Friday, November 8, 2013

A Statoil Re-Entry Well In Alger Field?

Based on its name, this appears to be a re-entry well:
  • 26971, loc, Statoil, Ross-Alger 6-7 7TFH-R, Alger, Lot 4 31-156-92 Footages: 351 FSL 655 FWL
A similarly named well:
  • 26656, conf, Statoil, Ross-Alger 6-7 7TFH, Alger, Lot 4 31-156-92 Footages: 351 FSL 625 FWL
Based on the legal description, it looks like #26971, the R-A 6-7 7TFH-R will be about 30 feet to the east of #26656 (NDIC has not updated the GIS map server showing the new Statoil well):


#26656 is still on the confidential list so we can't see why / what is going on with that well yet. And, of course, I could be completely wrong. Maybe the "R" stands for something completely different; perhaps it stands for "right," as to the "right of the existing well." LOL.

The reason for the doubt, is generally a "re-entry" well is in the same location as the original well, the exact location. In this case, whatever "R" stands for, it is about 30 feet to the east. Whatever. Until it's sorted out, I will add it to the list of "re-entry wells."

By the way, the completed well in the graphic:
  • 22368, 1,697, Statoil, Ross-Alger 6-7 2TFH, Alger, 38 stages; 4 million lbs (sand/ceramic); t7/12; cum 92K 9/13;

Eight (8) New Permits -- The Williston Basin, North Dakota, USA

Active rigs: 182

Eight (8) new permits --
  • Operators: Statoil (3), Fidelity (2), Mountain Divide (1), Petro-Hunt (1), XTO (1)
  • Fields: Fortuna (Divide), Alger (Mountrail), Little Knife (Dunn), Heart Butte (Dunn)
  • Comments: This is Mountain Divide's 8th permit in North Dakota; all are wildcats or in Fortuna oil field; three are actively producing wells
Wells coming off the confidential list were posted earlier; see sidebar at the right.

Six (6) permits were renewed, including three by Statoil and two by CLR.

Three (3) producing wells were completed:
  • 25727, 1,302, Whiting, Brown 42-28XH, Sanish, t10/13; cum --
  • 24795, 556, Slawson, Sail and Anchor 4-13-14HBK, Stockyard Creek, t9/13; cum7K 9/13;
  • 24223, 400, CLR, Hawkinson 4-22H2, Oakdale, t9/13; cum --

Ten Fastest Growing Energy Companies In America

The top ten fastest growing energy companies in America based on revenue numbers for the past four years (current year included). If only three years of data was available then it is a two-year CGR. All rankings are computed from data assessed on June 6, 2013.

Source: S&P Capital IQ/Platts
  • Pacific Rubiales Energy Corp - Canada
  • Pembina Pipeline Corp - Canada
  • HollyFrontier Corp - Texas
  • CLR - Oklahoma
  • Concho Resources - Texas
  • Energy Transfer Equity, LP - Texas
  • EOG Resources, Inc - Texas
  • Denbury Resources Inc - Texas
  • Crescent Point Energy Corp - Canada
  • Buckeye Partners, LP - Texas
http://viewer.zmags.com/publication/0ee4e22c?sf979107=1#/0ee4e22c/56

Record Snowfall In Spokane, Washington, And Sioux Falls, South Dakota

Even all the hot air spewed by Ms Sebelius over the past week could not prevent this: Sioux Falls, SD, and Spokane, WA, set records for snowfall. ClimateDepot is reporting:

RECORD EVENT REPORT… NATIONAL WEATHER SERVICE SIOUX FALLS SD… WED NOV 06 2013
A RECORD SNOWFALL OF 5.7 INCHES WAS SET AT SIOUX FALLS SD YESTERDAY. THIS BREAKS THE OLD RECORD OF 1.5 SET IN 1959.
For Spokane:
Spokane International Airport received 1.9 inches of snow Tuesday, enough to snap a 66-year-old daily record by the slimmest of margins.
The most snow Spokane has officially received on Nov. 5 was 1.8 inches in 1947, according to National Weather Service records.
For the archives. 

For Past Three Weeks, US Crude Oil Production Has Exceeded Oil Imports

Item #4 at this CarpeDiem site from a couple days ago:
For the last three weeks in a row, US crude oil production exceeded oil imports (see chart below). The last time that happened was in February 1995, more than 18 years ago. As US oil production continues to accelerate, the market for oil imports will continue to shrink.
Every time I see these statistics I think of one of the nominees for the 2013 Geico Rock Award

Rigzone reports today that the price of gasoline is the lowest in nearly two years, an early holiday gift for US drivers. Thank you Mr. Bakken. 

Another Bakken Crude Oil Train Derails, Explodes, Burns -- This Time In Western Alabama

Reuters is reporting via The Dickinson Press
A 90-car train carrying crude oil derailed and exploded in a rural area of western Alabama early on Friday, leaving 11 cars burning and potentially bolstering the push for tougher regulation of a boom in moving oil by rail. 
No injuries have been reported, but 20 of the train's cars derailed and 11 were still on fire, the train owner, Genesee & Wyoming, said in a statement. Those cars, which threw flames 300 feet into the night sky, are being left to burn down, which could take up to 24 hours.
A local official said the crude oil had originated in North Dakota, home of the booming Bakken shale patch. If so, it may have been carrying the same type of light crude oil that was on a Canadian train that derailed in the Quebec town of Lac-Megantic this summer, killing 47 people.
A huge thank you to Don for sending me the link. I wouldn't have seen the story for awhile.

The Insurers Are In Deep Trouble. Deep, Deep Trouble; The Road To Hell Is Paved With Good Intentions

Gallup: almost 80% of the uninsured are rejecting ObamaCare.
A new Gallup poll brings more terrible news for President Obama and his signature health plan, showing that only 22% of uninsured Americans intend to buy insurance through the ObamaCare exchanges.
One of the major selling points for using ObamaCare to disrupt our health care system (that polls showed up to 80% of Americans were satisfied with) was to insure the uninsured. But according to this poll, only a very small minority of that small minority is even interested in obtaining insurance.
Even more troubling is the realization that a month ago, that number was double; a full 44% of the uninsured said they would purchase insurance though the exchanges.
Over the course of a month, however, the reality of ObamaCare scared off half of that 44%. The high cost of premiums, the high deductibles customers have to pay regardless of any tax subsidy, and the unforgivable bungling of the rollout only discouraged those who we blew up a perfectly good health care system to help.
The worse news is that you can bet that the 22% who do intend to sign up are made up of the oldest and sickest among the uninsured. Meanwhile, the 78% who are uninterested in being insured are likely the youngest and healthiest.
By the way, the operative word in that story above is "intend." The road to hell is paved with good intentions. Coined by Saint Bernard of Clairvaux, the meaning of the phrase is that individuals may have the intention to undertake good actions but nevertheless fail to take action.

The article may or may not discuss the reasons -- I did not read any more of the article than what I posted, but here are the top reasons by folks won't enroll:
  • the smart, tech savvy folks know that security is the #1 reason not to get close to providing sensitive data to the government website; it's worth the $95 penalty to protect one's privacy
  • the low-information crowd, non-tech savvy folks a) don't even know about ObamaCare; and, b) wouldn't know how to enroll on-line even if they did
  • the young and healthy -- a huge segment of the US population -- won't spend $400/month subsidizing their elderly, sick parents
  • those who actually get past the first few pages of the healthcare.gov website are shocked by the $12,500 deductibles, even if they qualify for the subsidies
So, let's see:
  • sticker shock
  • lack technical skills to enroll or understand the system
  • the system is unsafe (even Consumer Reports said "stay away")
  • healthy folks will pay the $95 penalty rather than the $400/monthly premium with $12,500 deductibles
Bottom line: every demographic group has a reason not to enroll

Jay Leno should ask the "man on the street" if he/she has even heard of ObamaCare. LOL.

Jaywalking, Jay Leno

Fortunately these students will be on their parents' discontinued policy until age 26.

This person, unfortunately, is too old to be on her parents' discontinued policy:

Can This Individual Be That Dumb?

Something tells me she has not yet enrolled.

Oil And Gas Industry Using Existing Assets To Facilitate New Market Conditions -- Platts

There is an incredible post over at Platts.

The analyst pieced this together by listening to several conference calls during earnings week.

There are so many story lines in this article; things are changing rapidly; CBR -- essentially a Bakken strategy -- is changing the oil industry faster than anyone could have expected. I still remember, vividly, the comment I received a year or so ago from a reader who said the CBR phenomenon was temporary: once all the pipelines are laid, CBR will be history. I've always said it costs the oil industry more to ship by pipeline than by rail. Parse that sentence carefully before pointing out the errors of my way. But I digress. Read the linked article over at Platts.

1. First: read my post on the Buckeye pipeline, taken from RBN Energy, posted just a few weeks ago. And from there, read the original RBN Energy article. The photos are great.

2. RBN talked about the Caribbean/Bahamas being a distribution center, taking oil to the east coast of the US. Platts suggests that Buckeye Pipeline, the company, is considering moving Canadian heavy crude to the Bahamas, and from there, it could go almost anywhere. Forget Keystone XL, forget Cushing, forget Texas/Louisiana refineries.

2. As noted, this would take the "anti-oil sand fight out of Canada and the US and extend [that fight] toother areas where oil form the sands might end up. [China would not care.]

3. So, that helps out western Canadian crude. What about the Bakken? Okay, what about the Bakken.  it turns out that Plains All American has revealed plans to create a giant rail hub in Bakersfield, CA, bringing in Bakken and other Midcontinent crudes [probably Permian and Eagle Ford].

4. The Platts folks see at least three scenarios developing.
First: Bakken oil is "low carbon" compared to heavier oils (like Canadian) and the Californian refineries might see the advantage of Bakken oil over Canadian oil coming down from the west coast.

Second: CBR now solves "the California problem": As Platts says, "the idea of a disconnected California market, almost like Hawaii but attached to the rest of the country, starts to fade.

Third: from Platts, the “cheap” crude oil that powered Midcontinent refiners to amazing margins earlier this year may now be available on a less profitable basis to refiners outside of PADD 3.
Readers need to read "Bridget's" comments in italics at the linked Platts article, which includes this bit:
 ... both companies [Buckeye Pipeline and American All Plains] are planning to use existing assets to facilitate new market conditions. How smart. New crude production is changing everything, but a handful of midstream companies seem to really be staying ahead of the game. I haven’t been in this market too long, but I came in at the right time… right as crude by rail took off.
Regular readers of the blog have been in on CBR since about December 31, 2009, when the EOG Stanley facility came on line two months early.

************************

From the Plains All American conference call that was referenced above:
And with regard to our rail projects, our Tampa Colorado loading facility is expected to come into service this month and our Yorktown Virginia facility is expected to be in-service in December. We expect unloading facility in Bakersfield, California and expansion of our Van Hook, North Dakota loading facility to be in-service by mid 2014. We're also developing a rail loading project in Canada, which we expect to be in-service in the first quarter of 2015.
Finally, I note that our -- that the completion of both our Gulf Coast pipeline and our Bakken North line had been moved to 2014 primarily due to the timing of permits or right of way.
More about the CBR terminal in Bakersfield:
Just circling back to Bakersfield a little bit. I know some of the California refiners have actually cited some permitting delays out there for the lone unloading facility. Curious as to how you guys are looking at that facility in terms of the ultimate scale and ultimately flexibility of the facility to bring in Canadian heavies as well as access a number of different light U.S. shale basins?
It's currently -- that's currently permitted to move, it can move unit train a day, 65,000 to 75,000 barrels a day. The facilities are such that they could -- we could move two unit trains a day, but we need an increase in our admissions permitting for the increase, which we have recently -- we are in the process of making. So ultimately, we think we will able to bring a both light and heavy and actually -- probably be more lighter crudes and sort of a unit train a day type of volume.
A digression: I don't know if I posted this before or not, but I talk about it a lot (especially with my dad). The railroads "took off" twenty or thirty years ago when they realized what "business" they were in. A hundred years ago, railroad companies thought they were in the "railroad" business and operated as such. But, business took off exponentially when railroads realized they were in the transportation business and reconfigured cars for intermodal freight transport. Railroad companies now see themselves as part of a system that includes ocean-going vessels and 18-wheelers.

The PAA/CEO said the same thing about his pipeline company. PAA now "melds" pipeline activity directly into their CBR activities. PAA doesn't think of themselves as a pipeline company any more; they think of themselves as a mover of crude oil.

I have the Air Force to thank for all the training they provided me for this type of thinking.

***********************

For the archives. Platts 2013 Insight -- Top 250 Energy Companies.

Around The Horn

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here. 

Pundits said the market "crashed" yesterday because the faster growth (GDP) suggested the economy was recovering and the Fed might have reason to taper.

Today, pundits said the market "surged" because the incredibly good jobs number suggested the economy was recovering and the Fed might have reason to taper.

Fifteen companies announced increased dividends/distributions, including Halliburton.


***************************

KOG: this remains a bit confusing. Yahoo!Finance suggests that KOG is trading at a new high, $12.28, and yesterday, the "new" high was $12.40.

HK up 4% today.

Oasis is up over 4% today.

WLL is up almost 3%.

CLR is up almost 4%, but well off its high of nearly $122.

CVX, COP, XOM: all three are up a bit today.

EOG is my favorite company at the moment. It is up 1% today, well off its recent high, providing an opportunity for some, I suppose.

CHK continues to bleed, but seems to be flattening out. Although below its recent high, it is well above what it had been earlier this year.

SD is flat; struggling. Fell quite a bit yesterday, if I remember correctly.

AMZG is surging today, up another 4%, and 50 cents above it's $2.00 entry price.

TPLM is up 4%, back over $10.

UNP is in its trading range well below its 52-week high. Up today.

I don't follow BNSF (BRK) much any more; BRK follows the market in general.

ENB, EEP are both in a trading range, and in the red today, well below their highs. Folks are nervous about the Sandpiper, probably.

SRE: down about a percent today, just under $90.

TransCanada is in a trading range; has been for quite some time. Down over a percent today.

SLB: still trading near its 52-week high; up over a percent today.

ObamaCare Will Throw A Lot Of North Dakotans Under The Bus -- Just Like The Rest Of The Country

The Fargo Forum is reporting:
The state’s largest health insurer, Blue Cross Blue Shield of North Dakota, covers about 31,600 members – 17,000 in small groups and 14,600 individuals – whose insurance plans are being discontinued.
The good news: this only represents about 8 percent of all North Dakota BC/BS membership. So, it's not that big a deal. As President Obama has said, he's sorry, but shop around. There are some good deals out there. 

For archival purposes. Regular readers know my feelings about ObamaCare.

Actions Have Consequences; Follow-Up On Electricity Rates And Consequences; "Bud" Could Close Its Malt Plant In Moorhead, MN, If Utility Rates Continue To Go Up

Regular readers will remember this post:
A look at the cost of electricity in the 57 US states. When you get to the link, click on the second presentation, an Excel spreadsheet.
  • North Dakota is third cheapest at 8.58 cents/kwh.
  • Idaho, with its hydroelectric power, is cheapest at 7.87 cents/kwh.
  • Washington State, also with hydroelectric power, is second, at 8.28 cents/kwh.
New York State, which bans fracking, and hates coal, but loves wind, pays 18.26 cents/kwh, more than twice what North Dakotans pay. 
Minnesota, at 11.35 cents/kwh is in the middle of the pack, about 24th.

So, idle chatter? Idle statistics? To some folks, these numbers actually mean something. These numbers mean something to Anheuser-Busch. The Fargo Forum is reporting:
If utility rates keep going up, Anheuser-Busch – one of Moorhead’s largest utility customers – would consider closing its malt plant.
The Moorhead Public Service Commission conducted a rate hearing Thursday after proposing to increase electricity rates 3.5 percent and water rates an overall 3 percent in 2014.
General Manager Bill Schwandt said the goal is to not increase electricity rates in 2015 or 2016, but water rates could go up as much as 5 percent in 2016 as fire protection is phased in.
While the impact on water bills of some residential customers would be less than $1, large MPS customers, such as the Anheuser-Busch plant would be paying thousands more.
According to Anheuser-Busch, a 5 percent increase in water fees would cost the company $25,000 to $30,000 on top of the $550,000 it pays annually.
But Minnesota likes that expensive wind energy. As long as the wind turbines are planted out-of-state.

With regard to water, Don notes this:
In comparison, the Cargill malt plant in Spiritwood, ND, which is about 100 miles west of Moorhead, processes about 28 million bushels each year. The North Dakota Spiritwood plant has a wastewater treatment plant on site and does not have to pay water fees

NOG's 3Q13 Earnings

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or thought you read here. 

This was posted at "Earnings Central" yesterday but I forgot to bring it over here as a stand-alone post. A big "thank you" to Don for reminding me. 

NOG: earnings in-line; beats on revenue;

  • 3Q13 production of 1,200,520 barrels of oil equivalent, or 13,049 average boe per day, a 20% sequential increase over the second quarter of 2013
  • oil and gas sales increased to $107.2 million, a 35% sequential increase over the second quarter of 2013
  • added 147 gross (12.1 net) wells to production during the third quarter of 2013
  • repurchased 2,036,383 shares of its common stock during the third quarter of 2013 at an average price of $12.82 per share
Idle chatter:
NOG is selling for$16.40 today.

16.40 = 12.82 x 2,036,383 = $7.29 million.
Net income for the company in the 3rd quarter was $20 million which puts the $7 million into perspective.
$7 million/63 million shares outstanding = 11 cents/share which puts 3Q13 earnings of 3 cents/share (GAAP), or 32 cents/share, adjusted, diluted shares.
Unless I did the arithmetic wrong.

Reminder: Time Is Running Out To Register For Denver Conference, Save $500

Link here to website.

Bakken Product Markets & Takeaway Capacity

January 29 - 30, 2014
Denver, Colorado


Examining pipeline, rail, and gathering solutions to ensure Bakken crude, gas and NGLs can be fully capitalized on.

Some of the speakers include:
  • Statoil's VP, North America Midstream, Stephen Bull
  • Hess' VP, Global Commercial -- Michael Lutz
  • Enbridge's VP, Oil, Shale, and Rail -- Paul Fisher
  • True Company's VP, Belle Fourche & Bridger Pipelines -- Tad True
  • Tesoro's VP, Development, Supply & Logistics -- Mark Smith
  • Summit Midstream Partners, LP, VP, Business Development -- Bill Koch
  • EERC, Associate Director/Research -- John Harju
I have no relationship or connection, or hidden agenda, with this conference. Simply posted as a public service.

Disclaimer: there may be typographical errors. Go to the link for the source.

A String Of Murex Wells In The Far Northwest Corner Of North Dakota

Wow, it's been a long time since I've posted a stand-alone note about Murex. A reader (or readers, based on their avatar) noted a string of wells in Divide County, T162N-R101W:



That string of wells along the section line: all Murex wells. Some will go south into Writing Rock; others will go north into Fortuna.
  • 25933, 163, Murex, Lexie Kay 31-30H, wildcat, producing, 4K in first "short" month; sections 31/30, Fortuna oil field, targeting the Three Forks; t9/13; cum 43K 9/14;
  • 25716, 112, Murex, Marcelo Manuel 32-29H, Fortuna, producing, wildcat, "Bakken," 8K first "full" month; t8/13; cum 54K 9/14;
  • 26478, 243, Murex, Robert Stephen 5-8H, Three Forks B1, sections 8/5; Writing Rock; t6/14; cum 25K 9/14;
  • 25935, 201, Murex, Camille Helen 33-28H, wildcat, will run into Fortuna; sections 33/28; Three Forks; t2/14; cum 15K 9/14;
  • 24485, 511, Murex, Lori Ann 4-9H, Writing Rock, 37 stages; 3.1 million lbs; t3/13; cum 57K 9/14;
  • 26196, drl, Murex, Diane Renee 3-10H, Writing Rock, Three Forks First; sections 3/10;
  • 25713, A, Murex, Deanna Marie 34-27H, Fortuna, "Bakken," sections 34/27; no IP, cum 53K 9/14;
  • 25714, 137, Murex, Holice 2-11H, Writing Rock, Three Forks, seven miles south of Fortuna, North Dakota, reached TD in 16 days; t11/13; cum 41K 9/14;
  • 25875, 108, Murex, Haley Marie 1-12H, wildcat, sections 12/1; "Bakken," t4/14; cum 22K 9/14;
Efficiency of drilling? Look at #25714:
  • first rig: drilled to depth of 1,444 feet
  • second rig: to vertical depth using one bit/one motor and taking only one run; a second bit completed the curve
  • second rig: the lateral was started at 5:40 p.m. Friday and completed at 8:37 a.m. the next Wednesday, requiring only one bit/one motor/one run (sort of like baseball: one run, one hit, no errors, huh?); so they drilled almost two miles laterally in less than five (5) full days.
For newbies:
  • I have no formal training in what I am blogging about (the oil and gas industry); see my "welcome/disclaimer"; this is simply idle chatter based on what I think is going on and how I see it; I could be way wrong, and I make a lot of typographical errors, which I eventually notice and correct, but not always; I'm sure the roughnecks laugh at what I post. Whatever. 
  • I consider Murex one of the better operators in North Dakota
  • I consider the far northwest North Dakota where the Three Forks extends from the Bakken (similar to the extension of the Three Forks elsewhere in the Bakken)
  • I would expect the Three Forks wells in Divide County to be better than the middle Bakken wells
  • to the best of my knowledge, and I'm almost 100% sure on this, the Three Forks wells in Divide County, and the Murex ones above, are all Upper Three Forks wells; I am not aware of anyone testing the 2nd, 3rd, or 4th benches of the Three Forks yet in Divide County (but I could be wrong, which is not uncommon for me -- smile)
  • in the shorthand notes above, I put "Bakken" in quotes; the operator stated these are "Bakken" wells but occasionally the operator means "Bakken Pool" which includes the middle Bakken and the Three Forks formations; I assume in this case, Murex means middle Bakken, but just in case, the quotes
  • the efficiency of drilling in #25714 noted above must have been a beautiful piece of work; huge kudos to the roughnecks; it also suggests Murex knows the geology well in this area
  • I was impressed with how much material was available in the files despite the wells being in confidential status and/or still in "loc" status ["loc" means a permit has been issued by NDIC but the well is not yet on confidential status]
  • "ros" means "rig on site" -- and, of course, that will only be for a couple of weeks if all goes well
  • if you double-click on the graphic, it will open in another window allowing one to zoom in 
Disclaimer: there may be errors in the case numbers, and information; I did not double-check the well files, etc.

Some Posts You Don't Want To Miss; This Is What The Bakken Is All About

Tomorrow, if I don't forget, I will be posting the weekly top stories, a regular feature that is provided at no additional price; it comes with the basic subscription to themilliondollarway.blogspot.com.

However, for newbies, if you haven't seen these recent posts on the Bakken, you are really in for a treat:
***********************************

In fact, the EOG transcript is so incredible, I will bring the notes forward and post them here (again):

The transcript at SeekingAlpha:

  • oil, NGL, and gas production exceeded guidance 
  • unit cot beat the lower guidance provided last quarter
  • will (again) raise full 2013 production growth guidance from 35% to 39%
  • three plays: Eagle Ford, Bakken, Leonard
  • "no other large cap oil company has even remotely matched EOG's oil growth rate either in 2013 or for the six-year average"
Eagle Ford:
  • Eagle Ford: 100% direct (after-tax) rate of return from both the western and the eastern portions
Bakken/Three Forks:
  • will continue the downspacing program (e.g. Van Hook 126-2523H and 130-2526H)
  • encouraged by completions in the Antelope Extension area
  • achieving direct (after-tax) rates of return in excess of 100% in both the Core and Antelope areas
  • reminder: in the quarter call, EOG increased drilling inventory in the Bakken/Three Forks from 7 to 12 years; EOG will increase drilling activity in the Bakken/Three Forks in 2014
Leonard: also achieving direct (after-tax) rates of return in excess of 100%

The macro oil environment:
  • US rate of crude oil production will slow in 2013 (compared to 2012)
  • bullish on oil prices; EOG doesn't see any large international shale oil plays to impact global supply for east five years
  • hedging at $95 to $97
  • believes that natural gas prices will stay depressed until 2018 timeframe
  • the current Marcellus location differential is likely just a harbinger of chronic Appalachian price dislocations that will be seen over the next multiple years
2014
  • EOG likely to ramp up activity in Eagle Ford and Bakken/TF above 2013 levels
  • in the Permian Basin, overall capex will be flat, but allocation will shift to the Delaware Basin
Q & A
  • like another operator, EOG is still trying to re-calculate accurate EURs as completions techniques improve; won't provide revised EURs until longer production time
  • "The Bakken, with the dramatic improvements we have had in it, is now equal to the Eagle Ford in returns in excess of 100%, so it will get more money each year."
  • Eagle Ford drilling downtick: now, down to 9 days; previously "less than 12 days"; and, drill times in the Eagle Ford are getting faster; "EOG has had many wells that are quite a bit faster than that"
  • up to about 56 rigs (across all plays); upgraded entire rig fleet; "just premium rigs"
  • second bench of the Three Forks just as successful as the first bench; "particularly in the Antelope area, we do believe that we have potential in the third benchand possibly in the fourth bench in the Antelope;
  • "as we said, we are getting extremely strong rates of return in the Bakken"
  • "we have 12 years of inventory in the Bakken/Three Forks. So as next year and the years go along, we believe that we will be drilling more wells each year in the Bakken and that's really the whole Bakken/Three Forks....setting production records even with modest programs ... so we have got some good expectations as we go forward."
  • why 2018 before we see LNG prices improve? 2018: the first significant impact of the gas exports in way of LNG from these converted former LNG import terminals; ... first meaningful impact..."
  •  a reminder that EOG does have a water injection pilot in the Bakken

I'm Sorry, So Sorry, Please Accept My Apology; I Was Too Blind To See

As regular readers know, I no longer have any emotional, partisan, or visceral reaction to ObamaCare. For me, it is simply a fascinating story to see how it unfolds.

But I haven't heard this song in a long time, and now there's a great opportunity to post it.

First, the story that led me to the song: NBC News has an exclusive -- the president says he's "sorry that some Americans are losing their current health insurance plans as a result of the Affordable Care Act, despite his promise that no one would have to give up a health plan they liked."

So sorry, I'm sorry, please accept my apology....

I'm Sorry, Brenda Lee


And it just keeps getting better. I assume this could be the theme song for Lee Hammack and JoEllen Brothers, loyal Obama supporters, who lost their insurance, but apparently still support the president.

Fool #1, Brenda Lee

Government Shutdown; New Jobs Added Exceeds Expectations; Beats "Magic Number" Of 200,000; Hell Freezes Over; Unemployment Back Up; Back Up To 7.3%

Regular readers know, with regard to "job watch," the magic numbers.


The Magic Numbers

First time claims, unemployment benefits: 400,000 (> 400,000: economic stagnation)
New jobs: 200,000 (< 200,000 new jobs: economic stagnation)

And, of course, I've never seen a "new jobs" number greater than 200,000 (and apparently neither has Yahoo!News based on the fact that it is a headline story at the moment. The number is 204,000 newly added jobs; higher than expected.
The U.S. economy added 204,000 jobs in October -- more than double the consensus -- and hiring for September and August were revised up by a combined 60,000, according to the Labor Department.
But get this: it occurred during the US government shutdown. Speaks volumes.

Later we will learn that all those furloughed US government workers went out and found temporary jobs doing the same thing for contractors still paid by the government. I assume a lot of the IT folks were hired by Ms Sebelius when she realized she was in deep do-do. (Is that how "deep do-do" is spelled?)

Friday: It's Announced -- His Sons Will Release 21 Orbison Albums Over The Next Two Years; There Are Few Things More Important Than The Bakken; This Is One Of Them

Holy mackerel! This might be worthy of a stand-alone post. Knowing folks will not read to the bottom of this page, I moved this to the top of the post! Roy Orbison's three living sons plan to release 21 records by their father over the next two years, including four studio albums that were never released and 13 that have been out of print for decades.

Active rigs: 181

RBN Energy: new regulations that will affect refineries.
Forty percent of the world’s fuel oil - the residual oil left over after extracting lighter products from crude oil - is used as bunker oil to power Ocean going vessels. Much of that fuel has relatively high sulfur content. Given that refineries sell fuel oil for less than the cost of crude – the bunkers market has traditionally been a convenient dumping ground for unwanted high sulfur residual fuel oil. New international regulations that came into force in 2012 drastically reduce the permitted sulfur content in bunkers after 2015 in the world’s populated coastal regions. Today we describe the impact the new rules could have on refiners.
The Wall Street Journal

It looks like Iran gets to keep its nukes. Incredible. And, as someone note, while Americans are losing their insurance. What a great country. President Obama secretly lifted sanctions on Iran some months ago -- incredible. But it also explains something I could not figure out -- why it was widely reported that Europe and Asia had begun trading with Iran again; anyone who doesn't think Mr Obama learned all he needed to know by kindergarten in his Muslim school is not thinking.
 
Finally, a front page story on Syria: Thousands of middle-class Syrians are trying to get to Europe's northern countries to seek asylum, but many refugees are stuck in the continent's south.

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One has to chuckle. Pundits said the 150-point drop in the market yesterday was due to the GDP coming in higher than expected at 2.8. This, in turn, investors fear, will result in .... disclaimer, this is not an investment site. Do not make any investment decisions based on anything you read here or what you think you may have read here ... the Fed to cut back on printing money. Severl data points:
  • Ms Yellen is said to like printing money even more than Mr Bernanke
  • it's a sad state of affairs when the market is "frothy" due to easy money
  • the 2.8% is about as reliable as the "job watch" numbers
I posted this yesterday, and TWSJ notes it today in a longer article: Gross domestic product grew at an annual rate of 2.8% in the third quarter, which was higher than economists expected, but consumer caution and political friction could be a drag in the coming months.

For everyone else, the 150-point drop yesterday was a buying opportunity. Or so some would say. Certainly not me. Disclaimer, this is not an investment site. Do not make any investment decisions based on anything you read here or what you think you may have read here. Oh, I already said that.

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 So, how are US elementary students doing on achievement tests. Before reading the blurb, one must assume the achievement tests have been "dumbed down" over time. So, with that in mind, note this update:
Elementary-school students made modest progress on three of four national math and reading exams this year, but proficiency rates are still stubbornly below 50% on every test.
So, more than half of our elementary students score are not proficient in any area of study.

Does anyone care? I subscribe to the notion that one only has to be "faster, better, smarter, than the person next to you." And sometimes even luck plays a bigger role in life's success. Think mineral rights owners.

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Buried deep in the news, it is reported that Mr Obama has said "sorry" (for ObamaCare).  I guess it was buried because it was not news. He has spent most of his years in office apologizing to nations around the world for past US behavior.

This should be "good news" for my one reader from the great state of Florida: A housing allowance that military families receive could be targeted for cuts unless automatic spending reductions scheduled for coming years are rolled back.

The FDA is getting ready to ban trans fat. Too bad for Mr Arafat that polonium was not banned from what he was eating. But back to trans fat. After reading that trans fat was in margarine, I checked the margarine in my refrigerator. I'm safe. Also, McDonald's quit using trans fat decades ago. I'm safe. And I quit eating microwave popcorn some time ago. And I had my last Starbucks donut yesterday,so I'm safe. Black coffee at Starbucks only -- no sugar, no white stuff. I guess that's redundant. The sugar Starbucks uses is white.

That global recession? Not so fast. Chinese exports rebounded sharply in October from a September slump as demand improved in the U.S. and Europe, a potentially positive sign for the global economic outlook.

But Russia's boom is over, says "minister." I was unaware Russia had a boom. Except perhaps in vodka sales.

I assume folks will soon be outraged over this. Airlines are mining in-flight data to determine how fliers like their coffee and what kind of snack they are likely to order (I can't make this stuff up). No matter airline tickets are so expensive -- paying for IT. I think that's what screwed up ObamaCare -- the website was bogged down by questions regarding whether one takes coffee black or "with room for cream."

Holy mackeral! This might be worthy of a stand-alone post. Knowing folks will not read this far down, I will move this to the top of the post! Roy Orbison's three living sons plan to release 21 records by their father over the next two years, including four studio albums that were never released and 13 that have been out of print for decades. 

Target, The Retailer, Is Offering $200 For Old iPads

I have several non-Bakken posts ready to be posted, but they are in "draft" status, waiting to be posted later this morning or this afternoon. I like to have Bakken posts at the top of the blog when folks open up the blog first thing in the morning.

I often forget that rule, and there are exceptions.

This is an exception.

Target (the "retailer") is offering $200 for any and all old iPads brought to their electronics area. This is not a hoax; it really works, though not all Target employees are aware of the promotion. Read the comments at the link. (Actually, they will give you $200 for even a brand new iPad but, of course, that would not make a lot of sense, now would it?)

The promotion only lasts until tomorrow. If you are really, really quick, you can buy $100 iPads on Craig's list or eBay and bring them (all) in to Target for $200. Target wants you to trade in your old iPad for a new iPad bought at Target using that $200 but the $200 comes with only one restriction: it is in the form of a gift card, so it has to be spent at Target, but I doubt there is any expiration date on the gift card.

In the tech world, there are few deals better than this.

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Regular  readers know I am an Apple Fanboy. So, take the following with a grain of salt, a short note I sent a reader earlier today:
By the way, having said, last night was the first time I had the opportunity to actually hold in my hands the iPad Air, the iPad mini, and the new iPhone (not all at one time).

I was blown away.

They really are incredible. Any critic who suggests Apple is not innovating, and/or costs too much has no sense of what Apple has accomplished. Their products -- and I know I'm a fanboy -- are really incredible. And one can "buy in" for less than the cost of two monthly car payments. Actually, one can "buy in" for about half of one monthly premium for ObamaCare -- and ObamaCare insurance premiums never end.

The View Tax; NIMBY -- Some New Hampshire Folks Saying "No" To Wind Turbine; Beer-Fed Turkey

This is incredible, something I had not heard before. The folks in New Hampshire were not satisfied with the adage, "if it moves, tax it." They went one step further. Called the "View Tax" New Hampshire actually found a way to tax real property if its value is assessed to be greater due to a "great view." LOL. A reader sent me the wiki link, something I had never heard of before. Incredible. I forget but I believe New Hampshire was one of the original thirteen colonies upset about taxation issues. Of course, this is a bit different: New Hampshire, I guess, is taxing themselves, with representation. Whatever.

The "view tax" came up in context because of the following story:

A reader sent me this link/story. The Union Leader is reporting:
Ed Cherien, project manager for Iberdrola Renewables, faced a crowd of about 150 people at Alexandria Town Hall Tuesday night — most opponents of his company’s proposed Wild Meadows wind farm.
“I have been portrayed as a traitor,” the veteran leader of public hearings for the Spain-based wind power giant said. “I’m proud of the company I work for, just as people who work for Freudenberg in Bristol (owned by German and Japanese companies) are proud of the company they work for.”
Cherien has met with residents in Alexandria and surrounding towns several times in the past year about Wild Meadows wind farm, which would go on ridgelines visible to Newfound Lake and Cardigan Mountain. 
Tuesday night, he explained that the $150 million project had been reduced in size and scope to meet the concerns of residents. 
“I think you’re doing a marvelous job of telling us what’s right for you and your company,” said resident Jan Connor. “You’re just not telling us what’s right for us.”
For archival purposes only. I've lost interesting in the wind energy story. There is no redeeming reason for slicers and dicers: Germany and Spain found that out the hard way. 

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Speaking of New Hampshire: first there was beer can chicken, now there's beer-fed turkey, as reported by Yahoo.com (must be a slow news day):
Farmer Joe Morette of Henniker, New Hampshire literally stumbled upon his idea for making turkeys taste better. He says giving them beer instead of water was the result of a happy accident.
Beer Can Chicken