Thursday, March 8, 2012

A Random Look At A Few Dawson Bay Pool Wells in Dolphin Field -- The Williston Basin, North Dakota, USA

 Dawson Bay Oil Field monster wells

Quite some time ago a reader sent me a note suggesting I take a look at the Dawson Bay pool wells in Dolphin oil field. It took me quite a while to finally get to those wells, but I am glad I did.

Here we have another group of wells in another "unknown" payzone in the Williston Basin. I used to say the Bakken never fails to amaze me. I should have said, the Williston Basin never fails to amaze me.

The Dolphin oil field is in the southeast corner of Divide County, north of Tioga, North Dakota, the "oil capital of North Dakota."
  • 12017, 1,559, CLR, Bakken 1, Dawson Bay pool, Dolphin field, s9/86; t11/86; PNA; cum 351,424 bbls; 9/92
  • 12071, 955, CLR, Bernice 1, Dawson Bay pool, Dolphin field, s12/86; t1/87; AL; cum 275,721 bbls; 1/12; 
  • 12085, 823, CLR, Rivers 1, Madison River pool, Dolphin field, s2/87; t5/89; AL; cum 582,676 bbls 1/12;
  • 12086, 360, CLR, Osborne 1, Dawson Bay pool, Dolphin field, s2/87; t3/87; AL; cum 1,237,223 bbls; 1/12
  • 12114, 250, CLR, WSP 21-30, Dawson Bay, Dolphin field, s7/87; t9/87; AL; cum 537,045 bbls 1/12;
  • 12149, 463, CLR, Skor 1, Dawson Bay, Dolphin field, s7/87; t9/87; PNA; cum 270,992 bbls, 4/05; 
I am always amazed -- more than amazed -- when I see a well in the Williston Basin that has produced more than a million bbls. The Rivers 1 well produced 1.24 million bbls over the course of 25 years, and is still producing albeit very little.

Most interesting is to see CLR associated with these wells. CLR did not drill these Dawson Bay wells; they were drilled by another producer.

Random Note on Hess' Mogen Well in the Hawkeye Oil Field

I first blogged about this well one month ago, February 8, 2012.

A reader alerted me to an update. At the end of December, the well had produced 64K of oil; one month later, the well had gone over the 100K mark.

Here are the production numbers for this one well:
  • 14 days in November, 2011: 19,576 bbls
  • 31 days in December, 2011: 43,929 bbls
  • 31 days in January, 2012: 37,827 bbls
One word: wow.

If you haven't gone to the link above, go now and look at the data points near the end of that posting. The Hawkeye is in the bull's eye of the Bakken and some say it may be 200 feet thick.

We're still learning about the Bakken.

When one sees wells like this, one wonders if the Bakken is even bigger than the most optimist of us.

For newbies: right, wrong, or indifferent -- I consider a well paid for when it reaches the 100,000-bbl milestone and the price of oil over $100. Yes, I have heard all the arguments, but right, wrong, or indifferent, it's an important milestone in my mind. This well reached this milestone in 2.5 months, and will go on producing for 30 years. And, yes, the decline will be hyperbolic.

No Surprise: All Political Theater --- Senate Kills Keystone XL 2.1

Let them eat cake -- Michelle
Oil is the fuel of the past -- The President

Link here.

The majority of US senators want it, but couldn't muster the 60 votes. It was a foregone conclusion before the vote that "they" didn't have the votes. Two Republicans did not even bother to show up. Their votes would have brought the total to 58, still two short. Everyone knew going in what the vote count would be.

Meanwhile, $6 gasoline in California; $4.00 gasoline for the average American, and $3.79 gasoline is the national average. And oil futures tonight are up another 13 cents, to $106.71.

[$6 gasoline link can be found at Drudge report, 17:17:17, March 7, 2012; the other data can be found at this posting.]

For investors, ChevronTexaco (CVX) is less than a buck from an all-time high. Not a 52-week high, but an all-time high and pays a 3 percent dividend. This is not an investment site, so I have no idea what US savings bonds are yielding. See disclaimer.

And just to add a bit of excitement to another day marked by 6 hours of talk about the Greek bailout, Israel has asked for "bunker busters" and refueling planes from the US. Here we go. My hunch: Israeli pilots have six months to get up to speed on a) how to target sites deep under the desert; and, b) mid-air refueling over a foreign country.

Seven (7) New Permits -- Zavanna and the "Cats" -- The Williston Basin, North Dakota, USA

Daily activity report, March 8, 2012 --

Operators: Whiting (3), Zavanna, Marathon, Triangle, OXY USA

Fields: Stony Creek, Sand Creek, Deep Water Creek Bay, Rosebud, and Manning

Three wells were released from "tight hole" status today, one of which was not completed/fracked, but did include this one:
  • 20107, 1,060, Slawson, Sauger Federal 2-22H, Mountrail, Bakken,
Otherwise a pretty quiet report.

But a bit of trivia:

Way back on October 25, 2009, I posted a few wells that I put on my "watch" list. The very first group of wells I listed were the Zavanna wells in Stony Creek oil field. They were all named after "cats," and I learned a few "new" cats that I had not heard of before including the serval. I shared that list of cats with my granddaughter (age 6 at the time) and she loved it. She actually learned something about cats.

Anyway for the longest time, not much came from these wells; I think I subsequently blogged about them (I can't recall, and won't search now) but I pretty much quit thinking about Zavanna and cats.

And then today, I see this new permit:
  • 22553, LOC, Zavanna, Sabertooth 1-24H, Stony Creek, Bakken
How cool is that. I need to go back and see if there are other Zavanna "cats" that I missed.

A Feel Good Story Over on Fox Business

I don't know how long this link will remain intact, but it's a link to "The Willis Report" and it discusses the "secrets" of North Dakota successes.

For Investors Only: Dividends

This may be one of the best articles, and best arguments, for buying shares in companies that consistently pay dividends.

It's a two-part article at and well worth the read if you are a young investor (under the age of 95).

This is not an investment site. See disclaimer at the top of the sidebar at the right.

SecEnergy Stephen Chu Does Not Own a Car "At The Moment"

He's waiting for GM to begin production of the Volt again

Link here.

Chevron, Ecuador, Judge Follow-Up -- I'm Shocked, Shocked

Link here.
CVX today renewed its request of authorities in Ecuador to investigate the overwhelming evidence of fraud tainting the Lago Agrio lawsuit after the Associated Press and Ecuador’s El Universo newspaper revealed that Nicolás Zambrano, the judge who issued the $18.2 billion judgment against Chevron, has been dismissed from the bench due to his complicity in an emerging story of court corruption and drug trafficking in Ecuador. 
I'm shocked. Shocked.  Yes, and regular readers know exactly what is linked.

Jobs? What Jobs? Let Them Eat Cake!

Obama continues to slow-roll the oil and gas industry
Jobs, what jobs?
Unemployment back up over 9% (Gallup)
Underemployed flirting with 20% (Gallup)
$6 gasoline?

Link here to Politico.
President Barack Obama is intervening in a Senate fight over the Keystone XL oil pipeline and personally lobbying Democrats to reject an amendment calling for its construction, according to several sources familiar with the talks.

The White House lobbying effort, including phone calls from the president to Democrats, signals that the vote could be close when it heads to the floor Thursday. The president is trying to defeat an amendment that would give election-year fodder to his Republican critics who have accused him of blocking a job-creating energy project at a time of high gas prices.
Update: the Senate killed the Keystone XL, supporting the president. A majority of US senators voted to approved the Keystone XL but the bill did not get the needed 60 votes to pass.

North Dakota Oil Production, January 2012: 546,000 BOPD

Number 3 in US production
Solidly above the half-million mark

PDF link here (sent to me by "anon 1"-- thank you), press release dated today; Bismarck Tribune story story here (and that sent by Don -- thank you).
  • December, 2011, production: 534,880
  • Delta: 11,000
  • Percent increase m-o-m: 2 percent.
Beats California by 36,000 bbls.

6,600 wells producing in January; up nearly 200 wells from December.

With a remarkably mild winter, it should be a great 1st quarter for production.

With price of oil higher than usual for this time of year, should be a great 1st quarter for mineral rights owners.

Target Logistics: Grand Opening Of New Man-Camp in Dunn County -- The Bakken, North Dakota, USA


Here's a longer, better story from the Bismarck Tribune.
The project originally was intended for a site on the northwest side of Dickinson, but residents protested the location as being too near city limits.

Target now has 3,700 beds for workers in facilities at Stanley, Tioga and Williston as well as Dunn County, which is permitted for up to 600 beds.

Junk said the facilities are at 95 percent occupancy and the rooms are rented on contract to companies for three years, in some cases. Walk-ins are not welcome.

Junk said he cannot disclose which companies lease rooms for workers. But “large anchor tenants” are familiar names throughout the oil patch.

Stan Katz, who heads up construction, said he managed to put the Dunn County camp together in 78 days, plus 10 for interior work, a schedule that is usually met only in summer months.
Original Post

From a press release provided by The Williston Wire.
Target Logistics, the largest turnkey workforce housing provider in the United States, will hold the Grand Opening and Ribbon Cutting of its new Dunn County Lodge, tonight, Thursday, March 8 at 5:30 p.m. The lodge, designed to accommodate the ever-growing workforce in the Bakken Shale, provides comfortable accommodations with full services for 600 oil and gas workers. The Dunn County Lodge employs approximately 50 people and features 24-hour dining area serving three hot meals a day; game and recreation room with televisions and pool tables; a gym with state-of-the-art fitness equipment; saunas; internet café plus free Wi-Fi throughout the lodge.

Former Elks Club: Hawaiian Take-Out -- Williston, The Bakken, North Dakota, USA

Link to the Williston Herald here.
“We opened this past Monday,” said Leo Wong, co-owner with his brother-in-law, Mike Kim, of Hawaii Fire Grill, 408 1st Ave. East.

“I’ve always wanted to start a Hawaiian restaurant and just never had the opportunity. Then I saw the oil boom on the news, and I said, ‘You know what, now is as good a time as any.’ I called my brother-in-law because I knew he would probably want to do it, and he said, ‘I’m in.’ And here we are,” Wong said.

The restaurant is located in the old Elks Club building where the maroon-colored awning covers the stairs across the street from the Old Armory, and orders can be placed by phone or text to 701-203-1008 or on the website,

The brothers-in-law are from the same small town, Maunawili, Hawaii. Wong has been living in Sacramento, Calif. for the past ten years. Kim flew to California from Hawaii, and they drove to North Dakota a couple weeks ago.

Update on Trenton Diesel Refinery

Data points from the Williston Wire.
  • Three miles southwest of Trenton
  • To be operational sometime in 2013
  • 20,000 bbls/day diesel refinery
  • $200 million facility; to be fabricated in Houston; trucked north
  • The 3-acre pad will be put on a 100-acre site

Balance Needed in Reporting From the Oil Patch -- Bismarck Tribune

Link to Bismarck Tribune here.

Gene Veeder from Watford City:
I’m grateful to the media for increasing awareness of the conditions that need improving out here, but I think it’s time we bring balance to the story.

The negative publicity has created a general anxiety throughout our communities because people think that every oil worker is a criminal and man camps are just places for them to plan their next crime.

You don’t hear about the people who are just here earning a living to support their families who have had to stay behind because of the housing shortage.

You don’t hear about the young families returning to our communities to solid jobs with a good future; something that hasn’t been possible for decades.

Just recently, the Bridger pipeline was completed. That pipeline runs 77 miles north to south through McKenzie County and  eliminates 50,000 truck miles from our roads every day.

That’s about 25 million truck miles taken off our highways every year.

Power Fuels and Meridian Construction of Fargo, MBI Trucking and Cascade Homes are building over of 1,000 housing units in our little community alone.
Well said.

WSJ Noticed That Wind Farm Developers Have a License to Kill

No daily limit on eagles, whooping cranes
Year-round hunting season
Wolves, coyotes, skunks setting up shop in wind farms -- all you can eat buffets

I first posted this story back in September, 2011. It appears mainstream media is starting to pick up the story. Or click here to go directly to WSJ article.

From the WSJ via CarpeDiem:
...bird fatalities happen more than 1,200 times every day (440,000 deaths annually and 50 deaths every single hour of the day on average).   For the millions of documented wind-related bird fatalities that have taken place in recent years, how many wind companies have been prosecuted? None - they get a pass. 
Meanwhile, one oil company was taken to court over the death of six (or, was it seven) ducks during one of the worse winters/springs ever experienced in northwestern North Dakota.  The judge, dismissed the case, or ruled the companies not guilty under the particular law with which they were charged.  I think in all, there were 26 migratory ducks that were found dead in oil pad waste pits. I've talked about it several times; if interested, just search "ducks" in this blog's search engine.

The birds killed by the wind turbines will be eaten by wolves, coyotes, and other omnivores.

Later: this was the "duck" story as reported by NewsOK:
Seven oil companies, including one in Oklahoma, have been charged in federal court with killing migratory birds that died after allegedly landing in oil waste pits in western North Dakota.
The charges involve 28 dead birds that were discovered in oil waste pits between May 6 and June 20. The maximum penalty for each charge under the Migratory Bird Treaty Act is six months in prison and a $15,000 fine.
Timothy Purdon, the U.S. Attorney for North Dakota, said in a statement Thursday that the allegations “should be troubling to those interested in preserving North Dakota's rich heritage of hunting and fishing, and to the many oil companies to work hard to follow the laws protecting our wildlife.” He declined to comment further on the matter.
Charged in the case are Slawson Exploration Co. Inc., of Wichita, Kan.; ConocoPhillips Co., of Houston; Newfield Production Co., of Houston; Brigham Oil and Gas LP, of Williston, N.D.; Continental Resources Inc., of Enid; Fidelity Exploration & Production Co., of Denver; and Petro Hunt LLC, of Dallas.
 More at the link. Search: ducks drowned migratory charged fine.


Link here to the Business Insider via Carpe Diem and 31 wonderful, wonderful photos of Williston, the heart of the Bakken.

"...where waitresses can make $750 per day waiting tables."

I just wrote a page of comments, but then deleted them. I will let the photos "speak" for themselves.

I doubt I would stumbled across this article. Thank you to Carpe Diem for linking.

As long as I'm linking Carpe Diem, here's another one:


First Time Unemployment Benefits Rise UNEXPECTEDLY -- One Step Forward, Two Steps Back

Reuters: No evidence that job market is getting worse

Link to Reuters article here.
The number of Americans filing new claims for jobless benefits rose last week, a government report showed on Thursday, but not enough to change perceptions that the labor market was strengthening.

Initial claims for state unemployment benefits increased 8,000 to a seasonally adjusted 362,000, the Labor Department said. Even with the increase, claims are still near their lowest in four years.
"... but not enough to change perceptions that the labor market was strengthening."

Let's see: how long have "we" been saying the labor market was strengthening? I think it's been a couple of years.

Update: about two hours after posting the above note, US NEWS made this observation:
Similarly the warmer weather made it easier for people to get out of their house to go shopping and to eat out at restaurants. It is no surprise that most retailers reported stellar sales in February....For many consumers in the Northeast, natural gas heating bills are down 20-40 percent this year, and that goes a long way to pay for higher gasoline prices at the pump.

As a result I suspect we will get a somewhat more sober picture of the economy with the March and April data. My guess is that we will get some "payback" in the form of a slower growing labor market and somewhat weaker consumption. The consumer side of the economy will still be growing, but it won't look as strong as it does now. Indeed, by May, with home heating costs no longer offsetting higher gasoline prices, we might once again hear talk of another slowdown.
As noted, one step forward, two steps back. Killing the Keystone XL keeps looking like a most ill-advised and irresponsible decision.

Oil Rigs in US At All-Time High

Link here to PennEnergy
The U.S. oil rig count rose to a new record last week as energy companies including First Titan Corp.  boosted exploration to take advantage of crude prices topping $100 a barrel.

Baker Hughes Inc. reported that rigs engaged in exploration and production in the U.S. totaled 1,989 for the week ended March 2, 2012. The oil rig count was up by 28 to 1,293. The current tally – the highest since Baker Hughes started breaking up oil and natural gas rig counts in 1987 – is way above the previous year’s rig count of 801. 
And so it is. 

Finally, The Final Answer on Why Oil Costs What It Costs -- The Answer Comes From a Non-Oil Producing State

Tennessee provides the answer

Link here to PennEnergy and Chattanooga Times Free Press.
Global trade in crude oil is dominated by futures markets, wherein users such as refineries lock up supplies today at a fixed price for delivery at some time in the future. Supplies have traditionally been considered fungible, meaning that the source was essentially immaterial, and that oil from one supplier traded at the same price as oil of equal quality from anyone else.

A fascinating disparity has developed recently, resulting in widely divergent prices for crude oil futures depending upon geography.

Customers are currently paying substantially different prices depending upon where they are located. This imbalance reflects the rapidly changing dynamics of North American oil production and the resultant transportation bottlenecks impeding the efficient distribution of supplies.
For more insightful comments, go to the linked article.  

Or for the real answer, just read the Democratic leaders explanation: not enough regulators.


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Let Them Eat Cake

Obama: Oil is "fuel of the past"
Gasoline is gonna cost $6/gallon: get over it

From Yahoo!News:
President Barack Obama on Wednesday dismissed oil as "the fuel of the past" as he made an unapologetic election-year pitch for his alternative energy industry policies and sniped at Republicans over painfully high gasoline prices.

"Here is the truth. If we are going to control our energy future, then we've got to have an all-of-the-above strategy," he said in his speech. "We've got to develop every source of American energy—not just oil and gas, but wind power and solar power, nuclear power, biofuels."

Senate Minority Leader Mitch McConnell, hit Obama on his call to end subsidies for oil companies while directing government help to so-called green energy firms, some of which have political ties to the administration.

"When it comes to rising gas prices, the American people don't think it's particularly fair that at a time when they're struggling to fill up the tank, their own tax dollars are being used to subsidize failing solar companies of the president's choosing, not to mention the bonuses that executives at these companies keep getting," McConnell said.
Algae fuel, anyone?