News from the Oil Patch
By John P. Tretbar
Venezuela is now storing crude-oil in aging and obsolete oil tankers parked in its coastal waters. Inventories are mounting, with production of 1.1 million barrels a day, and shipping delays across the board prompted by the US blockade. Reuters reports an emerging backlog filling onshore storage. Venezuelan stockpiles are the highest since August, rising over 22 million barrels. They began transferring barrels to tankers over the weekend.
Reuters reported at least one crude carrier flagged to Panama returned to port in Venezuela following the US interception of another. Two tankers, the "Kelly" and the "Centuries," left port under escort by the Venezuelan Navy. The Coast Guard intercepted the Centuries. The Kelly returned to Caracas.
The United States told the United Nations it will impose and enforce sanctions (quote:) "to the maximum extent"... to deprive Venezuelan President Nicolas Maduro of resources.
Iran state media reports its Navy seized an oil tanker reportedly carrying 25-thousand barrels of smuggled fuel in the strategic Strait of Hormuz. Officials did not disclosed the flag of the tanker, nor the nationalities of the 16 crew members taken into custody Friday.
India's largest conglomerate is still receiving crude-oil shipments from Russian supplier Rosneft, despite US sanctions against the company and its customers. Reuters reports Reliance Industries has what it calls a temporary arrangement allowing it to receive Russian cargoes while working toward compliance. The Administration specifically sanctioned Rosneft, and gave its customers until November to comply. Additional shipments were expected in December and January.
The Rotary Rig Count from Baker Hughes dated Tuesday shows an increase of three oil rigs. The gas tally was unchanged. The total of 545 rigs of all types is down 44 from a year ago. This week, Texas is up two, Louisiana is up one and New Mexico is down one.
Independent Oil and Gas Service notes 15 active drilling rigs in a report dated Christmas Day. Most of those rigs are shut down for the holiday, but actual drilling is reported on leases in Gove and Bourbon County. The current active-rig inventory is unchanged from last week, 14 percent higher than a month ago, and 37 percent lower than a year ago.
In it's final Red Top report for the year, Independent Oil and Gas Service notes 189 active licensed operators in Kansas who have drilled a well here this year. That's down 68 operators, or 26 percent, from last year. Overall activity is down 37 percent compared to last year.
There are nine new well-completions in the final weekly report, or completed wells 1,078 wells year-to-date. The completion tally trails last year by nearly three hundred wells. The statewide leaders are in eastern Kansas:
Woodson County with 135 wells, and Anderson County with 117.
*Ellis County with 25 well-completions this year, compared to 24 by the end of last year.
*Barton County operators completed 33 wells, up from 30 last year.
*Russell County completions drop by nearly half, from 19 a year ago to ten this year.
*Stafford County is down four from last year to 17 wells.
*Finney County operators completed 32 wells, Gove County reports 29 and Haskell County notches 17.
The US House passed a sweeping permitting and regulatory reform bill, the so-called SPEED Act, which stands for Standardizing Permitting and Expediting Economic Development. The measure eliminates some environmental reviews and accelerates approvals for major energy projects, along with infrastructure, manufacturing and data centers. The bill's supporters say it eliminates duplicate reviews and blocks litigation. Critics say it ties the hands of judges and local communities. It now faces an uncertain future in the Senate.
Crude oil production in North Dakota increased slightly in October. The Department of Mineral Resources in the number-three crude producing state reports output inched up by 483 barrels per day from September to October to 1.168 million barrels per day. Natural gas production is down, and statewide flared volume increased by nearly four percent. Operators were able the capture 95.2 percent of the natural gas coming out of their oil wells. The rest is vented or burned off.