This is a very good field. And it's only going to get better. This will be a fun one to watch.
If there was any doubt the U.S. shale revolution is breaking the dominance of unsavory energy producers on global oil supplies, look no further than last week's OPEC meeting, where the alarm bells were going off.
At Friday's Organization of Petroleum Exporting Countries meeting in Vienna, the mask of non-chalance about America's new fracking energy boom came off.
After years of dismissing U.S. energy production as insignificant and expensive, OPEC suddenly said it would "study" the growth in hydraulic fracturing and horizontal drilling, a deceptively bland response to the biggest challenge the cartel has ever faced on its monopoly.
The statement concealed the anything-but-tranquil tone of the meeting, in which members were attacking each other and warning of a split.
Nigeria Oil Minister Diezani Alison-Madueke declared U.S. shale oil "a grave concern," according to a report in the Wall Street Journal.And the linked article goes on from there.
From 1979 until 2010, China's average annual GDP growth was 9.91%, reaching an historical high of 15.2% in 1984 and a record low of 3.8% in 1990.
Based on the current price, the country's average annual GDP growth in these 32 years was 15.8%, reaching an historical high of 36.41% in 1994 and a record low of 6.25% in 1999.In 2012, China's real GDP growth was 7.8%.
The administration has now lost all credibility on this issue. Mr. Obama is proving the truism that the executive branch will use any power it is given and very likely abuse it. That is one reason we have long argued that the Patriot Act, enacted in the heat of fear after the Sept. 11, 2001, attacks by members of Congress who mostly had not even read it, was reckless in its assignment of unnecessary and overbroad surveillance powers."....on this issue."
A Williston family is trying to attract new retailers and restaurants to the City.
Dale Branson, his daughter Ronica Branson-Harger and her fiancé James O'Dwyer are partners in Triland Holdings, LLC. The group is planning to break ground on the first phase of the Badlands Town Center June 24th.
The village-styled shopping center will be located on the northwest corner of 9th Street West and 42nd Avenue. It will have walkway access to 1,500 to 2,000 apartment units in the Roseland Subdivision.Apparently the city agreed to the multi-million-dollar downtown project.
That's for not only the brick schoolhouse with its wide, creaky stairways and hallways, en suite bath and bedrooms in former classrooms, tall windows and science lab-turned-kitchen, but also the two gymnasiums, the newest and largest alone adding 7,000 square feet. That "newest" by the way, is relative; it is nearly 60 years old.A strip mall will be built in downtown Williston. It might be best if city fathers come up with a better name for such malls. When the work force is 99.9% male, ....
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Propelled by a massive energy boom, North Dakota once again captured the title of the nation's hottest economy, with a growth rate five times the national average.
North Dakota's economy posted a 13.4% growth rate in 2012, according to a report released Thursday by the Bureau of Economic Analysis. That's nearly three times as fast as the number two state, Texas, and trounces the national average of 2.5%.
This is the third year in a row that North Dakota took the top spot in BEA's state-by-state report on gross domestic product (GDP). The muscle behind the boom is a surge in oil production from the Bakken Shale, an underground rock formation in the northwestern part of the state.
Thanks to high oil prices and new drilling technology -- including the controversial hydraulic fracturing, better known as "fracking" -- oil production in North Dakota is now six times higher than it was in 2007. In 2012, the North Dakota surpassed Alaska and California to become the second largest oil-producing state in the nation behind Texas, according to the U.S. Energy Information Administration.Controversial hydraulic fracking which has safely been done for the past
The first experimental use of hydraulic fracturing was in 1947, and the first commercially successful applications were in 1949. As of 2010, it was estimated that 60% of all new oil and gas wells worldwide were being hydraulically fractured. As of 2012, 2.5 million hydraulic fracturing jobs have been performed on oil and gas wells worldwide, more than one million of them in the United States.And to the best of my knowledge, no significant problem noted. Better record than GM or Toyota recalls. Just saying.
“Illinois and New Jersey are the worst because they've been doing it the longest,” Whitney says, adding Michigan and California to her list of bad state actors.I have a very fond spot in my heart for New Jersey; I "lived" a lifetime there one summer. I did not realize the state was in such trouble. The state is very seldom mentioned on this page. But:
California, Illinois, and New Jersey: three states in most trouble, according to Meredith Whitney. April 26, 2012.That was back in early 2012, more than a year ago. Something tells me Christie has his work cut out for himself and explains his coziness to President Obama. It's hard for me to see a Hillary-Christie ticket in 2016, but stranger things have happened, I suppose.
Oil and gas producers will have another 60 days to comment on the US Bureau of Land Management’s latest proposed regulations for hydraulic fracturing operations on onshore public lands, US Interior Secretary Sally Jewell announced.
“Thousands of comments have been made on the proposed hydraulic fracturing rule,” she told the US Senate Energy and Natural Resources Committee. “Many which responded to the original proposal led us to revise it and issue a second one. I’m announcing now that we’re going to give people an extra 60 days to comment on the latest proposal.”
The secretary said improving federal oil and gas permit application processing remains a top priority, but progress will be limited because of ongoing federal budget sequestration impacts.
“We want to bring the lessons we learned offshore onshore,” Jewell said. “There’s a need to streamline the permitting process. These formations cross state lines. Unfortunately, sequestration is forcing us to limit activity in offices where there’s the greatest need. We are trying to address this.”
Sequestration also is preventing DOI from sharing onshore federal oil and gas revenue with states where such activity is located, she continued. “We appreciate the importance of this to the states, but we are required to comply with the law,” she said.The tea leaves are swirling.
“Illinois and New Jersey are the worst because they've been doing it the longest,” Whitney says, adding Michigan and California to her list of bad state actors.
“They spent as if the good times would never end and made big promises to state and local government employees based on the deliberate bet that they wouldn’t.”
In 2009, for example, state and local government spending was 25.3% of California’s GDP and 25% in New York, which compares unfavorably to just 9.7% in Texas.
And now, these states are being sucked into what Whitney calls “the negative feedback loop from hell.”
Faced with massive deficits and huge pension fund liabilities, these states need to raise taxes even as they’re “running out of money needed to pay for libraries, safe streets, clean drinking water and, yes, schools,” she laments.And that's the problem. It's not that they are currently fiscally in trouble; it's the fact they are falling behind. If one wants to talk about Red Queens running in place to keep up, this would be a good start. The bad news is that in some cases, perhaps Illinois and New Jersey, the Red Queen has fallen off the treadmill.
“A tale of two Americas is emerging: one weighed down by debt and facing de minimis economic growth and another brimming with opportunity and nimble to invest in the future.”
That’s the thesis of Fate of the States: The New Geography of American Prosperity, a new book by Meredith Whitney, CEO of Meredith Whitney Advisory Group and former senior analyst at Oppenheimer.
Specifically, Whitney says “central corridor” states Texas, Oklahoma, Indiana, Colorado, Utah, North Dakota and Montana are best-positioned for fast economic growth and population migration.I can't speak for any state in that list of seven other than North Dakota, but something Meredith probably does not understand well. There is not ONE North Dakota, but in fact at least two: the west and the east, with Bismarck, perhaps, a third. Population migration to western North Dakota will be temporary; migration to eastern North Dakota will be a constant, and mostly to Fargo. She does not include South Dakota in her list of seven but Sioux Falls will be the outlier in that state, growing over time.
What these states have in common are low taxes, pro-business policies, low population density (meaning lower housing costs, shorter commutes and better quality of life) as well as strong and stable balance sheets, especially relative to other states.
“Regardless of whether the fiscal prudence of central corridor states was the result of serendipity of good planning, the reality is these states don’t have the financial burdens now crushing the housing-boom states,” she writes.
As a result, these states are in a position to keep taxes low while also spending on infrastructure and education, all of which will make them more attractive to both U.S. and foreign corporations looking to relocate.
Later, 1:19 pm: within an hour of posting the note below, another story appeared which helped explain the Red Sea story and Saudi Arabia.Russia is the world’s biggest oil producer and has been for quite a while — that’s a fact. Its output has consistently ranked above that of Saudi Arabia in the past few years and in May, Russian average daily output hit a new 2013 high of almost 10.5 million b/d.Saudi output, meanwhile, has mostly stayed below 10 million b/d in the past few years given OPEC production limitations.So it is still surprising to read reports about how the American shale boom is set to push the US ahead of Saudi Arabia as the top producer globally by 2017.It is indisuptable that at the moment Russia’s oil production is significantly higher than even the most extravagant of estimates of Saudi output.In 2012, Russian oil production averaged 10.4 million b/d. Saudi Aramco, in its annual report published last week, said it pumped 9.5 million b/d last year. Russia’s place at the top of the oil producing league, then, seems assured, at least for now.Russia, though, is clearly pumping at capacity to make the most of high oil prices.
Comment: folks really believe that Saudi is holding back production to comply with OPEC limits when "everyone else" in OPEC is cheating?
January, 2013: 30,347When you look at those numbers, remember this story. And the CO2 connection.
February, 2013: 38,887
March, 2013: 39,796
One adjustment the pageant made last year was finding a new place for the women to stay as Williston hotels became housing for temporary workers.
But that never became a problem, McGinley said, because Williston State College offered its recently constructed residence hall to the contestants and opened up rooms for parents.
With the addition of new hotels, availability of rooms has improved this year, although rates are higher than other areas in the state.
The finalists continue to stay together at the college rather than at various hotels.I think this is awesome.
A lot of natural gas storage follows a time honored pattern – put gas in during the summer and take it out during the winter. But it is getting much more complicated than that. Developments in natural gas production – particularly in the Appalachian (Marcellus) region will be driving big changes through the gas storage business. Today we pick up on a blog series we started last month to examine the two fundamental value generating gas storage mechanisms, and how they match up with the physical characteristics of storage facilities.
United shrank from 60% of all Denver traffic, including connecting passengers, in 2006 to 40% and remains the Mile High City's largest airline overall. It says it is returning to growth mode in Denver and plans to add 4% capacity this year, including starting Denver's first nonstop flights to Asia with Boeing 787 service to Tokyo's Narita Airport. United also has been expanding flights to cities in North Dakota and Canada around the Bakken Shale oil fields, as Denver has become a gateway for oil-business traffic.Section C (Money & Investing):
The thinking goes like this: With the Federal Reserve debating when to begin the dreaded "taper"—the point at which it slows its buying of Treasury and mortgage securities—poor news on employment will keep the printing presses rolling for longer. That, in turn, underpins stock prices. In normal times, by contrast, stocks would sell off on weak jobs growth.
But "good news is bad news" oversimplifies how markets may view upcoming reports on jobless claims and unemployment due on Thursday and Friday, respectively. Goldilocks is a better fit than Bizarro. Popular with strategists in the last bull market, she described an economy that was neither too hot nor too cold to spoil the party.
Expectations around this Friday's nonfarm-payrolls report are for growth of about 170,000 jobs. Mr. Saperstein figures anything below 220,000 to 240,000 won't fully convince traders the economy is strong enough to keep expanding without the Fed's help. On the other hand, a number below 100,000 might leave the Fed looking impotent.Section B (Marketplace):
Economists were predicting a slightly larger drop to 345,000.
Continuing claims fell to 2.952 million during the week ended May 25 from an upward-revised 3.004 million the week before.The Wall Street Journal is reporting:
Expectations around this Friday's nonfarm-payrolls report are for growth of about 170,000 jobs. Mr. Saperstein figures anything below 220,000 to 240,000 won't fully convince traders the economy is strong enough to keep expanding without the Fed's help. On the other hand, a number below 100,000 might leave the Fed looking impotent.So, we'll see tomorrow.