Wednesday, August 17, 2011

Director's Cut -- August 18, 2011 -- Bakken, North Dakota, USA

Overall theme: more of the same; no surprises.

Link here.

Production hits (another) all-time high in North Dakota:

  • May, 2011, oil: 361,407 bopd 
  • June, 2011, oil: 384,678 bopd (all time high) (6.4% increase m-o-m)
  • May producing wells: 5,579
  • June producing wells: 5,558
  • May, 2011: 154 drilling
  • June, 2011: 138 drilling
  • May, 2011: sweet crude, $94.69
  • June, 2011: sweet crude, $91.69
  • Back of envelope calculations: April, 351,183 x 103.91 = $36.491 million; May 361,407 x 94.69 =$34.221344 million; June, 384,678 x $91.69 = $35.271 million

Director's comments:
The summer surge is picking up steam. But, idle well count sured to over 900 wells in June. Crude take away capacity is more than adequate. As fall approaches and the rig count rises, permit activity is expected to increase so locations can be built prior to winter weather.
  • 20,000-foot capable rigs: over 90% utilization rates
  • 7,000 or less-capable rigs: about 50% utilization rates

North Dakota Named One of "America's Most Pro-Business States

Link here.
North Dakota was named one of "America's most pro-business states", according to the Pollina Corporate Top 10 Pro-Business States for 2011 study released Monday. The study, considered the most comprehensive, unbiased and unvarnished by the economic development industry, is the "Gold Standard" for evaluating and ranking states.

North Dakota was this year's most improved state in business rankings, climbing in the rankings from #18 to #3 in the last three years.
Data points:

Top 10 Pro-Business States for 2011 are:
1. Virginia
2. Utah
3. North Dakota
4. Wyoming
5. Nebraska
6. Kansas
7. South Dakota
8. Missouri
9. South Carolina
10. Indiana
More information here.
The study is based on 32 factors controlled by state government, including taxes, human resources, education, right-to-work legislation, energy costs, infrastructure spending, workers compensation laws, economic incentive programs and state economic development efforts. Two new factors - state budget deficit and state property tax index - along with a comprehensive State Report Card have been added to this year's study.

Nine (9) New Permits -- 100% of All Bakken Wells Released From Confidential Status Today Waiting To Be Fracked -- Bakken, North Dakota, USA

Daily activity report, August 17, 2011 --

Operators: OXY USA (2), Petro Harvester (2), Hess, Helis, EOG, MRO, XTO

Fields: Truax, Columbus, Spotted Horn, Squaw Creek, Fayette, Cabernet, Strandahl, and one wildcat

Hess has the wildcat in Williams County.

OXY USA has a multi-well pad, two more Stroh wells

Only one well came off the confidential list today and that well is waiting to be completed; thus 100% of all wells released from confidential status today are waiting to be completed.

For Investors: Three Links -- All About the Bakken

Five beaten up oil stocks to ride high again: KOG, BEXP, WLL, NOG, and Carrizo. Four out of five in the Bakken -- 

Is this the best Bakken stock? -- Motley Fool ---> before linking to the article, see if you agree with Motley Fool? Abraxas, BEXP, CRL, DNR, ENB, GMXR, HAL, KOG, LUF, MRO, WLL?

Is MRO another buying opportunity? -- Motley Fool

Jon Stewart -- Ron Paul -- Iowa Straw Poll -- Debates -- Not A Bakken Story

No matter who you like/don't like, and even if you don't like Jon Stewart, this really is a great segment.

It has nothing to do with thte Bakken but explains why I never watch the four major networks any more for news.

For Investors: Interesting List of Recommended Oil Stocks -- Includes KOG -- Bakken, North Dakota, USA

Statoil (Norway).
Total (France).
BMB Munai (KAZ)(Kazakhstan).
RIG (Switzerland).
ENI SPA (Italy).

And KOG is in that list. Wow.

Nice international list, even including deep-water driller RIG in landlocked Switzerland.

TransCanada To Bury the Pipeline 25 Feet Deep -- Ensafety the Pipeline -- Even If They Buried the Pipeline 25 Miles Down, Environmentalists Would Object

Link here. [Comments in brackets.]
TransCanada's 36-inch pipeline would transport more than a half-million barrels of oil a day. That's equivalent to more than 21 million gallons. [Wow, 21 million gallons. Yeah, let's use gallons; half-million doesn't sound like much. We learned that in the recent Enbridge spill; a few barrels doesn't sound like much but multiplying by 40 to get gallons gets one a really big number.]

Company president Alex Pourbaix said Keystone XL would incorporate pipeline technologies and construction techniques not seen on older lines. He added that the company would take precautions beyond what is required by federal regulation. [As if that will help.]

To lower the risk of spills into waterways, the line would be buried at least 25 feet beneath 11 major river crossings between the Canadian border and southern Nebraska, company officials said.
Even if TransCanada said they would bury the pipeline 25 miles under the surface, environmentalists would object.  Better suggestion: place storage tanks on either side of the 11 major rivers along with new runways; use military cargo planes to fly the oil across the river. During the 15-second flight, cover the rivers with protective and collective tarps. Notify Homeland Security, US Coast Guard, FAA, and immigration authorities before each flight. Pull out the old "Berlin Lift" operation manuals.

Beautiful Stratigraphic Graphic of the Bakken Pool -- GMXR Presentation -- Bakken, North Dakota, USA

There is a great stratigraphic image of the "Bakken Pool" on slide 9 of the GMXR presentation at their website. This is the presentation for the Enercom Conference.

The Bakken Pool -- Bakken, North Dakota, USA

Based on this ...
18806, SI, Whiting, Wolski 44-23H, Bicentennial, Bakken; this well ended up being a Scallion formation well; I don't know for sure, but the Scallion appears to be part of the "Bakken Pool" -- if so, that adds yet another formation to the Bakken Pool,
... it appears that "we" have to add yet another pay zone (or formation) to the Bakken Pool. The NDIC lists this well as part of the Bakken Pool, and it is clear from more than one source, that this well ended up in the Scallion. An operator (WLL?) says that the "Scallion" is often referred to as the "False Bakken," but I see in other places that the "False Bakken" and the "Scallion" are two separate entities.
So, for the Bakken Pool, at least:
  • False Bakken
  • Scallion
  • Upper Bakken
  • Middle Bakken
  • Lower Bakken
  • Upper Three Forks
  • Lower Three Forks
CLR opines that there are three "benches" -- or potentially three pay zones -- in the lower Three Forks. 

Arsenal in Stanley Field Has a Couple of Nice Wells -- Originally In DRL Status -- Now Completed -- Bakken, North Dakota, USA

19108, 1,200, Arsenal Energy, Amy Elizabeth 11-2H, Stanley, Bakken
19106, 912, Arsenal,  Brenlee 100-19H, Mountrail

A reader alerted me to these two. I'm sure the information was posted on the daily activity reports, but I could not find them.

Pick-Up Prices Account For Increased Inflation Report -- Not a Bakken Story

Two things: the number one predictor of a stronger economy in the US is the sale of pick-up trucks.

Link here.

Presidential Bus Made in Canada -- Not a Bakken Story.

I can't make this stuff up.

Photo and caption:
Stop the presses! President Obama, champion of American jobs and lower taxes, is touring this great nation in a $1.1-million luxury tour bus—built in CANADA!
Actually, I don't get: "lower taxes." Obama? Hardly.

And "champion of American jobs." The Obama permitorium, have we forgotten? Hardly.

Link here.

I haven't seen the carbon footprint reported for this.

It should be noted that my iPad is not made in the US either.

If you google "presidential bus Canada," this site is the third site down on front page to show up. One of the purposes of this site is to educate folks about the Bakken, and unrelated stories often bring in new readers.