Daily Energy Report 06.16.2020
Crude Oil Futures for July 2020 settled up $1.26 @ $38.38/bbl trading in a $2.68 range including the overnight-RBOB settled up 4.16/cpg and Heating Oil settled up 4.52/cpg.
Oil production from the seven most lucrative U.S. shale basins will fall to 7.632 million barrels per day, the Energy Information Administration said on Monday in its latest edition of the Drilling Productivity Report. All of the seven basins are expected to see some drop off in July, with the Eagle Ford expected to see the sharpest drop in absolute terms. The Permian, is expected to be the least effected basin in terms of percentage, set for a 7,000 barrel per day loss in July, or a -0.2% decrease in production. Production from the basin is expected to fall to 4.263 million barrels in July.
Natural Gas Futures for July 2020 settled down $0.055 @ $1.614/mmbtu trading in a .088 cent range including the overnight session.
A Supreme Court ruling Monday removes a key hurdle for two natural gas pipelines and could have significant effects for future projects. In a 7-2 ruling, the court said the U.S. Forest Service has the power to grant the 600 mile Atlantic Coast Pipeline right of way under the Appalachian Trail in Virginia. Another pipeline proposed in the same area, the 300-mile Mountain Valley Pipeline, has faced similar challenges. Gillian Giannetti, staff attorney with the Natural Resources Defense Council, filed an amicus brief opposing the pipeline.