By JOHN P. TRETBAR
Kansas operators have spudded 80 new wells so far this year, down two wells from a year ago. Total footage drilled is down 41%. Independent Oil & Gas Service reports the statewide active rig count is 47, down four rigs from a week ago and up four rigs from a year ago. Kansas regulators okayed 26 new drilling permits last week, 113 so far this year, which is up about 63% over last year at this time. The Kansas Corporation Commission approved two new drilling locations in Barton County and two in Ellis County, out of 10 new permits in Western Kansas. Operators in Kansas completed 34 wells in the week through January 26th, including three in Barton County and three in Ellis County.
Baker Hughes reported 771 active drilling rigs across the US Friday, with the oil count dropping by four rigs, and gas up four. The count in Louisiana was down three rigs. New Mexico was up three. North Dakota was up two.
The operator of the Keystone pipeline last week said it had recovered 90% of the crude oil that spewed into a Kansas creek nearly two months ago. According to the announcement crews are using skimmers and vacuum trucks, as well as mechanical removal, to recover oil and water from Mill Creek and the shoreline in Washington County. TC Energy is diverting creek water around the spill as recovery efforts continue.
Profit margins in the refining sector continue to rise alongside gasoline and diesel prices. A Reuters report says the difference between crude costs and returns on finished products hit a three-month high last week to nearly three times the January average. Analysts say the so-called "crack spread" is likely to go higher because of refinery outages and tight fuel supplies. According to the auto club AAA, regular gasoline prices across the US are up eight cents from a week ago, while diesel is up about a nickel. In Kansas the pump price for regular is up 15 cents from a week ago, while diesel if up 11 cents.
EIA reported an increase in domestic crude inventories for the fifth week in a row. Stockpiles increased by half a million barrels to 448.5 million as of January 20th. That's about three percent above the five-year average for this time of year.
Regular gasoline inventories are up nearly two million barrels from a week ago, while deliveries are down nearly five percent from last year. Diesel stockpiles are down for a fourth straight week. Deliveries are off by 14% compared to last year.
The government reported a slight drop in US crude-oil production last week, but output remains over 12.1 million barrels per day, compared to 11.6 million a year ago. The Energy Information Administration said crude imports were down by nearly one million barrels per day. The four-week average is down slightly from a year ago.
An energy-based private equity firm is selling a big chunk of it's holding in the Permian Basin for $1.6 BILLION. Matador Resources is buying Advance Energy Partners Holdings, which boasted first-quarter production last year of about 25,000 barrels per day.
Russian crude exports from ports on the Baltic are set to rise by half this month, according to a Reuters report. About 70% of those cargoes are bound for India. India has been a top buyer of the Russian grade for several months now. China is also increasing crude purchases from Russia, despite international sanctions.