Sunday, January 27, 2013

Another Refiner Looking For Increased Access to Bakken Oil: Calumet, On Lake Superior, Wisconsin

Updates

September 23, 2013: The Bismarck Tribune reports that the proposed Calumet Lake Superior crude oil terminal has been put on hold; it may not make economical sense competing with pipeline and rail.

February 24, 2013: The Dickinson Press provides a huge amount of detail regarding this crude oil loading dock on Lake Superior.
So much oil is being pumped out of western Canada and North Dakota these days that there isn’t enough room to fit it all into pipelines.
Even with oil companies pouring the black gold into thousands of rail cars every day, and building new rail stations and laying track, rail cars can’t handle the load.
So officials at Calumet LLC, owners of the Superior oil refinery, are considering building a $25 million crude oil transfer dock in Superior, where oil would be loaded onto tankers and barges and moved across the Great Lakes to refineries in Ontario, Michigan, Ohio and even the East Coast.
Calumet will seek permits and do preliminary work this year and would conduct dredging, dock, pipeline and storage construction in 2014 and be ready to ship oil by March 2015.
It’s estimated that, because of the small size of the supply pipeline, the terminal could fill a single tanker or barge about once every three or four days.
Comment: there's a good chance activists will get this project stopped/delayed. If the Keystone XL is approved, this terminal "goes away," according to the article. Rail: $9/bbl; by boat across the Great Lakes, $3.50/bbl -- transportation costs.

Original Post
Link here to Bloomberg Business:
Petroleum refiner Calumet Specialty Products Partners is exploring whether to build a crude oil loading dock on Lake Superior, near its Superior, Wis., refinery, to ship crude oil on the Great Lakes and through connecting waterways, the company said Friday.
"Calumet is currently assessing the viability of the project and gauging interest in the marketplace," Todd Borgmann, vice president of business development at Calumet, said in a statement. "We would expect to have this project fully operational during the shipping season of 2015 and are currently in talks with potential customers and partners."
Wow, it never quits, does it?
Pipelines are the cheapest way to move petroleum products, Bellamy said, but their delivery points are fixed. Railcars, barges and ships can move to different delivery points. That allows crude to go to the highest bidder.
Indianapolis-based Calumet processes crude oil and other feedstocks into lubricating oils, solvents and waxes used in consumer, industrial and automotive products. Calumet also produces gasoline, diesel and jet fuel. Calumet has 11 facilities in northwest Wisconsin, northwest Louisiana, northern Montana, western Pennsylvania, Texas and eastern Missouri.
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A Note to the Granddaughters

I continue to enjoy David Graeber's Debt: The First 5,000 Years. He has an incredible number of stories that (might) explain some of the origins of modern rituals. On page 169 when talking about slavery and death, Graeber noted:
In West Africa .... the same principles applied ... once he had been finally removed from his own milieu through capture the slave was considered as socially dead, just as if he had been vanquished and killed in combat ... among the Mande, at one time, prisoners of were brought home by the conquerors were offered [rice] and milk porridge -- because it was held that  man should not die on an empty stomach....
... and thus the origin of the last meal before execution. I suppose some might argue that the last meal is related to Jesus' last meal but the West African practice is certainly interesting.

Active Rigs: 191

Very interesting -- now up to 191 active rigs in North Dakota.

"We" were last at 191 last August 22, 2012. It was during the summer / autumn 2012 "we" were in quite a "free fall" in the rig count. 

Active rigs on the NDIC list tonight; it's a dynamic list; most comments below based on data from "Snapshot." Note OXY USA. Also note the significant increase in the number of Whiting rigs.
  • BEXP: 13
  • BR: 10
  • CLR: 17 -- has had as many as 21 in ND (24 in ND + MT)
  • EOG: 5 -- holding steady since 2011
  • Fidelity: 6 -- I think this is at the higher end for Fidelity; last summer: 5
  • Hess: 16 -- see comments regarding this number of rigs; in press release, Hess says 14 rigs;
  • KOG: 8 -- at high end
  • Oasis: 8 -- at one time had planned to exit 2012 with 10 rigs
  • OXY USA: 5 -- either planned or had 15 rigs back in January, 2012
  • Petro-Hunt: 12
  • QEP: 5
  • Slawson: 3
  • SM Energy: 4
  • Whiting: 19
  • WPX: 5
  • XTO: 6
  • Zenergy: 4

One Barge, Possibly Two, Leaking Light Oil Into The Mississippi ...

... near Vicksburg, MS ... first estimate ... 80,000 gallons .... first barge hit the bridge; second barge hit the first; not sure if second barge leaking oil.

Light oil would not have been carried by the Keystone XL so ....

... meanwhile, around the world, an explosion in a previously secret nuclear site, rocked Iran, trapping about 240 personnel deep underground .... so deep under the mountain "immune" to air strikes and bunker-buster bombs ... Iran says it was sabotage ... hasn't been verified ...

... and back in Washington, DC ... on 60 Minutes ... a compelling interview with the president and the outgoing SecState, but I can't bring myself to watch it ... so, Golf Channel! Round 4 ... Tiger Woods in control but there does appear to be some drama developing ... wow, those are some beautiful "shots" of the setting sun over the Pacific ... you can almost see Japan from there ...

.... oil futures moving ever so slightly positive .... looks awful chilly in southern California ... and Tiger just chips one into the hole from off the green ... absolutely incredible.

Wells Coming Off Confidential List Monday -- The Williston Basin, North Dakota, USA

Monday, January 28, 2013
21428, 1,191, Hess, BB-Eide 151-95-3328H-1, Blue Buttes, t12/12; cum 5K 11/12;

Sunday, January 27, 2013
21901, 639, Petro-Hunt, Fort Berthold 148-94-35D-26-2H, McGregory Buttes; t10/12; cum 30K 11/12; most flared
22093, 710, QEP, MHA 4-05-04H-148-91, Heart Butte, t10/12; cum 17K 11/12; much flared;
22234, 561, OXY, State Little Missouri 1-30-31H-142-95, Manning, t7/12; cum 20K 11/12; all flared;
22458, 454, Zavanna, Witt 34-27 1H, Foreman Butte, t11/12; cum 22K 12/12; some flared;
22940, drl, BEXP, Banks State 16-21 3H, Banks,
23058, drl, Hess, LK-M Elisabeth 147-97-1522H-2, Little Knife,

Saturday, January 26, 2013
23010, 798, Hess, HA-Grimestad-152-95-3031H-3, Hawkeye, no flare; all sold;
23067, 2,393, BEXP, Ross-Alger 6-7 5H, Alger, t11/12; cum 17K 11/12; on a NG pipeline
23189, 409, CLR, Winston 3-12H, Long Creek, t11/12; cum 415 bbls 11/12;
23241, 748, XTO, Meyer 24X-22B, Midway, t1/13; cum --
23246, 20, Timberline Production, Bodmer 24-35, wildcat, a Madison well; cum 5 bbls -- 11/12; southwest corner of Renville County, this is Timberline's third (3rd) permit in North Dakota; the first two wells have been dry (#19342, #17947) -- the third time is a charm, they say. Good luck to all.


21901, conf, Petro-Hunt, Fort Berthold 148-94-35D-26-2H, McGregory Buttes:

DateOil RunsMCF Sold
11-2012157950
10-20121342121


Idle Chatter On Six Old Vertical Sanish Wells in Antelope Field

This is just a random post, some idle chatter for your enjoyment while waiting for another Bakken week to begin.

I am constantly amazed at some of the wells and some of the stories coming out the North Dakota oil patch. I find the old vertical wells very interesting. Some have been very, very good wells.

Here are the results of seven well locations/permits in one section in Antelope oil field (21-152-94); on the reservation:
  • 341, 537/PA, Pan American Pet Corp, Woodrow Starr 1, t12/53; cum 279K 7/58; 160 acre-spacing; vertical, Three Forks/Sanish
  • 1164, 320/PA, P & P Producing, Ella Many Ribs 1, t9/56; cum 205K 11/86; 160 acres; vertical; Three Forks/Sanish;
  • 1306, 165/IA, CLR, Ella Many Ribs A-1, t2/57; cum 131K 10/11; F; vertical; 160 acres; Three Forks/Sanish;
  • 1509, 248/A, CLR, Kate Hopkins 1, t12/57; cum 590K 11/12; vertical; 160 acres; Three Forks/Sanish;
  • 1987, 150/A, CLR, Woodrow Star "A" 1, t10/58; cum 1.1 million bbls 11/12; vertical; 160 acres; on a pump; Three Forks/Sanish;
  • 12284, 290/A, CLR, Ella Many Ribs 2-B, t2/88; cum 138K 11/12; vertical; 160 acres; Three Forks/Sanish
  • 12346, PNC, Wessely Energy, Ella Many Ribs 1A-2, Antelope, (Wessely had 8 permits over the years in North Dakota. #12346 was the last permit they were issued. Prior to that permit, they had seven permits: six dry holes and one now permanently abandoned which might as well have been dry: 8,876 bbls over two years.
In summary (numbers rounded), all vertical wells with minimal fracking, 160-acre spacing:
  • #341: 280K bbls in five years
  • #1164: 200K bbls in 30 years
  • #1306: 130K bbls in 56 years; never on a pump
  • #1509: 590K bbls in 56 years; still producing on a pump
  • #1987: 1.1 million bbls in 55 years; still producing on a pump
  • #12284: 138K bbls in 25 years; still producing on a pump
So, this one section with vertical wells only, almost 2.4 million bbls and still producing. There are no new locations permitted in the current Bakken boom.

The best, I would wager, is yet to come.

There Really Are Some Incredible Wells Being Reported: Random Look At A Blue Buttes Well

Newbies may want to acquaint themselves with this incredible field, the Blue Buttes field.

22050, 2,806, BR, Kummer 41-30MBH, Blue Buttes, t5/12; cum 140K 11/12; 2-section spacing; completion report not seen (1/27/13); this particular well lies less than a thousand feet from the "Helis Grail"

Some things to note:
  • 140K in less than 7 months; the first two months were somewhat unremarkable, but once they got going ... wow!
  • compare this production table with older wells; generally there is a huge drop off in production (the "dreaded Bakken decline rate") after the first month, certainly by the second month; here the production has held steady for five months
  • notice how fast "they" got this well hooked up to a natural gas pipeline

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN11-201230228422281728923001529656355
BAKKEN10-201231259142600333333516434971193
BAKKEN9-2012302506225012365234151323981753
BAKKEN8-2012312572625693386935756329252831
BAKKEN7-2012312595925928372326356026356
BAKKEN6-20122077157576961259402544
BAKKEN5-2012276800675406700

The Wahpeton Family Of Wells: Another Look At CLR's Testing The Lower Benches of the Three Forks, Banks Oil Field; Natural Gas Flaring Continues to Decrease (As A Percentage of Production) -- January 27, 2013

Updates

November 28, 2017: production data updated; five wells now AB/TA

December 11, 2016: production of these wells updated; see below; five wells now IA/AB/TA

February 9, 2014: screenshot of the Wahpeton Pad, this date.




September 11, 2013: from Mike Filloon --
The most important is the Wahpeton Pad. Continental chose the important location to drill a total of 32 wells from the middle Bakken to the 3rd bench. Since this was the first 160-acre pilot project, it very well could be the best area overall for pad drilling. 
Original Post

From a Continental Resources exhibit. Sent in by a reader:


The Wahpeton wells are sited in section 16, and run north to south, ending in section 21. This page is updated periodically.
  • 19450, 322, CLR, Wahpeton 1-16H, Banks, t7/11; cum 227K 2/28;
  • 24843, 1,050, CLR, Wahpeton 6-16H, Banks, t6/14; cum 154K 2/18;
  • 24809, 1,786, CLR, Wahpeton 9-16H, Banks, t5/14; cum 197K 2/18;
  • 24840, 382, CLR, Wahpeton 4-16H1, Banks, t7/14; cum 69K 2/18;
  • 24810, 550, CLR, Wahpeton 8-16H1, Banks, t6/15; cum 121K 2/18;
  • 24807, 354, CLR, Wahpeton 11-16H1, Banks, t6/14; cum 92K 2/18;
  • 24837, 652, CLR, Wahpeton 2-16H2, Banks, t6/14; cum 102K 2/18;
  • 24842, 411, CLR, Wahpeton 5-16H2, Banks, t6/14; cum 57K 2/18;
  • 24808, IAW/AB/IA/366, CLR, Wahpeton 10-16H2, Banks, t6/14; cum 19K 8/15;
  • 24804, IAW/AB/1,031, CLR, Wahpeton 14-16H2, Banks, t5/14; cum 24K 8/15;
  • 24838, TA, CLR, Wahpeton 3-16H3, Banks, no production;
  • 24844, IAW/AB/334, CLR, Wahpeton 7-16H3, Banks, t6/14; cum 23K 5/16;
  • 24806, IAW/AB/1,031 CLR, Wahpeton 12-16H3, Banks, t5/14; cum 13K 8/15;
  • 24805, 1,612, CLR, Wahpeton 13-16H3, Banks, t5/14; cum 171K 2/18;
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Meanwhile, the "Charlotte" wells sited in either section 22 or 27-152-99, Banks, but all probably drilling 22/15-152-99:
  • 19918, 496, Charlotte 1-22H, middle Bakken, SWSE 22-152-99; Banks, 30 stages; 2.5 million lbs; t6/11; cum 325K 2/18; total depth: 21,090 feet;
  • 23664, 657, Charlotte 3-22H, Banks, TF1, SESE 22-152N-99W, t11/12; cum 163K 2/18;
  • 21128, 692, Charlotte 2-22H, Banks, TF2, SWSW 22-152-99; 30 stages; 2.3 million lbs; t10/11; cum 219K 2/18; total depth: 21,358 feet;
  • 23612, 673, Charlotte 4-22H, TF3, 4 secs, Banks, [Update: see press release, December 3, 2012], t7/13; cum 144K 2/18;
  • 23608, 1,303, Charlotte 5-22H, Banks, ?TF4, 4 secs; t6/13; cum 220K 2/18;
  • 23664, 657, CLR, Charlotte 3-22H, Banks, t11/12; cum 163K 2/18;
So, unless I'm misreading the GIS map server and/or the permits, it appears the Wahpeton wells will be parallel to the Charlotte wells, in adjoining sections (spacing units). But the Wahpeton wells will be running north-to-south; and the Charlotte wells will be running south-to-north.

By the way, look at #23664, Charlotte 3-22H, still confidential, but production runs for first month:

DateOil RunsMCF Sold
11-2012758312383

What do you notice?  Yes, it was hooked up to a natural gas pipeline almost immediately. As the well density increases, the natural gas flaring will take care of itself. Already we are starting to see this happen on a larger scale. In the most recent Director's Cut:
Additions to gathering and processing capacity are helping with the percentage of gas flared dropping to 29%. The historical high was 36% in September 2011.
With more wells/month being drilled; more production/well; to see a downward trend this early in the boom speaks volumes about a non-issue.

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And, then, of course, to the east, in the next spacing unit to the east are the very good Chicago/Syracuse wells.