Futures trader?

And we're over $70 this morning

Bass boats and 4 wheelers time?

is this the highest we've seen since 2014? I wonder how much the price is being driven by Permian basin takeaway limitations/concerns?

Likely not a huge driver in any costs but I'll share with you some things going on my end.

One of my company's divisions produces OGC (organoclay) and one of the primary component is quaternary ammonium. Quat is primarily produced by two companies: Akzo and Solvay. Both having very large operations in China. Production has been nonstop running their plants 24/7 for quat. Well in the wonderful wisdom of the Chinese government, they recently banned these plants from operating more than 12hrs/day due to "pollution".

http://www.cmegroup.com/trading/energy/crude-oil/wts-argus-vs-wti-calendar-spread-swap-futures.html

Am I reading this right. There's a $13 differential at the wellhead in Midland compared to Cushing

Gordo14 said:

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http://www.cmegroup.com/trading/energy/crude-oil/wts-argus-vs-wti-calendar-spread-swap-futures.html

Am I reading this right. There's a $13 differential at the wellhead in Midland compared to Cushing

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no. it's -13.00 at Midland tank farm not the wellhead. more importantly, the spread between Midland the coast is even greater. -15.5 to -16.50 depending on whether your in Houston or Louisiana.

have to deduct in the truck cost (assuming its not gathered on a pipe)

so, assume a producer in Upton county is selling their production at the wellhead on to a truck with no hedges or other price mechanisms involved.

it likely costs them anywhere from 1.85-2.50 to move it on a truck.

if WTI is trading 70, then the producer is realizing something something like $55.

IrishTxAggie said:

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Likely not a huge driver in any costs but I'll share with you some things going on my end.

One of my company's divisions produces OGC (organoclay) and one of the primary component is quaternary ammonium. Quat is primarily produced by two companies: Akzo and Solvay. Both having very large operations in China. Production has been nonstop running their plants 24/7 for quat. Well in the wonderful wisdom of the Chinese government, they recently banned these plants from operating more than 12hrs/day due to "pollution".

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They pulled a similar move with choline chloride. This is how they are meeting their new emissions rules instead of upgrading their plants.

We deal with that too. Aocter is our supplier for choline chloride.

If ya'll need choline shoot me a PM, we distribute that all over the US.

TxAg20 said:

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GarlandAg2012 said:

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That's impressive. Wonder what kind of completion they put on those.

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Probably an oil frac.

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Que?

So what's the latest with company's health, etc with these higher prices? Did many companies hedge in the 50 range so they aren't able to take advantage of these higher prices (thought I remember this being a topic at the time)?

Everyone growing / hiring?

Last I heard (a couple weeks ago) we have about half of our production hedged at $60. I have a feeling companies are hiring more, as I am about to move companies.

Come on to the Petroplex. Ive been out here about 3 months now, and have really liked it.

So what are you O&G folks thinking... is the current $70 sustainable for the long term (2 years or greater) or do you think it declines before then and heads back to $50 or so?

$60-70 assuming no major geopolitical conflicts.

I think we'll touch 74ish in the next couple weeks then pull back to the mid 60s for a little while.

How many rigs are standing up over the next three months?

AggieOil said:

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TxAg20 said:

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GarlandAg2012 said:

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That's impressive. Wonder what kind of completion they put on those.

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Probably an oil frac.

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Que?

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Years ago, people would frac formations with oil instead of water. Usually in formations with sensitive clays. The ones I've seen were usually 4,000 bbls or smaller. A 12,000 bbl/day well would make sense if they frac'd it with oil instead of water.

Speaking of Devon, rumors are out there that they are selling their Reeves/ward county acreage. It's not a huge position, but I'm curious who might be buying that. Anyone hear any rumors on the buyer?

Thoughts on Dover Corp spinning of Apergy? I don't have much background on either and was curious what the word on the street is.

SpreadsheetAg said:

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Bass boats and 4 wheelers time?

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$80 = Raptors

Goose -

They are running a data room process on that acreage. The teaser just came out. Who knows who the buyer will be.

I'm hearing that the pipelines are running near capacity from a meeting I was in. This could delay a lot of wells being completed since there is no avenue for shipping. I was under the impression that there was plenty of lines in west Texas. It's a double edge sword....

nu awlins ag said:

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I'm hearing that the pipelines are running near capacity from a meeting I was in. This could delay a lot of wells being completed since there is no avenue for shipping. I was under the impression that there was plenty of lines in west Texas. It's a double edge sword....

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Maybe that'll prop the price up some more.

nu awlins ag said:

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I'm hearing that the pipelines are running near capacity from a meeting I was in. This could delay a lot of wells being completed since there is no avenue for shipping. I was under the impression that there was plenty of lines in west Texas. It's a double edge sword....

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Yes. I've been seeing Midland crude selling at a $11 discount to WTI.

Gordo14 said:

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nu awlins ag said:

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I'm hearing that the pipelines are running near capacity from a meeting I was in. This could delay a lot of wells being completed since there is no avenue for shipping. I was under the impression that there was plenty of lines in west Texas. It's a double edge sword....

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Yes. I've been seeing Midland crude selling at a $11 discount to WTI.

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I've heard talk of $15+ discount to WTI by year end and early 2019. Worry is strong enough that we plan to shift all new completion activity for the end of 18 beginning of 19 out of the basin into areas with less discount, to allow pipeline takeaway to catch up and minimize the impact to our.

BlackGoldAg2011 said:

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Gordo14 said:

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nu awlins ag said:

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I'm hearing that the pipelines are running near capacity from a meeting I was in. This could delay a lot of wells being completed since there is no avenue for shipping. I was under the impression that there was plenty of lines in west Texas. It's a double edge sword....

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Yes. I've been seeing Midland crude selling at a $11 discount to WTI.

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I've heard talk of $15+ discount to WTI by year end and early 2019. Worry is strong enough that we plan to shift all new completion activity for the end of 18 beginning of 19 out of the basin into areas with less discount, to allow pipeline takeaway to catch up and minimize the impact to our.

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where will you be refocusing, if you don't mind me asking.

Primarily Eagle Ford

I've been getting whiffs of activity increases in pretty much every basin. Aside from the price, those Permian diffs are going to be a bear until around 1Q20.

I wonder if the counties around BCS will pick back up? Saw a huge rig completed out on Sandy Point Rd. in Brazos Co. It now has I think 2 or 3 pumpjacks and about 18 tanks.

Furthering the conspiracy, Devon made request to the OCD to keep the completion confidential.