Wells coming off confidential list today and over the weekend were reported earlier; see sidebar at the right.
One last permit for 2013:
- 24692, loc, Whiting, Faiman 34-33PH, St Anthony, Dunn County
Today's ceramic proppants come either from overseas -- Brazil, Russia or China -- or from the "kaolin belt" in Georgia and eastern Alabama. That is because they must contain either kaolin or bauxite to work in current formulations.
Austin-based Brownwood Clay Holdings, LLC, (BCH) is announcing the development of a method for making ceramic proppant out of a type of clay found near many of the top shale formations which, if proven commercially viable, could slash the cost and the delivery time for this type of proppant.
The product is currently completing the testing phase, according to Gary Davis, co-operating manager of BCH, and is looking for a partner to manufacture the proppant. Should they find one in 2013, Davis said they could have product ready for delivery by 2015.
The idea has been under consideration for two to three years, starting with the consideration of how to utilize a clay deposit on 476 acres of land BCH owned near Brownwood. BCH consists of a number of owners of this land, some of which have been connected with the property for more than 50 years, others for just a few years. The clay had previously been used for brick and tile, but Davis and his associates were looking for greater uses.
The past nine months have been painful for investors with exposure to the Canadian resource sector. The smaller the company, the greater the pain.Got that out of the way.
In the Williston Basin, Legacy has both light oil resource plays (Bakken, Torquay, Spearfish) and conventional Mississippian (Souris Valley, Tilston, Alida, Frobisher, Midale). The production from these plays is a high quality light oil averaging 37 degrees API.
On 242,352 net acres of undeveloped land, Legacy has more than 1,000 (net) drilling locations as follows:
- Bakken - more than 200 net development drilling locations at four wells per section
- Torquay - large resource mapped adjacent to Sinclair Torquay pool
- More than 350 net Mississippian development drilling locations
- Spearfish - more than 440 net locations at eight wells per section
All of these areas are well defined by 3-D seismic and have significant reserve growth potential through the use of waterflooding.
The U.S. shale-gas revolution, which has revitalized chemicals companies and prompted talk of domestic energy self-sufficiency, is attracting a wave of investment that may revive profits in the steel industry.
Austrian steelmaker Voestalpine ..... may construct a 500 million-euro ($661 million) factory in the U.S. to benefit from cheap gas. Nucor Corp., the most valuable U.S. steelmaker, plans to start up a $750 million Louisiana project in mid-2013. They’re among at least five U.S. plants under consideration or being built that would use gas instead of coal to purify iron ore, the main ingredient in steel.
“That technology has been around 30 years, but for 29 years gas prices in the U.S. were so high that the technology was not economical,” said Michelle Applebaum, managing partner at consulting firm .... “This is how steel will be built moving forward.”No links but the winter storms continue: today in Oklahoma, later this week, the East Coast.
Valero Energy Corp. has received approval from the Commerce Department to ship crude from the U.S. Gulf Coast to its Quebec City refinery.
The 235,000-barrel-a-day refinery processes primarily light, low-sulfur crude from Europe and Africa, Bill Klesse, Valero’s chief executive officer, said during the company’s third-quarter earnings call on Oct. 30. Shipping costs from the Gulf Coast to Quebec averaged about $2 a barrel or less, he said. The company hasn’t transported any significant shipments yet, Bill Day, a San Antonio, Texas-based spokesman for the company, said today [December 20, 2012] in an e-mail.
U.S. crude production increased to 6.863 million barrels a day last week, the most since January 1994, Energy Department data show. The production gains have been primarily light, low sulfur crude from Bakken and Eagle Ford shale formations in North Dakota and southern Texas. U.S. crude moving to Canada would displace light, sweet oil from West African nations like Nigeria and Angola, said Amrita Sen, chief oil market analyst for Energy Aspects Ltd in London.Nothing else to say.
|Date||Oil Runs||MCF Sold|
Nissan Motor Co. said it will offer to replace some poorly performing batteries on its Leaf electric car and improve warranty coverage for the battery systems for its almost 20,000 U.S. owners.
The move comes as the Japanese automaker closes a year marked by disappointing sales and complaints by some U.S. customers about the Leaf's battery capacity.
Nissan will repair or replace lithium-ion batteries that have fallen under a specified capacity as well as expand the warranty on the battery to cover for lost capacity for the first five years or 60,000 miles.Meanwhile, regarding sales:
Nissan is falling well short of its goal of doubling Leaf sales in the company's current fiscal year, which runs through March 2013. Demand in the United States is particularly weak, with sales through November down 4.5 percent, at 8,330 cars.
Leaf is not the only electric vehicle to struggle in the U.S. General Motors' Chevrolet Volt plug-in hybrid car has come up short of expectations, previously forcing the U.S. automaker to idle the plant that makes the car. However, Volt sales are 2 -1/2 those of the Leaf this year.
While working as a city planner in Los Angeles, Donald Kress kept fielding questions about his booming home state.
So when he saw an advertisement for a city planner in Williston, Kress decided to go where the action is.
“This is a very dynamic place if you’re a planner,” said Kress, a 49-year-old Fargo native. “Planning climates like this don’t come up that often.”
Kress worked as a technical director for community and educational theater in Fargo before deciding at age 41 to go to graduate school in California for city planning.
He then worked for six years planning subdivisions for the Los Angeles County Department of Regional Planning, a department of 180 people.
Kress had a stable job there, but development had slowed. He interviewed for the job of principal planner for Williston, a newly created position, and began working May 29.Much, much more at the link.
Additions to gathering and processing capacity are helping with the percentage of gas flared holding at 29%. The historical high was 36% in September 2011.This is quite impressive. The percent of flaring is dropping even as a) the number of wells being drilled is going up; and, b) production of both gas and oil is increasing. One could improve the number if the NDIC increased restrictions on flaring. The NDIC has to thread the needle with regard to oil production vs flaring.
The governor’s proposed $12.8 billion budget for the coming 2013-15 biennium includes $300 million to convert two-lane highways into four-lane ones, starting with U.S. Highway 85 between Watford City and Williston, plus $142 million to help counties and townships repair truck traffic-damaged roads. Under the budget, many new state positions would be added, including more highway patrol troopers, petroleum engineers and inspectors for monitoring drilling and well sites.
In 2012, the term “fracking” overtook “climate change” in Google searches, the word “Bakken” became a hot marketing tool, an LA production company sought oil workers for a planned reality TV show and journalists from both coasts and beyond descended on the area to report on the stories of low unemployment rates and fastest-growing U.S. population here in our midst.
The skyrocketing use of natural gas to produce electricity was projected in the state, even as gas flaring estimates of 30 percent with a loss of $100 million wasted were reported.There was one word not mentioned in that story that I found interesting. At least I did not see the word and a "search" for the word came up negative. Let me check one more time....nope. The word "crime" was not mentioned.
Alta and Snowbird have received more than 13 feet of snow this season — more than twice the amount many Colorado resorts were reporting Friday. The Rocky Mountains are enjoying a rebound from one of the worst winters ever for snowfall last year.
Well #21235 is a recent dry gas discovery well and is inactive while awaiting a gas pipeline at the time of this publication. This will likely be a very productive well.
The total cumulative oil production from these 18 wells is little more than 200,000 barrels. The cumulative gas production, however, is over 115 BCF of dry gas (Table 1). Converting the gas to barrels of oil equivalent (BOE), assuming 5,620 cubic feet of dry gas (methane) equals 1 barrel of oil, over 17 million BOE have been produced from wells that have completed and produced from the Black Island Formation, while the water production total is ~450,000 barrels. Overall, the average Black Island well has cumulatively produced 960,463 BOE with only 24,960 barrels of water. Even after 15+ years of production, Black Island completions produce very little water.[Note: the "5,620" conversion factor varies based on BTU content of the natural gas; I often use a conversion factor of 6,000.]
|Pool||Date||Days||BBLS Oil||Runs||BBLS Water||MCF Prod||MCF Sold||Vent/Flare|
Days of efforts trying to guide a mobile offshore drilling rig through stormy Alaska seas hit a crisis Monday night when crew members were forced to disconnect the rig from its last remaining tow line and the vessel went aground on a small island south of Kodiak.
“The first priority was the safety of the people,” said Darci Sinclair, spokeswoman for the unified command of U.S. Coast Guard, Shell Alaska and drill ship owners who had been trying mightily to avoid just such an eventuality ever since the Kulluk rig first ran into trouble Thursday night.
The 266-foot conical drill barge first broke free of its lines last week while being towed back to port in Seattle after a summer season of drilling off the coast of Arctic Alaska. Troubles mounted when the tow vessel, the Aiviq, lost all four of its engines due to possible fuel contamination, and the drill rig was briefly adrift.
Adding to a season full of headaches for Shell Alaska’s debut offshore drilling program in the U.S. Arctic, the company’s Kulluk drilling rig was stuck in monster seas off the coast of Alaska on Friday as its tugboat’s engines failed and the Coast Guard cutter that came to assist became entangled in a tow line.
There were no immediate threats to crew or equipment, but Shell Alaska was rushing additional aid vessels to the scene as the Kulluk, which drilled the beginnings of an exploratory oil well in the Beaufort Sea over the summer, sat without ability to move forward in 20-foot seas about 50 miles south of Kodiak.Almost makes the Bakken seem like paradise, or a garden of Eden. But wow, our prayers go out for these seamen.
US petroleum demand remained weak in November, averaging 18.5 million b/d and reaching the lowest level for the month in 17 years, the American Petroleum Institute reported.Other data points:
“The economy has shown modest improvement—in employment, for example – but the fundamentals of fuel demand fail to indicate a strengthening recovery is imminent,” API Chief Economist John C. Felmy said.
“Look at the weakness in distillate deliveries, including ultra-low sulfur diesel fuel, which is critical to shipping just about everything in our economy,” he continued. “It was down 4.5% from November last year.”But, looking at the advantage the US has over Europe in manufacturing, going forward:
Based on the nine tests that Northern Oil and Gas received on profitability, debt and capital, and operating efficiency, the company achieved five passes and a moot point out of nine. This is a good grade for financial health. Northern Oil and Gas did not pass the debt and capital aspects of the paper. As the company is growing, it is increasing its debt.
This is not necessarily a bad thing, but it is an aspect of the company to be aware of and keep an eye on moving forward.
Looking forward, analysts at MSN money have estimated that NOG will post an EPS of $1.00 for FY 2012 and $1.27 for FY 2013. Overall, the company is showing good results regarding its financial health with five passes and a moot point out of nine.If the article shows "billions" of outstanding shares, that is an error. The number of outstanding shares is in "millions." Don noted this; by the time you get to the link, it may have been corrected.
|Pool||Date||Days||BBLS Oil||Runs||BBLS Water||MCF Prod||MCF Sold||Vent/Flare|
The environmental fears carry an ironic twist: Oil trains are gaining popularity in part because of a shortage of pipeline capacity — a problem that has been worsened by environmental opposition to such projects as TransCanada's stalled Keystone XL pipeline. That project would carry Bakken and Canadian crude to the Gulf of Mexico.
Wayde Schafer, a North Dakota spokesman for the Sierra Club, described rail as "the greater of two evils" because trains pass through cities, over waterways and through wetlands that pipelines can be built to avoid.Some interesting data points:
Oil-loading rail terminals can be built in a matter of months, versus three to five years for pipelines to clear regulatory hurdles and be put into service, ...
The surge comes at the right time for railroads: Coal shipments — a mainstay of the rail industry — have suffered because of competition from cheap natural gas.
In the eastern U.S., CSX and Norfolk Southern railroads haven't seen as much growth because oil from the Marcellus Shale area of Pennsylvania, Ohio and New York is close enough to refineries that trucks haul the crude. [Lots of crude on the highway.]
Yet BNSF is beginning to haul Bakken crude east to Chicago, where it hands off the tank cars to CSX or Norfolk Southern for delivery to Eastern refineries. It has also sent oil to the West Coast, a trend that could increase if Alaska crude production falters, as some industry observers are predicting.
The bottom line is that America’s carbon emissions may drop back close to 1990 levels this year. That result would have been thought impossible, even at the end of 2011.
But the shale gas revolution makes a reality many things recently thought impossible. It was thought impossible to slash carbon US carbon emissions back to 1990 levels by 2012. It was thought impossible to massively, quickly cut carbon emissions and, at the same time, have lower energy bills.
Shale gas production has slashed carbon emissions and saved consumers more than $100 billion per year. Truly astonishing!It looks like the one country that did not sign the Kyoto Protocol will meet or exceed the goals.
Weather Channel meteorologist Guy Walton said a weather pattern with the potential to become Winter Storm Freyr is poised to enter the West Coast on Wednesday and move through the Rockies on Thursday. It could then head for the lower Mississippi Valley, then the Southeast and hit the Northeast on Sunday.And today, 65 percent of the US is covered by snow.
Between the widespread swaths of snow delivered by Winter Storm Draco and Winter Storm Euclid, the area covered by snow in the United States was up to 65 percent as of Thursday morning.
This is easily higher than the peak coverage we saw during last year's snow-starved winter, which was 47.7 percent on February 14, 2012.
As we head into the weekend, yet another storm system is taking shape that will likely deliver snow from the Ohio Valley to some of the major cities along the I-95 corridor of the Northeast. This storm could cause some headaches for the abundance of holiday travelers on roads and in the air this weekend.Ah, yes, evidence of more global warming. Increased precipitation was predicted by global warming.
Freyr (sometimes anglicized Frey, from *frawjaz "lord") is one of the most important gods of Norse paganism. Freyr was associated with sacral kingship, virility and prosperity, with sunshine and fair weather, and was pictured as a phallic fertility god. Freyr "bestows peace and pleasure on mortals." Freyr, sometimes referred to as Yngvi-Freyr, was especially associated with Sweden and seen as an ancestor of the Swedish royal house.This god will be fun to explain to elementary school children. Especially that "sunshine and fair weather" part. Irony is a difficult concept for six-year-olds.
The city receives between $5 million and $6 million through the oil impact grant program, but a bill written by Rep. Robert Skarphol, R-Tioga, would increase that amount to $12.7 million each year of the upcoming biennium, City Administrator Shawn Kessel said.
“A nice increase,” he said. “Unfortunately, we have identified needs that far exceed that type of revenue.”Yes, there is a bit of a delta there.
While many western North Dakota communities are scrambling to keep funds to keep roads in good shape because of an oil boom, Stark County is $650,000 ahead.Let's hope global warming doesn't dump a lot of snow on the Stark County roads necessitating a lot of snow removal overtime. Assuming this is all part of the same pot of money, which may be a wrong assumption.
After witnessing the housing shortages and rent increases in other western North Dakota communities, Bowman County is attempting to get ahead of the game.
Members of Bowman County Commission reviewed a purchase order agreement Thursday during a regular meeting in Bowman that moves the county another step closer to obtaining the Jesco Apartments from a private interest for close to $500,000.
Located in the Bowman, the apartments offer subsidized low-income family housing, something that Bowman County Commissioner Bill Bowman says could have been put in jeopardy.
The generation of power from natural gas will be the most important growth sector for the gas industry for the foreseeable future – certainly for producers, but also for the pipelines that provide the transportation service to deliver the gas to power generators.
Handling the infrastructure and service challenges that come with increased power burn is therefore a priority.
This is true for the nation as a whole, but was specifically raised this year by the Midwest Independent System Operator (MISO) in the heart of coal country - where coal-to-gas switching was most significant during 2012.But back to some great wells. Magnum Hunter is reporting two great wells in the Eagle Ford, Yahoo! In-Play:
Magnum Hunter announced production results from two new Eagle Ford Shale wells operated by the company. Both wells went on production Dec 22, 2012. The Rhino Hunter #1 located in Lavaca County, TX, is producing ~2,033 barrels of oil per day and 1,113 mcf of natural gas (2,218 boe/d) on a 16/64" choke. The Zebra Hunter #1 is also located in Lavaca County, TX, and is producing ~1,995 barrels of oil per day and 898 mcf of natural gas (2,145 boe/d) on a 16/64" choke.Notice the 16/64" choke.
Following Lisa Jackson's resignation on Wednesday, her successor will inherit the tricky task of regulating a drilling boom that has revolutionized the energy industry but raised fears over the possible contamination of water supplies."Regulating a drilling boom?" Give me a break. This is the most regulated industry (except for banks, perhaps) in this country. This is the industry whose CEOs will be criminally charged if one migratory bird, i.e., a duck, is harmed by their drilling. But the wind industry is a) fast-tracked when it comes to approving wind farms; and, b) given 100% immunity on slicing and dicing eagles, hawks, and whooping cranes.
Thanks to the Bakken shale, the state has become the country's second-biggest oil-producer practically overnight. And while the world still runs on oil, with the rise of hydraulic fracturing, or fracking, oil increasingly runs on water. Drillers inject 1 million to 3.5 million gallons of pressurized water into each well to shatter the rock and free the oil. More of the trucks you see are carrying water than anything else, some 400 to 800 truckloads per well.4. My arithmetic might be off.
Irving Oil Corp. is moving more than 90,000 barrels a day of crude from Alberta and North Dakota by rail to its Saint John refinery, Canada’s largest, and plans to increase those shipments, according to a person familiar with the plans.
Alberta crude is coming by rail directly to the Irving refinery rail terminal in New Brunswick and Bakken oil is moving by rail to a port in Albany, New York, then shipped by marine tanker to Saint John, said the person, who asked not to be identified because the closely held company’s transportation plans are private.
High energy costs are emerging as an issue in Europe that is prompting debate, including questioning of the Continent’s clean energy initiatives. Over the past few years, Europe has spent tens of billions of euros in an effort to reduce carbon dioxide emissions. The bulk of the spending has gone into low-carbon energy sources like wind and solar power that have needed special tariffs or other subsidies to be commercially viable.
“We embarked on a big transition to a low-carbon economy without taking into account the cost and without factoring in the competitive impact,” says Fabien Roques, head of European power and carbon at the energy consulting firm IHS CERA in Paris. “I think there will be a critical review of some of these policies in the next few years.”
On May 18, the FERC denied High Prairie's protest, noting among other things that "it is not clear that Enbridge Energy has actually denied any request from High Prairie for an interconnection" and that "there is no statutory authority, or judicial or Commission precedent that gives the commission jurisdiction to compel Enbridge Energy to interconnect." We continue to believe High Prairie's additional claims are wholly without merit. Enbridge's response is on file with the FERC requesting that the commission dismiss this complaint just as it denied the earlier protest.
Enbridge has successfully worked with a number of third-party pipeline companies, including Saddle Butte Pipeline, LLC, a wholly owned subsidiary of High Prairie Pipelines, LLC, to provide pipeline connections and access to its North Dakota system where it is physically capable of receiving and transporting the crude without causing increased apportionment of its system. Enbridge is seeking a business solution to High Prairie's request and remains open to discussing those options. High Prairie has chosen not to engage in further discussions along those lines.Lake Sakakawea is 'officially frozen.' As are ObamaCliff talks, apparently.
"The president made a strategic miscalculation and overreached," said one GOP aide granted anonymity to discuss party strategy. "He could have worked to reach a fair agreement, but instead he picked a fight, poisoned the well, and now we are likely to have a rather unproductive next four years. The decision he made only hurts himself."
There is little evidence to back up that belief. In a Gallup poll released Wednesday, for example, 54% of Americans responding said they approved of the way Obama had handled the negotiations and 45% said they approved of Democratic leaders in Congress. By contrast, 26% said they approved of Boehner and the Republican congressional leadership.The Times writer seems to have moved from a news story into an op-ed when she drew that conclusion. The Gallup poll in the second paragraph has nothing to do with the news in the first paragraph. A few days ago I alluded to the tone of the President's reply to the GOP plan and/or to John Boehner's presentation, and this now appears to be the foundation for the news in the first paragraph above.
President Barack Obama declared Monday a holiday for federal workers and many state offices followed suit and were unable to provide complete data for last week's jobless claims. Data for 19 states was estimated, a Labor Department official said.
Fourteen of those states, including Texas and California, submitted their own estimates, which tend to be fairly accurate because the state officials work with a significant amount of data, the Labor Department official said.Sure. So, we'll post the numbers (350,000 last week; 365,750 four-week moving average) and see the revised numbers next week. Wanna bet they go up?
For most high school seniors, a college degree is the surest path to a decent job and a stable future. But here in oil country, some teenagers are choosing the oil fields over universities, forgoing higher education for jobs with salaries that can start at $50,000 a year.
It is a lucrative but risky decision for any 18-year-old to make, one that could foreclose on his future if the frenzied pace of oil and gas drilling from here to North Dakota to Texas falters and work dries up. But with unemployment at more than 12 percent nationwide for young adults and college tuition soaring, students here on the snow-glazed plains of eastern Montana said they were ready to take their chances.
"I just figured, the oil field is here and I'd make the money while I could," said Tegan Sivertson, 19, who monitors pipelines for a gas company, sometimes working 15-hour days. "I didn't want to waste the money and go to school when I could make just as much."
North Dakota was the nation's fastest-growing state in the past year. U.S. Census Bureau data show that North Dakota's population grew 2.2 percent to 699,628 in the year ending July 1, as the oil boom drew workers to the Bakken fields in the western part of the state.
"We had rural population declining in western North Dakota for decades," said Dean Bangsund, an economist at North Dakota State University in Fargo who has studied the effects of the oil boom. "Now we are looking at growth curves that are just short of astonishing."
The population boom is mostly driven by an influx of people seeking work, he said. The oil fields alone probably account for 40,000 to 50,000 jobs today, compared with about 3,000 to 5,000 jobs early in the last decade, he added. North Dakota's seasonally adjusted unemployment rate in November was 3.1 percent, compared to the nation's 7.7 percent rate. Earlier this year, North Dakota reported 20,000 unfilled job openings. Backman said birth rates also are up because many of the immigrant oil workers are of child-bearing age. Some migrants are bringing families to the state, he said.
Qualifying wind farms get a $22 tax credit for every megawatt hour of power they produce. If the market price of power falls below that amount, they still get the money.
In fact, during the past 12 months, wind-power producers at times have actually paid electricity buyers to take their power, because they could still get positive income on the deal through the tax credit, regional power officials say.
This phenomenon is known as “negative pricing,” when the market price for power has been less than zero during off-peak hours, usually the middle of the night. A wind farm might pay the wholesale buyer $5 per mwh to take the power the farm is producing at off-peak, but, with the tax credit, it still makes $17 per mwh. [Elsewhere, there is a story out of Idaho that requires utilities to buy wind power even when they don't need it, like in the middle of the night. The utilities pass these costs on to the consumers. But I digress.]
“There is no commodity in the world that can be sold for a negative price, unless you’re making money somewhere else,” said David Hoffman, manager of external affairs for PPL Montana. “They’re willing to get less than the full tax credit, if they get a portion of it.”Coal-fired plants are being mothballed. The champagne is flowing in Hawaii.
“They go build a wind farm, they’re there for three-to-six months,” said Bob Winger, a union boilermaker from Billings and vocal critic of wind-power subsidies.
“Coal mines and coal-fired power plants are jobs day-in, day-out. … Who are all of these people (in wind) that they say are employed?”
According to figures compiled by the state and the wind power industry, wind projects in Montana have created about 1,300 construction jobs the past seven years — but only 86 permanent jobs.
Montana coal mines, whose product is burned to produce power, employ about 1,100 people, and coal-fired power plants here employ at least another 400. The wind power production tax credit pays project owners $22 for every megawatt hour (mwh) of electricity they produce.
In the Pacific Northwest right now, spot-market prices for electricity are averaging $25 per mwh. So, while sellers of other types of power get $25 per mwh, a wind-power plant will get $47 per mwh, with the subsidy.Great article.