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• API Reports Crude Inventory Build
  The American Petroleum Institute (API) reported a surprise crude oil inventory build of 1.1...
  The American Petroleum Institute (API) reported a surprise crude oil inventory build of 1.1 million barrels for the week ending January 10, compared to analyst expectations of a 474,000-barrel draw in inventory.
  
  Last week saw a large draw in crude oil inventories of 5.95 million barrels, according to API data. The EIA’s estimates, however, were of a build of 1.2 million barrels for that week.
  
  Cushing inventories saw no change.
  
  US crude oil production as estimated by the Energy Information Administration showed that production for the week ending January 3 stayed for the third week in a row at 12.9 million bpd, a record high for the United States.
  
  The U.S. Energy Information Administration (EIA) report on oil inventories is due to be released today at 10:30 a.m. EST.  We will have a recap on that available in our Friday Snippets Report.  If you haven't already, sign up for that report HERE 
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• EIA Trims 2020 Natural Gas Price Forecast to $2.33; Relief Seen in 2021
  From NaturalGasIntel ~ Domestic natural gas production will continue to outpace consumption in...
  From NaturalGasIntel ~ Domestic natural gas production will continue to outpace consumption in 2020, resulting in Henry Hub spot prices averaging only $2.33/MMBtu for the year, a 24-cent decline from the 2019 average of $2.57/MMBtu, which in turn was down 59 cents compared with 2018 levels, according to the Energy Information Administration (EIA).
  
  The 2020 price forecast is down 12 cents from the prognostication in EIA's previous Short-Term Energy Outlook (STEO).
  
  In the latest STEO released Tuesday, EIA said it expects "some upward price pressures to emerge in 2021 because of falling natural gas production that stems from the low prices forecast in 2020."
  
  While falling demand should limit upward price movements, EIA still expects Henry Hub spot prices to average $2.54/MMBtu in 2021.
  
  PRICING
  
  Front-month U.S. natural gas futures on Tuesday rose 0.005 cents to $2.187 per MMBtu.
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• Gas flaring on the rise, but there are alternatives
  WSJ - A combination of factors, including geology, regulations and a lack of incentives, is contributing...
  WSJ - A combination of factors, including geology, regulations and a lack of incentives, is contributing to a jump in natural gas flaring across the US, where intense shale drilling activity has unleashed a torrent of unwanted gas. There's plenty of opportunity in developing alternatives to flaring and finding uses for the excess gas, but the cheapest solutions are often overlooked, says Questor Technology CEO Audrey Mascarenhas.
  
  Even as more and more gas gets supercooled and shipped around the world in an expensive, liquefied form, an estimated 5.1 trillion cubic feet of gas was flared worldwide in 2018, according to The World Bank—equivalent to the combined consumption of France, Germany and Belgium.
  
  Why waste so much valuable fuel? Because it is often an unwanted byproduct of an oil well, and it isn’t worth enough to sell.
  
  Read Full Story on WSJ
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• Tumbling rig count looks to slow production growth in 2020 in some basins
  S&P GLOBAL ~ The decline in activity follows a trend observed in several major North American plays,...
  S&P GLOBAL ~ The decline in activity follows a trend observed in several major North American plays, setting the stage for a tighter market and possibly stronger gas prices later this year.
  
  The rig count in the SCOOP/STACK hit a new low last week, presenting downside risk to 2020 production. Rigs in the SCOOP/STACK hit an all-time high of 164 in December 2011 but now stand at 23, down 15 from last week, according to Enverus data. The average monthly rig count in the SCOOP/STACK has been falling since last May, from an average of 76 rigs to 30 so far in January.
  
  Still, production in the play held at an average of 3.3 bcf/d to 3.4 Bcf/d during this time despite the monthly declines, according to S&P Global Platts Analytics. Platts Analytics' 2020 SCOOP/STACK production forecast now stands at 3.2 Bcf/d, down from 2019's average daily production of 3.4 Bcf/d.
  
  Overall, total production in the Midcon Producing region, which includes the SCOOP/STACK, Cleveland Tonkawa, Mississippi Lime and Granite Wash plays, has held strong despite rig declines, averaging 6.8 Bcf/d during 2019. But Platts Analytics' forecast, based on current rig counts, calls for 2020 production in the Midcon Producing to average 6.6 Bcf/d over the course of the year.
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• Torchlight Energy Prices $2.3 Million Underwritten Public Offering of Common Stock
  DALLAS, TX / ACCESSWIRE / January 14, 2020 / Torchlight Energy Resources, Inc. ( ...
  DALLAS, TX / ACCESSWIRE / January 14, 2020 / Torchlight Energy Resources, Inc. ( NASDAQ:TRCH ) an oil and gas Exploration and Production (E&P) company, today announced the pricing of an underwritten public offering of 3,285,715 shares of its common stock at a public offering price of $0.70 per share. The gross proceeds will be $2.3 million, before deducting offering expenses. In addition, Torchlight has granted the underwriters a 45-day option to purchase up to 15% additional shares of common stock at the public offering price, less offering expenses, to cover over-allotments, if any.
  
  Torchlight Energy Resources, Inc. based in Plano, Texas, is a high growth oil and gas Exploration and Production (E&P) company with a primary focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. For additional information on the Company, please visit www.torchlightenergy.com.
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