Thursday, September 8, 2011

Only Two (2) New Permits Today -- Bakken, North Dakota, USA

Daily activity report, September 8, 2011 --

Operator: MRO (2)

Field: Reunion Bay

MRO with permits for a 2-well pad in Mountrail County (Reunion Bay).

Only one well reported an IP today:
  • 19289, 386, Dakota-3, Dakota-3 Beaks 36-25H, Dunn County
Otherwise, nothing of note.
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4 comments:

  1. AnonymousSeptember 8, 2011 at 7:58 PM

    A permit approval rate of. *2* per day is not going to work off the backlog:

    Ndic and/or the legslature and gov needs to get it's act together on this and hire more staff or whatever is needed. This situation is not acceptable for a business friendly state.

    ReplyDelete
  2. Bruce OksolSeptember 8, 2011 at 8:23 PM

    Two (2) was clearly an anomaly. Most likely extenuating circumstances. The past two weeks have been very, very busy.

    Interestingly enough, there are some county commissioners who feel NDIC needs to slow down on approving permits. I'm pro-oil, but one has to admit that it appears that NDIC must be approving all requests without much review.

    Recent article in local paper about permit in state park -- didn't make sense for some folks.

    Again, I'm pro-oil, but I wouldn't get too concerned. I think I have as good a handle on the oil industry as anyone from a layman's point of view, and North Dakota certainly seems out front compared to any other oil-producing state.

    But we will see what the rest of the month brings. The fracking backlog is the big problem.

    ReplyDelete
  3. AnonymousSeptember 8, 2011 at 11:57 PM

    Well, the faster they can drop a bit in the ground the faster they can lock up with the leases so they don't have to "renew" with the owners... fracked or not. It'll catch up to them sooner or later, they can't spend all that money up front and not follow up to get a return on it. Otherwise they'll run out of capital to run with. On the other side, they may be running in anticipation of the EPA's investigation of fracking purposefully causing issues. And if the "D's" see that the "R's" are headed into power, they'll try to rip every lightbulb out of the socket before they leave the WhiteHouse, much like the last time it happened.

    ReplyDelete
  4. Bruce OksolSeptember 9, 2011 at 6:46 AM

    1. You are correct: production does not require fracking. Once the drilling has begun, the lease is held.

    2. You are also correct on the second point, I've blogged about that often: the fracking backlog has to be a huge cash flow problem.

    3. I no long worry about EPA and the fracking issue, for a number of reasons. I think the San Diego blackout yesterday was another nail in that coffin.

    ReplyDelete

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