Data points
- proposal: a $26 million proppant distribution facility, near Gladstone
- confusion as to which government bodies will get involved
- Houston-based CARBO Ceramics North American
- will be their largest distribution facility
Good luck.
Again, this is the largest -- the largest -- distribution facility for this Houston-based company; anyone still doubt the significance of the Bakken?
I personally think this is about the least desirable place in the state to put the distribution facility. The center of activity will be farther north. Somewhere between Alexander and Watford City seems to be a better location, and the folks there support growth, based on published reports. If the distribution centers needs rail access, then west of Williston would have been better.
There is no doubt that someone has more information than is available for the exploration wells that have been drilled in Stark County to date. This company has probably been told a lot of information to select this county. I suspect Chesapeake is behind this. They will ramp up in a large way within the next year in Stark County. They still have 500,000 acres to develope in this area of the basin.
ReplyDeleteYou could be correct. And companies like CARBO know it could take years to get something approved by the Stark County commissioners. Might as well get started early.
DeleteStark Development Corp. Board members voted unanimously to support the proposal. The proposal sets completion in the first quarter of 2013 - one year from now. The facility would be built on 85 acres less than a mile northeast of Gladstone. Gladstone Mayor Kurt Martin said the city was not contacted about the project, so he called CARBO. Martin said he was willing to work with CARBO, and the company will contact the city to attend a meeting.
DeleteHess684
As noted, it appears that Dickinson is the right place for CARBO. My bias was showing through and I apologize. It's all about rail and price of land, no doubt. It would be great to see more support services move to Dickinson and away from Williston.
DeleteDon't know if you have access to all stories in the press, but on a related note, the Dickinson press was chastised for acting like a tabloid and not reporting both sides of the story in a letter to the editor today. You would thoroughly enjoy the letter if you have access to it.
ReplyDeleteTo its credit, the Dickinson newspaper has the most oil-related content in North Dakota on a daily basis. It is just unfortunate that it does not have a more pro-growth outlook.
DeleteI went through the on-line content and did not find the particular letter referenced, but I will watch for it. Sometime on-line content is posted a bit later.
A distribution facility of 85 acres? Does that make sense?
ReplyDeleteCould there be another rationale? Could Carbo Ceramics also be looking at a manufacturing plant to make ceramic proppant? The clay being studied with high aluminum content is in that Gladstone area. Nat gas, clay, highway, railroads, electricty, and availability of workers would be the primary siting requirements.
I'm hoping: manufacturing ceramics in North Dakota.
DeleteWhy do I get the feeling that doing business in Williston is waaaay more expensive than other areas and the local govt in Williston Is not that much easier to deal with in the current environment. Two or three years ago, maybe but not now. Quality of life could be a factor also. I don't believe distance is all that much different in the final analysis.
ReplyDeleteI have to agree with you. Price of land has gotten out of hand in Williston. You are correct; distance probably does not make any difference. My bias is showing through, I apologize. But, having said that, Watford City is the new geographical center.
DeleteI dont know if they have inside info or not. You must realize that carbo has a large facility in Douglas which has been in operation for a few years. THis area is not in the zone of the bakken yet from what I understand it all comes down to rail service and Douglas was a great place for that. Carbo Prob as is their flagship product is also handled at Haliburton in WIlliston and MBI transload in Beulah.I think it comes down to rail service more than anything but that is just my guess.
ReplyDeleteThe other side is that this sand is sold with shipping included but often times the oil companies send in someone else to haul the sand and therefore they are double charged on the shipping. SO yes it would make sense to have it close to final destination in some ways and not in others. Either way I believe it has more to do with rail service than anything else. Just my 2 cents
There isn't rail space available anywhere near Williston, Minot, or Watford City for that matter. I doubt this has anything to do with Chesapeake (i thought they just pulled out of ND anyway...) It has everything to do with rail space.
ReplyDeleteCarbo already has a plant in Douglas, ND. They just don't have enough space at that facility for their future plans.
ReplyDeleteChk hasn't pulled out, they are making plans to ramp up to start drilling in a very large way. They will have to get all the lawsuits settled too on a lot of their acreage in Stark and Hettinger.
ReplyDeleteSounds like a great poll: will CHK start drilling in "a large way" in North Dakota before 2014?
DeleteBased on the tea leaves, it certainly seems CHK has a lot of irons in a lot of fires, and North Dakota is not high on their list. The CEO said as much in recent earnings call. It doesn't mean that CHK isn't ready to ramp up, but nothing on the horizon yet.
I don't expect much to be said by CHK regarding the Bakken in next quarterly earnings conference call, but then the next one (2Q12) we need to hear something if Bakken is still on CHK's radar scope.
The most recent development that suggests you might be right: natural gas fracking teams moving to North Dakota as natural gas rigs shutting down in other states. But it sure seems CHK has better bets in Utica and Eagle Ford.
I have reviewed the well files of each well drilled and it appears they have drilled horizontal in the upper three forks and had exceptional shows that point to all good expectations of producing in large qualities of oil.They also whole cored several wells for a petrophysical study of several zones of interest ie Scallion,Tyler,Bakken, Three Forks and Birdbear.
ReplyDeleteI think that this play might be one of CHK main plays.The Utica might not be as large as once thought.
Well personaly I hope that CHK leaves this state. I mean permanantly we do not want them or need them. On the other points let us reveiw! Hebron brick city maybe they have been making all those bricks for 10s of years out of good clay!! Prime propant material in an area near Gladstone could that be .Lets take a look Hebron 20 miles from Gladstone Rail lines in place in that area. Please leave our state CKK we do not need you or want your law firm bleeding us. Have a great bakken day!!!
ReplyDeleteOn approximately February 8, 2012 a headline in the Bismarck Tribune Continental stated they were discontinuing looking for oil South of Dickinson. Ojil prospects South of Dickinson do not look very good at this time.
ReplyDelete