Sunday, November 29, 2009

Welcome.

If you've come from this page via a "bookmark," I have updated the welcome page here. 


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[For a very interesting comment about maximizing a pad -- 6 wells, 12 laterals on one pad, see today's comment on the Eco-Pad page. December 16, 2009.] 


I opined not too long ago that 2010 will be a watershed year for the North Dakota oil industry. Today's daily activity report suggests that the new year may have started a bit early.  Ten (10) well files were released from confidential status, including seven (7) by EOG. The average IP for the seven EOG wells was: 1120 boepd.  They were all incredible wells based on their IPs.  In addition, five (5) new permits were granted, including another one for EOG, one for KOG, two for CLR, and one for Marathon. December 14, 2009.
  • 500,000 barrels of oil in one month (October, 2009) from 43 EOG wells in one county.
  • $100,000,000 wellhead production in three months from EOG/Hunt wells in Mountrail County.
  • XOM will buy XTO, a significant player in the Bakken. XOM is now in the Bakken. With one deal, there could be another huge cash infusion into the North Dakota oil industry with XTO having new capital to expedite drilling program. Even CNBC mentioned "the Bakken in North Dakota" right after this deal was announced.
    WELCOME

    December 8, 2009: I am accused of being inappropriately exuberant when it comes to the North Dakota oil industry, but who can blame me when you read the Whiting press release, dated December 8, 2009?  This is an incredible press release. Follow a discussion of this press release here [All "Teegue" links are broken.]
    1. WLL announced four wells with the following IPs: 1,970; 2,638; 2,223; and 2,140 boepd.

    2. The purpose of the press release: one of the wells was a discovery (wildcat) well (1,970 boepd) targeting the Bakken. This was a re-entry well; a well that had been producing from the Birdbear formation as recently as July, 2009. WLL will drill ten wells in the area and will open up an entire new area for WLL and the Bakken.

    3. WLL also announced completion of a new pipeline connecting ALL their wells in the Sanish-Parshall, taking one-third of truck traffic there off the road. This WLL pipeline connects with an Enbridge pipeline. This is a biggie, especially if you use the roads in Mountrail County.

    4. The discovery well is  Federal 32-4HBKCE. My guess is that the letters stand for H (horizontal) BK (Bakken) CE (casing exit). 
    December 14, 2009: Four dots in the Bakken to connect:

    1. October, 2009: Several producers / investors in the Bakken (including BEXP, KOG, NOG) raised large amounts of cash through new share offerings. [In December, BEXP's partner, US Energy (USEG), also raised cash through new share offering.]

    2. November, 2009: Record-setting North Dakota state land lease auction. Slawson particularly notable in its bids.

    3. December, 2009: record-setting (?) docket on tap for December 17, 2009, North Dakota Industrial Commission hearing.

    4. December, 2009: XOM is in the Bakken with its purchase of XTO. 

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    NEWS

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    For those who have never visited North Dakota in person, this picture shows you why I love my state. Absolutely gorgeous. Only a white-out (blizzard) would make the picture more exciting!
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    BEXP looking good. See Bakken: BEXP. December 16, 2009.

    WLL has another big well -- 2,250 bopd, the Rohde 44-1H in Mountrail County, November 27, 2009.

    WLL now up to 8 rigs. Total number of active rigs in North Dakota now up to 77. December 16, 2009. 

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    For those who have read the "welcome" to this site, you may want to skip directly to:
    Do I Need to Curb My Enthusiasm? EOG -- 570 more wells in the Parshall?
    Whiting's November corporate presentation.
    The NEW presentation by Harold Hamm, CLR/CEO.
    Things on my mind.
    Trends in the North Dakota oil industry.
    FAQs about the North Dakota oil industry.
    Oil Wells Reporting.
    Active rigs now up to 75. From a low of "about 33" summer of 2008.

    ...it is absolutely incredible how fast "they" can move these rigs in. In less than a week, four new rigs have been moved into North Dakota. Can you imagine how long it would take if this industry was run by the US government?

    WELCOME: Background
    (Nothing below has changed)

    The purpose of this site is educational only. It is an attempt to provide an overview of "the Bakken" and to direct folks to the news stories coming out of the North Dakota oil industry. It is very, very superficial in scope. I probably understand about 1 percent of all that goes on in the industry (if that much). I have a poor memory and often make simple mistakes, but will correct them when I become aware of them. I find myself making more typographical errors as the years go by.

    I grew up in Williston, in the heart of the Williston Oil Basin (WOB) and have followed the oil industry my entire life, in a very general way. I invest in publicly traded companies through the stock market, but my investments in WOB are trivial compared to my overall investment portfolio. I own no mineral rights, and have no inside information regarding the WOB. I do talk with people who live there and occasionally receive information second- and third-hand. I do not subscribe to any newsletters or the North Dakota Industrial Commission website tools, although I may do that sometime in the future (subscriptions are relatively inexpensive).

    I enjoy following the activity in the WOB, but am not sure that investing in the oil companies in the WOB is the best way to go; there are many other opportunities in the stock market that might be better. At the current time, of the Williston Oil Basin-related companies, I am invested in the following: MDU, BR (COP), CLR, NOG, ENB, EPD, EEP, BNI, SLB. I trade in and out of these companies with others in the WOB. I would never recommend any companies because everyone's investment styles are different. I am often accused of being too exuberant about the WOB, and I admit it. I find the oil activity in North Dakota very interesting. It's easy to be negative about things in life, so I tend to over-compensate in some areas by being too optimistic when it comes to the oil industry.

    I am definitely a novice at all this, so if something I say doesn't seem correct, it may not be. There are many ways on the web to cross-check "facts."

    The largest continuous oil reservoir in the continental United States.


    WELCOME: The Blog
    (Nothing below has changed)

    The "old" Million Dollar Way was very eclectic: literature, music, "the Bakken," energy in general, and personal musings. Ninety-nine percent of visitors to the site visited only Bakken-related sites, and even then, only one or two specific pages. So, this site will, at least for the time being, concentrate on "the Bakken," more correctly the North Dakota oil industry. I have an emotional interest in "the Bakken." I wear my heart on my sleeve when it comes to "the Bakken." This is where I grew up. I have no background or connection with the oil industry. I own no mineral rights.

    I am an investor, but my investments in "the Bakken" are trivial compared to my overall investments. I am more emotionally attached to "the Bakken" than interested in investments. I have no inside information. I do not subscribe to any premium services regarding "the Bakken." I no longer live in North Dakota, but I visit at least once a year and see first-hand what is going on. My information comes primarily from the NDIC website and the internet in general.

    Occasionally I will get input third-hand or fourth-hand from someone I know still living in the Williston area. (Williston, North Dakota, USA, is at the center of the Williston Oil Basin, home of "the Bakken.") Bottom line: I'm pretty much a novice at all this. I know I will make many mistakes on this website but will correct them when brought to my attention.

    I would not use my site to make investment decisions, although it may be one of several data points to lead you in certain directions. Much of what I write can look factual, when in fact it is opinion or my general understanding of the issue. Over time, I assume this site will evolve, based on reader feedback. As expected, it was hard not to have op-ed pieces, and some have already been added.

    The site's name. The friends of the "old" Million Dollar Way know that the name of the site has nothing to do with money -- at least not directly in terms of me or investing. When I was growing up, the road leading out of Williston was known as the "Million Dollar Way" because of the automobile dealerships and businesses related to the oil industry.

    The "Million Dollar Way" was my road out of town to an exciting life. This "Million Dollar Way" site is a new road leading me to new destinations.

    Profile of Williston, North Dakota, USA.
    North Dakota: Most Economically Stable State, November 2, 2009
    The Oil Drum's Assessment of the Bakken, November 2, 2009
    Harold Hamm's Assessment of the Bakken, December 7, 2009

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    This blog seems to be optimized for Firefox/MacOS. I find errors in formatting when I check the blog on Internet Explorer browsers; perhaps they are older versions of Internet Explorer.


    Last updated: December 14, 2009. Links were updated, November 28, 2014.
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