(Bloomberg) — Oil output in America’s most prolific shale patch is getting closer to levels seen before the pandemic-driven market crash, as crude prices surge. While total production in the U.S. is still lagging, the Permian Basin of West Texas and New Mexico is increasing output to an average 4.826 million barrels a day in October, according to a U.S. government report Monday. That’s close to a revised 4.913 million barrel-a-day record set in March 2020, just before the pandemic unleashed widespread demand destruction globally, triggering production shutdowns and bankruptcies across the country. Production has been rising with benchmark U.S. crude prices now at seven year highs, underpinned by a severe supply deficit. Oil futures in New York surpassed $80 a barrel this month for the first time since 2014. The Permian has low breakeven production costs, high rates of productivity, and so is best positioned to recover even though total U.S. crude production is still down. Private drillers in the basin have been seeking to capitalize on the surge in oil prices, ramping up volumes steadily, while public companies are under shareholder pressure to keep spending in check. In other shale plays, however, the recovery has been slow. The backlog of oil wells that have already been drilled and are waiting to be fracked, known as DUCs, has been shrinking since the middle of last year. In the Bakken of North Dakota, where the shale boom began, and in the Eagle Ford of southern Texas, the number of DUCs are at their lowest on record. Production in the Bakken is expected to be 26% short of its historical high, output in the Eagle Ford will be 37% below its record volume, according to data from the Department of Energy report on Monday. NN: One thing for sure total US productions is no longer going down. And in fact its climbing. The US will soon be energy self suffice once again AND oil production will be setting new records. Thank you OPEC. At $80 oil everyone is making money. Even at $60 oil… And the banker buddies do not matter. Their are plenty investors willing to belly up to the bar…
Crude drops 1.5% amid fears of excess supply
Prices of oil futures decreased over 1.5% on Monday as fears of rising supply mounted among traders. United Arab Emirates Energy Minister Suhail Al Mazroui predicted that the available oil will outgrow the demand for crude in the following year’s first quarter. Adding to the negative sentiment, the demand outlook was somewhat dimmed by COVID-19 containment issued in Germany, Russia, and China. West Texas Intermediate (WTI) for settlements in December 2021 was down 1.5% to sell for $79.58 per barrel at 10:15 am ET, while Brent for deliveries in January 2022 dropped 1.61%, going for $80.85 a minute later.
Pressure on Dutch hospitals mounts as COVID cases break records…. Colorado hospitals overwhelmed by young, ‘dramatically ill’ unvaccinated COVID patients…… Boston school returns to remote learning amid COVID-19 outbreak…. Surging COVID Cases Taking A Toll On Rural Minnesota Hospitals.. 20 states report rise in COVID-19 cases and hospitalizations….
UAE: Oil supply to exceed demand in 2022’s Q1
https://youtu.be/N1fWlHqEmLg
UAE Energy Minister Suhail al-Mazrouei said on Monday that he expected an oil supply surplus in the first quarter of 2022, ruling out the possibility of oil prices reaching $100 per barrel. The Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies – collectively known as OPEC+ – will look at fundamentals to determine the pace of output increases, Mazrouei added.
Biden to consider prohibiting oil, gas development outside Native American park
WASHINGTON (Reuters) – President Joe Biden will announce on Monday a step toward prohibiting oil and gas development outside the boundaries of a major Native American park in the Southwestern United States as part of a tribal summit he is hosting. Biden will also announce moves aimed at improving public safety and justice for Native Americans. Representatives from 570 tribes are expected to participate in the event, which is being held virtually because of the pandemic. Senior administration officials, briefing reporters ahead of the summit, said Biden would announce that the Interior Department in coming weeks, will initiate consideration of protections from new federal oil and gas leasing and development of a 10-mile (16-km) radius around Chaco Culture National Historical Park in New Mexico. The proposed action would not apply to individual Native American allotments or to minerals within the area, the officials said. Members of New Mexico’s congressional delegation have been pressuring U.S. Interior Secretary Deb Haaland to take steps to ban oil and gas development outside the boundaries of the park, which is listed as a UNESCO world heritage site. Biden also plans to sign an executive order aimed at improving public safety and criminal justice for Native Americans, the officials said. The order will direct the Departments of Justice, Interior, Homeland Security, and Health and Human Services to “create a strategy to improve public safety and justice for Native Americans and to address the epidemic of missing or murdered Indigenous peoples,” according to a White House fact sheet. Biden and first lady Jill Biden are to address the summit on Monday and Vice President Kamala Harris will make remarks on Tuesday. The tribal summit is the first of its kind since 2016. There were none during the presidency of Republican Donald Trump. NN: THIS IS NOT PC….. I DO NOT DO PC… NATIVE AMERICANS ARE PLAGUED WITH DISEASE, CRIME, ALCOHOLISM , corruption AND SUICIDES AND ADD EXTREME POVERTY! As always the case they blame someone else for their failures. Native Americas own VAST land full of marketable resources that they are not exploiting except for a few casinos… They have no further to look for their troubles. Its based in the belief they can maintain their traditions.. Reality no society and no culture can survive unless they move forward. Their action may make he greeneewennies happy. BUT like every society that buys into the climate fantasies and their impossible solutions they suffer terrible… Says the man who powers his world on solar panels,,,,,,
Russian gas flows via Yamal pipeline to Germany rise over the weekend
MOSCOW, Nov 14 (Reuters) – Russian gas flows towards Germany via the Yamal-Europe pipeline rose over the weekend, preliminary data from German network operator Gascade showed, with no signs of being impacted by a political standoff between Belarus and the European Union. Belarusian President Alexander Lukashenko said on Thursday that he could halt Russian gas flows through his country to Europe in a dispute with the EU, and the statement briefly pushed the spot gas prices higher. The Kremlin was fast to say Lukashenko had not consulted it beforehand on the possibility of cutting gas supplies via Belarus. The gas transportation infrastructure is owned by Russian state gas pipeline Gazprom President Vladimir Putin said on Saturday that such a move would risk harming ties between Minsk and its key ally Moscow, adding that he would speak to Lukashenko on the issue. Flows into Germany at the Mallnow metering point, which lies on the Polish border, stood at an hourly volume of over 10,000,000 kilowatt hours (kWh) on Saturday and Sunday, up from around 6,500,000 kWh/h an average on Friday, the data showed.
Exit flows at Mallnow – or gas transportation into Poland from Germany – were at zero, the preliminary data showed.
NN: This is all part of EU intrigue. Why would anyone borrow money from a loan shark. How ever it goes it wlii end up badly… Europe refuses to harvest its immense natural gas resources. Instead it gets 40% of its natural gas from a cold blooded murderer and dictator… in essence a energy loan shark…
Oil prices slide on expectations of higher supply, weaker demand
SINGAPORE, Nov 15 (Reuters) – Crude oil prices fell on Monday on expectations of increasing supply, while higher energy costs and rising COVID-19 cases are also seen weighing on demand. Oil markets have dropped for the last three weeks, hit by a strengthening dollar and speculation that President Joe Biden’s administration might release oil from the U.S. Strategic Petroleum Reserve to cool prices.
“The White House has been debating how to tackle higher inflation, with some officials calling for the strategic reserve to be tapped, or halting U.S. exports,” ANZ analysts said in a report.
U.S. energy firms this week added oil and natural gas rigs for a third week in a row with crude prices hovering near a seven-year high, prompting some drillers to return to the wellpad. The oil and gas rig count, an early indicator of future output, rose by six to 556 in the week to Nov. 12, its highest level since April 2020, energy services firm Baker Hughes Co (BKR.N) said on Friday. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) last week cut its world oil demand forecast for the fourth quarter by 330,000 barrels per day (bpd) from last month’s forecast, as high energy prices hampered economic recovery from the COVID-19 pandemic. Europe has become the epicentre of the COVID-19 pandemic again, prompting some governments to consider re-imposing unpopular lockdowns, while China is battling the spread of its biggest outbreak caused by the Delta variant. read more Russia’s Rosneft the world’s second-biggest oil company by output after Saudi Aramco, warned on Friday of a potential “super cycle” in global energy markets, raising the prospect of even higher prices as demand outstrips supply NN: a super cycle… really? How about a stupid cycle, After all OPEC has done it 5 times in the past. That is where they increase rpices so high that the markets quickly become over supplies and over drilled….
Biden must tap oil reserves to lower gasoline prices, Schumer says
Nov 14 (Reuters) – President Joe Biden’s administration should tap into emergency petroleum reserves to lower rising gasoline prices as Americans go into the holiday season, Senate Majority Leader Chuck Schumer said on Sunday.”We’re here today because we need immediate relief at the gas pump and the place to look is the Strategic Petroleum Reserve,” Schumer, a Democrat, said at a news conference in New York. Soaring gas prices and car sales drove a solid increase in U.S. producer prices in October as oil prices hit more than $80 a barrel, with OPEC and its allies rebuffing U.S. pleas for the producers to pump more crude. Energy Secretary Jennifer Granholm said last Monday Biden could act, but there was still no word on whether he would authorize a sale from the U.S. Strategic Petroleum Reserve, which is held in a series of caverns on the Texas and Louisiana coasts. read more Analysts have warned a release from the Strategic Petroleum Reserve would only produce a short-term effect, as it would not increase U.S. production capacity. As the U.S. economy reawakens after the coronavirus pandemic, supply and demand cannot keep up, especially with supply chain disruptions, Schumer said.
“No industry is spared. But fuel gasoline is the worst of all,” Schumer said. “Let’s get the price of gas down right now. And this will do it.”
Last week, 11 Senate Democrats urged Biden in a letter to tap the SPR and ban crude oil exports to lower gas prices, citing OPEC constraints on supplies and U.S. exports. “Continued U.S. exports and overseas supply collusion could be devastating to many in our states, contributing to higher bills for American families and businesses,” the senators, from New England states and Pennsylvania, wrote on Nov. 8. NN: when you start a fire make sure you have on your asbestos underwear. Because the ass you burn may be yours…
The Fed’s inflation call is one of the worst the central bank has ever made……. UBS ran a simulation that shows stocks could lose up to 50% under rare stagflation scenario
- Mohamed El-Erian criticized the Fed’s narrative of transitory inflation in an interview with Bloomberg on Friday.
- “You can’t simply dismiss them as transitory,” he said. “It is going to go down in history as one of the worst inflation calls.”
- Recent data show US inflation is running at its fastest rate since 1990.
Mohamed El-Erian, chief economic adviser at Allianz SE, criticized the Federal Reserve’s long-standing narrative of transitory inflation on Friday following data that revealed prices are rising at the fastest rate since 1990. “There are lots of structural changes going on in the post-pandemic economy … you can’t simply dismiss them as transitory,” El-Erian told Bloomberg in a TV interview on Friday. “So it is going to go down in history as one of the worst inflation calls by the Federal Reserve.” The Consumer Price Index gained 0.9% in month-over-month in October, the Bureau of Labor Statistics said Wednesday, far higher than economists’ expectation of 0.6%. The reading marks an acceleration from the 0.4% gain seen in September and the largest one-month jump since 2008. Year-over-year, inflation at 6.2% is the highest in 30 years. But what makes the latest reading different, according to El-Erian, is the breadth of price growth, which rose faster across almost every category tracked by the Labor Department.
UBS ran a simulation that shows stocks could lose up to 50%
Fears of stagflation escalated on Wall Street after another hotter-than-expected inflation report this past week, and UBS said stocks could lose up to half of their vluee if this condition persisted over the long term. NN: they should consider themselves very very lucky if stocks only lose 50% of their values….. Try 90% and 25 years to recover after they rig the game and kick out the loser stocks…
Uncertainty over government action cools oil prices
Uncertainty over whether or not the Biden Administration will take action to help tame energy prices helped lower crude prices, which Bloomberg reported have recorded their longest stretch of weekly losses since March. West Texas Intermediate on the New York Mercantile Exchange rose three of five trading days, including a $2.22 spike above $84 a barrel Tuesday. Prices could not overcome Wednesday’s $2.81 plunge, however, and closed the week at $80.79 per barrel, down 80 cents from Thursday and from $81.93 at Monday’s close. The posted price closed Friday at $77.27 per barrel, according to Plains All-American. Natural gas prices suffered a down week, falling four of five days and ending up below the $5 level. This includes a 45-cent plunge Tuesday. A 27-cent gain Thursday was more than offset Friday when prices fell 36 cents to end the week at $4.79 per Mcf, well below Monday’s close of $5.43 per Mcf. The Energy Information Administration forecast volatile natural gas prices this winter in its November Short-Term Energy Outlook. The agency attributes this outlook to uncertainty about weather. The extreme cold experienced in February led to lower-than-average natural gas storage levels through the summer, raising concerns about winter weather that are contributing to price volatility as another winter approaches. In its outlook, the agency estimates gas storage levels had built to within 3 percent of the previous five-year average at the end of October. “Mild weather has limited natural gas consumption and helped bring our storage levels closer to average in recent weeks, but cold winter weather could continue to put upward pressure on prices,” said EIA Acting Administrator Steve Nalley in the outlook. “Winter temperatures will be the key driver of natural gas demand, inventories and ultimately prices.” According to Bloomberg, oil prices recouped some losses Friday after Press Secretary Jen Psaki refused to say whether President Biden plans to release oil from the Strategic Petroleum Reserve.
Todd Staples, president of the Texas Oil and Gas Association, told the Reporter-Telegram by email, “As demand for indispensable oil and natural gas continues to grow, producers are increasing production accordingly.
“We must not forfeit energy freedom for energy dependence. Misguided policies that encourage foreign energy instead of encouraging American pipeline projects, domestic production and trade opportunities hurt not just industry but communities across our state and the nation. All Americans need to encourage elected officials to support affordable, reliable energy available here at home.” There may be relief for consumers ahead, according to the EIA’s Short-Term Energy Outlook. In its November outlook, the EIA noted that since the third quarter of 2020, global demand for crude oil and petroleum products has increased faster than production, which has led to inventory draws and increasing crude oil prices. The EIA is forecasting that global liquid fuels inventories will begin building in 2022, driven by rising production from OPEC+ and the United States, which will contribute to falling crude oil prices. Its forecast has crude prices beginning to decline this month and continue to decline through next year. The EIA’s expectation is West Texas Intermediate will fall from an average of $76 a barrel this coming January to $62 a barrel by next December. Prices will face downward pressure, the EIA said, as global oil inventories begin building next year, led by rising production from the US and the Organization of Petroleum Exporting Countries and allied nations, combined with slowing growth in global oil demand. NN: You gotta love this oil trade. My only wish is we get to sell them more at $100…. Dumb fucks as usual OPEC over played their hand once again. I never trust an organization where most of its member wear robes…….