Thursday, December 20, 2012

Salt Water Disposal Acquisition: $43 Million

Link here to company's press release.
Basic Energy Services, Inc. announced today that it has completed the acquisition of substantially all of the assets of Saltwater Disposal of North Dakota, LLC, for a total cash consideration of $43 million. SWDND was founded in 2010 to develop, build and operate salt water disposal facilities in Mountrail County, North Dakota.  The purchase of the assets of SWDND includes five salt water disposal facilities and eight residential housing units.  
Basic expects this acquisition to be accretive to earnings and contribute revenue of approximately $14 million in 2013. As of the date of the acquisition, SWDND employed 16 people. With this purchase, Basic now owns 72 salt water disposal facilities in Texas, Oklahoma, North Dakota, New Mexico and Louisiana.

Williston Wire

No links; it is easy to subscribe to The Williston Wire.

Williston city commission proposes annexing 4,800 acres.

Fastest growing state in the US: North Dakota.

North Dakota leads in US personal income growth.

NDIC director expects rigs to climb after january 1, 2013 -- level off around 200; Bakken to see increased production growth.

Lessons in North Dakota spurring other states, other countries to go after unconventional oil.

Oil activity is spreading to Montana.

Watford City connects to Western Area Water Supply (WAWS) project.

Crosby to hook up to WAWS.

Week 51: December 16, 2012 -- December 22, 2012

Posting early.

Economic development
Minot: fund drive for new hospital on southwest side of town to begin
Dickinson: $20 million health care facility underway
Dickinson: LTR moving to new headquarters inside Dickinson
Watford City: housing needs assessment
North Dakota taxable sales up over 20% y/y
Infrastructure assessments throughout the Bakken

Bakken operations
Bakken tanker runs aground; a one-off speed bump (hopefully)
New Bakken production record
Rate of return on Spearfish wells
KOG ups CAPEX for 2013
Random look at four EOG wells still on confidential list
EOG Clarks Creek wells are going to be huge wells

Wind energy costs for MDU: 5x coal
North Dakota #3 in business climate -- Forbes

This Is It: What You've All Been Looking For -- Nothing About The Bakken -- Official Mayan Countdown

Link here.

If the world ends tomorrow, I will not be posting.

From the linked site:
Also, since the world can only end at one time, the time of the end of the world/ Mayan Calendar as shown by the Countdown is the same (11:11 AM UTC) for every part of the world.
If you see a different time for the end of the Maya Calendar in your city, it is because that is the time in your time zone when it will be 11:11 AM UTC on December 21, 2012.
Please note that we do not endorse any apocalyptic claims.

NDIC Dockets, January 16 - 17, 2012

List of all monthly dockets

Wednesday, January 16, 2013 
  • 19399: KOG, proper spacing, Twin Buttes-Bakken, Dunn County 
  • 19225, cont’d 
  • 19067, cont’d 
  • 19400: KOG, et al, proper spacing, Marmon-Bakken, redefine field limits; Williams County 
  • 18390, cont’d 
  • 19401, Hess, temporary spacing, Osborn well, Burke County 
  • 19402, Hess, revoke a Sinclair permits; Uran well; Mountrail County 
  • 19403, Hess, establish 2 2560-acre units; 1+ wells on each; Manitou-Bakken, Mountrail County 
  • 19404, Hess, unrestricted production in Sorkness-Bakken, Mountrail 
  • 19405, Hess, unrestricted production in Robinson Lake-Bakken, McKenzie 
  • 19406, Hess, unrestricted production in Blue Buttes-Bakken, McKenzie 
  • 19407, Petro-Hunt, Phelps Bay-Bakken, Charlson-Bakken, Keene-Bakken/Three Forks; establish three 2560-acre units; 1 well each; McKenzie 
  • 19408, Petro-Hunt, Charlson-Bakken, alter stratigraphic limits; McKenzie, Williams 
  • 19409, Bakken Hunter, extend Paulson-Bakken, establish 2 1440-acre units; 2 wells each; Divide County 
  • 14910, Bakken Hunter, extend Bounty School-Bakken, establish 5 1440-acre units; 10 1280-acre units; and 7 640-acreunits; 2 wells on each 1440 and each 1280-acre units; Divide County 
  • 19411, BR, amend Sand Creek and/or Keene-Bakken, establish an overlapping 2560-acre unit; 1+ wells between the existing 1280-acr units; 
  • 19412, BR, amend Charlson or Phelps Bay-Bakken; establish a 1280-acre unit, 7 wells; McKenzie 
  • 19413, BR, extend Johnson Corner-Bakken, establish an overlapping 2560-acre unit; 1+ wells between the existing 1280-acre units; McKenzie 
  • 19414, BR, amend Johnson Corner and/or the Blue Buttes-Bakken to establish an overlapping 2560-acre unit, 1+ well between the existing 1280-acre spacing units, McKenzie 
  • 18999, cont’d 19415, Whiting, extend Zenith or the Green River-Bakken; establish a 1280-acre unit, 4 wells; Stark County 
  • 19416, Whiting, extend South Heart and/or Dickinson-Bakken, establish a 1280-acre unit , 4 wells; plus 4 wells on two additional existing 1280-acre units, Stark 
  • 19417, Murex, amend Elmore-Madison, to allow drilling as close 100 feet to boundaries; Renville County 
  • 19418, Sequel, amend Pierre Creek-Bakken, establish a 2560-acre unit, 6 wells; McKenize 
  • 19419, OXY USA, establish a 160-acre unit, a Madison well; Dunn County 
  • 19420, OXY USA, maximum production, Dimond-Bakken, Burke County 
  • 19421, OXY USA, maximum production, Russian Creek-Bakken, Dunn County 
  • 19422, OXY USA, maximum production, Murphy Creek-Bakken, Dunn County 
  • 19423, OXY USA, maximum production, Manning-Bakken, Dunn 
  • 19424, OXY USA, maximum production, Hungry Man Butte-Bakken, Billings County 
  • 19425, OXY USA, maximum production Fayette-Bakken, Dunn County 
  • 19426, OXY USA, maximum production Cabernet-Bakken, Dunn County 
  • 19427, Oasis, unrestricted production, Alger-Bakken, Mountrail County 
  • 19428, Oasis, alter stratigraphic limits, Alger-Bakken, Mountrail 
  • 19429, Oasis, alter stratigraphic limits, Bull Butte (Kahlil) – Bakken, Williams 
  • 19430, Oasis, alter stratigraphic limits, Camp-Bakken, McKenzie 
  • 19431, Oasis, alter stratigraphic limits, Cottonwood-Bakken, Burke, Mountrail 
  • 19432, Oasis, alter stratigraphic limits, Crazy Man Creek-Bakken, McKenzie, Williams 
  • 19433, Oasis, alter stratigraphic limits, Gros Ventre-Bakken, Burke, Mountrail 
  • 19434, Oasis, alter stratigraphic limits, Robinson Lake-Bakken, Mountrail 
  • 19435, Oasis, alter stratigraphic limits, Tyrone-Bakken, Williams 
  • 19436, Oasis, alter stratigraphic limits, Willow Creek-Bakken, McKenzie, Williams 
  • 19437, Zargon, establish a 320-acre unit, 1 well; Mackobee Coulee-Madison, Renville 
  • 18647, cont’d 19438, MRO, SWD, Bailey field, Dunn 
  • 19439, KOG, SWD, Truax field, Williams 
  • 19440, KOG, amend Truax-Bakken, 8 wells on a 1280-acre unit; 5 wells on 12 1280-acre units; McKenzie, Williams (68 wells) 
  • 19441, KOG, amend Grinnell-Bakken, 5 wells on a 1280-acre unit; Williams, McKenzie 
  • 19442, KOG, amend Banks-Bakken, 5 wells on 3 1280-acre units; McKenzie (15 wells) 
  • 19262, cont’d 
  • 19263, cont’d 
  • 19264, cont’d 
  • 19265, cont’d 
  • 19266, cont’d 
  • 19267, cont’d 
  • 19268, cont’d 
  • 19443, Murex, Tioga-Bakken, 8 wells on a 1280-acre units; Williams 
  • 19444, Murex, Beaver Lodge-Bakken, 8 wells on each of 4 1280-acre spacing units, Williams (32 wells
  • 19445, SM Energy, pooling, Colgan-Bakken, Divide 
  • 19446, SM Energy, pooling, Colgan-Bakken, Divide 
  • 19447, SM Energy, pooling, Colgan-Bakken, Divide 
  • 19448, SM Energy, pooling, Colgan-Bakken, Divide 
  • 19449, SM Energy, pooling, West Ambrose-Bakken, Divide 
  • 19450, EM Energy, pooling, West Ambrose-Bakken, Divide 
  • 19451, SM Energy, pooling, West Ambrose-Bakken, Divide 
  • 19452, SM Energy, pooling, West Ambrose-Bakken, Divide 
  • 19453, SM Energy, pooling, West Ambrose-Bakken, Divide 
  • 19454, SM Energy, pooling, West Ambrose-Bakken, Divide 
  • 19455, SM Energy, pooling, Ambrose-Bakken, Divide 
  • 19456, SM Energy, pooling, Ambrose-Bakken, Divide 
  • 19457, SM Energy, pooling, Ambrose-Bakken, Divide 
  • 19458, SM Energy, pooling, Ambrose-Bakken, Divide 
  • 19459, SM Energy, pooling, Ambrose-Bakken, Divide 
  • 19460, Petro Harvester, commingling, Johnston 14-1, Burke 
  • 19461, BR, pooling, Sand Creek-Bakken, McKenzie 
  • 19462, BR, pooling, Union Center-Bakken, McKenzie 
  • 19463, BR, pooling, Union Center-Bakken and Keene-Bakken, McKenzie 
  • 19464, BR, Johnson Corner-Bakken, 10 wells on a 2560-acre unit; McKenzie 
  • 19465, Hess, Cottonwood-Bakken, 4 wells on a 1280-acre unit, Mountrail 
  • 19466, Hess, Kittleson Slough-Bakken, 4 wells on a 1280-acre unit, Mountrail 
  • 19467, Hess, Clear Water-Bakken, 4 wells on 5 1280-acre units; Mountrail (20 wells
  • 19468, Hess, Alger-Bakken, 8 wells on a 1280-acre unit, Mountrail 
  • 19469, Hess, Ross-Bakken, 4 wells on 3 1280-acre units; 6 wells on 2 1280-acre units; 8 wells on 3 1280- acre units, Mountrail (48 wells) 19470, Hess, Stanley-Bakken, 8 wells on a 1280-acre unit, Mountrail 
  • 19471, Hess, Robinson Lake-Bakken, 10 wells on a 1280-acre unit; Mountrail 
  • 19472, Hess, Elm Tree-Bakken, 9 wells on a 1280-acre unit, McKenzie 
  • 19473, Hess, Antelope-Sanish, 9 wells on 2 1280-acre units; McKenzie (18 wells
  • 19474, True Oil, Bowline-Bakken, 7 wells on a 1280-acre unit; McKenzie 
  • 19475, OXY USA, pooling, Snow-Bakken, Billings 
  • 19476, OXY USA, pooling, Russian Creek-Bakken, Dunn 
  • 19477, Petro-Hunt, pooling, Charlson-Bakken, McKenzie 
  • 19478, Petro-Hunt, pooling, East Tioga-Bakken, Mountrail 
  • 19479, Petro-Hunt, pooling, East tioga-Bakken, Mountrail 
Thursday, January 17, 2013 
  • 19480, Zavanna, revoke an XTO permits, Buford well, Williams 
  • 19020, cont’d 
  • 19481, QEP, amend Grail and/or Croff-Bakken, create 7 1280-acre units; 8 wells on each; McKenzie (56 wells
  • 19482, QEP, amend, Heart Butte-Bakken, modify current 640-acre units to 4 1280-acre units; 8 wells each; Dunn; (32 wells
  • 19483, QEP, Heart Butte-Bakken, create 6 640 acre units, 2 wells each, Dunn, McLean, Mountrail (12 wells; density: 320 acre) 
  • 17830, cont’d (this is the one in Heart Butte-Bakken; several spacing units including a 2560-acre unit with 12 wells), Dunn 
  • 19484, ICAN Tech, treatment plant, McKenzie 
  • 19223, cont’d 
  • 19321, cont’d 
  • 19485, Fidelity, Heart River-Bakken, redefine field limits, Stark 
  • 19486, Fidelity, South Heart-Bakken, proper spacing, Stark 
  • 19487, Newfield, Fertile Valley-Bakken, proper spacing, Divide
  • 19488, Newfield, South Tobacco Garden-Bakken, proper spacing, McKenzie 
  • 19489, Baytex, Garnet-Bakken, proper spacing, Divide 
  • 19490, Baytex, Moraine-Bakken, proper spacing, Divide 
  • 19491, Baytex, Musta-Bakken, proper spacing, Divide 
  • 19492, Baytex, Skabo-Bakken, proper spacing, Divide 
  • 19493, Baytex, Smoky Butte-Bakken, proper spacing, Divide 
  • 19494, Baytex, amend Smoky Butte-Bakken, unrestricted production, Divide 
  • 19495, Baytex, amend Blooming Prairie-Bakken, flaring, Divide 
  • 19496, Baytex, Garnet-Bakken, flaring, Divide 
  • 19497, Baytex, Musta-Bakken, flaring, Divide 
  • 19498, Baytex, Whiteaker-Bakken, flaring, Divide 
  •  18911, cont’d 
  • 18912, cont’d 
  • 18913, cont’d 
  • 18914, cont’d 
  • 18915, cont’d 
  • 19499, Baytex, Hall, Lindsey, flaring, Whiteaker-Bakken, Divide 
  • 19500, Baytex, flaring from several wells (Geralyn Marie, Larson, Haugland, Grundstad #5, Larsen, Grundstad #10, Sorenson #14, Haugenoe #22, Haugenoe #15, Hansen #6, Hansen #18, Lystad, Sinclair); Ambrose-Bakken, Divide 
  • 19501, Baytex, flaring, Colby, Burg-Bakken, Divide 19502, CLR, proper spacing, Viking-Bakken, Burke 19503, CLR, amend Glade-Bakken, create a 640-acre unit; 1 wells; Billings 
  • 19504, CLR, extend Leaf Mountain-Bakken, establish a 1920-acre unit, 1 well, Burke 
  • 19505, CLR, Corinth or New Home-Bakken, create a 1280-acre unit, 1 well; Williams 
  • 19506, CLR, Beaver Creek Bay-Bakken, creat an overlapping 640-acre unit; 1 well; Mercer County 
  • 18667, cont’d 
  • 18853, cont’d 
  • 18854, cont’d 
  • 18855, cont’d 
  • 18859, cont’d 
  • 18861, cont’d 
  • 18865, cont’d 
  • 18870, cont’d 
  • 18872, cont’d 
  • 18881, cont’d 
  • 18883, cont’d 
  • 18889, cont’d 
  • 18893, cont’d 
  • 18901, cont’d 
  • 18903, cont’d 
  • 18910, cont’d 
  • 19507, EOG, amend Antelope-Sanish, create 2 overlapping 640-acre units 6 wells on each (density: almost 1 well per 100 acres
  • 19508, Hunt, temporary spacing, Sioux Trail, Divide 
  • 19509, Hunt, eliminate the 1220 setback rule, Red Wing Creek-Bakken, McKenzie 
  • 19510, GMXR, amend Bennett Creek-Bakken, create a 1920-acre unit; 8 wells; McKenzie 
  • 19511, GMXR, amend Butte-Bakken, aleter stratigraphic limits, McKenzie 
  • 19512, Slawson, amend Sanish-Bakken, create an overlapping 1280-acre unit, 3 wells; McKenzie, Mountrail 
  • 19513, Slawson, amend Big Bend, create an overlapping 1280-acre unit; 4 wells; Mountrail 
  • 19514, Slawson, amend Van Hook-Bakken, create a 3200-acre unit; 1 well, Mountrail 
  • 19325, cont’d 
  • 19326, cont’d 
  • 18676, cont’d 
  • 18677, cont’d 
  • 18678, cont’d 
  • 19327, cont’d 
  • 18836, cont’d 
  • 19323, cont’d 
  • 18497, cont’d 
  • 19324, cont’d 
  • 19342, cont’d 
  • 19515, American Eagle, 4 wells on an existing 800-acre unit, Colgan-Bakken, Divide 
  • 19516, QEP, amend Blue Buttes-Bakken, 8 wells on a 1280-acre unit; McKenzie 
  • 19517, QEP, Grail-Bakken, 8 wells on each of 7 1280-acre units; McKenzie (56 wells
  • 19518, QEP, amend Spotted horn-Bakken, 8 wells on a 1280-acre unit, McKenzie 
  • 19519, Fidelity, pooling, Dutch Henry Butte-Bakken, Stark 
  • 19520, Fidelity, pooling, Heart River-Bakken, Stark 
  • 19521, Fidelity, risk penalty legalese, Miriah, Sanish-Bakken, Mountrail 
  • 19522, Fidelity, risk penalty legalese, EHB well, Sanish-Bakken, Mountrail 
  • 19523, Fidelity, risk penalty legalese, Lee, Sanish-Bakken, Mountrail 
  • 19524, Fidelity, risk penalty legalese, Luke, Sanish-Bakken, Mountrail 
  • 19525, Baytex, pooling, Burg-Bakken, Divide 
  • 19526, Baytex, pooling, Ambrose-Bakken, Divide 
  • 19527, Baytex, pooling, Ambrose-Bakken, Divide 
  • 19528, Baytex, pooling, Ambrose-Bakken, Divide 
  • 19529, Baytex, risk penalty legalese, Marjorie, Whiteaker-Bakken, Divide 
  • 17883, cont’d 
  • 17884, cont’d 
  • 17885, cont’d 
  • 17886, cont’d 
  • 19530, Triangle, pooling, Rawson-Bakken, McKenzie 
  • 19531, Triangle, pooling, Rawson-Bakken, McKenzie 
  • 19532, Triangle, pooling, Elk-Bakken, McKenzie 
  • 19533, Triangle, Elk-Bakken, 4 wells on each of 2 1280-acre units; McKenzie 
  • 19534, Triangle, Rawson-Bakken, 4 wells on each of 2 1280-acre units; McKenzie 
  • 19535, Triangle, risk penalty legalese, Steen, Antelope Creek-Bakken, McKenzie 
  • 19536, Triangle, risk penalty legalese, Steen, Antelope Creek-Bakken, McKenzie 
  • 19537, GMXR, Butte-Bakken, 4 wells on an existing 1280-acre unit; McKenzie 
  • 19538, GMXR, Butte-Bakken, pooling, McKenzie, 
  • 19539, GMXR, Bennett Creek-Bakken, McKenzie 
  • 19540, CLR, pooling, Dollar Joe-Bakken, Williams 
  • 19541, CLR, pooling, Dollar Joe-Bakken, Williams 
  • 19542, CLR, pooling, Dollar Joe-Bakken, Williams 
  • 19543, CLR, pooling, Brooklyn-Bakken, Williams 
  • 19544, CLR, pooling, Stoneview-Bakken, Divide, Williams 
  • 19545, CLR, pooling, Frazier-Bakken, Divide 
  • 19546, CLR, pooling, Frazier-Bakken, Divide 
  • 19547, CLR, pooling, Corinth-Bakken, Williams 
  • 19548, CLR, pooling, Beaver Lodge-Bakken, Williams 
  • 19549, CLR, pooling Rosebud-Bakken, Williams 
  • 19550, CLR, pooling, Rosebud and/or Hardscrabble-Bakken, McKenzie,Williams 
  • 19551, CLR, pooling, Baker-Bakken, McKenzie, Williams 
  • 19552, CLR, risk penalty legalese, Quale, Antelope-Sanish, McKenzie 
  • 19553, XTO, pooling, Midway-Bakken, Williams 
  • 19554, XTO, pooling, Midway-Bakken, Williams 
  •  19555, XTO, pooling, Midway-Bakken, Williams 
  • 19556, XTO, Killdeer-Bakken 8 wells on an existing 1280-acre unit, Dunn 
  • 19557, XTO, Charlson-Bakken, 4 wells on an existing 640-acre unit, McKenzie 
  • 19375, cont’d 
  • 19558, Zavanna, Glass Bluff-Bakken, multiple wells on each of 8 1280-acre units; McKenzie 
  • 19559, Zavanna, Buford-Madison, multiple wells on an existing 640-acre unit; Williams 
  • 19560, Zavanna, Briar Creek-Madison, multiple wells on an existing 960-acre unit; and on each existing 640-acre units; McKenzie, Williams 
  • 19561, Newfield, risk penalty legalese, Darlene Federal, Westberg-Bakken, McKenzie 
  • 19562, Newfield, risk penalty legalese, Darlene Federal, Westberg-Bakken, McKenzie 
  • 19563, Newfield, risk penalty legalese, Darlene Federal, Westberg-Bakken, McKenzie 
  • 19564, Newfield, risk penalty legalese, Arkadios, Haystack Butte-Bakken, Dunn 
  • 19369, cont’d 
  • 18782, cont’d 
  • 19377, cont’d 
  • 19378, cont’d 
  • 19380, cont’d 
  • 19381, cont’d 
  • 19382, cont’d 
  • 19384, cont’d 
  • 19385, cont’d 
  • 19386, cont’d 
  • 19565, Samson Resources, SWD, Blooming Prairie, Divide 
  • 19566, Buckhorn, SWD, Westberg, McKenzie 
  • 19567, Buckhorn, SWD, Tobacco Garden, McKenzie 
  • 19568, WaterWorks, SWD, Glass Bluff, McKenzie 
  • 19569, Johnson SWD, SWD, South Tobacco Garden, McKenzie 
  • 19570, Marquis, SWD, Tyrone, Williams 
  • 19395, cont’d

Coal Exports To Asia Will Hurt Montana, Other Western States

Link here.

Cue up Connie Francis.

NDIC Hearing Dockets for January Are Posted

To be transcribed later.

Link here.

Some highlights until then:

Petro-Hunt three overlapping-2560-acre spacing units; one well each, Charlson and the Keeen fields.

Bakken-Hunter to establish two 1440-acre spacing units for two wells each; Paulson oil field.

Bakken-Hunter to establish five 1440-acre spacing units, two wells eacy; Bounty School field.

BR, seven wells in a 1280-acre field; Phelps Bay oil field.

Sequel Energy, six wells on a 2560-acre spacing unit, Pierre Creek oil field.

OXY USA will target the Madison formation in Dunn County.

KOG to drill 8 wells on a 1280-acre unit in Truax; and 5 wells on twelve (12) 1280-acre spacing units in same field.

Hess with request for 48 wells in Ross oil field.

Hess wants to drill ten wells on a 1280-acre unit in Robinson Lake oil field.

Hess wants to drill nine wells in a 1280-acre unit in Elm Tree oil field.

Hess wants to drill nine wells one each of two 1280-acre spacing units Antelope oil field.

True oil wants to drill seven wells each 1280-acre unit Bowline oil field.

In one case, QEP is looking at drilling 56 wells on 1280-acre spacing units.

In another case, QEP is looking to drill 32 wells on 1280-acre spacing units.

Elsewhere, QEP is looking at creating six 640-acre spacing units; drilling two wells on each.

How dense will it get? EOG wants to establish two overlapping 640-acre spacing units and drill as many as 6 wells on each overlapping 640-acre spacing unit.

American Eagle wants to drill four wells on an existing 800-acre spacing unit.

QEP has another request for eight wells on an existing 1280-acre spacing unit.

Another QEP case: eight wells on seven 1280-acre spacing units.

Another QEP case: eight wells on a 1280-acre spacing unit.

Zavanna requests to drill "multiple wells" on several 1280-acre units in Glass Bluff.

Zavanna also wants to drill "multiple wells" on an existing 640-acre unit in Buford-Madison.

Zavanna also wants to drill "multiple wells" on an existing 960-acre unit in Briar Creek-Madison.

OXY USA has several cases, but not much new drilling.

A lot of "continued" cases from previous months.

CLR Press Release Previously Announced: More Detail

This deal was announced back in November, 2012, but this press release provides a bit more "granularity," as the analysts say. Smile.

Several data points were noted in the press release. This one I appreciated the most:
Continental believes the entire acquisition area of 119,218 net acres has potential for deeper Three Forks development, based on three strategically placed cores taken in 2011.
Click on the "Snapshot" tab at the top of the blog for a quick look at CLR's recent history.

Read more here:

The End Game: The ObamaCliff

Follow the Story
Place Your Bets
Enjoy Political Theater
It's All Here
The Checklist

If my thesis (see original post) is correct, then certain "things" should follow, as in, certain things should "then occur." In computer code: "if this, then." So, follow the updates, and see if they fit the script of the original post. I will supply my own commentary.


December 31, 2012: so much for the GOP being the obstacle. "Everyone" was counting on the Democrat-controlled Senate to pass a bill that could be acted upon by the House. But the Senate Dems don't like the proposed Senate bill:
As Senate Republican leader Mitch McConnell and Vice President Joe Biden kept working on unresolved parts of the deal, there was deep discontent among Senate Democrats.
"The caucus as a whole is not sold" on the proposal, said a Senate Democratic aide. "We just don't have the votes for it."
December 30, 2012: lots of headlines; I don't see any movement. Did Harry Reid botch it? If so, it really, really fits the script. Reid has nothing to lose even if it costs Obama, but again, Obama benefits if this goes into 2013.

December 26, 2012: no news. 

December 24, 2012: if there is no deal by the end of the year, there really is no reason to pursue a deal until after the State of the Union address in which the president can announce one of the biggest tax cuts in the history of the republic.  The script holds. It will be interesting to see whose "line in the sand" is moved.  By the way, Santelli (CNBC) is not happy that Congress and President all on vacation (and he's not).

December 23, 2012: with the president it seems petty and personal. Does this sound like someone who wants to negotiate seriously?

December 22, 2012, evening: new wrinkle in the script. In the short term, does the possibility of John Boehner losing his gavel become a bigger story line than the ObamaCliff itself? If so, this makes things even more difficult: no leader in the House. Folks will be competing to be "top dog." Legislation becomes a secondary issue for these folks, especially when the House is so divided. With John Boehner's future in doubt, with whom does the president negotiate? Himself?

December 22, 2012, morning: two stories -- a) more pressure on Senate Democrats; b) Majority Whip Eric Cantor AND Paul Ryan are the GOP hurdles. Comment: I have always maintained it will be the Democrats who will the president his biggest challenge; it fits the script. I forgot about Eric Cantor; he may be more important and Paul Ryan. 535 people have their own ideas; the GOP is just the first hurdle; then the Dem hurdle, which I think will be more difficult. Think ObamaCare and the number of folks who went to the mat for the president only to be rewarded with early retirement.

December 21, 2012, 4:03 pm: Obama meets with Reid. Desperate to get anything: a smaller package that would extend the Bush-era tax rates on income below $250,000, pause the across-the-board spending cuts known as the sequester and renew unemployment insurance benefits, according to Senate and administration officials. No spending cuts. Comment: does this fit the script? 100%. Reid is calling the shots: no cuts in benefits, and renew unemployment insurance benefits. This will be updated after the announcement which, if it occurs, will be after the news cycle. If the president  announces this with Reid at his side, it's Boehner's move: a blue slip.

December 21, 2012, morning: John Boehner pulls "Plan B" from House vote; GOP rank and file won't support; chaos. Comment: does this fit the script? Yes: the player, Paul Ryan, would not go along with the talking head. It's still GOP's move.

Later, 4:53 pm CST: Henry Reid has adjourned the Senate until "after Christmas," suggesting he will reconvene the Senate on December 27, 2012. Supposedly the House has the votes to pass "something."

Original Post
The players, the two "R's":
  • Paul Ryan: his line in the sand -- taxes
  • Harry Reid: his line in the sand -- spending cuts in entitlements, safety net
The talking heads, the two "B's":
  • John Boehner: under lots of pressure from Paul Ryan's folks
  • Barack Obama: under lots of pressure from his inner circle, and Harry Reid
Comic relief:
  • Joe Biden (unfortunately, he's just been tapped to take on the NRA)
  • Nancy Pelosi
Stage left (or right), just getting off the stage:
  • Tim Geithner
Deus ex machina:
  • when Bill Clinton flies into Washington
  • if he doesn't fly in to negotiate the grand compromise, the "fat lady" won't sing until after the first of the year
Paraphrasing a news reporter from the past: the chances of getting this deal done before the end of the year is slim to none, and slim is getting ready to leave town. Hawaii is calling. John Boehner already played his "Ohio vacation" card.

Economic Development for Minot: New Hospital

Link here to The Minot Daily News. A thank you to Kent for sending me the link.
Trinity Health and the Trinity Health Foundation are planning a capital fund drive for a proposed new hospital in southwest Minot that's been in the works for some time.

Siemens Will Cut 1,100 Jobs In Its Energy Division

Link here to AP News.
Industrial conglomerate Siemens AG says it will cut about 1,100 jobs in its energy division in Germany over the next two years amid a wider cost-cutting effort.
Siemens said Thursday the cuts will primarily affect its fossil power and the oil and gas services units which are experiencing sluggish demand. The phasing-out of its nuclear power division also plays a role. 
It looks like they are "betting the farm" on wind. Good luck. Siemens will be an interesting German bellwether energy company to follow.

Germany has recently been referred to as the miracle county in the Eurozone, but there are now an increasing number of stories suggesting this is about to come to an end. The Eurozone is in a recession and some do not see a light at the end of the tunnel.

Housing Needs Assessment for Watford City, Sitting in the Sweet Spot of the Heart of the Bakken

This is an executive summary sent to me by Kent:
The 2012 North Dakota Statewide Housing Needs Assessment notes some key findings with regard to population shifts in different age groups, as well as by median income ranges. 
It then breaks this information down by region and county. 
The report projects that Region 1, which includes McKenzie, Williams and Divide counties, will experience more growth than any other region in North Dakota from 2010 to 2025, and that ...
... McKenzie County will show the largest growth by percentage than any other county in North Dakota
In McKenzie County, the population of people under the age of 25 is expected to grow from 2,212 in 2010 to 4,105 in 2025, a change of 85 percent. People ages 25 to 44 are expected to see the most growth, rising from 1,455 in 2010 to 5,745 in 2025, a change of 294.8 percent. Finally, people ages 45 to 64 are expected to grow from 1,791 in 2010 to 5,083 in 2025, a change of 183.8 percent, while people age 65 and over are projected to grow from 902 in 2010 to 2,177 in 2025, an increase of 141.4 percent. 
Again, as data points, McKenzie County (essentially Watford City) will grow by this extent between 2010 and 2025:
  • under age 25: an 85% increase in growth
  • 25 to 44: an increase of almost 300%
  • 45 to 64: an increase of almost 200% 
  • even those over 65 will show an increase of almost 150%

Coming Off the Confidential List Today, Friday: Two Gushers

Bakken Operations

Active rigs: 187 (steady, no change)

Wells coming off confidential list today, Friday
  • 20273, 2,372, XTO, FBIR Headlessturtle 44X-32C, Heart Butte, t9/12; cum 16K 10/12;
  • 22756, 2,204, BR, Iron Horse 21-2TFH, Union Center, t11/12; cum 10/12;
  • 22816, 511, SM Energy; Capstick 2-4H, Ft Buford, t10/12; cum 6K 10/12;

We Knew It Was Bad. We Just Didn't Know It Was This Bad -- Wind Energy Costs in North Dakota: Coal, $20; Wind: $100 (2011)


December 21, 2012: a great example of how one can "lie" with statistics, or certainly be very, very disingenuous. This is truly beneath Bloomberg and suggests Bloomberg is becoming nothing more than just another blog.  But if you don't mind paying 5x the cost of coal for your electricity, good for you. The most regressive tax in the country: utility costs.

Original Post
As you read this, also remember this:
  • a) North Dakota has a huge amount of wind, and costs are low, compared to other locations
  • b) offshore wind costs up to 3x what onshore wind costs (think the London Array)
Now from the linked document:
The cost of electricity for MDU is:
  • coal: $20/MWH
  • Purchased: $30/MWH (when MDU needs to "buy" electricity on the open market to meet deman)
  • natural gas: $40/MWH
  • wind farms: $96/MWH
At present, all electricity produced by MDU comes from its coal plants. Any additional energy required to meet its customers needs is purchased wholesale at $30/MWH which is less expensive than producing electricity at its natural gas facilities for $40/MWH.

When the wind blows, MDU cuts back its purchase of $30/MWH energy and replaces the $30/MWH with $96/MWH energy.

To say that this is not cost effective is obvious and it is certainly not least cost to the ratepayers.

To the contrary, it costs the ratepayers more than triple the price for wind power as opposed to the purchase price and nearly five times the cost of coal-produced electricity.

It is also more than double the cost of electricity that can be provided by MDU's natural gas plants.
Someday, we will look back on President Obama's decision to kill the coal industry and ask, "what were they thinking?"

Cue up Connie Francis.

The source: letter to ND Public Service Commission, January 3, 2011. It's a PDF file but seems to load fairly quickly.

Not mentioned in this document:
  • MDU will actually require more fossil fuel to prepare for demand when wind stops blowing
  • wind plays havoc with the grid endangering hospitals, high tech manufacturing, and manufacturing in general
Coal: $20.

Wind: $100.

Do the math.

And off-shore wind can cost up to 3x as much. Wow, the Brits are going to meet reality with the London Array. New England will meet reality with CapeWind.

Wind energy has not one redeeming feature. Slicer and dicers are awarded 100% immunity from migratory bird kills. 

Thursday Links -- Not About The Bakken

WSJ Links

Section D: Where Dickens slept. I'm staring to move into my "Dickens phase" of reading. I doubt if I will read any of his novels, but the biographies and anthologies are very, very interesting.

Section C: Oil futures get supply surprise.
Domestic demand for distillates, which include heating oil and diesel fuel, rose 20% from a week ago amid a surprise 1.1 million-barrel drop in stockpiles of the fuel, according to the U.S. Energy Department. Analysts had expected inventories to increase.
Many homes and businesses in the Northeast still rely on heating oil in the winter months. The surge in usage fueled concerns that refiners will need to ramp up production to meet demand. Distillate stockpiles in the Northeast stand at 117 million barrels, the lowest level on record for this time of year.
"It's all distillate," said Carl Larry, head of trading advisor Oil Outlooks and Opinions, regarding oil's rise Wednesday.
"The issue is, are we going to have enough supply to meet that demand?" 
By the way: Bakken condensates are a significant piece of Bakken production.


Section B:

Wow! I had suggested this might happen. Companies with less than 50 employees, but flirting with 50, may indeed avoid ObamaCare by splitting into two companies. Now there is anecdotal evidence this might occur:
That is because his plant, with sales of about $1.6 million for 2012, currently employs 40 full-time workers, mostly low-paid employees who monitor the factory equipment. If sales were to continue to rise, the plant could, conceivably, employ 50 full-time workers in 2014.
Under the new health-care law, the Affordable Care Act, businesses with 50 or more full-time equivalent employees will be required, starting in that year, to offer workers health insurance or potentially pay a penalty.
The expense, he says, would drive up the cost of his labor. So he doesn't want to let employment at the factory reach that number.
"I'll be hammered for having more people at work," says Mr. Schanstra, who took over the firm when his father died in 2003.
Splitting the business into two would be a "headache," he acknowledges. But with fewer than 50 full-time equivalent employees in each half of this business, he hopes to avoid paying the penalties that otherwise could amount to at least $40,000 a year. His firm hasn't offered health-insurance benefits since 2003, when premiums jumped 50%, bringing his yearly outlay for coverage for his staff of 20 people to about $40,000 total.
You know, $2,000 for health insurance in the greatest country in the world really isn't too much to ask. As long as $1,800 goes for medical care and not for administrative costs.


Lego's brisk sales defy trend. My younger daughter and I grew up with Lego while stationed overseas. I have probably followed the Lego story as well as anyone. I remember vividly the year (although I forget "which" year) the company decided to be serious about marketing their products. And, wow. Seemingly overnight everything changed for that company. 

A love letter begets dolls: entrepreneurial success.  Uglydolls. Wow. 

Camaro output heads south of the border to GM Michigan plant -- the Canadian Auto Workers are, well, should we say, not happy?
Canadian Auto Workers President Ken Lewenza criticized GM for its decision and called on Canadian government officials to hold the country's 156.1 million shares in the auto maker forever. Canada was given a 9% stake in GM in exchange for providing the auto maker bailout funding in 2009. Mr. Lewenza said the Camaro move will lead to the loss of about 1,000 jobs in Oshawa.
"General Motors has once again shown a complete and utter disregard for its workers and also Canadians in general, whose tax dollars kept the company out of bankruptcy," Mr. Lewenza said in a statement.
And so it goes.

Wow! Jobless Numbers Rose 17,000; Most Concerning -- No Explanation; GDP at 3.1; Fastest Growth Since Late 2011 -- Happy Days Are Here Again

Jobless claims up. I remember how it used to be easy to find these numbers. Now a bit of searching. Link to BloombergBusinessweek. By the way, is it just me or does it look like Mr Bloomberg is setting himself up for the Democratic presidential nominee in 2016? 

Remember: the magic number is 400,000

Wow! No wonder this was a bit hard to find. Reuters and AP hate to see these numbers.
The number of Americans applying for unemployment benefits rose last week by 17,000, reversing four weeks of declines.
The Labor Department reports that a seasonally adjusted 361,000 people sought unemployment aid the week ended Dec. 15, from a revised 344,000 the week before.
I wonder what "they" will blame it on this week. I thought temporary holiday hiring was going to be "over the top."

The fact that "they" could not explain the significant jump in first-time unemployment claims suggests companies are laying off folks ahead of the ObamaCliff. And ObamaCare.

But there's always good news:
But the less-volatile four-week moving average fell 13,750 to 367,750, the lowest since late October, suggesting that the job market continues to grow modestly. Applications had surged after Superstorm Sandy, then fallen back.

Link to

GDP up due to increased government spending, said to be at the state and local level:
Government spending was revised to a 3.9 percent growth rate from 3.5 percent, boosted by a rebound in state and local government outlays. It added three quarters of a percentage point to GDP growth in the third quarter.
The rest of the story:
The U.S. economy grew faster than previously estimated in the third quarter as exports and government spending provided a lift, but that boost is likely to be lost amid slowing global demand and a move towards tighter fiscal policy.

Gross domestic product expanded at a 3.1 percent annual rate, the Commerce Department said in its third estimate on Thursday, up from the 2.7 percent pace reported last month.
It was the fastest growth since late 2011 and also reflected a slightly better pace of consumer spending than previously estimated.

Ceramic Proppants

Ceramic proppants, Chinese source.

I received this as a random note to my e-mail address. I know nothing more than what is printed here.

We manufacturer supply ceramic proppants (12/18 16/20 16/30 20/40 30/50 40/70 40/80) with high quality and competitive price, which meet international standard API (ISO 9001, Q1, TS) and have Stim-Lab Report . And also provide Bentonite, Barite/Barium Sulfate,Xanthan Guam......
Thanks & Best regards
Michael Chen
Sales Manager
Luoyang Maide Ceramics Co.,Ltd.
Adress:Kaiyuan Road 248, Luoyang China 471200
tel: 86 (379) 65151777 fax:86 379 65151555
Skype:maideceramics mailto:

Another CO2 Pipeline Going Into The Oil -- Not a Bakken Story

Link here to Wyoming's
.... dedicate a carbon dioxide pipeline that will bring new life to oil fields in Wyoming and Montana.
The Greencore Pipeline, a 232-mile project of Plano, Texas-based Denbury Resources, will begin transporting carbon dioxide around the first of the year, according to Bob Cornelius, company vice president of carbon dioxide operations.
The line will connect the ConocoPhillips-owned Lost Cabin gas plant near Lysite to the Bell Creek oil field in southeast Montana, carrying carbon dioxide along a line through Natrona, Johnson and Campbell counties.
Carbon dioxide is an increasingly popular agent in oil field flooding, a process in which the gas is injected into the ground, freeing up trapped oil deposits and adding years to the life of an oil field.

Economic Development -- $20 Million Health Care Facility for Dickinson

Link here to The Dickinson Press.
A project to build a $20 million health care facility in Dickinson took another major step forward during a groundbreaking ceremony and press conference Wednesday at the Biesiot Activities Center on the Dickinson State University campus.

Thursday -- Still Traveling

Wells reporting today have been posted. A reminder to newbies: a list of all wells reporting this quarter (to date) are archived at the sidebar at the right, "new wells reporting."


Wind turbines: over-promise/under deliver. And naysayers said the Bakken was hyped. From "anon 1":

The Renewable Energy Foundation today published a new study, The Performance of Wind Farms in the United Kingdom and Denmark, showing that the economic life of onshore wind turbines is between 10 and 15 years, not the 20 to 25 years projected by the wind industry itself, and used for government projections."
This is neither good nor trivial for countries like Germany and the UK (all I know about Denmark concerns King and Prince Hamlet) who invested heavily in wind. The London Array is particularly troublesome.


RBN Energy: historical natural gas relationships to be obliterated. I think that is going in the oil industry, also.
It is coming our way like a freight train.  North America pipeline flows are about to reverse.  The Northeast will become a net supply region, flipping the flows on north-to-south and west-to-east pipelines to move the opposite direction resulting in what could be some of the biggest changes in the natural gas industry since Ronald Reagan was president and the gas market was decontrolled.  And that means upheavals for prices, storage, basis differentials, and oh yes – what’s going to happen to all those pipelines?  Crazy talk?  We don’t think so.  
The Marcellus (and Utica) Change Everything
We introduced the possibility of natural gas flow reversals six months ago in The Marcellus Changes Everything.  The punch line was in Part IV of that series where we talked about surplus Northeast production and where it might be headed.  Since those blogs, Marcellus production is up by an astronomical 20% (1.6 Bcf/d growth from June 2012 to December 2012), and the picture is becoming clearer.