Week 27: July 5, 2015 -- July 11, 2015

There were so many huge stories this past week, for the Bakken and from around the world. Without question, the big story was the fact that crude oil production increased month-over-month in both Texas and North Dakota despite all the efforts to cut back. The second big story was a story we did not see: we have not yet seen any major oil companies in severe distress (although that is in the eye of the beholder and subject to opinion).

The other big story was posted by DrillingInfo: North Dakota has three counties in the list of the top ten US oil-producing counties: Williams, McKenzie, and Dunn.

There is so much oil on the market, and the trend is not likely to change, that Ford is moving its small-car operations out of the US.

BP's annual statistical review of world energy, 2015, was also linked this week. The outlook in brief was notable in what it did not say.

Despite falling crude oil prices, California, at least temporarily, is looking at $5-gasoline. Californians have petitioned the governor for relief but it is unlikely he's listening. Let them eat cake. By the way, it appears California policy makers have pretty much started down the road of closing down the state's oil and gas industry. California's attitude toward oil and gas is starting to remind me of Brazil.

The Director's Cut for May, 2015, data was released. Think about that. Data for the summer is yet to come.

I haven't done this before but I think it's becoming too big to ignore. I have always "limited" the big stories of the week to the Bakken, but this is an exception: writers at The Los Angeles Times, a huge supporter of ObamaCare, concede that health care premiums in 2016 "won't simply rise, they will skyrocket." This has huge implications for the US economy, including the oil and gas industry as they start to downsize in the face of an oil glut.

It looks like folks are coming around on a newly accepted definition for full employment: about 6% unemployment. I think it's 8%.

Another huge international story: the Boston Consulting Group reports that US manufacturing costs on par with those of China due to very, very low energy prices, due to ... fracking.

The number of active rigs in North Dakota hit a new post-boom low (73) this past week, well below the high of over 200 two years ago.

RBN Energy started a nice series on refining operations in the US. A must-read.

Perhaps my favorite story this past week:

• for the past several years we've been told how inexpensive renewable energy is getting
• Minnesota is mandating ever-increasing use of renewable energy
• Minnesota's public electricity provider has requested (and was approved) it's seven electric rate hike since 2006 and more such hikes could be down the road
• ither the owners of the utility (stockholders) are getting very, very rich, or renewable energy is not as cheap as we're being told

North Dakota maintains its #1 standing as top state in beer drinking, per capita

Crude oil
Production increases 16% month-over-month in Texas; 3% in North Dakota
Despite slump in oil prices, fourteen new permits in one day, multiple operators including small ones like Thunderbird
Random update on the Hess Lodgepole well northeast of Tioga

Fracking
The octofrac
UNP sets frack sand shipment record
Random update of a re-fracked well, BR's #17118, the Remington 14-11H

Natural gas
A re-look at Bakken's natural gas production 
Soaring demand for LNG

Bakken economy
Update on EPD bid to buy WMB
The Williston Wire: Williston has North Dakota's largest walk-in humidor; new restaurant in Wildrose (only restaurant in 30-mile radius; construction on Williston's new airport to begin next spring
Taxable sales, first quarter for the past six years

Bakken 101
Random example of NDIC oversight, siting of pumps

Photography
Whitten Log