting of low breakeven prices.

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The agency said that roughly 2.2 mb/d of U.S. oil supply cannot even cover operating costs with WTI at $20 per barrel, including 1.2 mb/d of conventional supply. Another 1.3 mb/d of losses could come from the steep declines in existing shale production.

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3717 on: April 16, 2020, 07:57:09 PM »
Most of the new oil field discoveries this century have been shale patches made possible by fracking and deep sea fields off the coasts of Africa and South America.  These are among the most expensive fields to produce, so will be the first to shut down due to low prices.  Some of these projects may be abandoned due to demand destruction.  Case in point, Brazil:

https://oilprice.com/Energy/Crude-Oil/20-Oil-Could-Crush-Brazils-Offshore-Oil-Boom.html

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$20 Oil Could Crush Brazil’s Offshore Oil Boom
By Viktor Katona - Apr 15, 2020

Brazil has suspended its 17th licensing round which would have seen the state oil regulator ANP offering 128 offshore exploration blocks throughout the country, fearing that the plummeting oil prices and unprecedented declines in global crude demand entailing double-digit-percent CAPEX cuts will set the stage for another fiasco. With two failed pre-salt licensing rounds in November 2019 tarring the overall successful year of both Brazil and Petrobras, clouds are growing heavier around the upstream future of Brazil, once the leading deep-water investment hotspot of the Americas. This time it is not even the government’s fault – it has tried to redeem its past errors with a couple of new initiatives, however coronavirus got in the way.

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3718 on: April 17, 2020, 07:02:08 PM »
Oil demand is dropping faster than the experts can revise their projections, and it's not expected to bounce back this year.

https://oilprice.com/Energy/Energy-General/Oil-Demand-Wont-Bounce-Back-Any-Time-Soon.html

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Oil Demand Won’t Bounce Back Anytime Soon
By Nick Cunningham - Apr 16, 2020

Oil demand is expected to be down by nearly 30 million barrels per day (mb/d) in April and down by almost 10 mb/d for the entire year, according to the latest estimates. But some forecasts still optimistically assume that demand bounces back in the second half of the year, a scenario that may not come to pass.

Since February, investment banks repeatedly revised down their numbers with each passing week. It took until April for the consensus to arrive at a temporary demand hit of 25 to 30 mb/d. However, many forecasts still assume the global economy rebounds after the second quarter in a “V-shaped” recovery.

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But there are multiple reasons why the global economy may not return to anything close to “normal” even by the end of 2020.

One of the principle reasons should be an obvious one – the global pandemic is far from over. The rate of infections in Europe and in some parts of the U.S. has flattened, sparking calls to lift stay-at-home orders. But glimmers of hope may be misleading. “The problem is that most countries have an overall infection penetration below 5%. The moment the restrictions are relaxed the daily infection rates will spike back up again,” Bjarne Schieldrop, chief commodities analyst at SEB, said in a report.

“Thus, rather than moving from ‘deep-freeze lock-down’ in Q2 and then directly to ‘all-back-to-work’ in Q3 we are more likely going to move to ‘semi-lock-down’ as well as repeated start-stop, start-stop moves going forward as governments try to ease restrictions but then must pull back again as infection rates revives again,” Schieldrop warned.

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The second reason why demand may not bounce back (and obviously related to the first) is that the global economy is in trouble. Just days ago President Trump said the economy would “boom” once the lockdown measures are lifted. 

But a new working paper from the National Bureau of Economic Research says that U.S. GDP could contract by 11 percent in the fourth quarter of 2020, year-on-year.

The International Monetary Fund warned that the world is facing the worst downturn since the Great Depression in the 1930s. “The magnitude and speed of collapse in activity that has followed is unlike anything experienced in our lifetimes,” Gita Gopinath, IMF chief economist, said this week.

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Ultimately, economic activity may not rebound until a vaccine is readily available, or at least a robust system of testing that allows for a reopening of sections of the economy. As the New York Times notes, there is data showing a hit to regional economies in the U.S. that in some cases preceded lockdown orders, evidence that people stayed home and held back spending on their own, fearing the virus.

That means that simply lifting stay-at-home measures does not return the economy to “normal.” A lot of people will likely continue to stay home until they feel safe.

sidd

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Re: Oil and Gas Issues
« Reply #3719 on: April 19, 2020, 06:25:18 AM »
Nobel at rollingstone on fracking waste: a gift that keeps on giving

"Oil fields across the country — from the Bakken in North Dakota to the Permian in Texas — have been found to produce brine that is highly radioactive"

"Tanks, filters, pumps, pipes, hoses, and trucks that brine touches can all become contaminated, with the radium building up into hardened “scale,” concentrating to as high as 400,000 picocuries per gram."

"Radium in its brine can average around 9,300 picocuries per liter, but has been recorded as high as 28,500. “If I had a beaker of that on my desk and accidentally dropped it on the floor, they would shut the place down,” says Yuri Gorby, a microbiologist who spent 15 years studying radioactivity with the Department of Energy. “And if I dumped it down the sink, I could go to jail.” "

“Legislators have laid out a careful set of exemptions that allow this industry to exist,”

"thanks to a single exemption the industry received from the EPA in 1980, the streams of waste generated at oil-and-gas wells — all of which could be radioactive and hazardous to humans — are not required to be handled as hazardous waste."

" the EPA determined that in order for oil-and-gas to flourish, its hazardous waste should not be defined as hazardous."

"The levels of radium in Louisiana oil pipes had registered as much as 20,000 times the limits set by the EPA for topsoil at uranium-mill waste sites. Templet found that workers who were cleaning oil-field piping were being coated in radioactive dust and breathing it in. One man they tested had radioactivity all over his clothes, his car, his front steps, and even on his newborn baby ... Pipes still laden with radioactivity were donated by the industry and reused to build community playgrounds. Templet sent inspectors with Geiger counters across southern Louisiana. One witnessed a kid sitting on a fence made from piping so radioactive they were set to receive a full year’s radiation dose in an hour."

"In Ohio, laws that enabled local communities to enforce zoning of oil-and-gas activities were systematically stripped during the 2000s and 2010s. Language snuck into one 2001 Ohio budget bill exempted the oil-and-gas industry from having to disclose safety information to fire departments and first responders. “A truck carrying brine for injection is the worst of the worst,” says Caggiano. “And it is going through your freeways, through your neighborhoods, through your streets, past your homes, past your schools, and the drivers are not trained in how to handle hazardous waste and don’t have to have a single piece of paper telling a fire chief like me what the hell they are carrying — it scares the fuck out of me.” "

"Neither Veolia nor Antero replied to questions on whether they were testing the steam for radioactivity. When asked if the agency was monitoring for such things, West Virginia Department of Environmental Protection official Casey Korbini said, “The WVDEP permits are in accordance with federal and state air-quality statutes, and radionuclides are not a regulated pollutant under these statutes.” He added, “This does not mean that radionuclides are prohibited; they are simply not regulated.” "

"sending solid oil-and-gas waste like drill cuttings to a low-level radioactive-waste facility could mean as much as a 100-fold increase in cost, so there’s an incentive for companies to get the waste into a regional landfill."

"The foul discharge of water passing through Westmoreland, called “leachate,” flowed downhill through a sewer pipe and into the Belle Vernon sewage-treatment plant, where superintendent Guy Kruppa says it was killing the microbes needed to digest the sewage. His facility has no ability to remove the radioactivity, he says. This means, as long as his plant was receiving the contaminated leachate, insufficiently treated sewage and radioactivity was being spewed into the Monongahela River, which runs through downtown Pittsburgh."

" “What this place is, essentially, is a permit to pollute,” says Kruppa. “It’s a free pass to go ahead and dump it in the river, because we don’t test for that stuff, we don’t have to. It’s a loophole. They found a way to take waste that no one else will take to the landfill and get rid of it in liquid form. Essentially, we are the asshole of the fracking industry.” "

 “‘What have you done to go out and find all the radioactive waste you have dumped all over the United States for the past 120 years?’ And the answer is nothing.”

“There is a massive liability that has been lying silently below the surface for all these years,”

"  “The critical component of the profit margin for these companies is that they can get rid of the waste so cheaply,” says Auch of FracTracker Alliance. “If they ever had to pay fair-market value, they wouldn’t be able to exist.” "

 “They’ve known for 110 years, but they haven’t done anything about it,”

https://www.rollingstone.com/politics/politics-features/oil-gas-fracking-radioactive-investigation-937389/

I run around that part of the country a very great deal. They spray it on the roads, and i surely have breathed the dust countless times. And i dont even live around there.

sidd

vox_mundi

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Re: Oil and Gas Issues
« Reply #3720 on: April 20, 2020, 02:17:12 PM »
^ Good article sidd. Thanks

--------------------------

US Oil Prices Crash to Lowest Level in Over 21 Years As Storage Runs Out
https://www.cnbc.com/amp/2020/04/20/coronavirus-us-oil-prices-collapse-as-storage-runs-out.html

The May contract of U.S. West Texas Intermediate (WTI) futures fell to $12.43 a barrel on Monday, down more than 31%. That's its lowest level since March 4, 1999.

It comes amid heightened concern that the volume of oil held in U.S. storage is rising sharply, with the coronavirus crisis compounding the problem by dramatically reducing consumption.

"The curves are saying we have a big problem with the storage of oil right now," Bjarne Schieldrop, chief commodities analyst at SEB, told CNBC via email.

... "Going forward, of course, we are going to have to see a lot of declines in production in the U.S. in order to push this thing a little bit higher" ...
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Richard Rathbone

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Re: Oil and Gas Issues
« Reply #3721 on: April 20, 2020, 02:37:16 PM »
WTI is now $15 less than the price of Brent which is essentially the same thing but traded internationally rather than in Oklahoma. Its not just storage thats run out, the ability to trade US oil internationally has run out too. Todays collapse in WTI compared to Brent shows they ran out of railcar capacity to move the inland production surplus from Oklahoma to the Gulf ports.

Sigmetnow

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Re: Oil and Gas Issues
« Reply #3722 on: April 20, 2020, 05:37:36 PM »
These U.S. oil companies are most at risk in the danger zone
Published: April 20, 2020 at 9:54 a.m. ET
https://www.marketwatch.com/story/these-us-oil-companies-are-most-at-risk-in-the-danger-zone-2020-04-20

Extract from the article’s list is attached below.
Third column: Net debt/ equity
Fourth column:  Total return - 2020 through April 17
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Richard Rathbone

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Re: Oil and Gas Issues
« Reply #3723 on: April 20, 2020, 07:40:13 PM »
WTI at $3.45 over 80% down today?
Will it go negative? How much would you have to be paid to dispose of it?

grixm

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Re: Oil and Gas Issues
« Reply #3724 on: April 20, 2020, 07:55:57 PM »
$0.00 a barrel holy fuck what the shit

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3725 on: April 20, 2020, 07:58:28 PM »
$80 billion of LNG projects in Australia on hold due the Covid recessions.  They may never be funded due to the energy transition.

https://www.theguardian.com/environment/2020/apr/13/australias-booming-lng-industry-stalls-after-fall-in-oil-prices-amid-coronavirus

Quote
Australia's booming LNG industry stalls after fall in oil prices amid coronavirus

More than $80bn of investment decisions are delayed due to a collapsed oil price and a geopolitical price war
Adam Morton
12 April 2020

The extraordinary growth in Australia’s liquefied natural gas (LNG) industry, the main cause of recent rises in national greenhouse gas emissions, has stalled indefinitely, with decisions on more than $80bn of investments delayed due to a collapsed oil price sunk by coronavirus and a geopolitical price war.

Quote
The unprecedented crash had already prompted oil and gas giants to defer investment decisions on projects including Woodside’s massive Burrup Hub expansion off the Western Australian coast and Santos’ $7bn Barossa project 300km north of Darwin. A decision on the first parts of the Burrup Hub expansion, including a $17bn development of the Scarborough gas field, has been pushed to 2021.

Calls on Barossa and the largest section of the proposed Burrup Hub, a $30bn development of the untapped Browse gas field involving Woodside, Shell and BP, have been deferred to an unnamed date. In inland gas exploration, Origin Energy has paused exploration drilling for its unconventional gas project in Northern Territory’s Beetaloo Basin.

Analysts said while prices were expected to rebound, the pace and scale of recovery were near impossible to forecast and may not reach the level required to justify new LNG investments for years, if at all. Climate activists said an extended delay was likely to make major new investments harder to justify as markets increasingly valued clean energy over fossil fuels.

Quote
The fall in the oil price is yet to fully hit existing Australian gas projects as it takes about three months for changes in the crude benchmark to affect LNG contracts, but hundreds of oil and gas workers have been laid off or stood down as companies slashed planned investment this year.

Richard Rathbone

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Re: Oil and Gas Issues
« Reply #3726 on: April 20, 2020, 08:15:00 PM »
$0.00 a barrel holy fuck what the shit

Traders getting squeezed at a contract deadline.

Sigmetnow

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Re: Oil and Gas Issues
« Reply #3727 on: April 20, 2020, 08:27:13 PM »
Oil can trade negative on the CME's exchange as May contract plunges below zero on NYMEX
Published: April 20, 2020 at 2:13 p.m. ET
Quote
  CME Group says it has been testing negative trades for oil futures, if major energy prices fall below zero. "CME Clearing has a tested plan to support the possibility of a negative options underlying and enable markets to continue to function normally," the exchange operator said in a note on April 8. CME reiterated on Monday that if West Texas Intermediate oil futures, in any month, settle at a price between $8 and $11 a barrel that it could switch to a price model that would allow for negative pricing.

On Monday, the WTI contract for May delivery traded on the New York Mercantile Exchange CLK20, -107.82% CL.1, -107.82%, which expires on Tuesday, was down $19.70, or more than 100%, at negative $1.43 cents a barrel. The June contract CLM20, -12.94%, which is the most actively traded, was down $3.47, or 14%, at $21.52 a barrel.
https://www.marketwatch.com/story/oil-can-trade-negative-on-the-cmes-exchange-as-may-contract-plunges-below-zero-on-nymex-2020-04-20
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Bruce Steele

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Re: Oil and Gas Issues
« Reply #3728 on: April 20, 2020, 08:34:10 PM »
WTI May contract -35.20$    Smile or shake in fear.

Alexander555

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Re: Oil and Gas Issues
« Reply #3729 on: April 20, 2020, 08:35:31 PM »

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3730 on: April 20, 2020, 08:40:20 PM »
The tar sands have stopped production due to $0 oil.

https://oilprice.com/Energy/Oil-Prices/0-Oil-Forces-Canada-To-Shut-Down-Crude-Production.html

Quote
$0 Oil Forces Canada To Shut Down Crude Production
By Irina Slav - Apr 20, 2020

Canadian oil companies have begun shutting down steam-driven oil sands production projects as prices continue to fall, Reuters reports, noting the move could have dire long-term consequences for the production facilities.

Steam-driven oil sands production, also called steam-assisted gravity drainage, involves injecting steam into an oil sands deposit to melt the bitumen and make it flow up the well. To ensure long-term production, the temperature and pressure at such sites must be maintained at a certain level. Disruption, Reuters explains, could result in permanent damage, which would translate into a permanent loss of production.

Yet Western Canadian Select, the heavy oil benchmark of Canada, has been trading below $10 for about ten days now, with a temporary spike to $10.13 a barrel last Thursday. At the time of writing, WSC was trading at $-0.01 a barrel.

Sigmetnow

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Re: Oil and Gas Issues
« Reply #3731 on: April 20, 2020, 08:48:47 PM »
.
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gerontocrat

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Re: Oil and Gas Issues
« Reply #3732 on: April 20, 2020, 08:52:07 PM »
What will the price of June Contract WTI Crude be after this ?

And how did some traders manage to let themselves get trapped like this?
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Alexander555

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Re: Oil and Gas Issues
« Reply #3733 on: April 20, 2020, 09:00:25 PM »
Many of these companies hedge their future production. And somebody will have to pay the difference.

Sigmetnow

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Re: Oil and Gas Issues
« Reply #3734 on: April 20, 2020, 09:04:42 PM »
There is future price speculation, and then there’s actually buying the oil.

This oil price crash isn't as bad as it seems — here's why
Pippa Stevens
Quote
Something that's never happened in the oil market is happening today: Negative prices for oil contracts.  While many people may see this and think the overall price of oil is negative, there's nuance. The short answer is that no, not all oil is free.

The picture in the market  is not as bleak as this eye-popping headline would suggest.

Futures contracts are tied to a specific delivery date. Toward the end of a contract's expiration date, the price typically converges with the physical price of oil as the final buyers of these contracts are entities like refineries or airlines that are going to take actual physical delivery of the oil.

Futures contracts ultimately are contracts for physical delivery of the underlying commodity or security. While some people in the market speculate on the contracts, others are buying and selling because they have use for the commodity itself. Near the contract's expiration, traders just start buying the next month's futures contract. Those who stay in the position to the final day are typically buying the physical commodity, such as a refiner.

The contract that fell more than 100% on Monday is for May delivery, and it expires on Tuesday. With the coronavirus pandemic leading to unprecedented demand loss, and with storage tanks quickly filling up, there is no demand for this oil contract expiring Tuesday.


That's why it turned negative, meaning producers would pay to get this oil off their hands because there is no one that needs that oil this week with the country shutdown.

Futures contracts trade by the month. The contract for June delivery traded 16% lower at $21.04 per barrel.

So after that contract expires on Tuesday, oil will be back above $20.
The U.S. Oil Fund, which tracks the price of various futures on oil, fell just 10%.

Trading volume was also relatively thin in the May contract. According to data from the CME Group, volume stood at roughly 126,400. By comparison volume for the June contract was nearly 800,000.

Again Capital's John Kilduff attributed the plunge in the May contract to the fact that "the physical oil market conditions are a disaster, with growing concerns about finding available storage."  Longer-term, he said the picture looks brighter.

"The higher priced, longer-dated futures contracts are indicative that of the market expecting some level of clearing in the cash market over the course of the next several months," he told CNBC. "Given the rapid decline in the U.S. oil rig count and the expected cutback by OPEC+ members that is a reasonable assumption."

That said, he noted that as the subsequent contracts reach expiration, they could engage in their own "death march down towards the super-low cash prices."
https://www.cnbc.com/2020/04/20/this-oil-price-crash-isnt-as-bad-as-it-seems-heres-why.html
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El Cid

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Re: Oil and Gas Issues
« Reply #3735 on: April 20, 2020, 09:36:41 PM »
Shale companies and tar sand producers are done. Game over. Hasta la vista. But  unlike Arnold, the won't be back. Or will they???

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Re: Oil and Gas Issues
« Reply #3736 on: April 20, 2020, 09:47:51 PM »
Hopefully not but how long will they drag it out in the USA before they follow Canada´s example?
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #3737 on: April 20, 2020, 10:00:02 PM »
U.S. Crude Oil Prices Just Went Negative
Full-on panic ensues as traders rush to exit May futures.

Quote
Contracts for early May deliveries of West Texas Intermediate crude oil deliveries are absolutely crashing on April 20.  At this writing, those contracts have gone negative. Yes, you read that right. Oil traders are now paying buyers to take U.S. futures for May delivery. At this writing, the price for those contracts is ($37.45) per barrel, meaning traders are paying that price per barrel to unload those early May deliveries. At the same time, Brent crude futures are holding up much better, down about 8% to $25.83 per barrel.

The disconnect between two of the world's most important oil benchmarks is evidence of just how massively oversupplied North America is right now. Early May U.S. crude deliveries are coming at the absolute worst time. U.S. oil storage facilities are filling up quickly, and those May deliveries of West Texas Crude may not have anywhere to go.
...
Banks have stopped all meaningful new lending to U.S. producers, and are expected to seize assets and establish independent operations until oil markets have recovered, instead of taking the massive losses to sell off assets in this environment. ...
https://www.fool.com/investing/2020/04/20/us-crude-oil-prices-just-went-negative.aspx
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Bruce Steele

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Re: Oil and Gas Issues
« Reply #3738 on: April 20, 2020, 10:56:47 PM »
And this is next.


Policy and solutions / Re: Lessons from COVID-19
« on: April 10, 2020, 05:48:08 PM »
I made the prediction awhile back that the US government would buy the shale industry in order to backstop cheap oil even if it was unprofitable to pump and process. We are fast approaching the time when that transition occurs and the chaos that Covid-19 has produced will ensure the cooperation of congress in facilitating the transfer.
 https://uk.reuters.com/article/us-usa-banks-energy-assets-exclusive/exclusive-u-s-banks-prepare-to-seize-energy-assets-as-shale-boom-goes-bust-idUKKCN21R3JI

So the government gives more zero interest capital to the” to big to fail “ banks who will take over the shale producers . In effect a government takeover . The banks can’t be allowed to fail so the American public will own the oil produced at a loss until the coming depression crashes everything .
 Shock doctrine used on the people who elect idiots and thieves .

kassy

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Re: Oil and Gas Issues
« Reply #3739 on: April 20, 2020, 11:07:28 PM »
I wonder. They probably prefer selling the shit to owning it.
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Re: Oil and Gas Issues
« Reply #3740 on: April 21, 2020, 12:09:46 AM »
Hopefully not but how long will they drag it out in the USA before they follow Canada´s example?

US producers have been shutting down wells since early March.  The ones still producing are trying to squeeze every last cent out of the ground before shutting down.

https://bismarcktribune.com/bakken/bakken-regulator-talks-latest-pandemic-developments-4-600-oil-wells-idled-new-tank-farms-on/article_c9d06c8e-36ae-50fd-b34d-1b0f5b7b8561.html

Quote
Bakken regulator talks latest pandemic developments: 4,600 oil wells idled, new tank farms on horizon
From the North Dakota coronavirus news roundup of the week: April 12-April 18 series
AMY R. SISK Apr 14, 2020

North Dakota’s top oil regulator estimates that producers have idled more than a quarter of the oil wells in the state since the start of March and says several businesses are considering building large tank farms to store oil while prices are low.

State Mineral Resources Director Lynn Helms said Tuesday that companies have shut in 4,600 wells, accounting for about 260,000 barrels per day of oil. Operators are temporarily idling wells that produce smaller quantities of oil, in addition to wells that flare large amounts of natural gas.

https://www.theguardian.com/business/2020/mar/30/oil-rig-closures-rising-as-prices-hit-18-year-lows-due-to-coronavirus

Quote
Oil rig closures rising as prices hit 18-year lows
Global producers running out of storage for surplus due to coronavirus crisis
Jillian Ambrose
Mon 30 Mar 2020

Global oil producers have begun shutting down their oil rigs on the largest scale in 35 years as the coronavirus continues to drive market prices to their lowest level since 2002.

The shutdown of oil wells has already wiped out almost 1m barrels a day from global production, but the figure is expected to rise as producers run out of space to store their extra oil as the crisis continues.

In some landlocked markets in the US, where storage space is scarce and shipping costs are high, oil producers started oil well “shut-ins” late last week rather than pay buyers to take their barrels.

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3741 on: April 21, 2020, 12:22:17 AM »
Even with the current pace of shut ins, there is so much oil that the prices are ridiculously low.  Demand has fallen far faster than the producers can shut in wells and there isn't room to store all of the surplus oil.

https://www.cnbc.com/2020/04/20/the-oil-industry-has-never-been-in-a-crisis-quite-like-this-and-many-producers-will-not-survive.html

Quote
The oil industry has never been in a crisis quite like this and many producers will not survive
Published Mon, Apr 20 2020
Patti Domm

The oil industry is in its worst crisis since at least the Great Depression, according to analysts.

There’s too much oil, and nobody wants to buy any more. Planes aren’t flying, shipping has slowed, and U.S. consumers, who use 10% of the world’s oil output in their cars, are now staying at home.

Quote
There is simply a basic lack of storage capacity in the world for crude. As the contract expires, nobody wants to take delivery of the physical product. But that’s not a satisfying explanation for such a bizarre price reaction, and there was speculation it was the result of hedging gone wrong or even some exchange traded funds behind the sell off.

Quote
But in the spot market, North American regional prices reflected the problems producers were having unloading landlocked crude in a market with no buyers. Oil in Cushing, Okla. was selling for a little over $5 a barrel but crude in the Bakken region in North Dakota was selling for negative $3 a barrel.

“The world has never come to a halt like it has in the past few weeks,” said Francisco Blanch, global head of commodities at Bank of America. “60% of oil demand comes from transportation. Gasoline sales are down more than 50%. Flights around the world are down 80 or 90%. The collapse in consumption is mobility driven. That’s what makes this crisis different than the great Depression.”

Quote
Yergin said it’s been clear for awhile that the storage was running out and that by the end of April, there would be no where to put any crude.

Quote
Michael Bradley, managing director at Tudor Pickering Holt,  said he thinks U.S. may have already cut production by close to 1 million barrels a day. He said companies like Conoco Philips and Continental have already said hey would shut in 25% to 30% of their production, and others will follow. But there will also  be companies forced to shut down production.

Juan C. García

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Re: Oil and Gas Issues
« Reply #3742 on: April 21, 2020, 01:54:15 AM »
WTI May future prices:       -37.63 USD/Barrel  :o
Quote
In theory it meant that sellers would have to pay buyers $40 or more just to take a barrel of what used to be called Black Gold off their hands.
https://www.washingtonpost.com/business/2020/04/20/oil-barrel-below-zero/
Which is the best answer to Sep-2012 ASI lost (compared to 1979-2000)?
50% [NSIDC Extent] or
73% [PIOMAS Volume]

Volume is harder to measure than extent, but 3-dimensional space is real, 2D's hide ~50% thickness gone.
-> IPCC/NSIDC trends [based on extent] underestimate the real speed of ASI lost.

Juan C. García

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Re: Oil and Gas Issues
« Reply #3743 on: April 21, 2020, 02:56:14 AM »
WTI May future prices:       -37.63 USD/Barrel

It turns out that it is a consequence of the futures market. If an investor bought oil on May futures, just to speculate but he has no place to store it, then he has to find another buyer who can store it and he has until April 20th to do so (the day the May futures market closes). If that investor waited too long to sell and did not find that client, he has to pay someone else to physically recieve the crude oil or he has to collect the crude himself and store it.
Which is the best answer to Sep-2012 ASI lost (compared to 1979-2000)?
50% [NSIDC Extent] or
73% [PIOMAS Volume]

Volume is harder to measure than extent, but 3-dimensional space is real, 2D's hide ~50% thickness gone.
-> IPCC/NSIDC trends [based on extent] underestimate the real speed of ASI lost.

gandul

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Re: Oil and Gas Issues
« Reply #3744 on: April 21, 2020, 10:07:21 AM »
They no need to worry, the Fed will come to their rescue with newly printed trillions of dollars in no time.

vox_mundi

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Re: Oil and Gas Issues
« Reply #3745 on: April 21, 2020, 04:49:50 PM »
^ on cue ...

Trump Directs Mnuchin, Energy Secretary to Create Plan to Support  Oil, Gas Industries as Sell-Off Deepens
https://www.cnbc.com/amp/2020/04/21/trump-orders-plan-to-fund-oil-gas-industries-during-historic-selloff.html

President Donald Trump on Tuesday ordered Energy Secretary Dan Brouillette and Treasury Secretary Steven Mnuchin to put together a plan to get funding to the struggling U.S. oil and gas industries

Trump's promise that he will "will never let the great U.S. Oil & Gas Industry down" came as West Texas Intermediate crude futures continued trading with a negative price, a day after falling below zero for the first time ever.

https://mobile.twitter.com/realDonaldTrump/status/1252591306028785667

The president's tweet did not specify how much money would be made available, or which oil and gas companies would be eligible to receive it.

... Followed by an incomprehensible train of thought word salad of TRump's answers to reporters questions.
“There are three classes of people: those who see. Those who see when they are shown. Those who do not see.” ― Leonardo da Vinci

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Sigmetnow

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Re: Oil and Gas Issues
« Reply #3746 on: April 21, 2020, 05:49:49 PM »
https://www.cnbc.com/2020/04/21/stock-market-today-live.html

Stock market live updates: Stocks fall 3%, oil carnage continues...
Stocks came under pressure again as an unprecedented rout in oil prices deepened. The West Texas Intermediate contract for June delivery tumbled below the $15 threshold as demand evaporates. Investors also looked to a wave of corporate earnings to gauge the impact of the coronavirus pandemic. Here's what's happening:
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10:51 am: Trump directs Mnuchin, Energy secretary to create plan to support oil, gas industries
President Donald Trump on Tuesday ordered Energy Secretary Dan Brouillette and Treasury Secretary Steven Mnuchin to put together a plan to get funding to the struggling U.S. oil and gas industries as a historic sell-off in crude continued. "I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!" Trump tweeted Tuesday morning.— Li

10:04 am: US Oil Fund, popular ETF trading under ticker 'USO,' plunges 20% after brief halt
Trading in the United States Oil Fund, a popular exchange-traded security known for its 'USO' ticker which is supposed to track the price of oil, was briefly halted Tuesday before the opening bell. It resumed trading and plunged 20%. The halt came after USCF, the manager of the fund, said that it was temporarily suspending the issuance of so-called creation baskets. — Stevens
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8:10 am: U.S.10-year yield falls to lowest level in more than a month
The U.S. 10-year Treasury yield hit a low of 0.567% on Tuesday, hitting its lowest level since March 10. Investors piled into bonds amid growing concerns over the global economy while crude and equity futures tumbled. — Imbert

8:08 am: Kyle Bass warns against oil ETFs
Hayman Capital Management CIO Kyle Bass again warned about exchange traded funds that track oil prices. Bass asked on Twitter if the funds could trade in negative territory if oil futures further along the curve follow the May contract below $0. "If I were a major counterparty after yesterday's session, I would demand more than 100% collateral," Bass said. The United States Oil Fund, the largest oil ETF, fell roughly 18% on Tuesday. Bass said Monday on CNBC's "Closing Bell" that retail investors should stay away from these funds and that he had short positions against some of them. —Pound

7:55 am: Oil futures fall as May contract stays negative
After the futures contract for the front month of West Texas International fell below zero on Monday, contracts for June dropped sharply in early trading on Tuesday. The WTI contract for June fell more than 23% to $15.57 per barrel, while internationaly benchmark crude dropped nearly 19% to $20.77 per barrel. The WTI futures contract for May, which fell into negative territory on Monday, was trading at negative $4 per barrel on Tuesday morning. The contract expires later on Tuesday. —Pound

7:50 am: Oil traders have never seen 'insane' market like this before, fear more declines to negative prices
The oil market is facing uncharted territory as the drop-off in demand, caused by the coronavirus pandemic, combined with rapidly filling storage, sent prices plunging into negative territory for the first time in history on Monday. And with only guesswork as to when stay-at-home ordinances might be lifted and when crude demand might pick up, traders warn that oil could continue to trade at extremely depressed levels. "If we have not recovered from COVID in July so that enough driving has come back and storage is full, then the price of crude oil is going to be zero," RBN Energy's Rusty Braziel told CNBC. He called Monday's trading activity "insane," and said that in his more than 40 years of trading he had "never seen anything like this." On Monday, West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel, meaning people would effectively pay to have the oil taken off their hands. —Stevens
People who say it cannot be done should not interrupt those who are doing it.

Phoenix

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Re: Oil and Gas Issues
« Reply #3747 on: April 21, 2020, 06:51:00 PM »
What would be the outcome if Trump established a floor on oil prices by creating a 100% import tariff on oil below the US producer break-even point (say $30 bbl)?

Energy security is national security.

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3748 on: April 21, 2020, 11:43:12 PM »
^ on cue ...

Trump Directs Mnuchin, Energy Secretary to Create Plan to Support  Oil, Gas Industries as Sell-Off Deepens
https://www.cnbc.com/amp/2020/04/21/trump-orders-plan-to-fund-oil-gas-industries-during-historic-selloff.html

President Donald Trump on Tuesday ordered Energy Secretary Dan Brouillette and Treasury Secretary Steven Mnuchin to put together a plan to get funding to the struggling U.S. oil and gas industries

Trump's promise that he will "will never let the great U.S. Oil & Gas Industry down" came as West Texas Intermediate crude futures continued trading with a negative price, a day after falling below zero for the first time ever.

https://mobile.twitter.com/realDonaldTrump/status/1252591306028785667

The president's tweet did not specify how much money would be made available, or which oil and gas companies would be eligible to receive it.

... Followed by an incomprehensible train of thought word salad of TRump's answers to reporters questions.

We can only hope that his plan to save the oil industry works as well as his plan to save the coal industry did.

Ken Feldman

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Re: Oil and Gas Issues
« Reply #3749 on: April 21, 2020, 11:47:52 PM »
While people speculate about future actions to possibly save the oil industry, it continues to collapse.  Storage is at the breaking point.

https://oilprice.com/Latest-Energy-News/World-News/Oil-Inventories-Near-Breaking-Point-As-API-Reports-13-Million-Barrel-Build.html

Quote
Oil Inventories Near Breaking Point As API Reports 13 Million Barrel Build
By Julianne Geiger - Apr 21, 2020

The American Petroleum Institute (API) estimated on Tuesday another large crude oil inventory build of 13.226 million barrels for the week ending April 17 as the demand destruction continues unchecked and stay-at-home orders in the United States drag on.

Quote
US crude oil production as estimated by the Energy Information Administration showed that production for the week ending April 10 fell to 12.3 million bpd—down 100,000 bpd for the week, and down 800,000 from its high.