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... 48 supply-demand balance this winter vs. last suggests that near-record domestic demand, along with tepid production ... — and lethargic production, the market was primed for bullish price action during the winter of 2021-22. Now with winter in the rearview mirror, we can say that the worst-case scenario of another deep freeze ...
Sheetal Nasta - Published April 11, 2022
Housley Carr At first glance, it would appear that President Biden’s announcement regarding the release ... In the past few decades, it has been used to store crude for a rainy day — that is, to help deal with unpredictable ... the map in Figure 1 below, they are: Bryan Mound , which can hold up to 247.1 MMbbl and as of January 26, 2022 (the ...
Housley Carr - Published March 31, 2022
Housley Carr The U.S. market for distillates has been crazy the past few months — especially in PADD 1 — and given all that’s going on, it’s likely to stay that way for months ... vacuum gasoil (VGO) is not included. (The terminology here can get a bit tricky as our friends outside the U.S. ...
Housley Carr - Published October 31, 2022
... It’s the last day of 2021, which means it’s time for our annual Top 10 Energy Prognostications blog, the ... mirror to see how we did with last year’s predictions. That’s right! We actually check our work! And that’s what ... than a decade. The moral to the story is that high exports can also destabilize supply/demand. With more LNG export ...
Rusty Braziel - Published December 30, 2021
... and diesel they produce have risen even more. And it’s that now-yawning gap between crude oil and refined-products ... crack spreads. It’s been quite an earnings season for many U.S. refiners. One after another, they’ve reported ... dashed blue line for 2-1-1 crack spread with RVO). As you can see, including RVOs shrinks crack spreads substantially ...
Housley Carr - Published May 6, 2022
... to replace the hydrocarbon-based energy network that runs the world today. We’re talking wind turbines, ... cars, SUVs, and pickup trucks to electric vehicles (EVs). For example, it is just an engineering fact that building a ... 2040 than today (bar to the right in left graph). As you can see, most of the growth in metal and mineral demand would ...
Mark Mills - Published February 28, 2022
Jason Lindquist The Internal Revenue Code’s tax credit for carbon oxide sequestration, better known as 45Q, is ... potential changes to the tax credit as well as measures that might restrict its use. Part 1 of this series began with ... do not. In Part 4 , we looked at how those tax credits can add up for individual projects and how widely variable ...
Jason Lindquist - Published February 1, 2022
Housley Carr Refinery closures. Shifting demand for gasoline, diesel and jet fuel. Yawning price ... typically to take advantage of opportunities that midstreamers, refiners and marketers see opening up. In ... Pipelines. Source: RBN To simplify things as best we can, we’ll begin with the two big pipelines that transport ...
Housley Carr - Published June 27, 2022
... lot of mention of 2022 well results along with a narrative that production per lateral foot was down versus the prior ... depleted inventories of drill spots are cited as reasons for lackluster production growth and the need for acreage ... New Mexico) with commentary on 2022 results. In them, you can see evidence of inflated 2021 well productivity in the ...
David Braziel - Published April 12, 2023
... supermarkets to see vast stretches of bare shelves where, for decades, stacks of toilet paper, diapers, infant formula, ... In today’s RBN blog, we examine the challenges that exploration and production (E&P) companies face in their ... detailed example of how a company’s reserve replacement can be measured using a top-tier E&P — Diamondback Energy. ...
Nick Cacchione - Published August 10, 2023
... cold, but much more of the former than the latter. Given that the Canadian natural gas market was already oversupplied ... as the calendar turns to February and what that might mean for end-of-winter gas balances. The current heating season ... happened in the winter of 2022-23. Since gas balances can swing widely, depending on supply and weather (demand) ...
Martin King - Published January 28, 2024
... soft gas exports, the result is even greater oversupply. That is exactly how the Canadian gas market finished the most ... when it comes to natural gas markets, or any other market for that matter, expect the unexpected. Gradually improving ... Futures Rally on Extended Heatwave, Tightening Balances We can get a sense for the degree of oversupply (or undersupply) ...
Martin King - Published July 23, 2023
... propane production was recovering from the COVID meltdown that spring. As we discussed in Now You See It, Now You ... fractionators, plus propane and propylene from refineries) can differ significantly from the same agency’s monthly ... models that estimate “real” propane production for the most recent two months, then use that to project ...
Todd Root - Published May 1, 2023
... in early March to only $2.16/MMBtu on Monday. Given that the frac spread is the differential between the price of ... drivers behind its recent freefall, and what it would take for gas processing margins to rebound. There’s no perfect ... in measuring things in the energy industry. Sure, everyone can agree that a barrel is 42 gallons and a Bcf is, well, a ...
Housley Carr - Published December 6, 2022
... other supply basins are growing too and will compete for this new demand. How will these dynamics affect the gas ... few years? Will demand come on fast enough, and will all that new supply be able to find its way to the Gulf Coast? ... the market to absorb in a relatively short time, and that can only happen if there is sufficient downstream demand to ...
Sheetal Nasta - Published October 22, 2017
... spread since we’ve been keeping track of the data except for a brief blip in February. As shown in the left graph ... the two Ingleside terminals (Enbridge EIEC, Gibsons STG) that can load the big ships with only one reverse lightering (see ...
RBN Team - Published August 14, 2023
... in December. They see extra crude supply as an antidote for high prices that have been hampering recovery from the global economic ... now elevating crude prices won’t last forever and can change unexpectedly. They also face internal strains that ...
Bob Tippee - Published November 16, 2021
... WTI at Cushing has averaged a hefty $1.80/bbl over NYMEX for the past year. Most spot Houston and Midland crudes trade ... of physical pipeline deliveries. At the same time, they can be convoluted, arcane and quite opaque, even while ... real price makers, and it’s the workings of those deals that are generally misunderstood by many market participants, ...
Rusty Braziel - Published March 23, 2023
... of global demand. And the world needs more oil — demand for crude has rebounded from its COVID lows, and OPEC+ (of ... such an action would have on U.S. refined products prices. That stand may not last long. Last week, Senator Joe Manchin, ... 15-19 API range with sulfur around 2.5%, although quality can vary somewhat. As a refinery shifts its crude slate ...
Amy Kalt - Published March 6, 2022
... replacement metrics over the last two years, a trend that has led many producers to grow their reserves through ... result from changes in commodity prices — lower prices can make certain volumes uneconomic to produce, while higher ... significant swings in the economic viability of reserves. For example, proven reserves for the 40-odd E&Ps we monitor ...
Tom Biracree - Published May 2, 2024