Statoil Reports A Typical Statoil Well; EOG/XTO With Seven More DUCs: 7/8 Bakken Wells Not Completed -- December 13, 2015

Monday, December 14, 2015

• 24096, 3,148, Statoil, Jay 24-13F 1H-R, Banks, true vertical depth of 11,137 feet; 15 - 20' flare; gas reached upwards of 8,000 units; t10/15; cum 19K 10/15;
• 30788, SI/NC, XTO, Rita 44X-34D, Tobacco Garden, no production data,
• 30903, SI/NC, EOG, Austin 72-1807H, Parshall, no production data,

Sunday, December 13, 2015

• 30978, SI/NC, EOG, Van Hook 79-15H,  Parshall, no production data,
• 31146, SI/NC, XTO, Ryan 14X-9B, Siverston, no production data,
• 30902, SI/NC, EOG, Austin 73-1807H, Parshall, no production data,

Saturday, December 12, 2015

• 30979, SI/NC, EOG, Van Hook 78-15H, Parshall, no production data,
• 30901, SI/NC, EOG, Austin 84-1807H, Parshall, no production data,

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DUCs

For newbies, when you think about these DUCs, remember this: back in April, 2015, 24/7 Wall Street was reporting that nationwide -- the US -- the shale community (mostly the Eagle Ford, the Bakken, and the Permian) was adding 350,000 bbls of oil per day (bopd) -- again, that's 350,000 bbls per day -- "underground storage" in the form of DUCs -- drilled to depth, but not fracked. At that time, and probably still true today, 350,000 bopd exceeds the amount Libya is producing or getting to market. Generally oil that gets to market is being refined within a few weeks or going into storage for refining as soon as possible. So much of that 350,000 bopd of oil coming out of Libya is actually being consumed. But oil stored in DUCs is not even close to being used, and it is (or at least, was) accumulating at the rate of over 300,000 bopd.

To me, that seems incomprehensible, and I may be misreading something, or making wrong assumptions, but if it is accurate ... it seems it will take awhile to deplete all that DUC oil, much less use up the excess that OPEC is bringing to market every day. 

365 x 300 = 100,000 thousand bbls every year from shale being stored underground. One hundred million bbls every year. Global demand: about one hundred million bbls daily.

This was back in April, 2015:

The pullback is likely due to a report from Bloomberg Thursday that claimed more than 4,700 drilled wells in the United States have not been completed while oil producers wait for prices to rise again. More than 1,500 wells in the Permian Basin, 1,250 wells in the Eagle Ford and 632 wells in the Bakken have been drilled but not completed.

632 Bakken DUCs then? Now it's around 1,000.

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The War Natural Gas Is Waging On Coal

It looks like the real "war on coal" is the one being waged by natural gas. Don sent me this a couple of days ago:

The price of natural gas delivered to Northern Border at Watford City is down $0.05 to $1.65/MCF, from the most recent Director's Cut (December 9, 2015).

The 2014 MDU annual report says the average coast of coal per MMbtu, including freight was $1.74 per MMbtus.

Natural gas mcf to btus conversion can be done at this site.