Thursday, June 8, 2017

Oklahoma Earthquakes Correlate With Waste Water Disposal -- June 8, 2017

Not fracking; waste water disposal. Huge difference. Related, but huge difference.

Once the state regulated waste water disposal more aggressively, things seemed to settle down.

Story over at OGJ.

**************************
Cobalt

Updates

October 31, 2017: from Bloomberg -- 
The Canadian Ghost Town That Tesla Is Bringing Back to Life Renewed demand for cobalt, the metal, is breathing new life into Cobalt, the town.Ironically, Cobalt, Ontario—population 1,100—was built on silver.   
If you can't get to the story due to a paywall, here's another story from CBC News:
There's an old school gold rush underway in northern Ontario, but the demand is for a special metal that is used in everything from smart phones to electric cars.
More than a dozen mining companies are staking out claims in Cobalt, Ont. as price of the mineral with the same name rises, according to the Northern Prospectors Association.
"The whole situation is a cobalt-style rush, just like an old fashioned staking rush," said Gino Chitaroni, president of the Northern Prospectors Association and a geologist from the area.
The town of Cobalt is located along the Quebec border, near Temiskaming Shores in northern Ontario, and is best known for the massive amounts of silver that were extracted a century ago.
Original Post
 
Wow, I can't believe this! I had a post on "cobalt" in draft for several months. I finally deleted it last night because not much seemed to be happening. Then this, in today's WSJ: why investors are amassing cobalt.
Every few months, Robert Mitchell travels from his office near Portland, Ore., to a Connecticut warehouse and checks in on his biggest investment.

Mr. Mitchell’s fund owns millions of dollars worth of cobalt. He is so confident that its use in electric-car batteries will cause demand to surge that he has been buying and storing more than a thousand metric tons of the stuff—worth more than $56 million at current prices.

He feels he has little choice but to hold physical metal, since acquiring a cobalt position in financial markets is so hard.

“There’s a lot of money looking for a home in cobalt,” Mr. Mitchell said. “They really don’t have a great way to play it.”

Cobalt has long been a component in tires, magnets and smartphones. Now, it is the latest material, along with lithium and copper, to benefit from its use in the lithium ion-batteries that power electric vehicles.

Slightly more than half of all cobalt bought or sold last year went toward rechargeable batteries, up from 20% in 2006, according to Benchmark Mineral Intelligence.

Battery manufacturers’ soaring demand for the hard, silvery metal has propelled cobalt’s value to its highest level since 2008. Prices are up 70% this year through Wednesday to $56,500 a metric ton, making it the top-performing commodity traded on a major futures exchange.
*****************************
No Cobalt For Sophia And Me -- Going Swimming

Five New Permits -- June 8, 2017

Active rigs:


6/8/201706/08/201606/08/201506/08/201406/08/2013
Active Rigs522682194189

Five (5) new permits:
  • Operators: Hess (4), Resonance (1)
  • Fields: Wheelock (Williams); Westhope (Bottineau)
  • Comments: the four Hess permits are for wells in NWNW 28-156-98
Sixteen (16) permits renewed: error in the report -- these permits were reported on previous day's daily activity report

William Partners' Pipeline Demand To Grow -- Zacks -- June 8, 2017

The Zacks article at the link carries investment analysis of which I am not interested. But the article provides a nice summary of Williams pipeline network:
  • rapidly-growing natural gas demand in US will likely result in Williams scaling up
  • Williams' CAPEX focused on expansion of Transco pipeline system
  • Transco: the largest interstate natural gas pipeline network in the US
  • Gulf Trace project: one of five Transco expansion developments that will likely be online this year
    • Gulf Trace project: started ahead of scheduled time
    • will serve Chenier Energy Partners LP CQP
  • capacity to deliver natural gas at a rate of 1.2 billion cubic feet per day to the Louisiana Sabine Pass Liquefaction export terminal
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US LNG Exports: Sets Record In May (2017)

Platts
  • record high in May
  • despite exceptionally low profit margins
  • 17 LNG cargoes
  • 58.3 Bcf
  • some confusion with destinations (see linked article)

Random Update Of XTO McCoy #20862 -- June 8, 2017

Updates

Later, 4:31 p.m. Central Time: see first note -- You are correct. The McCoy 23NWH has not been refracked. It was shut-in while the Nordeng wells to west the were fracked. When the 23NWH was put back into production it produced more oil in the first three months than in any three-month period in its history. The well was still free flowing at the end of May.

Original Post

Disclaimer: in a long note like this there may be typographical and/or factual errors. I may have missed something or may have misread something. This is simply to help me understand the Bakken better. If this information is important to you, go to the source.  On May 22, 2017, I wrote: obviously this well had to have been re-fracked but there is no sundry form yet that says it was re-fracked; nor does FracFocus have any frac data; enquiring minds want to know...

The index well:
  • 20862, 1,609, XTO, McCoy 44-23NWH, Siverston, t9/11; cum 399K 1/18;
    • no sundry form that the well was re-fracked
    • at FracFocus, no data that the was re-fracked; FracFocus has data that other wells in 2015 and 2016 were fracked
The graphic:





Monthly Production Data (#20862):
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN4-20173013023135671301028875287920
BAKKEN3-20173116388162042228832853326870
BAKKEN2-20172817133156921859035993357880
BAKKEN1-2017718371823508022979581310
BAKKEN12-20160000000
BAKKEN11-20160000000
BAKKEN10-20161005000
BAKKEN9-2016231024118947526552334321
BAKKEN8-20163128553177163176927021671
BAKKEN7-20163127772626157577367425311
BAKKEN6-201630325433661796100249283741
BAKKEN5-20163131223043164590698577492
BAKKEN4-2016293604374014821050389941509
BAKKEN3-2016313820391020781026181712090
BAKKEN2-2016294826446428931127493381936
BAKKEN1-20162021062723171256794896783
BAKKEN12-20153153575299280617228132493979
BAKKEN11-20153056195426262512200106201580
BAKKEN10-2015315157531734141186696382228
BAKKEN9-20153068876664488915892124233469
BAKKEN8-20153181808087795117047112955752
BAKKEN7-2015317529731064841601696816335
BAKKEN6-20152970996830714218306127955511
BAKKEN5-2015319903118197634162973443
BAKKEN4-20155480436765371593243061626
BAKKEN3-20150000000
BAKKEN2-20150000000
BAKKEN1-20150000000
BAKKEN12-20140000000
BAKKEN11-20140000000
BAKKEN10-20140000000
BAKKEN9-201416042701000
BAKKEN8-2014222102208691074997366133
BAKKEN7-20143123802279119012363123630
BAKKEN6-20143039754464177014320143200
BAKKEN5-2014262317258812256095603065
BAKKEN4-20142831873096995584658460
BAKKEN3-2014203047263446046304489141
BAKKEN2-201414222119661000377037700
BAKKEN1-20141241634077905823382330
BAKKEN12-2013311741720660
BAKKEN11-2013289621083349151115110
BAKKEN10-20133120431939470282028200
BAKKEN9-20132518102124884415441540
BAKKEN8-201327264025181083693769370
BAKKEN7-201325338236551337960196010
BAKKEN6-201320281425521192824482440
BAKKEN5-20133136093689146314565145650
BAKKEN4-20132958735535203816323163230
BAKKEN3-2013183457401589569560
BAKKEN2-20131933472940948558155810
BAKKEN1-20132217031880415423342330
BAKKEN12-201231369743191032882588250
BAKKEN11-201230406235351180101301011317
BAKKEN10-201231420345021285116181159622
BAKKEN9-201230393539921387116881165236
BAKKEN8-201231491144851562128551282926
BAKKEN7-20123148634955163113748127431005
BAKKEN6-2012305231514816421447713955522
BAKKEN5-201231556760912087156311555774
BAKKEN4-20123060615744206218686156972989
BAKKEN3-20123176037202270024598232691329
BAKKEN2-20122991469811351436160348131347
BAKKEN1-20123184958452208316667152171450
BAKKEN12-2011311143711141264911495011495
BAKKEN11-20113096169513180211890011890
BAKKEN10-2011311132511802282925335025335
BAKKEN9-2011291979119230766659923059923
BAKKEN8-2011211178102944327203272

The CLR Salers And Salers Federal Wells

Disclaimer: in a long note like this there may be typographical and/or factual errors. I may have missed something or may have misread something. This is simply to help me understand the Bakken better. If this information is important to you, go to the source.

The wells, section 27-152-94; Antelope oil field, Sanish pool:
  • 28334, 1,297, CLR, Salers Federal 7-27H, 30 stages, 3.8 million lbs, Antelope, t11/15; cum 737K 6/19;
  • 28335, 1,197, CLR, Salers Federal 6-27H1, 31 (no typo) stages, 5.9 million lbs, Antelope, t11/15; cum 650K 6/19;
  • 28331, 1,576, CLR, Salers Federal 5-27H, 30 stages, 4 million lbs, Antelope, t10/15; cum 524K 6/19;
  • 28332, 1,373, CLR, Salers Federal 4-27H1, 30 stages, 6.1 million lbs, Antelope, t10/15; cum 549K 6/19;
  • 25814, 1,256, CLR, Salers 1-27, Antelope, 30 stages, 5.9 million lbs, t5/14; cum 401K 6/19;
  • 25815, 1,351, CLR, Salers 2-27H, Antelope, 30 stages, 6.1 million lbs, t6/14; cum 612K 6/19;
  • 28330, 1,716, CLR, Salers Federal 3-27H, Antelope, 50 stages, 19.23 million lbs, t10/14; cum 750K 6/19;
Production profile of #28330:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH4-20173019551192107139361002310412764
SANISH3-20173122992232837800276231641610977
SANISH2-20172726374258421076834576306023780
SANISH1-201715796584422685795207837
SANISH12-201617648761431841641635882715
SANISH11-20161816131852612168901649
SANISH10-2016311752417549616718063232515490
SANISH9-2016302143221421707622321164635618
SANISH8-2016291511514991582014968126322336
SANISH7-20163126583265259725229972290493
SANISH6-2016301494715350848515164114163748
SANISH5-20161441263716398646824539143
SANISH4-201631892421453476
SANISH3-2016104682419727516259
SANISH2-20162912413125984946157271564087
SANISH1-2016311786418211683122260209331327
SANISH12-2015312038120231730525663244201243
SANISH11-201530216842174677172705326752301
SANISH10-2015311567115708532419496143995097
SANISH9-201530174351731355882037319729644
SANISH8-2015311692316719409916088100396049
SANISH7-2015262535125403108502791427139775
SANISH6-20154111516453052191216130
SANISH5-2015312516424776884031924295842340
SANISH4-2015301419114056531716719156811038
SANISH3-2015281674617263590621099195971502
SANISH2-2015281648716070613319388173971991
SANISH1-201531164201677045632008919439650
SANISH12-2014312097020740550924696209283768
SANISH11-2014302198421906784426667224824185
SANISH10-201431323883275915252431892492218267
SANISH9-20148859577482360405204052

The graphic:

Crude Oil Exports Could Rise To One Million BOPD By The Early 2020s -- RBN Energy -- June 8, 2017

Updates

June 26, 2017: in the original post, note the RBN Energy post, updating Corpus Christi. Now, today, in Bloomberg, Welcome to the Booming Texas Port at Center of U.S. Oil Exports --
Late last month, an oil tanker that measures three football fields long and six stories high moved slowly through the port of Corpus Christi, Texas, to test the waters of America’s booming crude-export industry.
After navigating the Aranasas pass around 7 a.m. on May 26, the vessel, Euronav NV’s Anne, didn’t pick up any oil. But its arrival in the humid air of south Texas marked the first time ever a tanker of that size had called on a U.S. terminal in the Gulf of Mexico.
The Anne docked at Occidental Petroleum Corp.’s terminal to determine if some of the world’s biggest carriers could start ferrying oil from Texas to foreign buyers. The shipping upgrade is necessary after a surge in production from U.S. shale fields like the Permian Basin led to more oil than Gulf Coast refiners could handle. And Corpus Christi is vying to become America’s main export hub.

Original Post

Job watch: source -- econoday. Down 10,000 from previous report
  • actual: 245,000
  • prior: 248K (surprise on the up side, up 13K) revised to 255K (wow, that was a bad week)
  • forecast today: 241K (range: 235K to 245K)
  • 4-week moving average: 238K 
Active rigs:

$46.146/8/201706/08/201606/08/201506/08/201406/08/2013
Active Rigs522682194189

RBN Energy: More crude projects in Corpus Christi, and a look at big ship access to the port.
By the early 2020s, crude oil flows from the Permian to Corpus Christi are likely to increase by at least several hundred thousand barrels a day and may well rise by more than one million barrels a day.
That can only happen, though, if new pipeline capacity is in place to move crude from West Texas to the coast and if enough crude-related infrastructure — storage, distribution pipelines, marine docks, etc. — is developed in Corpus to receive, move and load all that oil. Docks and ship-channel depth are particularly important; the bigger the vessels that Corpus marine terminals can handle, the more competitive Permian crude will be in far-away markets like Asia. Today we continue our series on the build-out of crude infrastructure in South Texas’s largest port and consider Corpus’s ability to load Suezmax-class vessels and maybe even Very Large Crude Carriers (VLCCs).