All Energy

Yesterday WTI crude oil was higher by $1.25 on the potential Statoil strike, yet Canadian pipeline crude differentials rose more than $2 at Platts.  This morning Crude Drops as Norway Ends Oil Strike, China Cuts Imports (Bloomberg).

When Will the WTI Discount to Brent End?  RBN Energy

As U.S. producers report second quarter results, just picture U.S. production accelerating on this chart:  EIA.

Today’s lower oil prices indicative of a lack of economic health:  Burning Platform.

Worldwide oil, gas rig count up 4.5% in June from May: Baker Hughes at Platts.

“Total US energy demand in 2012 will decline for the second consecutive year…Natural gas demand will remain robust, though, in light of low prices and coal plant retirements.”  CGES

Schlumberger goes to China, taking a 20.1% stake in a $3.4 billion company.  WSJ

“About half the more than 5,000 wells drilled in the Marcellus are awaiting completion…”  from Philly with a hat tip to Investor Village.

The Forest Oil disaster took a really bad turn.  Whether it’s geology or an inability to crack the code, their Eagle Ford results stink next to peers.  The JV looks unlikely and significant acreage leases may be lost.  Company wide drilling returns are poor with natty under $3.  Yahoo

The British do not understand U.S. bankruptcy laws.  Often in capital intensive industries the weak industry participants file chapter 11 in a downturn, sheds their debts, and then gets to screw their competitors who beat them in the marketplace.  The rot of the high cost operators lingers as the same companies file from recession to recession.  Patriot Coal may be bankrupt, but they are still open for business (Forbes).  James River looks to be next (Adam Gefvert).  The good news for the rest of the industry is that once a company is a weak sister, typically they are always a weak sister.  “The low cost producer ends up with all the assets.”  Somebody should tell the Brits US bankruptcy laws are a response to their debtors’ prisons of old.

Bulls Lift Wagers by Most in Two Years After Rally: Commodities from Bloomberg.

Energy to start your week

“…oil futures posted their biggest quarterly declines since the fourth quarter of 2008…while (of Friday) U.S. crude jumped by more than $7…the fourth-largest daily gains in dollar terms since the contracts were launched.”  Globe and Mail

“But if oil prices resume their recent slides, Bill Herbert, co-head of research for Simmons & Company said the excited spending on expensive shale play developments will likely taper off.”  Fuel Fix

Directly related are Eagle Ford well starts:  EIA.

Details on the Mississippi Lime have been hard to find to this point:  E&P.

U.S. April 2012 crude production was down 5% from March, yet up 10% over April 2011:  EIA.

Booming production and declining demand means U.S. net petroleum imports were down 15% April over AprilEIA.

U.S. NGL production also up 10% April over April.  Be careful!:  EIA

U.S. Rig Count: -7 (all Gas Rigs) to 1,959 at Haynesville Play.

This heat sure is helping burn off the excess natty in storage, meanwhile Cities That Wouldn’t Exist Without Air Conditioning at Atlantic Cities.

Canada’s natural gas dreams closer to reality after Petronas moves at the Financial Post.

No Energy Yet in the Energy SectorDragonfly.

Earnings, Meet Cliff: Energy’s Contribution to S&P 500 Earnings Is Plummeting, the Raymond James Energy Stat of the Week.

I was published at Seeking Alpha:  Forest Oil: A Speculative Idea.