Tuesday, January 11, 2011

Alaska Pipeline: Some Oil Flowing

CNBC soundbite: some oil is flowing through the Alaska pipeline; amounts were not stated.

More to follow.

Trivia Time -- Bakken, North Dakota, USA

What do the following two wells have in common?

16186, 439, Murex, Angie Marie 13-24H, Beaver Lodge, Bakken, cumulative: 211,000 bbls.

16358, 223, Murex, Megan Brooke 15-22H, Beaver Lodge, Bakken, cumulative: 90,000 bbls.

Yup, they were named after two wonderful women, I suppose.

No. No. No. Well, yes, but that's not the point.

Both of these wells were originally spud in 2006. The IP posted is their IP at the time they were originally spud if I understand the file report correctly. But it appears they were both re-frac'd recently and their production has jumped significantly, to double or triple. Of course, it will decline again, but it is interesting to see them go back in and re-frac these old wells, if that's indeed what happened.

Incidentally, both wells are in the Beaver Lodge oil field, the field where oil was first discovered, back in 1951, in North Dakota, the Clarence Iverson #1 well.

Back of the envelope calculations: 200,000 bbls at $50/bbl = $10 million.
90,000 at $50/bbl = $4.5 million.  You know, for a very short while between 2006 and 2009, oil spiked to $150. Just saying. Was that back in 2008? Yup, July 11, 2008.

Renewable Energy Is Renewable Energy: Let's Level The Playing Field -- Not a Bakken Story

Link here.
  • Montana lawmakers are considering a bill that would make it easier for utilities to meet the standard for renewable energy production.
  • The measure would allow electricity produced by large hydroelectric facilities to count toward state renewable resource requirements.
  • Montana utilities are required to procure 10 percent of their retail electricity sales from renewable resources. That jumps to 15 percent in 2015.
  • State law now counts only smaller hydroelectric facilities of 10 megawatts or less toward those requirements.  This new bill would make all existing dams and hydroelectric facilities eligible renewable energy resources, as long as they are not federal facilities.
  • About 40 percent of Montana's electricity comes from hydroelectric power, and the proposal would add approximately 1 gigawatt of existing power to the state renewable energy standard, said a spokesman.
  • The bill would add so much hydroelectric power that companies required to comply with the standard would not have to develop any new resources for the next 20 years, that same spokesman added.
Yes, let's level the playing field. Renewable energy is renewable energy.

Did y'all know that 40 percent of Montana's electricity already comes from hydroelectric power? I didn't.  But now I do.

Another Natural Gas Formation Found in North Dakota

Link here. [Update: that link is broken; apparently Forbes took it down. The good news is this: one can access the same article here.]

Another natural gas formation has been found in North Dakota. For newbies, the Bakken is all about oil, and there is not much interest in natural gas in North Dakota. That isn't likely to change soon.

However, this formation is said to exist under almost all of North Dakota, in 52 or the 53 state counties. It is a very, very shallow formation: only 200 feet under the surface. (No, I don't know which county got left out.) [See note at end of posting: we now see which county was left out.]
This is a shallow gas formation. Shallow gas formations are defined as less than 5,000 feet deep. This new formation in North Dakota is less than 200 feet in many places.
Flashback: natural gas production in US in decline.

Here's the article, published this month, January, 2011 (a PDF file -- at the link, click on the article, " Field Screening For Shallow Gas Completed Across ND."

And the article includes a map so we know which county got left out: Sioux County, along the South Dakota border. This county lies entirely within the Standing Rock Indian Reservation. Something tells me the natural gas formation can be found there, also, if searched for hard enough. Like with one well.

Eight (8) New Permits -- North Dakota, USA

Producers: Marathon (3), QEP (3), Baytex, and EOG.

Fields: Ambrose, Rosebud, Reunion Bay, Deep Water Creek, and one wildcat.

The three QEP wells will be on one pad in Deep Water  Creek Bay. Two of the MRO wells will be on the same pad in Reunion Bay field.

The wildcat -- Marathon -- is right on the southern edge of the Parshall oil field (inside the reservation).

Some nice wells reported in today's daily activity report:
  • 18768, BR, 1,212, Blegen 2-13H
  • 18991, QEP, 1,053, MHA 1-19H-150-90
Cornerstone reported an IP of 95 bopd for a Madison well, #19177, Rawn 4-26H

Oil Surges After Gulf of Mexico Report Comes Out

Link here.

And here.

Not unexpected.

The moratoria continue.

You may want to bookmark this article to refer back to when oil goes over $100 and gasoline hits $5.00 in California.

It didn't take much of a tax increase in North Dakota to scare away drillers in earlier booms. Higher liability caps in the gulf will drive out some drillers.

Potash: Dakota Salts Unlikely To Be Mining For Several Years -- North Dakota, USA

Link here. The link takes you to my "main potash page." Click on January 11, 2011, news at that page.

North Dakota Hockey: Number 1, Say Some -- Not a Bakken Story

A little something different while waiting for news from the Bakken today.

Locals say North Dakota's University of North Dakota hockey team is number one in the nation.

In the national rankings, North Dakota is #2 behind Yale.

A big thank you to an early morning reader for sending this in.

On another note, it looks like the "Fighting Sioux" may live on. How this all got started has always amazed me.