Thursday, May 2, 2013

From My File: No Question Is Too Dumb To Ask (Although This One May Come Close)

A reader tells me that an oil company operating in the Bakken says the reason for canceling some permits is because the company is only allowed so many permits. That's all we know. It was not clear to me whether that meant in North Dakota in general, or in the Bakken, specifically.

So, either that's a company policy or an NDIC "rule": companies operating in the Bakken are allowed only so many permits. If it's an NDIC rule, I assume it is based on something other than just an arbitrary number. But I don't know.

So, at great risk to my credibility with regard to the Bakken, I will throw it out there: does anybody know why a company would say they are allowed only so many permits?


  1. Odd. I can only guess it is a misunderstanding. Maybe the company cap ex budget will cover 50 wells and they had a hundred permitted, so they cut the least likely off the list? Again, odd as I am unaware of any policy limiting the number of permits allowed.

    1. I agree. I think it's company "policy" and probably nebulous at that. Oil companies hold their plans close to their chest, and most likely this was just an "excuse." I received a personal e-mail from someone outside the industry, but who follows it very, very closely and has never heard of any limits on permit.