Wednesday, November 9, 2011

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

Daily activity report, November 9, 2011 --

Operators: BEXP (3), CLR (2), Zavanna (2), Petro-Hunt, Eternal Energy

Fields: Colgan, Wildrose, Stony Creek, Ragged Butte, Rattlesnake Point.

Petro-Hunt has a wildcat in Williams County.

BEXP has permits for a 3-well pad.

About half the wells coming off the confidential list were completed; the fracking backlog continues.

Obama's Off-Shore Drilling Program Managing to Upset Everyone --


I noted that one of the president's problems is all the uncertainty he causes for the oil and gas industry. Today, IHS CERA said the same:
The US Department of State’s Nov. 10 decision to delay a final recommendation on the proposed Keystone XL crude oil pipeline’s cross-border permit application so alternative routes can be considered will create new uncertainties for Canadian heavy oil producers as well as US refiners, an IHS CERA specialist said.
Original Post

Link here.
Unfortunately for the President, no one's likely to cheer him. Conservatives and the oil industry won't be happy until just about every square foot of the country is available for drilling — though it is worth noting that oil production offshore has actually increased under Obama — and environmentalists aren't going to rally to support any sort of expanded drilling. With energy, as with so many other issues for Obama, it's lonely at the center. 
Both sides of the aisle are upset with the president, not because of his policies (assuming he has one on energy), but because of his inconsistency, waffling, flip-flopping, indecisiveness,capriciousness, and lack of science-based decision-making in the field of energy.

I don't think "conservatives and the oil industry" want every square foot of the country available for drilling: we simply want consistency and a level playing field.

Consistency: quit slow-rolling the industry; either say "yes" or "no" on permitting, so we can plan the next move; the permitorium is a great example of slow-rolling the industry; if anyone can tell me exactly the status of the permitorium, I would be impressed. Telling me that a permit has been issued for the Gulf is a great example of slow-rolling the questioner: that's a snapshot in time but it doesn't tell me anything more. If you are going to nix the Keystone XL, then say so, so we can move on. If you are going to ban fracking, then say so.

Level playing field: wind energy advocates get free pass for killing unlimited number of whooping cranes and migratory birds; it's jail time and/or $15,000 for the death of a single sandpiper in the oil patch.

With regard to environmentalists not willing to rally to support any sort of expanded drilling:  I consider myself an environmentalist, but not a member of Greenpeace or the Sierra Club. And as an environmentalist, I very much favor the appropriate use of drilling. Somehow, using wood instead of natural gas to heat our homes doesn't make a lot of sense, but it's my impression that if it came down to those two choices, the Sierra Club would vote "No" on natural gas.

Reminder for Newbies: IPs for New Wells -- The Bakken, North Dakota, USA

I think I just posted this reminder within the last day or so, but a reminder that I post the results of wells coming off the confidential list at this link.

About half the wells coming off the confidential list go to DRL status because they have not been completed (fracked). Periodically I go back and update those wells on DRL status that have been completed and have reported an IP.

I updated a few of them today. I also post the "high IP" wells on a separate page.  Here are a few of the recent wells that have had IPs above 2,500. I used to post all wells with an IP greater than a 1,000, but that got to be overwhelming, so I moved the threshold to 2,000. The threshold is now about 2,800 to get on the "high IP list."
You might notice a trend.

Keystone XL -- Kicking the Can Down The Road -- The Bakken, North Dakota, USA

Link here.
The State Department will soon decide whether to seek a rerouting of the Keystone XL pipeline away from a environmentally sensitive portion of Nebraska, a move that could delay a final decision on the project until after the 2012 election, according to government officials.

The State Department has stepped up scrutiny of a possible alternative route, the officials said, in the wake of an outcry by Nebraskans, including lawmakers, who say the pipeline poses environmental risks to the state.
TransCanada Corp. is seeking to build the oil pipeline, which would run from Alberta, Canada, to Texas, with a portion passing through the Nebraska Sand Hills area and an aquifer that supplies water to several states.

A State Department decision to consider an alternative route would trigger a review of the new portion's environmental impact. Such a review could take more than a year, likely delaying an ultimate decision on whether to approve or deny TransCanada's application until after the 2012 election. The State Department had been trying to reach a decision by year's end but said recently that deadline could slip.
My hunch turned out correct: the State Department will look at re-routing the Keystone XL pipeline. The president won't have to get involved. TransCanada has said that re-routing would require three-to-five more years of environmental impact studies, permits, etc., and would be the same as killing the project. So we will see.

I'm waiting for TransCanada's announcement to turn the project 90 degrees to the west. China needs the oil. 
In case folks did not see this comment, I am placing it as a stand-along post. Gregg sent me two very interesting links:
This report came out 6-7 months ago from EIA.

The first link is a summary article from NBF.

The second is EIA stuff with a 51.4MB link to the full report.

The USA should have a jobs program to build rigs and then exporting the rigs and know-how to tap and use shale gas.

Kind-a-like the Peace Corp but for energy independence.
Very interesting map of the world, and unconventional shale plays.

America's analysis of world shale gas in fourteen regions around the world.

Perhaps more on this later, particularly the first link with the map.

Webutante: Added to "External Links" at the Sidebar on the Right


Eclectic. But anyone who links Carpe Diem's note regarding whooping crane killers is worth checking out.

For Newbies, a Reminder -- Data Links Page Full of Great Links -- Bakken, North Dakota, USA

Just a reminder.

For newbies, the "Data Links" page/tab has a number of great links.

Fracking Stages on the Well File Report -- NDIC -- The Bakken, North Dakota, USA

Elsewhere they are talking about fracking stages on the well file report.

Because I posted this information late last evening, folks may have missed it, but here is where that information is: how to find fracking information at the NDIC site.

For Investors Only -- Why Oil Prices will Continue to Rise -- The Bakken, North Dakota, USA

From SeekingAlpha, and seven companies noted.

Williams Companies
Baker Hughes
Southwestern Energy

I follow all of those companies except one, Southwestern Energy, and yet I consistently see Southwestern Energy on many of these lists. Southwestern Energy must be in my blind spot.

This is not an investment site, just a blog for education and entertainment, see disclaimer on the sidebar at the right.

NOG Earnings -- The Bakken, North Dakota, USA

Sneak peek: analysts forecast 22 cents/share.

Actual 46 cents.


Press release: Northern Oil and Gas, Inc. today announced record third quarter oil and gas sales of approximately $43.7 million. For the three months ended September 30, 2011, Northern Oil had net income of $28.6 million, or $0.46 per fully diluted share. Excluding the effect of unrealized mark-to-market gains from oil hedges, Northern Oil had net income of $11.9 million, representing $0.19 per fully diluted share. The increase in net income, excluding the effect of unrealized mark-to-market gains from oil hedges represents a 141% increase from the third quarter of 2010 and a 54% increase from the second quarter of 2011.