DOE Infographic of the Strategic Petroleum Reserve

 

U.S. Crude Oil Destinations

  

The Netherlands receives as much crude oil from the U.S. as the rest of the world with China a close second. How firm are these markets in the policy making decisions of the U.S. 

Fracking in the Permian Basin Texas

Permian Basin Map

The Permian basin in West Texas is one the mostly widely known producing areas in the U.S. Improvements in horizontal drilling technology and fracking techniques have made it one of the premier producing regions in the world.

 Hydraulic fracturing, or fracking is a proven technology to improve oil and gas production from "tite" geologic formations and shale zones. these "tier" formations are characterized geologically as having low porosity and permeability. This technologies make it possible for zones previously thought to be uneconomic to be produced at profitable rates.

A combination of water, sand, and anti friction fluids are pumped down the well to create small fissures or cracks to release gas trapped oil or natural gas. Generally these frack fluids are 99% water.

Fracking has used for well completions for more than 50 years. The water used in the frack process is recycled for future frack jobs. The industry has made big strides in reducing emissions such as eliminating flaring of gas while improving production rates for wells.

The Permian basin is an example of industry evolution in a complex world of oil and gas horizontal drilling and development.

Working Underground Gas in Storage

 

Underground gas in storage remains above the 5 year moving average. There is considerably more gas in storage than during the last 2 winter drawdowns. This does not bode well for summer natural gas prices.

WYI Oil Price April 2024

The oil price is range bound between $70 to $90/BO. A quick look almost illustrates a classic head and shoulders chart formation. Any close below $70 would likely result in further downward price action.

No recommendation being made here.

Good Luck

ExxonMobil (XOM) Stock Chart

 

XOM  has made a terrific upward move since the bottom in January 2023. The price performance is UP about $19 from the low.  There are a number of geopolitical factors that can affect this stock, and affect the oil price as well. The price action may take some time to consolidate this move before the next leg up. XOM's success in Guyana is fun to watch.

This is not a recommendation to buy or sell this stock.

Good luck.

Vostok Ice Core: Rethinking Carbon Dioxide and Global Warming (aka Climate Change)

 

The grey band in the chart is the Vostok ice core time period.. The time in this chart passes from right to left, the left being present day. The chart show cyclic variations of up to 10 degrees. The question is does  and ice cover causeCO2 to change or does CO2 cause the temperature to change. The climate crowd believes the latter. This chart shows the time lag resulting in temperature drop prior to a drop in CO2.

Some scientists speculate  that variations in the earth's orbit and axial tilt lead to changes in solar radiation affects and lead to time period of warming and cooling. Some solar events lead to melting of permafrost as a source for CO2.

Imagine that...the sun plays a major role in the earth's temperature cycles!

U.S. Energy Shipping Routes 2024

 

Here you go. Gulf coast fuels 40+ days to the far east, 27 days thru the Panama canal.

We're No. 1

 

Here you go. The top three largest oil producing countries in the world graph. the global oil production trend shows U.S. production rising since 2013, with a small drop in 2020.

 Petroleum production data for the U.S. shows the Permian Basin is the largest producing area in the in the U.S and most likely the world.

Henry Hub Spot Gas Prices 1997-2024

 

The spot gas price hit the lowest level since 1997 at $1.50/BTU. Ouch!