Federal Exposure
“Will the SEC step in to protect Wall Street from aggressive Mom & Pop traders?” - Joe Weisenthal
FEDERAL LANDS.
The DOI suspended approvals of new drilling permits & leases across U.S. federal lands for 60 days
Plays affected: New Mexico, GoM, & Powder River Basin
Plans have leaked that would freeze on new drilling rights across 700k+ acres of federal lands
The current DOI move shouldn’t impact existing federal permits or leases.
However, it should be expected that the current Colorado permitting process playbook (which has situationally blocked new drilling) will be rolled out by the new administration.
Conoco (via Concho) & EOG have some of the best performing recent wells, in New Mexico.
If the temporary DOI permit / lease suspensions turn into outright bans, then they will lose out on some of the best onshore US inventory.
Concho’s (now Conoco) NM wells vs TX
EOG’s NM wells vs TX
Source: ShaleProfile (message Enno, start a trial today)
If federal bans move forward, US oil production will decrease, to the benefit of other producers (both in the US & abroad), as well as to the benefit of oil prices -
NORD STREAM 2.
94% complete
European Parliament calls for halt of construction
Germany & Denmark have allowed a restart of construction, despite US sanctions
“It [the European Parliament] issued the call in response to Russia arresting opposition figure Alexei Navalny upon his return to Russia. He had been in Germany recovering from an attempted assassination with a military grade nerve agent.”
The insincerity of the Germans in their advocacy of peaceful support of democracy was noted across Europe.
Poland's President Andrzej Duda sat down with the FT, making the comment:
“There is no other peaceful tool for applying pressure to a state that breaks the rules of international law. The primacy of international law is fundamental here. As long as international law is observed, there is no war. If international law is broken, the effect of this is always conflict”
That comment was as much a shot at Germany, as it was a shot at Russia -
OTHER NEWS.
SpaceX is drilling gas wells in Texas
Shell acquires UK's largest EV charging network
WallStreetBets is winning the GameStop battle
The now infamous Russian palace video
That’s it for today - catch y’all next week -