August 26, 2019

August 26, 2019
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  • WTI is up 63c to $54.80/Bbl, and Brent is up 49c to $59.83/Bbl
  • Oil edged higher this morning after President Trump said China wanted to restart trade talks
    • This helped calm nerves after China announced late last week a 5% tariff on purchases of American crude oil
    • AEGIS notes Trump’s position on China may be weakening as the on going trade war has caused pain back at home
  • US drillers idled 16 oil-directed rigs last week, according to Baker Hughes
    • The Permian basin led most of the decline, dropping seven to now total 434
    • Percentage wise, the DJ-Niobrara dropped the most at five rigs to settle at 25
  • Nebraska’s high court affirmed a route across the state for the 830 MBbl/d Keystone XL crude pipeline
    • TC Energy, formerly TransCanada, said the Supreme Court’s decision is another important step toward completing the long-delayed $8 billion dollar project
    • The Keystone pipeline is still likely to face opposition, especially from Democratic candidates during this election cycle
  • Natural gas is up 3.1c to $2.183/MMBtu
  • Mexico’s President Obrador is said to have reached a preliminary agreement with four private pipeline companies amidst an ongoing arbitration dispute
    • If approved, the 2.6 Bcf/d Sur de Texas (SDT) pipeline could finally begin commercial operations
      • The SDT would be able to increase Mexico’s gas capacity by 40%
  • TETCO Line 25 has an anticipated startup date of August 26th and can return approximately 800 MMcf/d once running
    • Line 10 has an anticipated startup date for the first week of September
    • Line 15, the original source of the incident, continues to see flows remain at zero
  • Despite total rig count dropping by 19, the most since April, gas production set a new record at 92.2 Bcf/d (PointLogic)
    • Growth is still primarily being driven by the Appalachia and Texas
      • As the Gulf Coast Express continues to take additional flows, there is potential to see further production records going forward – especially if the Appalachia continues pace

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