Wednesday, July 26, 2017

Five New Permits; Eighteen Permits Renewed -- July 26, 2017

Note: see first comment. I'm moving this comment and link to a post of its own. 

Active rigs:

$48.727/26/201707/26/201607/26/201507/26/201407/26/2012
Active Rigs603373193207

Five new permits:
  • Operators: WPX (2): Oasis (2), Petro-Hunt
  • Fields: Mandaree (Dunn); Sanish (Mountrail); Charlson (McKenzie)
  • Comments:
Eighteen permits renewed:
  • Petro-Hunt (11): Robert The Bruce; Joel Goodsen; Dudley Dawson (2); Chip Diller (3); Hot Rod (2); all in McKenzie County; and Lloyd Christmas and Harry Dunne, both in Stark County (these were permits transferred from Emerald Oil to Petro-Hunt (see yesterday's daily activity report)
  • Hess (6): six EN-Jeffrey permits; all in Mountrail County
  • Thunderbird: one Frank permit in Stark County
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Poll

We'll close out this poll in which we asked whether Jeff Sessions was history:
  • yes: 44%
  • no: 31%
  • why are you even asking? 25%
We'll replace that poll with another "political" poll in which we ask, whether President Trump will appoint Gary Cohn or re-appoint Janet Yellen for Fed chairperson when current term ends. The poll won't stay up long.

3 comments:

  1. Some interesting comments on the Bakken in this article. From the article, it looks like shale is the only place where Hess and Anadarko are making money.

    --- Hess Holds On to Mixing it Up ---
    https://www.bloomberg.com/gadfly/articles/2017-07-26/hess-earnings-holding-on-and-making-opec-nervous

    "Yet, also like Anadarko, Hess is holding its own where it counts: U.S. shale.

    Production in Hess’s core Bakken basin beat guidance handily, at 108,000 barrels of oil equivalent per day. That should rise to somewhere between 110,000 and 115,000 in the fourth quarter.

    More important than that is how Hess is getting to those higher levels….

    With four rigs operating in the Bakken, the company had indicated it might add another two if oil prices warranted it — the implication being that those two might be needed in order to maintain momentum.

    Hess now says that a move to more intensive fracking methods meant it could meet its targets with just four rigs. The company says its Bakken operations generate free cash flow even at today’s prices and that it would require only 2.5 rigs, on average, to hold production flat, down from 3.2 rigs a year ago.

    That a U.S. E&P company is holding steady at sub-$50 oil in the Bakken — and not the red-hot Permian shale — should cause some nervous twitching over at OPEC’s offices. At $60 oil, which still wouldn’t salve the economic wounds of many petrostates, it’s a fair bet those other two rigs would be put to work quickly….

    In short, Hess is increasingly a story of grinding out further productivity gains in the Bakken but using the cash this generates for now to fund the Guyana venture."

    ReplyDelete
    Replies
    1. Wow, what an incredible article. Completely fits my world-view of the Bakken. The other day I said that if OXY can lift oil for $28/bbl in the Permian, operators are doing a whole lot better than $28/bbl in the Bakken, using the same accounting methods.

      Again, I may be too exuberant about the Bakken, but I feel I know it pretty well. LOL. I know about 1% what any good roughneck in the Bakken knows.

      Delete
    2. I am moving this comment to a stand-alone post:
      http://themilliondollarway.blogspot.com/2017/07/if-oxy-can-lift-oil-in-permian-for-28.html

      Delete