The Shale Daily Update – 4.16.2020

Oil prices fell back temporarily Wednesday afternoon after OPEC released its latest outlook for 2020 average crude demand.
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Here are 10 Things You Should Know About Oil and Gas Today:

The Big Story

The dramatic drop in oil and gasoline consumption has U.S. storage capacity at 65% full and filling rapidly. If the government does not move to reopen the economy soon, crude oil storage could be filled by the end of May. The loss of crude storage availability could force the shutting-in of more oil production than would otherwise be lost during the economic downturn.

Oil storage tanks fill up as gasoline demand drops by nearly a third – Good story on that subject from the Houston Chronicle’s Sergio Chapa.

Democrats call for new gas pipeline moratorium amid pandemic – As is there habit, Democrat politicians continue to do the bidding of anti-oil and gas lobbyists even in the midst of an existential national crisis. Amazing.

Judge axes Keystone XL permit over Endangered Species Act – Speaking of anti-oil and gas lobbyists, they managed to find themselves a friendly judge to issue a clearly unconstitutional decision that will be overturned on appeal. Obstructionism is their middle name.

The first vessel arrives at Pin Oak Corpus Christi’s dock. Here’s why that’s a big deal.Excerpt:

Pin Oak Corpus Christi LLC has loaded its first vessel at a newly commissioned oil dock at the Port of Corpus Christi.

Crews for the company spent much of Wednesday loading the Pacific Dawn, a 780-foot-long Panamanian-flagged crude oil tanker, at the port’s Oil Dock 14. For growing Pin Oak, this was a first. And more is likely to come.

“Bringing Oil Dock 14 online for Suez-max class vessels is a key component of our strategy,” said Corey Leonard, Pin Oak’s CEO. “This … achievement marks a significant milestone in our efforts to become the premier terminal and logistics company in the South Texas market.”

ExxonMobil Says Thanks to Houston-Area COVID-19 Responders with Meals and Masks – The industry’s good works in the community do not end in a crisis.

Generosity abounds during pandemicExcerpt:

Members of both the Colorado Oil & Gas Association and West Slope Colorado Oil & Gas Association raised more than $10,000 for the Food Bank of the Rockies by way of small, individual donations this past month.

“Times are tough for all of us, especially in the oil and gas industry, but it’s important to stand up and help our neighbors and friends in their times of need,” said Dan Haley, president and CEO of the Colorado Oil & Gas Association. “Food Bank of the Rockies posted on their Facebook page that they anticipated taking a major hit as a result of this pandemic. People need to have access to food. It’s one of our most basic needs. It made sense to quickly organize a grassroots fundraiser for this amazing organization that provides nutrition and food across the state.”

Texas, Oklahoma mulling state cuts to oil, gas production – Turns out the Texas Railroad Commission is not the only state regulator looking at mandating production cuts.

Permian Basin oil and gas companies seek to curb air pollution amid COVID-19 pandemicExcerpt:

Major oil and gas producers in the Permian said they were increasing efforts to curb pollution and the environmental impact of extraction operations, as environmentalists worried emissions could increase while wells were shut in and oversight staff reduced amid the spread of the COVID-19 pandemic.

Oil giant ExxonMobil announced it was beginning field trials of eight methane tracking technologies at 1,000 work sites between Texas and New Mexico. The company hoped the move would better track and monitor polluting emissions, assisting in efforts to reduce the release of the methane and other volatile organic compounds (VOCs). To monitor emissions in the air, Exxon planned on using satellites, drones, helicopters and planes, along with mobile units and fixed-position sensors on the ground.

Texas Railroad commissioners face difficult decision on prorationing – Good piece here from Kurt Abraham at World Oil Magazine.

API Urges RRC to Avoid Oil Market Intervention – API very predictably weighs in against the RRC moving to impose prorationing on Texas oil wells.

That’s all for today.

 

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