Sunday, June 30, 2019

Notes From All Over -- Part 2 -- June 30, 2019

One of the "big stories" I used to follow was the "energy debacle" in Europe. I follow the story once in awhile now, but not as much any more.

Don sent me a great article -- which I would have missed -- that really spells it out. Interesting read.

From zerohedge. I don't see this as imperialism or a "battle" -- it's just free-market capitalism and making choices. I would stay away from the opining and editorializing and just pay attention to the "facts," statistics, etc.

From the linked article:
One of the most important energy battles of the future will be fought in the field of liquid natural gas (LNG).Suggested as one of the main solutions to pollution, LNG offers the possibility of still managing to meet a country’s industrial needs while ameliorating environmental concerns caused by other energy sources. At the same time, a little like the US dollar, LNG is becoming a tool Washington intends to use against Moscow at the expense of Washington’s European allies.

Human Interest Story -- June 30, 2019

Link here to The Dickinson Press.

Hopefully folks won't run into a paywall, it's a great story.

**********************************
Military

100%, without question, if a high school student has no idea whatsoever what he or she wants to do, I always suggest looking into the military. It is absolutely incredible what the military offers.

Three vignettes.

The linked story at The Dickinson Press is of a Native American female who enlisted at the age of 17. Because she was not yet of legal age, her mother had to sign for her. Upon enlistment, she takes a test; qualifies to become a medic, i.e., an enlisted "Radar" or "Klinger" you might see on M*A*S*H. Twenty years later she is a physician in the National Guard with real-world experiences.

Our son-in-law, similar story. Enlisted in the US Navy at age 17. His mother had to sign for him for the same reason for him to enlist. He tests and scores high enough to teach nuclear weapon courses to incoming engineering officers. After a couple of years, he boot-straps himself into an ROTC engineering course at the University of Arizona. He returns to active duty officer as a nuclear submariner and after 15 years in that role, one step from commanding his own submarine, he applies to and gets accept to Harvard Business School. He is now chief information officer / chief operating officer for a Fortune 500 company based out of London. And it all started at age 17, taking a qualifying exam in the military. 

For me, I was in the process of applying for my advanced degree when my mother sent me a notice that the military was offering scholarships (or "full rides") in return for four years of service. I applied, was accepted, and enjoyed it so much, I stayed 30 years and a day.

MRO's Bill Connolly In Bailey Oil Field -- Re-Fracked; New Production 40X Greater After Re-Frack -- June 30, 2019

For newbies: MRO has an aggressive re-frack program in the Bailey oil field. Here is another example.

The well:
  • 16736, 377, MRO, Bill Connolly 21-25H, Bailey, t1/108; cum 262K 4/19;
Previous post:
May 13, 2019: #16736, huge jump in production but only 5 days of production; in area of a lot of new fracking; need to check up on production over three or four full months. Re-fracked, 2/22/19 - 3/9/19; 6 million gallons of water; 90% water in the injection;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN4-20192629475295359024520752534412964
BAKKEN3-20195450237552027831545572030
BAKKEN2-20190000000
BAKKEN1-20190000000
BAKKEN12-20180000000
BAKKEN11-201812344031969
BAKKEN10-201831844680243786420128
BAKKEN9-20183081791014376647858
BAKKEN8-201831837110313879753029

So, note that the 26-day production of 29,475 bbls extrapolates to 34,010 bbls/30-day month.

How did this well do at the original frack?

BAKKEN10-20083145884378985249724970
BAKKEN9-200830472248801003238523850
BAKKEN8-200831523951731185283928390
BAKKEN7-200823272426811477126512650
BAKKEN6-20083030282898699134413440
BAKKEN5-20083133113457725152115210
BAKKEN4-20083037323639844185818580
BAKKEN3-200831475346561045197719770
BAKKEN2-200829574658111239213221320
BAKKEN1-2008268262792221433133130

So, for the cost of mediocre re-frack, MRO got a huge "new" well. 

Enerplus Danks Well In Antelope Oil Field Coming Back On Line? -- June 30, 2019

Random update of two wells in section 17-151-94. Both wells are on 320-acre spacing. One is on the W/2 of the section (320 acres); the other is in the E/2 of the section (20 acres). The EOG well remains off line; the Enerplus well is back on line but not clear how this well will play out. Note in the production profile below, the Danks well produced around 5,000 bbls of oil in one day on two different occasions: once in 4/19; and once in 5/19; will continue to follow.


May 19, 2019: on 320-acre spacing; these are the only two wells in section 17-151-94; they both went inactive 1/19; remain inactive 3/19:
  • 20307, in the west half, IA/1,328, EOG, Clarks Creek 103-17H, Antelope, Sanish pool, t11/11; cum 153K 12/18; only 1,000 bbls/month; off line as of 1/19; still inactive, 3/19; remains inactive as of 5/19;
  • 19693, in the east half, 722, Enerplus, Danks 17-44H, Antelope, Sanish pool, t7/11; cum 234K 12/18; only 1,000 bbls/month; off line as of 1/19; still inactive, 3/19; active as of 4/19; 

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH5-20191523349606402785107615
SANISH4-20191489344666165734007185
SANISH3-20190001000
SANISH2-20190000000
SANISH1-2019132461404
SANISH12-201819760101844111400982
SANISH11-20183011791489577176901560

XTO Nelson Federal Wells In Antelope Oil Field Back On Line -- June 30, 2019

The XTO Nelson Federal wells are now coming back on line. Earlier, all of these wells were IA, but now four  of them are back to active status and the rest will probably be on active status next month (5/19) -- remember, paperwork generally lags two months from what is going on in the field, so I assume all these wells are now back on line and producing:
May 29, 2019:
  • 34486, 1,244, XTO, Nelson Federal 21X-5BXC, Antelope-Sanish, t3/19; no production data,
  • 34487, 857, XTO, Nelson Federal 21X-5FXG2, Antelope-Sanish, t5/19; no production data, 
    • neighboring wells
      • 28184, A, off line since 10/18; t11/15; cum 248K 10/18; active as of 4/19;
      • 28185, IA, off line since 10/18; t11/15; cum 254K 10/18; did have one day of production in 3/19;
      • 28183, IA, off line since 10/18; t11/15; cum 317K 10/18; did have one day of production in 3/19;
      • 28255, IA, off line since 9/18; t10/15; cum 276K 10/18; produced water three days in 3/19, but no oil production;
      • 18435, A, off line since 10/18; t3/11; cum 298K 10/18; active as of 4/19;
      • 28256, A, off line since 10/18; t10/15; cum 193K 10/18; active as of 4/19;
      • 28257, A, off line since 10/18; t10/15; cum 248K 10/18; active as of 4/19;

Wells Coming Off Confidential List This Next Week That Have Reported Production -- June 30, 2019

For the full list of wells coming off confidential list this next week, see this post

Initial production for those wells coning off the confidential list and reporting production this next week:

34094, conf, CLR, Colter 7-14H, Bear Creek, note the 50K+ in first full month:

DateOil RunsMCF Sold
5-20193958345448
4-20193062327880
3-20195296359453
2-20199251386
1-20199070

35371, conf, Liberty Resources, Patricia W 159-94-12-24-2MBHX,  North Tioga:

DateOil RunsMCF Sold
5-2019178470
4-2019192630
3-2019163680
2-2019217810
1-2019174230

32895, conf, CLR, Colter 12-14H, Bear Creek, Bear Creek; the Colter wells are tracked here:

DateOil RunsMCF Sold
5-20192555730928
4-20192553925908
3-20193195938282
12-201823350

New Wells Reporting: 3Q19

Monday, July 22, 2019: 38 for the month; 38 for the quarter;
35758, conf, Petroshale, Helen 2TFH,
35176, conf, MRO, State Eileen 34-36TFH

Sunday, July 21, 2019: 36 for the month; 36 for the quarter;
35432, conf, CLR, Syverson 4-12H, 

Saturday, July 20, 2019: 35 for the month; 35 for the quarter;
35919, conf, Petroshale, Helen 1MBH, 
35175, conf, MRO, State Eggert 24-36H, 
34891, conf, BR, Gorhumbian 3A MBH-ULW, 

Friday, July 19, 2019: 32 for the month; 32 for the quarter;
35108, conf, CLR, Carson Peak 6-35H1
34353, conf, CLR, Morris 4-23HSL,
33475, conf, EOG, Liberty LR 47-1416H, 
33474, conf, EOG, Liberty LR 110-1416H, 

Thursday, July 18, 2019: 28 for the month; 28 for the quarter;
None.

Wednesday, July 17, 2019: 28 for the month; 28 for the quarter;
  • 35581, 770, Petro-Hunt, Dolezal 146-97-31C-30-4H, Little Knife, t6/19; cum --;
  • 33538, 1,415, CLR, Hendrickson Federal 14-25HSL, Elm Tree, t1/19; cum 103K 5/19,
Tuesday, July 16, 2019: 26 for the month; 26 for the quarter;
  • 35524, SI/NC, MRO, Mason 14-31TFH, Killdeer, no production data,
  • 35495, 2,059, CLR, Burian 4-27H1, Three Forks First Bench, 62 stages; 10 million lbs, St Demetrius, t1/19; cum 97K 5/19;
  • 35080, IA, CLR, Carson Peak 7-35H, Oakdale, t--; cum --;
  • 31804, SI/NC, EOG, Riverview 36-3031H, Clarks Creek; no production data;
Monday, July 15, 2019: 22 for the month; 22 for the quarter;
  • 35525, SI/NC, MRO, Hayes 14-31H, Killdeer,
  • 34354, 2,485, CLR, Hawkinson 16-22HSL 1, First Bench Three Forks, 37 stages; 16 million lbs, Oakdale, t2/19; cum 94K in less than 3 months;
  • 34352, 2,698, CLR, Morris 5-23H2, Second Bench Three Forks, 41 stages, 11.3 million lbs; Oakdale, t4/19; cum 85K in 28 days;

Sunday, July 14, 2019: 19 for the month; 19 for the quarter;
  • 35526, SI/NC, MRO, Gwen 44-36TFH, Killdeer,
  • 31805, SI/NC, EOG, Riverview 25-3031H, Clarks Creek,
Saturday, July 13, 2019: 17 for the month; 17 for the quarter;
  • 35081, 3,556, CLR, Carson Peak 8-35H2, Second Bench Three Forks, 52 stages; 14.2 million lbs; Oakdale, t5/19; cum 116K in 46 days;
  • 31806, SI/NC, EOG, Riverview 24-3031H, Clarks Creek,
Friday, July 12, 2019: 15 for the month; 15 for the quarter;
  • 34351, 1,969, CLR, Morris 6-23H, Oakdale, t4/19; cum 63K 5/19;
  • 31807, SI/NC, EOG, Riverview 23-3031H, Clarks Creek, no production data,
Thursday, July 11, 2019: 13 for the month; 13 for the quarter;
  • 35546, SI/NC, WPX, Delores Sand 29-32HD, Antelope-Sanish, no production data,
  • 35082, 1,593, CLR, Morris 8-26H1, 26 stages; 11.3 million lbs; Three Forks, first bench, Oakdale, t4/19; cum 74K in less than 2 months;
  • 33944, 942, Liberty Resources, Robert W 159-94-1-25-2TFHX, 40 stages; 16 million lbs white sand, North Tioga, t1/19; cum 100K 5/19;
Wednesday, July 10, 2019: 10 for the month; 10 for the quarter;
Tuesday, July 9, 2019: 8 for the month; 8 for the quarter;
  • 35544, SI/NC, WPX, Delores Sand 29-32HY, Antelope-Sanish, no production data,
  • 34095, 2,457, CLR, Colter 8-14H1, 41 stages; 10.2 million lbs; Bear Creek, t3/19; cum 75K 5/19;
Monday, July 8, 2019: 6 for the month; 6 for the quarter;
  • None.
Sunday, July 7, 2019: 6 for the month; 6 for the quarter;
  • 35543, SI/NC, WPX, Delores Sand 29-32HIL, Antelope, no production data,
  • 34094, 2,479, CLR, Colter 7-14H, 37 stages, 10.2 million lbs, Bear Creek, t3/19; cum 125K in three months
Saturday, July 6, 2019: 4 for the month; 4 for the quarter;
  • None.
Friday, July 5, 2019: 4 for the month; 4 for the quarter;
  • None.
Thursday, July 4, 2019: 4 for the month; 4 for the quarter;
  • None.
Wednesday, July 3, 2019: 4 for the month; 4 for the quarter;
  • 35371, 889, Liberty Resources, Patricia W 159-94-12-24-2MBHX,  North Tioga, t1/19; cum 94K 5/19; 40 stages; 16 million lbs sand (no typo);
  • 35322, SI/NC, MRO, Eunice USA 11-16TFH, no production data,
Tuesday, July 2, 2019: 2 for the month; 2 for the quarter;
  • 35321, SI/NC, MRO, Flynn USA 21-16TFH, Reunion Bay, but look at this -- 18,482 bbls over first nine (9) days;
Monday, July 1, 2019: 1 for the month; 1 for the quarter;
  • None: six months ago this day, it was January 1, 2019.


Data for 3Q19: this page
Data for 2Q19: 2Q19
Data for 1Q19: 1Q19
Data for 4Q18: 4Q18
Data for 3Q18: 3Q18
Data for 2Q18: 2Q18
Data for 1Q18: 1Q18
Data for 4Q17: 4Q17
Data for 3Q17: 3Q17
Data for 4Q16: 4Q16
Data for 3Q16: 3Q16
Data for 2Q16: 2Q16
Data for 1Q16: 1Q16
Data for 4Q15: 4Q15
Data for 3Q15: 3Q15
Data for 2Q15: 2Q15
Data for 1Q15: 1Q15
Data for 4Q14: 4Q14
Data for 3Q14: 3Q14
Data for 2Q14: 2Q14
Data for 1Q14: 1Q14
Data for 4Q13: 4Q13
Data for 3Q13: 3Q13
Data for 2Q13: 2Q13
Data for 1Q13: 1Q13
Data for 4Q12: 4Q12
Data for 3Q12: 3Q12
Data for 2Q12: 2Q12
  Data for 1Q12: 1Q12   
Data for 4Q11: 4Q11 
Data for 3Q11: 3Q11 
Data for 2Q11: 2Q11 
 Data for 1Q11: 1Q11  
 Data for 2H10: 2H10 
Through 1H10: 1H10
 

Wells Coming Off Confidential List This Next Week -- June 30, 2019

For initial production data, see this post

Monday, July 8, 2019: 6 for the month; 6 for the quarter;
None.

Sunday, July 7, 2019: 6 for the month; 6 for the quarter;
35543, conf, WPX, Delores Sand 29-32HIL,
34094, conf, CLR, Colter 7-14H,

Saturday, July 6, 2019: 4 for the month; 4 for the quarter;
None.

Friday, July 5, 2019: 4 for the month; 4 for the quarter;
None.

Thursday, July 4, 2019: 4 for the month; 4 for the quarter;
None.

Wednesday, July 3, 2019: 4 for the month; 4 for the quarter;
35371, conf, Liberty Resources, Patricia @ 159-94-12-24-2MBHX, 
35322, conf, MRO, Eunice USA 11-16TFH,

Tuesday, July 2, 2019: 2 for the month; 2 for the quarter;
35321, conf, MRO, Flynn USA 21-16TFH,

Monday, July 1, 2019: 1 for the month; 1 for the quarter;
None: six months ago this day, it was January 1, 2019.

Sunday, June 30, 2019: 82 for the month; 271 for the quarter;
34401, conf, WPX, Lion 18-19HC,  Mandaree, no production data, 
32895, conf, CLR, Colter 12-14H, Bear Creek, a very nice well;

Saturday, June 29, 2019: 80 for the month; 269 for the quarter;
35840, conf, XTO, Halverson 13X-33EXH, Alkali Creek, no production data,

Notes From All Over -- Part 1 -- June 30, 2019

Unless I missed it, and I'm sure I did, the G-20 had little to say about global warming. Just saying. They all wanted more fossil fuel from Iran.

Link here.


Global warming, Montana style, link here:

The good ol' day, link here:


Saturday, June 29, 2019

Off The Net For Awhile

Yeah, that's me.

It was just getting a bit dark and I was out a bit too far for a great picture but it will do.


Ray, ND, Being Considered For New Fractionation Plant -- June 29, 2019

From a reader today:

Hess Reports Two Record-Setting Wells In The Bakken -- June 29, 2019

See this post to compare 30-day IPs.

**************************************************
From Hart Energy:
Hess Corp has produced a record-breaking 24-hour test well this month (OilPatch Hotline, May 2, 2019) in McKenzie County, N.D., surpassing all records for U.S. land wells, according to an article in the website of the Oil Patch Hotline, an oil and gas trade publication for the Williston Basin. 
“This was a barn burner,” said Hotline Publisher Dennis Blank. “The highest IP tests recorded before this on new horizontal Bakken wells were in the range of 3,000 to 4,000 barrels of oil equivalent per day.” 
Hess said the AN-Bohmbach-153-94-2734H set a new record 24-hour IP at 14,662 boe/d. The well produced 10,169 barrels of crude oil and 26,960 Mcf of natural gas and is located in Sec. 22, T153N-R94W. This new record breaker followed an earlier April 5 record of 10,626 boe/d on a companion horizontal well in the same pad.
The Hart Energy article does not specify exactly which AN-Bohmbach well this is.

The Oil Patch Hotline article did not specify the permit number either.

The well was first reported at the blog on June 5, 2019, but at the time, the IP had not been released.

At the Oil Patch Hotline link:
The well was a test to better understand open flow potential and what completion practices the company wants to do in different parts of the field. The current standard design is 36 stages with 280 entry points on the hydraulic fracturing.
Let's try to sort this out. These are the five AN-Bohmbach wells on the pad in the Antelope-Sanish oil field, all targeting the same formation, "Bakken/Sanish":
  • 35091, 3,237, Hess, AN-Bohmbach ... H-10, t5/19; cum --; 35 stages; 5 million lbs sand, no ceramic;
  • 35092, 3,019, Hess, AN-Bohmbach ... H-9, t4/19; cum 6,323 bbls oil over 6 days; 14,181 mcf over 6 days; 35 stages; 10 million lbs sand; 
  • 35093, 10,626, Hess, AN-Bohmbach ... H-8, t4/19; cum 68,402 bbls oil over 24 days; 131,590 mcf over 24 days; 35 stages; 10 million lbs sand;
  • 35094, 2,578, Hess, AN-Bohmbach ... H-7, t4/19; cum 12,890 oil over 10 days; 23,297 mcf over 0 days; 40 stages; 5 million lbs sand; 
  • 35095, SI/NC, Hess, AN-Bohmbach ... H-6, no production data,
Extrapolating crude oil production to 30 days based on initial production:
  • #35091: pending;
  • #35092: 31,615 bbls of oil;
  • #35093: 85,502 bbls of oil;
  • #35094: 38,670 bbls of oil;
  • #35095: pending
Now to sort this out.

The linked sources said the 24-hour IP for the record setting well (#35059?) was:
  • oil: 10,169 (not seen in any of the numbers above)
  • mcf: 26,960 mcf (not seen in any of the number above)
  • boe: 14,662
    • working backwards:
    • 14,662 - 10,169 = 4,493
    • 26,960,000/4,493 = 6000.445 (conversion factor)
Therefore, the "record" well had to have been #35095 which is still SI/NC.

Interestingly enough, the linked articles said the previous "record-setting" well had a 24-hour IP of 10,626 boe. #35093 had an IP of 10,626 for oil (BO) but not boe. Checking the file report at the NDIC website confirms that #35093 had a 24-hour IP of:
  • oil: 10,626
  • mcf: 27,577 = 4,595.825
  • boe: 15,221.826
So, anyway, that's where it stands now (in my mind). We'll have to wait to see the reported numbers for #35059.

Disclaimer: I often make simple errors in arithmetic.

Disclaimer: I often misread things.

The biggest takeaway for me: the small number of stages and the relatively small amount of proppant used. Five million lbs is very, very small (in the Bakken, but compared to what they are using in the Permian, incredibly small); ten million lbs is on the high side and I don't expect to see this often in the Bakken with WTI below $75. If WTI goes over $75, we will start to see increased amounts of propane being used.

Other links for the AN-Bohmbach wells:
A huge, huge "thanks" to the reader who alerted me to the original AN-Bohmbach story back on May 30, 2019. Just think: readers saw this story as early as May 30, 2019, because of that reader. Otherwise we would have had to wait until this week -- almost a month later -- to have seen the story.

Wow, I love the Bakken.

Disclaimer: I am inappropriately exuberant about the Bakken.

Note: only one rig was involved in drilling this well (not counting the "spud" rigs). And to the best of my knowledge no migratory birds or sage grouse were injured while these wells were being drilled.

**********************************
Section 27-153-94

Five-well Bohmbach pad (above), sited in section 22-153-94, Elm Tree but run south into section 27-153-94, Antelope-Sanish.

Well to the west:
  • 32862, to the west, from a 3-well pad in Antelope oil field, 28-153-94, IA/1,952, Hess, AN-Dinwoodie-LE-153-94-2833H-1, Elm Tree, runs south, parallel to the Bohmbach wells; t10/17; cum 218K 1/19; off line as of 1/19; remains off line 4/19;
Five-well pad to the east of the Bohmbach wells noted above:
  • 19723, IA/1,238, Hess, AN-Bohmbach-153-94-2734H-1, Antelope-Sanish, t10/11; cum 410K 1/19; off line 1/19; remains off line 4/19;
  • 23287, IA/1,238, Hess, AN-Bohmbach-153-94-2734H2, Antelope-Sanish, t4/13; cum 163K 1/19; off line 1/19; remains off line 4/19;
  • 23571, 1,290, Hess, AN-Bohmbach-153-94-2734H-3, Antelope-Sanish, t5/13; cum 243K 1/19; off line 1/19; back on line 4/19;
  • 23572, 934, Hess, AN-Bohmbach-153-94-2734H-4, Antelope-Sanish, t5/13; cum 176K 4/19;
  • 23573, 1,065, Hess, AN-Bohmbach-153-94-2734H-5, Antelope-Sanish, t5/13; cum 299K 4/19;

Week 26: June 23, 2019 -- June 29, 2019

Top international non-energy story:
  • Kashoggi? What Kahoggi? Saudi prince feted at G-20
Top international energy story:
  • WTI struggles to get to $60;
Top US non-energy story:
Top US energy stories:
Top North Dakota non-energy story:

Top North Dakota energy story:
Geoff Simon's top North Dakota energy stories:
  • Legacy Fund: oil fund transfers $500 million to ND state bank; first transfer of earnings from Legacy Fund to the general fund;
  • North Dakota LNG, Tioga, ND, could expand operations; currently producing about 100,000 gallons of LNG/day;
  • Hess produces record-breaking test well, nearly 15,000 boe;
  • DAPL operator seeks to build pumping station in Emmons County
  • Minot water supply: to double capacity
  • Parshall, ND, elevator: $16 million; 820,000 bushel; complex
  • Williston airport remains on schedule
  • The US is the world's largest oil producer last year
Operations:
Plastics plant:
Fracking:
Miscellaneous:
Bakken economy:

Friday, June 28, 2019

Seventeen New Permits In North Dakota; WTI In Trading Range; Falls Short Of Hitting $60 -- June 28, 2019

Active rigs:
$59.526/28/201906/28/201806/28/201706/28/201606/28/2015
Active Rigs6166583075

Seventeen new permits:
  • Operators: Bruin (6); MRO (5); Kraken (3); Newfield (3)
    Fields: Reunion Bay (Mountrail); South Tobacco Garden (McKenzie); Burg (Williams); Four Bears (McKenzie)
  • Comments:
    • Bruin has permits for a 6-well Fort Berthold pad in lot 8 / section1-152-93; Four Bears oil field;
    • MRO has permits for a 3-well pad in section 28-151-93; and permits for a 2-well pad in section 8-151-93, Reunion Bay
    • Kraken Operating has permits for a red/white/blue, 3-well pad in Burg oil field
    • Newfield has permits for a 3-well Sturgeon pad in section 18-150-99; South Tobacco Garden
Change of operator:
  • from Thunderbird Resources to Prima Exploration
  • twelve permits
  • McKenzie, Stark, Billing counties
  • oldest permit: 21002
  • most recent permit: 25123
  • see Thunderbird Resources here; at that link, scroll down to GMX Resources

Notes From All Over -- Part 2 -- June 28, 2019

US crude oil imports from Saudi Arabia (link here):


Notes From All Over -- Part 1 -- June 28, 2019

I can't wait to see this. From oilprice, "oil rig count sees small rise ahead of OPEC meeting." And there it is. Total rig count ... OMG ...  unchanged. But that's only because oil rigs increased by four preventing an overall decrease. Natural gas rigs decrease by four. So, I guess the US oil companies got together and said, "Well, what should we do? It appears OPEC is going to have a meeting? Should we increase the number of rigs just to show OPEC we can do that? Sure, but we better drop the number of gas rigs to keep things in balance. Okay."



XOM getting out of deep water:
Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or what you think you may have read here.

EOG -- Case Study -- East Side Long Reach Wells -- June 28, 2019

The graphics and wells:


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

Area A:



The wells in graphic above:
20037, 790, EOG, Liberty LR 17-11H, Parshall, t6/11; cum 339K 4/19;
20038, 625, EOG, Liberty LR 17-11H, Parshall, t4/12; cum 254K 4/19;
34361, drl, EOG, Liberty LR 49-1109H, Parshall,
33511, drl, EOG, Liberty LR 50-1109H, Parshall,

33432, drl, EOG, Liberty LR 43-1109H, Parshall,
33433, loc, EOG, Liberty LR 42-1109H, Parshall,
23958, loc, EOG, Liberty LR 107-1109H, Parshall,
33434, loc, EOG, Liberty LR 109-1109H, Parshall,

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

Area B:


The wells in graphic above:

19231, 398, EOG, Liberty LR 13-14H, Parshall, t12/11; cum 330K 4/19;
19802, 1,215, EOG, Liberty LR 18-14H, Parshall, t10/11; cum 364K 4/19;
33475, conf, EOG, Liberty LR 47-1416H, Parshall,
33474, conf, EOG, Liberty LR 110-1416H, Parshall,

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

Area C:


The wells in graphic above:
19720, 510, EOG, Liberty LR 14-23H, Parshall, t4/11; cum 284K 4/19;
19721, 1,063, EOG, Liberty LR 19-23H, Parshall, t3/11; cum 375K 4/19;
30593, conf, EOG, Liberty LR 29-2321H, Parshall,
30594, conf, EOG, Liberty LR 108-2321H, Parshall,
30595, conf, EOG, Liberty LR 30-2321H, Parshall,

********************************** 
 
Area D:


The wells in graphic above:
  • 20255, 892, EOG, Liberty LR 15-26H, Parshall, t4/12; cum 359K 4/19;
  • 20254, 980, EOG, Liberty LR 20-26H, Parshall, t12/11; cum 337K 4/19; 

Will WTI HIt $60 Today? -- June 28, 2019

Re-posting:
US crude oil production: new all-time high -- 12.2 million bopd -- Rigzone/API. And note:
These milestones were achieved despite less drilling activity, which is testament to productivity but also pipeline infrastructure expansions that helped enable drilled but uncompleted wells to come to market,” the API report stated.
Subject du jour: crude oil inventories in the US; removing pipeline capacity as part of storage inventories; tank bottoms still included as part of US crude oil inventories. Buy-side analysts trying to suggest US crude oil inventories barely able to support US refiners' demand.

EIA chimes in:


Two wells come off confidential list today -- Friday, June 28, 2019: 79 for the month; 268 for the quarter;
  • 34955, 108, Petro Harvester Operating Company, PTL2 04-28 164-92 A, Portal, target: Madison, t3/19; cum 6K after 38 days; horizontal; TD = 15,354 feet;
  • 34400, SI/NC, WPX, Lion 18-19HY, Mandaree, no production data,
Active rigs:

$59.596/28/201906/28/201806/28/201706/28/201606/28/2015
Active Rigs5966583075

RBN Energy: Enbridge's mainline crude system advances toward a new era, part 4.
Enbridge’s long-running effort to revamp how it allocates space — and charges for service — on its 2.9-MMb/d Mainline crude oil pipeline system is about to enter a new and important phase. On July 15, the Calgary, AB-based midstream giant plans to initiate an open season for shippers interested in locking up long-term capacity on the Mainline, which serves as the primary conduit for heavy and light crude from Western Canada to U.S. crude hubs and refineries. If all goes well, shippers will know by late in the year how much space they will have on the system starting in mid-2021, assuming Enbridge’s plan is approved by regulators. This is a huge change. The Mainline isn’t just the largest crude pipeline system out of Western Canada, it’s also the only major line whose service is currently 100% “uncommitted” — that is, the Mainline has no capacity under long-term contracts with shippers. Today, we discuss the latest on the midstreamer’s Mainline tolling plan.
Enbridge’s multi-pipe Mainline system accounts for a staggering 70% of Western Canada’s total export-related pipeline capacity. The system’s parallel Lines 1, 2, 3, 4 and 67 transport crude from Edmonton and Hardisty, AB, to Clearbrook, MN, and Superior, WI. From there, other Mainline pipes move crude to Flanagan in north-central Illinois (Line 61), the Chicago area (Lines 6, 14 and 64), Michigan (Lines 5 and 78) and Ontario (Lines 5, 78, 7, 10 and 11). The Canadian side of the Mainline system is known (logically enough) as the Canadian Mainline), while the U.S. side is called the Lakehead Mainline (blue lines) because it runs near all five of the Great Lakes. 

Thursday, June 27, 2019

Number Of Active Rigs In North Dakota Drops Below 60 -- June 27, 2019

Active rigs;

$59.286/27/201906/27/201806/27/201706/27/201606/27/2015
Active Rigs5965593075

Three new permits:
  • Operator: Kraken Operating
  • Field: Lone Tree Lake (Williams)
  • Comments: Kraken has permits for a 3-well Redfield South pad in lot 2 / section 4-156-99
Three permits renewed:
  • Enerplus: an Aldabra, a Lodggerhead, and a Ridley permit, all three in McKenzie County
Four producing wells (DUCs) reported as completed:
  • 35297, 3,224, WPX, Minot Grady 26-35HZ, Squaw Creek, t6/19; cum --;
  • 35301, 2,864, WPX, Minot Grady 26-35HY, Squaw Creek, t6/19; cum --;
  • 35457, 2,461, WPX, Minot Grady 26-35HWL, Squaw Creek, t6/19; cum --;
  • 35296, 4,304, WPX, Minot Grady 26-35HF, Squaw Creek, t6/19; cum --;

Sophia In A Kayak -- June 27, 2019


On-shore training: thirty seconds.


Beach training -- thirty seconds. 


 Shallow water training -- thirty seconds.


On her own.

NDIC Hearing Dockets -- July, 2019

Link here.

Wednesday, July 24, 2019 -- Eight pages -- Highlights
  • Mostly pooling cases
  • 27700, MRO, Reunion Bay-Bakken, 1600-acre unit, E/2 of section 12-151-94 and sections 7/8-151-93; 8 wells; McKenzie, Mountrail counties
  • 27701, MRO, Chimney Butte-Bakken, 1280-acre unit; sections 15/22-146-95, 9 wells; Dunn County
  • 27704, Nine Point Energy, Eightmile-Bakken, 1600-acre unit; sections 10/11, and E/2 of section 9-152-103; 7 wells; McKenzie, Williams counties
Thursday, July 25, 2019 -- Eleven pages -- Highlights
  • 27708, WPX, Moccasin Creek and/or Wolf Bay-Bakken, i) create a 2560-acre unit, sections 29/30/31/32-147-92, 17 wells; ii) created two overlapping 2560-acre units section 25/36-147-93; and, section 30/31-147-92; one well; Dunn County
  • 27713, Kraken, Sanish-Bakken, i) create an overlapping 640-acre unit, one well; ii)  create an overlappng 1280-acre unit; 9 wells;  Mountrail County
  • 27721, CLR, Elm Tree-Bakken, i) 18 wells on an existing 2560-acre unit, sections 4/9/16/21-153-94; ii) two wells on near the section line; McKenzie County
  • 27728, Nine Point Energy, Williston-Bakken, 16 wells on an existing 2560-acre unit, sections 6/7-154-100; and, section 1/12-154-101; Williams County
  • 27729, Kraken, Sanish-Bakken, i) 12 wells on an existing 640-acre unit, section 36-153-92; ii) 6 wells on an existing 1280-acre unit, sections 13/24-154-91; iii) twelve wells on an existing 1280-acre unit, sections 15/22-154-92; Mountrail County
Supplement to Thursday, July 25, 2019 -- seven cases -- Full Summary
  • all seven cases, risk penalty legalese; PetroShale, 
    • Bear Chase pad; Spotted Horn-Bakken (McKenzie County)
    • Thunder Cloud; McGregory Buttes-Bakken (Dunn County)
*********************************
Full Summary

Wednesday, July 24, 2019 -- Eight pages
  • 27663, Oasis, Banks and/or Twin Valley-Bakken, establish an overlapping 2560-acre unit; one well; McKenzie County
  • 27664, Whiting, Dore and/or Nohly Lake-Bakken, establish three overlapping 2560-acre units; one well each; McKenzie
  • 27665, Whiting, Glass Bluff-Bakken, establish an overlapping 2560-acre unit; one well; McKenzie
  • 27666, Kraken Operating, pooling
  • 27667, Kraken, pooling
  • 27668, Kraken, pooling
  • 27669, Kraken, pooling
  • 27670, Kraken, pooling
  • 27671, Kraken, pooling
  • 27672, Oasis, pooling
  • 27673, Oasis, pooling
  • 27674, Whiting, pooling
  • 27675, Whiting, pooling
  • 27676, Whiting, pooling
  • 27677, Whiting, pooling
  • 27678, Whiting, pooling
  • 27679, Whiting, pooling
  • 27680, Whiting, pooling
  • 27681, Whiting, pooling
  • 27682, Whiting, pooling
  • 27683, Whiting, pooling
  • 27684, Whiting, pooling
  • 27685, Whiting, pooling
  • 27686, Whiting, pooling
  • 27687, Whiting, pooling
  • 27688, Whiting, pooling
  • 27689, Whiting, pooling
  • 27690, Whiting, pooling
  • 27691, Whiting, pooling
  • 27692, Whiting, pooling
  • 27693, Whiting, pooling
  • 27694, Whiting, pooling
  • 27695, Whiting, pooling
  • 27696, Whiting, pooling
  • 27697, Whiting, pooling
  • 27698, BR, commingling
  • 27699, Petro-Hunt, pooling
  • 27700, MRO, Reunion Bay-Bakken, 8 wells on a 1600-acre unit, E/2 of section 12-151-94 and sections 7/8-151-93, McKenzie, Mountrail
  • 27701, MRO, Chimney Butte-Bakken, 9 wells on a 1280-acre unit, section 15/22-146-95, Dunn County
  • 27702, MRO, commingling
  • 27703, Hess, Cherry Creek-Bakken, 2 wells on an overlapping 2560-acre unit, McKenzie
  • 27704, Nine Point Energy, Eightmile-Bakken, 7 wells on an existing 1600-acre unit; section 10/11and E/2 of section 9-152-103; McKenzie, Williams

Thursday, July 25, 2019 -- Eleven pages
  • 27705, Slawson, temporary spacing for Condor well, #19742, SWSE 36-149-103; McKenzie
  • 27706, Enerplus, Heart Butte-Bakken; establish an overlapping 2560-acre unit, one well; Dunn
  • 27707, Wave Petroleum Operating, LLC, completing the Hudson 1-32 well, near section of section 32-138-100, Billings County
  • 27708, WPX, Moccasin Creek and/or Wolf Bay-Bakken, i) create a 2560-acre unit, sections 29/30/31/32-147-92, 17 wells; ii) created two overlapping 2560-acre units section 25/36-147-93; and, section 30/31-147-92; one well; Dunn County
  • 27709, Nine Point Energy, Squires-Bakken, establish an overlapping 2560-acre unit; one well; Williams County
  • 27710. SHD Oil & Gas, Van Hook-Bakken; establish an overlapping 1920-acre unit; seven wells, McLean County;  
  • 27711, SHD Oil & Gas, Van Hook-Bakken, establish i) an overlapping 640-acre unit; 3 wells; ii) an overlapping 960-acre unit, 3 wells; iii) an overlapping 1280-acre unit; one well; iv) an overlapping 1920-acre unit, one well; McLean and Dunn counties
  • 27712, SHD Oil & Gas, Deep Water Creek Bay-Bakken, i) establish two 960-acre units, 5 ells on each; ii) one well between the two units; iii) establish two overlapping 1920-acre units; 3 wells on each; McLean and Dunn Counties
  • 27713, Kraken, Sanish-Bakken, i) create an overlapping 640-acre unit, one well; ii)  create an overlappng 1280-acre unit; 9 wells;  Mountrail County
  • 27714, CLR, Bounty School-Bakken, establish i) two overlapping 1920-acre units; 6 wells on each; ii) an overlapping 3840-acre unit, one well; Divide County
  • 27715, CLR, Elm Tree-Bakken, establish a 640-acre unit, one well; McKenzie County
  • 27716, CLR, Big Gulch-Bakken, establish an overlapping 2560-acre unit; two wells, Dunn County 
  • 27717, CLR, Cedar Coulee-Bakken, establish an overlapping 2560-acre unit; two wells; Dunn
  • 27718, Enerplus, revoke a RimRock permit; Dunn County
  • 27719, CLR, amend order 19094 regarding pooling
  • 27720, CLR, pooling
  • 27721, CLR, Elm Tree-Bakken, i) 18 wells on an existing 2560-acre unit, sections 4/9/16/21-153-94; ii) two wells on near the section line; McKenzie County
  • 27722, CLR, pooling, 
  • 27723, CLR, pooling, 
  • 27724, CLR, pooling, 
  • 27725, CLR, pooling, 
  • 27726, CLR, pooling, 
  • 27727, CLR, St Demetrius-Bakken; 8 wells on an existing 1280-acre unit, Billings County
  • 27728, Nine Point Energy, Williston-Bakken, 16 wells on an existing 2560-acre unit, sections 6/7-154-100; and, section 1/12-154-101; Williams County
  • 27729, Kraken, Sanish-Bakken, i) 12 wells on an existing 640-acre unit, section 36-153-92; ii) 6 wells on an existing 1280-acre unit, sections 13/24-154-91; iii) twelve wells on an existing 1280-acre unit, sections 15/22-154-92; Mountrail County
  • 27730, Ballantyne Oil, commingling
  • 27731, EOG, commigling
  • 27732, SWD
  • 27733, SWD
  • 27734, SWD
  • 27735, SWD
  • 27736, PetroShale, pooling
  • 27737, PetroShale, risk penalty legalese
  • 27738, PetroShale, pooling
  • 27739, PetroShale, risk penalty legalese
  • 27740, PetroShale, commingling

Notes From All Over -- Part 4 -- June 27, 2019

Jobless claims (link here):
  • prior: 216K
  • prior revised: 217K
  • forecast: 218K
  • actual: 227K
GDP (link here), 1Q19:
  • real GDP
  • forecast: 3.1%
  • actual: 3.1%
Natural gas fill rate (link here):

Notes From All Over -- Part 3 -- June 27, 2019

From Bloomberg:
The U.S. will account for almost a quarter of global oil and gas production by the early 2030s as the shale boom keeps on booming, according to the head of Rystad Energy.
Output from shale including crude oil, condensate and natural gas liquids could climb to as high as 25 million barrels a day, Jarand Rystad, chief executive officer of the research and intelligence company, said in an interview in Kuala Lumpur. The U.S. will likely make up about 23% of global liquids production and pump 27% of the world’s gas by then, he said.
Part of the reason for the expected growth is that companies are getting better at hydraulic fracturing, the process of pumping a mixture of water and sand into a horizontal well to create millions of tiny cracks in the shale rock that allow oil and gas to flow to the surface. Frackers are using more sand, creating more cracks and boosting the productivity of each well, Rystad said.
And then this:
“It’s about sand, horsepower and water injection,” he said at the Asia Oil & Gas Conference. “Those three parameters are what’s driving activity levels, and those are three times higher today than they were back in 2014.”
Perhaps.

But I think there's more to it than sand, horsepower, and water injection.

Wow, wow, wow -- look at this, the parent-child interference issue or as I call it, the "halo effect."
Looking ahead, Rystad’s optimism is also based on a recent study he’s done on the so-called parent-child interference issue, a concern that drilling a new well too close to an older one will reduce pressure in the original and cut output. While the results were mixed, overall the study showed that companies can stack wells more densely, creating enough drilling locations to support 10 to 15 more years of output growth, he said.
So much more at the link.

Notes From All Over -- Part 2 -- June 27, 2019

From Rigone: offshore's future constrained by cash problems? Pretty funny. Tables turned. All that talk about shale oil constrained by cash problems. Now its offshore's problem.

WTI surges, from Rigzone. 24 hours later:
  • WTI up 12 cents.
  • Brent not even close to where Saudi needs it to be.

Faux environmentalists to open the champagne this weekend: largest US east coast refinery to close. Accounts for 3% of the local region's demand for gasoline. Whatever.

Notes From All Over -- Part 1 -- June 27, 2019

This is part 1. There may be no part 2. LOL.

I'm traveling and have not been paying attention to the news. I am now at my destination and have all kinds of time to blog but it's hard to get started.

I have not followed the news for the past three days. When I haven't followed the news, I can't put things into perspective. It's hard to start from scratch. So, I'm not sure what I will do.

I know I will be energized when I start listening to music, and there will be some breaking news that will get me excited but until that happens, I may not write much of consequence.

I might write a lot but I doubt it will be important. We'll see.

My biggest problem right now is keeping my coffee warm. It is cold where I am - really cold in the morning -- it will get down to 47 degrees overnight tonight; right now it's 57 degrees and it's about 8:07 a.m. local time.

So, coming from 105-degree weather in Texas, it's really, really cold here. I'm wearing my Carhartt jacket that I bought at Home Economy in Williston, ND, years ago -- really, really warm.

Break, break.

Ah, here we go. Makes my day. From Rigzone, "Why rapid shale production is a perk." Archived.
Since the early days of shale oil and gas production, some analysts have expressed alarm about the rapid decline that those wells experience, suggesting either that this will harm shale’s financial viability and/or lead to an early peak and decline in overall production.  But this attitude fails to acknowledge the benefits of producing a resource rapidly.
It is true that it seems inefficient to install capacity that will quickly be underutilized. No one builds a refinery that will see its utilization drop to 20 percent in a few years. But that is the nature of producing fluids; a field can be designed to produce at a constant rate, but only by offsetting the decline in individual well production, whether by enhanced recovery methods and/or additional drilling.
Incredible article. If you have time to read only one article today, this would be the article you need to read.

Break, break.

From Bloomberg: drillers using fuel to power fracking operations.
Thrifty drillers have found a new use for the glut of natural gas that’s sent prices for the fuel below zero in America’s biggest shale patch: Use it to power fracking operations.
For decades, explorers have used massive diesel engines mounted on tractor-trailers to shoot a mixture of water, sand and chemicals down wells and blast open layers of oil-soaked shale rock. That’s changing now that soaring output has crushed gas prices, especially in West Texas’ Permian Basin, where the fuel is a byproduct of crude oil extraction.
Explorers are switching to so-called e-fracking, using gas from their own wells to run turbines for electric motors that power drilling pumps. The move helps in two ways: It cuts about $1 million a month in fuel costs for a set of fracking equipment by 90%, according to Wells Fargo & Co., and it lessens the excess gas burned off at the well site, a practice environmental groups frown upon. Tudor Pickering Holt & Co. predicts electric pumps will represent about a third of the market in roughly the next five years, from about 3% now.
The e-frac movement is “probably going to have some legs," Jud Bailey, a senior equity analyst at Wells Fargo in Houston, said in a phone interview. “It’s clearly a movement by some major operators to experiment with it,” though it’s not clear how quickly a shift would happen, he said.
So much more at the link.