Whenever the price of oil starts to fall...

...you can always count on the Mideast to come through.   [Iran: to deliver a telling blow...see below...]

NOTE: The rest of the Middle East story is below this short note: check out the Three Forks Sanish well [link broken/removed] that produced 45,000 barrels in the first two months of production. January 31, 2010. 

The price of oil has been dropping quite rapidly in the past few days, and was down another $1.75/barrel over the weekend when most of us weren't watching. But now I noted the fall has stopped (temporarily?) and the price is starting to recover.

Coincidentally, I note the international headline: the US is sending a missile shield into the Middle East to protect against Iranian nuclear missiles. "Everyone" says the Iranians are years away from being able to put a nuclear warhead on a missile, so this seems a bit premature.

My hunch: this has nothing to do with nuclear warheads on Iranian missiles. Rather, it's a a show of force by the current administration for the American electorate consumption; and it's a military show of force to show Iran that "we" are serious about new Iranian sanctions.

So, if the missile shield stabilizes the Mideast, the price of oil will continue to fall, all things being equal. If the missile shield raises the stakes (induces Iran to do something interesting), the price of oil will rise, all things being equal.

I have my hunch which way the price of oil is going to go.

UPDATE: Maybe I'm completely wrong. A couple of data points: Obama is very, very slow to make a decision -- how long did he deliberate on decision to send more troops to Afghanistan? But this decision to move a missile shield to the Middle East seems to have happened "overnight." And now, the Drudge Report links to a story reporting that Iran will "deliver a telling blow to global powers on February 11, 2010." I think my hunch is right  -- on which way the price of oil is going to go. (I am unable to link that site; their server is overloaded.) 10:29 p.m. EST, January 31, 2010.

UPDATE: finally at 10:30 p.m. EST, January 31, 2010, after many trials I was finally able to link to the story. The story suggests it will simply be a political rally. False alarm. Sorry. For those unable to link because the server is too busy, it sounds like Ahmadinejad is simply predicting the biggest Iranian political rally ever when Iranians pour onto the streets to celebrate the anniversary of "their revolution" on February 11. Nothing more than that. At least that's what the story suggests. If you can't get to the story (because the "server is busy"), you are not missing much.

Areas of High Density

With Eco-Pads, in-fills, multiple wells/pad, dual laterals, etc., "we" are now moving from 640-acre (one section) and 1280-acre (two section) spacing in the Bakken in North Dakota. Many wells are now being placed on the same pad, or on abutting pads, etc., and it will be interesting to follow the IPs of wells put close to each other.

This page will be linked from the "wells to watch" page.

The Sanish

6-153-91 --> 1-153-92Whiting: six wells, north-south line; 1.4 miles -- six wells

17603, long lateral
18297
18399
17133, long lateral
18392

Sections 21, 22, 27, 28, 33, 34-154-91

17080
18507
18244
17612
18530
18559
18213
17092
17872
18298

Parshall

Sections 3, 11, 12 - 153-91 --> sections 7, 8 - 153-90

17907, WLL,
17023, WLL, 2,669, section 11  (I assume a Middle Bakken well)
17605, WLL, 933, Braaflat 21-11TFH (TF = Three Forks Sanish)
17794, WLL, 2,054, Littlefield 11-12H
18635, WLL, xxxx, Littlefield 21-12H, confidential
17391, WLL, 2,400, Littlefield 11-7H
18549, WLL, xxxx, Littlefield 21-7H, confidential
18171, EOG, xxxx, Lucille 22-06H, producing
17127, EOG, 1,714, Wayzetta 11-08H

Discussion:

17023/17605: both in section 11, running parallel to each other; lateral separation 850 feet; I assume they are in different formations, so their vertical separation could be much less since the Middle Bakken and the Three Forks Sanish are within a couple hundred of feet of each other. I would not consider these "dual laterals" that CLR has talked about; CLR opines that "dual laterals" could increase the EUR of a well by another 400,000 barrels.


Spaceholder

90 rigs in North Dakota!

"kcpdmp" noted this, January 29, 2010, regarding oil rigs in North Dakota:

I recorded 95 ND rigs as of 11/6/08,

Down to 33 ND rigs as of 5/11/09,

Back up to 90 rigs as of 1/29/10.

Poetic, eh?

I Can't Make This Stuff Up

June 19, 2013: Chelsea Clinton laments that her maternal grandmother did not have access to birth control, Plan B, or even late term abortions. Do these people even think before they speak. I can't make this stuff up.

June 14, 2013: looking for something else, I came across this gem. "With regard to the Bakken, this is not light, sweet crude, it is shale oil." Yes, in fact, Bakken shale oil is light, sweet oil -- some of the lightest, sweetest oil in the world. I cannot make this stuff up. I understand why Rush calls this group the low-information crowd.

December 21, 2012: what are the Germans thinking? Now they are building wind towers out of wood, clear-cutting US forests, a natural CO2 sink.  "They" say the forests in Germany are growing fast enough to be able to build 1,000 wind towers every two days. Does anyone really believe that?

December 3, 2012: until he was executed, there was no way to put a serial killer's DNA into a national data base; once executed, he is now declared a homicide, and that means his DNA can be placed into the national data base. 

November 24, 2012: greenhouse gasses level strip club in Springfield, Massachusetts.

November 21, 2012: Alaska home town to airport with no airplanes, harbor with no road.  US Army Corps of Engineers built the harbor with $30 million in stimulus money; agrees it was unusual considering there are no roads connecting the town to the harbor.

October 10, 2012: Actor inside "Big Bird" makes > $300,000 year. No wonder PBS wants the president to drop the attack ad on over "Big Bird." And quarterly, donors are asked to send in more cash to PBS -- you would think in the spirit of transparency, PBS would share the salaries of their actors.  Asking donors on fixed salaries to support actors earning $300,000. I can't make this stuff up. It would be interesting to see how much of his salary he donates to PBS.

October 10, 2012: one of the most successful TV properties of all times -- Sesame's Street "Big Bird franchise" had total operating revenue of more than $134 million in 2011 and it receives $8 million/year in direct government grants and more indirectly via PBS subsidies. At the end of fiscal 2011, Sesame Workshop and its subsidiaries had total assets of $289 million. Of that $121 million was held in "investments," including hedge funds and private-equity funds. -- WSJ, October 10, p. A18. Government subsidies are so small they don't deserve discussion; but the President took Romney's bait. By the way, "Big Bird" has asked the Obama Team to pull its attack ad over "Big Bird." No doubt the workshop doesn't want donors to know how really, really rich this bird is.  I can't make this stuff up.

October 9, 2012: a Minnesota urbanite is worried that the Bakken will lead to a duck bust. The drilling occurs in a very small portion of North Dakota. Farming in Minnesota has taken out much more wetlands than the oil patch ever has. The sprawl of Minneapolis/St Paul consumes more. No mention of slicers and dicers required by the Minnesota state legislature. But a duck bust in North Dakota due to fracking. I can't make this stuff up. 

October 3, 2012: a Georgia "firm" has not visited Williston, has no permit, has no zoning, has no land, and is proposing a 

a pyramid near Williston that would be the state’s tallest building and house 500 apartments, a mall, an entertainment center and more. New Cimarron City, proposed by an investment group led by Camp and Associates, would be 371 feet tall with apartments built into four sides and the interior filled with retail stores, a movie theater, bowling alley, restaurants and indoor parking for 1,200 vehicles.  [The reason? Because they read about the housing shortage in Williston. Okay.]

September 23, 2012: will they be placed on the 'no-fly' list?

June 7, 2012: Holder: "Fast and Furious" does not refer to "Fast and Furious."
 
May 15, 2012: New York court rules viewing child pornography on the internet is not illegal.  The analogy is that distribution of illicit drugs should not be illegal either; the distributor is not making the illicit drugs. This analogy works if the legality of viewing child pornography includes sending links to "friends."

April 5, 2012: Obama's Department of Justice needs three pages to tell American citizens that the Supreme Court can overturn laws deemed to be unconstitutional. Wow.

The Department of Justice is also expected to submit a three-page explanation later in day clarifying whether it believes the court can overturn laws passed by Congress, responding to the order of a federal judge in Texas who said Mr. Obama's comments cast his beliefs on that in doubt.

I can't make this stuff up.

April 3, 2012: the Dufus rant. Anyone who defends this blog at the Bakken Shale Discussion Group risks being banned. Just a word to the wise.

March 9, 2012: The $100,000 Fisker won't start, but it sure "looks gorgeous sitting there."

February 26, 2012: PETA kills 95% of the animals it receives for adoption; PETA does not deny, saying that the animals they get are "unadoptable."

January 10, 2012: I had quit posting on this page because there was nothing out there that could "beat" the previous postings ... until today. Oil companies are being fined for using a product --- only problem: the product that does not exist. 

June 29, 2011: President Obama scolds Congress for taking August recess during debt ceiling "crisis"; Obama planning Martha Vineyard vacation in August. I can't make this stuff up. Thank goodness for the internet.

June 29, 2011: Back in 2009, President Obama said stimulus package needed to include incentives for jet sales; in 2011, with regard to the debt ceiling, it's corporate jets vs children. I can't make this stuff up. Thank goodness for the internet.

June 17, 2011: Global warming scientists caught padding the data. Literally.

May 1, 2011: Form 8-K filing by MDU -- man in gravel truck forgot his hard hat for a minute. 

April 25, 2011: EPA shuts down Shell's plans to drill in the Arctic. How much oil are we talking about? Two and a half times all the oil that has flowed down the Trans Alaska Pipeline in the pipeline's 30-year history. That's incredible. And the EPA has shut it down.

April 17, 2011: Grids overloaded due to too much renewable energy in the Pacific Northwest.

April 17, 2011: "We" can't get light rail/subway into LAX because it would interfer with flight operations.

March 18, 2011: Obama says no ground troops will be sent to Libya. The United States will deploy additional amphibious ships to the Mediterranean, the military said on Friday, as part of the Obama administration's plans for responding to ongoing violence in Libya. I cannot make this stuff up.

March 16, 2011: Fidelity Investments will be closing offices in Massachusetts and relocating those employees to offices in New Hampshire and Rhode Island to better serve clients across different time zones.

March 16, 2011: With tongue-in-cheek, the folks on CNBC Squawk Box noted today that Congress has outlawed hydrocarbons in the US (no drilling in the Arctic, no drilling in the Gulf, EPA's desire to end fracking, delay on-shore BLM permits). On the heels of the Japanese nuclear disaster, the administration continues to emphasize nuclear energy.

March 15, 2011: It surprises me that no pundit or "talking head" has brought up the subject of the Kyoto Protocol with regard to the recent earthquake centered northeast of Tokyo.

The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions. These amount to an average of five per cent against 1990 levels over the five-year period 2008-2012.

It appears the international community was concerned about the wrong emissions.

Someday someone is going to ask: what in the world were they thinking, putting all those reactors in one of the most seismically-active areas in the world? 

March 11, 2011: "Drill, Drill, Drill" -- Obama

March 8, 2011:

Spain acquires oil-rich acreage off the north slope of Alaska. 

February 26, 2011:

High speed rail in the US means 60 mph.

February 17, 2011

US policy makers see unemployment dropping 0.1 percent in fourth quarter 2012. Pretty good forecasting. 

February 17, 2011

After promising to close Guantanamo Bay within one year following his election, the administration now says they will continue to move terrorists to that military facility. Not only does it appear that all plans to move the prisoners and close the prison, it will actually be expanded if necessary. So many inconvenient truths.

February 16, 2011

FexEd CEO, and I quote: "People are rushing to buy the first all-electric Nissan Leafs and plug-in hybrid Chevy Volts."  That was in an op-ed piece. These are the facts.

Oil must get to at least $174/bbl before these cars are cost-effective. Some won't be cost-effective until oil gets to $250/bbl. Despite huge government credits. The F-150 pick-up truck is now the #1 selling vehicle in the United States. 

December 25, 2010

Federal government balks on providing refinancing for one of the most successful, largest, and, important transportation links in the country. This is not a bailout. This is re-financing through an agency whose responsibility is to provide financial support for rail. I can't make this stuff up.

December 3, 2010

California to build railroad track to nowhere; not only will it go nowhere, it won't start anywhere, and it will have neither trains nor maintenance facilities; but California needs the jobs and the Federal government has money to throw away.

November 19, 2010

Companies with less than one employee: more than you might think.

The 8-ton "Beast."

November 3, 2010

Natural gas is not a fossil fuel. 

September 29, 2010

Caterpillar said the company would hire more workers if the stimulus bill passed. It did, and they did. They hired more workers for their new factory in China.  Don't blame Caterpillar; they are free to do what they want. It was a poorly thought-out stimulus bill unless the plan was to push $800 billion to unions (mostly state govt employees).

September 22, 2010

This has been known for quite some time, that mammograms don't make all that much difference. Another study, this time making front page news in the LA Times, again shows that mammograms are almost worthless. How many millions (billions?) of dollars are spent every year on mammograms. How many "Races" for the cure advocate more and more mammograms. Bottom line: "the benefit of mammography may have been as little as 2%." I can't make this stuff up. On a previous blog, I ranted about the ineffectiveness of mammograms on more than one occasion -- and that was several years ago. But mammograms aren't going to go away.

September 21, 2010:

Thank goodness for the internet. From a recent Obama speech:

"Long before America was even an idea, this land of plenty was home to many peoples. The British and French, the Dutch and Spanish, to Mexicans, to countless Indian tribes. We all shared the same land."

Mexico declared its independence on September 16, 1810. It was recognized on September 27, 1821.

The United States of America declared its independence in 1776.

To demean the "American idea" is a travesty, much less re-writing history. This is a very, very sad commentary. One really has to wonder where Obama's allegiances lie. Certainly not with "America."  Truly a sad day for "America." 

September 20, 2010:

Montana state's Drought Advisory Committee is required to meet, but the committee canceled its September meeting due to rain.

"Lieutenant Governor John Bohlinger, the committee's chairman, said Monday that the state's water resources have finally recovered after a decade of drought and near-drought conditions.

Bohlinger says the committee will hold its mandatory October meeting to summarize the year's good news and look ahead to the fall and winter."

I can't make this stuff up. 

September 20, 2010:

President Obama and family went to church this morning. First time in his presidency. Seven weeks before mid-term elections; his polls and the Democratic polls are lowest ever. I can't make this stuff up.

September 9, 2010:

Before we go too far down this road about a private citizen (in this case, a private church) burning one Koran, let's remember that the US government (in this case, the US Army) burned many Bibles to prevent their distribution in Afghanistan. I'm not taking sides; just pointing out what the mainstream media fails to discuss.

September 7, 2010:

"Becky" on CNBC has repeated over and over this morning about the "better-than-expected" jobs report last week. Just to remind everyone, the jobs report said 67,000 private sector jobs were created the previous month, 20,000 more than expected. Get a grip. Eight (8) million jobs have been lost in the last few years, unemployment is at 9.6% (increase over the previous month) and there's no way one can put a positive spin on the job report. 20,000. Geesh. A jobs report better than expected. I can't make this stuff up.

August 20, 2010:

AP headline -- jobless rates fell in 18 states.  In Michigan, for example, the rate fell from 13.2 percent in June, to 13.1 percent in July. I can't make this stuff up.

August 10, 2010

One of the coolest summers on record in southern California.

I can't make this stuff up.

August 6, 2010

Average hourly earnings rise four (4) cents.

August 3, 2010

These are the top 100 stimulus projects as compiled by a biased compiler.  I particularly liked the sidewalks that lead to a ditch.

No, this has nothing to do with the Bakken (as far as I can tell. I didn't go through all 100 projects, but I doubt the Bakken is in there). But somehow, I think it's important enough to post and it will go under my "I Can't Make This Stuff Up" file.

Enjoy.

Enjoy?

Read it and weep.

August 3, 2010

$1 million for iPods for high school students in Utah.

July 28, 2010:

The Coast Guard is out of its depth in fighting oil rig fires. 

July 27, 2010:

No wonder GM needed a government bailout!

July 16, 2010:

Global warming and flooding not fair and balanced.

July 16, 2010:

Yesterday the administration sues Arizona for profiling to enforce its immigration laws. Today, the California bows to the administration's request to send troops to the Mexican border to enforce its immigration laws. I can't make this stuff up.

July 12, 2010:

Miranda rights must be given in accused subject's language of preference, rules New Jersey Supreme Court.

June 12, 2010:

Is Saudi Arabia A Closer Israeli Ally Than the US?

June 11, 2010:

White House seeks to ease UN sanctions; the same sanctions the administration fought so hard for. 

June 10, 2010:

British Won't Put More Troops into Afghanistan. Who can blame them?

June 9, 2010:

A Day Without A Mexican

June 7, 2010:

CNBC Able To Find Good News in Dismal Jobs (Unemployment) Report

June 2, 1010: 

Data unchanged. Journalist reaches crazy conclusion.

May 30, 2010

How can I pay taxes if all my income is in cash?

May 22, 2010

Notes from New England. Too many stories to repeat here. 

May 21, 2010

This is nothing new. But lies are lies. Not mistatements. I can't make this stuff up. On top of this: he's a lawyer, he's an attorney general. Wow. 

WASHINGTON (AP) - The White House is standing behind Democratic Senate candidate Richard Blumenthal of Connecticut, who has acknowledged that he misspoke about his military service. Blumenthal, the attorney general of his state, found himself on the defensive when The New York Times reported Monday that he had repeatedly claimed that he had served in Vietnam. Blumenthal was in the Marine Reserves during the Vietnam War, but did not serve in Vietnam.

May 20, 2010

Headline: Obama clamors for immigration fix. I don't know why. Immigration seems to work just fine for his family. In a closed hearing on the day Obama signed the "Freedom of the Press" bill), his aunt from Kenya, an illegal alien, was given permission to stay in the United States (on the basis of political asylum; was she a community organizer in Kenya).  His aunt will be fast-tracked to become a citizen. Is this a great country or what? I can't make this stuff up. 

May 20, 2010

President Obama et al are condemning the citizens of Arizona for requiring folks to prove citizenship if stopped by law enforcement for reasons suggesting law-breaking other than being an illegal alien. President Obama will be shaking the hands of every graduating senior at a high school he's visiting this spring.  He will require that every student intending to shake his hand prove their citizenship. None of them are suspected of committing any crime. I can't make this stuff up. 

May 17, 2010

Obama doesn't take questions at signing of "Freedom of Press Act." I can't make this stuff up.

April 14, 2010

Under the watch of the "peace president," nuclear proliferation continues unabated. Russia announces that the Iranian nuclear reactor will be up and running by August. The announcement came during the Nuclear Proliferation Summit hosted by President Obama. I can't make this stuff up. 

March 21, 2010

Four cities that best weathered the recession (not that it's over or anything). 

March 18, 2010

Cartoon network beats CNN and MSNBC in ratings game.  FOXNC: #2; MSNBC: #27; CNN: #32; HLN: #37.  Why is CNN and HLN on televisions at "all" airports?

Full list here.  In Prime Time: 1. USA 2. Fox 3. TBSC 4. TNT 5. HIST 6. NAN 7. ESPN  8. FAM 9. AEN 10. FX 11. HGTV 12. LIF 13. TOON 14. TRU 15. FOOD 16. AMC 17. DISC 18. SYFY 19.  TLV 20.  SPIKE.    

March 18, 2010

After all the hype about global warming bringing the polar bear closer to extinction, the UN defeated a proposal to ban the international trade of polar bear skins, teeth, and claws, saying that such a ban would impact the economies of indigenous people. Enuf said.

March 8, 2010

The Green Party convention in California couldn't even hold the attention of their own most stalwart members. After the second day, the number of attendees dropped in half, to less than 40. Their candidates for governor and lieutenant governor decided to skip the event after the numbers dropped. So m much for passion. It's not that they lost half of their most stalwart members that surprises me, but that this group even gets any ink (coverage): 40 people in attendance in the nation's most populous state. There were probably more media people there (television journalists, television support, print journalists, etc). Possibly even more custodians and security.  

March 3, 2010

Tourism dropped off after 9/11. Tourism association groups say the US has seen a drop of 2.4 million tourists which cost us $509 billion. Dividing $509 billion by 2.4 million tourists works out to $212,000 per tourist. Does anyone really believe that the average tourist to the USA spends $212,000 per visit?  Obviously these reporters do not fact check any more, or they are products of the American public education system.

February 15, 2010:

Five-year-old with cerebral palsy is forced to remove his leg braces by TSA; his 53-y/o dad is an officer with an emergency crime suppression team.  His dad pointed out that a 5 y/o afflicted with cerebral palsy and in braces is not a terrorist. To no avail. 

February 13, 2020:

All that hand-wringing over Sarah Palin using notes on her hand while giving a speech? It turns out Diane Feinstein did the same thing in 1990 when the rules of the debate forbid either candidate from reading from notes.

February 10, 2010:

Global warming is making winter blizzards worse.  And more.

February 8, 2010:

President Obama has frozen funds for treatment of AIDS in Africa. "George W. Bush is a hero in this country," said the head of Uganda's Joint Clinical Research Centre, a leading AIDS treatment clinic. The gains made since 2003 (when Bush was president) could be lost. 

February 5, 2010:

20,000 more jobs were lost in January (more than analysts expected), but .... drum roll ... unemployment drops from 10.1% to 9.7%. More jobs lost; unemployment drops. Go figure.  I guess if everyone would just quit looking for a job, the unemployment rate would plummet to 0%.

  February 2, 2010:

The Newfoundland (Canada) Premier will have his heart surgery in the United States. Yes, where our health care system is so bad that Congress/President want to change it. Under ObamaCare his surgery would be free here in the US; I guess that is why he waited until now to get the surgery, hoping the bill would be passed. Not to be.

February 1, 2010:

The Nobel peace-prize winning president is increasing research into nuclear weapons. I honestly don't get it. His predecessor would have been pilloried. This won't even be discussed in the mainstream media. Spending will be increased by a significant amount.

January 29, 2010:

Literally, less than 30 minutes after I posted the item below about increasing arms sales by the Nobel Prize winner, we get this little gem:  The Nobel Peace Prize winner has announced plans for more than $6 billion in arms sales to Taiwan just when things seemed so quiet in that part of the world.

I am going to have to start stating the time as well as the date when I post!

January 29, 2010:

In case you missed it, the 2009 Nobel Peace Prize winner will double US exports in the next five (5) years by increasing the sales of US military technology.

I can't make this stuff up.

"Mr. Locke announced that, as part of a plan to reduce export burdens on American companies, the United States (i.e., Mr Obama) might remove restrictions on exports of goods with potential military applications when such technologies were available worldwide."

Obama's First Two Years

Posted: September 25, 2010

If George W. Bush had doubled the national debt, which had taken more than two centuries to accumulate, in one year, what would have been the reaction of mainstream media?

If George W. Bush had then proposed to double the debt again within ten (10) years, what would have been the reaction of mainstream media?

If George W. Bush had criticized a state law that he admitted he never even read (the Arizona law on illegal immigrants), what would have been the reaction of mainstream media?

If George W. Bush had joined the country of Mexico in suing the United States to force that state (Arizona) to continue to allow illegal immigration, what would have been the reaction of mainstream media, and would the media question his patriotism and wonder who's side he was on?

If George W. Bush had put 87,000 workers out of work by arbitrarily placing a moratorium on offshore drilling on companies that have one of the best safety records of any industry because one company had an accident, what would have been the reaction of mainstream media?

If George W. Bush had used a forged document as the basis of that moratorium that would render 87,000 American workers unemployed, what would have been the reaction of mainstream media?

If George W. Bush had been the first president to need a TelePrompTer to be able to get through a press conference, what would have been the reaction of mainstream media?

If George W. Bush had spent hundreds of thousands of dollars to take Laura Bush to a play in New York City, what would have been the reaction of mainstream media?

If George W. Bush had reduced your retirement plans's holdings of GM stock by 90% and had then given the unions a majority stake in GM, what would have been the reaction of mainstream media?

If George W. Bush had made a joke at the expense of the Special Olympics (on national television), what would have been the reaction of mainstream media?

If George W. Bush had given the Prime Minister of the United Kingdom, Gordon Brown, a set of inexpensive and incorrectly formatted DVDs, when Gordon Brown had given Bush a thoughtful and historically significant gift, what would have been the reaction of mainstream media?

If George W. Bush had give the Queen of England an iPod containing videos of his speeches, what would have been the reaction of mainstream media?

If George W. Bush had bowed to the King of Saudi Arabia, what would have been the reaction of mainstream media?

If George W. Bush had visited Austria and made reference to the nonexistent "Austrian language, what would have been the reaction of mainstream media?

If George W. Bush had filled his cabinet and circle of advisers with people who cannot seem to keep current on their income taxes, what would have been the reaction of mainstream media?

If George W. Bush had stated there were 57 states in the United States, what would have been the reaction of mainstream media?

If George W. Bush would have flown all the way to Denmark to make a five-minute speech about how the Olympics would benefit him walking out his front door in Texas, what would have been the reaction of mainstream media?

If George W. Bush had been so Spanish illiterate as to refer to "Cinco de Cuatro" in front of the Mexican ambassador when it was the 5th of May (Cinco de Mayo) and continued to flub it when he tried again, what would have been the reaction of mainstream media?

If George W. Bush had misspelled the word "advice," what would have been the reaction of mainstream media in light of the way the mainstream media hammered Dan Quayle for a similar goof?

If George W. Bush had burned 9,000 gallons of jet fuel to go plant a single tree on Earth Day, what would have been the reaction of mainstream media?

If George W. Bush's administration had okayed Air Force One flying low over millions of people followed by a jet fighter in downtown Manhattan causing widespread panic in view of the 9/11 incident, what would have been the reaction of mainstream media?

If George W. Bush had failed to send relief aid to flood victims throughout the Midwest with more people killed or made homeless than in New Orleans, what would have been the reaction of mainstream media?

If George W. Bush had created the position of 32 Czars who report directly to him, bypassing the House and the Senate on much of what is happening in the United States, what would have been the reaction of mainstream media?

If George W. Bush had ordered the firing of the CEO of a major corporation (GM) even though he had no constitutional authority to do so, what would have been the reaction of mainstream media?

What is it about President Barack Obama that makes him so brilliant and impressive? Can you think of anything? Not to worry. He has done all this in 20 months: we will have two years and four months to find something that suggests the president is more brilliant and impressive than he appears to be right now. Also, he has big ears.

Angry Young Man

Is it just me or is the president coming across as an angry young man? His public display of dissing the Supreme Court, who sat directly in front of him, encouraging the packed room to stand up as one body and clap, with the judges remaining sitting -- how embarrassing -- was probably the most impolite moment of any State of the Union address I can remember. I wonder what his mother would have thought? Or even his wife? He just seems to immature and angry. How does one "reach across the aisle" with that kind of grandstanding? The swing vote was a moderate (liberal by some definitions); I can hardly imagine the Court being all that friendly when the administration argues its next case.

From my perspective, this is his short list of enemies: the coal industry ("the industry will go bankrupt"); the Olympic committee; the environmentalists (no White House action in his first year); the military ("don't ask, don't tell" policy); the bankers; Wall Street ("fat cats"); the police (for acting "stupidly"); New York City (bringing the terrorist trial to Manhattan); the oil industry; the Supreme Court; China; Fox Television; talk radio; France; and, Queen Elizabeth.

Except for the unions working at General Motors who were bailed out, I think the president has managed to insult everyone in his first year in office. It just may be me, but positive comments might be a whole lot more helpful.

A Slew of Cancellations and Expirations

This isn't often seen in the Bakken: companies announced the cancellation of seven permits on January 27, 2010 (daily activity report). Zenergy canceled five permits: the scuttlebutt is that the company is going to scrap these "640-acre spaced" wells and go back for permits for "1280-acre spaced" wells. Miscellaneous reasons given for the other two permit cancellations.

Then on January 28, 2010, the NDIC's daily activity report listed a slew of expired permits: Price Energy (3); Cirque (1); Samson (1); and, Zavanna (1: Lynx 1-27H).

Irrationally exuberant?

From Bloomberg, January 22, 2010:

"[North Dakota oil] output may reach 300,000 to 400,000 barrels a day by mid- 2011 and stay at that level for 10 to 15 years, said Lynn Helms, director of the North Dakota Mineral Resources Department. The state’s previous estimate was 220,000 to 280,000."

It should be noted that the governor of North Dakota says the state's current production nearly matches the state's capacity to transport 360,000 barrels of oil per day, so this prediction that we may reach 300,000 to 400,000 barrels a day eighteen months from now is not all that earth-shattering. What is interesting is that the director feels that the output could stay at that level for 10 to 15 years.

With regard to capacity (this is getting to be an old story): at the end of 2009, the state's capacity was 250,000 bopd. With the upgrade of the Enbridge pipelines and introduction of EOG's railroad tanker (Stanley, ND), 110,000 bopd in capacity was added, making a total of 360,000 bopd at the beginning of 2010.

Going forward there will be two opposing forces affecting daily production: a) better technology; b) more regulation (regarding fracturing, cap and trade, water).

Who's Smarter than a 6th Grader?

Is it just me or am I missing something?

President Obama needs a teleprompter when talking to 6th graders.

In addition, a Secret Service operative stood ready to protect the president against any 12-y/o throwing a shoe.

But again, I must be missing something.

ND Oil: Trends

History of Permits Granted and Wells Drilled
July, 2010, update on wells coming off confidential list

Note: 53 wells come off the confidential list in January, 2010.
Note: 55 wells come off the confidential list in February, 2010.
Note: 65 wells come off the confidential list in March, 2010.
Note: 42 wells come off the confidential list in April, 2010.
Note: 49 wells come off the confidential list in May, 2010.
Note: 50 wells come off the list in June, 2010.

It has been opined that the increase in wells coming off the confidential list early in 2010 was due to number of EOG wells that would have been reported earlier, but were delayed due to delay in fracking.

Note: 54 wells come off the confidential list in July, 2010.

I'm surprised we're not yet seeing a jump in number of wells coming off confidential list. In October, 2009, there were only 56 active rigs; in January, 2010, the number of rigs approached 90 rigs, and yet, the number of wells coming off confidential list in January, 2010, was 54, and the number of wells coming off confidential list in July, 2010, is 49. 

Note: 73 wells come off the confidential list in August, 2010.

Note: 68 wells come off the confidential list in September, 2010.

Note: Jumping ahead -- 103 wells come off the confidential list in December, 2010.

The jump in the number of wells in December is probably due to two reasons:

• Increased activity from record number of active rigs
• Companies like EOG don't frack during the winter

If EOG fracks a well in March, it can then be placed on the confidential list for six months, meaning it won't come off the confidential list until September. We should start seeing number of wells on confidential list increase in the fourth quarter of this calendar year and going forward.

*****

I am an eternal optimist so take the following with the proverbial grain of salt. I'm getting the feeling that 2010 could be a watershed year for the oil industry in North Dakota, the perfect storm one might say, but in this case, a very, very good storm, for these reasons:

a. Oil prices seem to be trending higher, but in an orderly fashion. Meanwhile, analysts predict demand for oil will outpace supply in 2010. More recent update from EIA, January 14, 2010.

b. The oil companies will continue to define the geology and the extent of the basin.  Particularly noteworthy is the "far east field" -- the Clear Water field bordering Ward County -- which EOG is aggressively pursuing. As of early January, 2010, EOG has 50 of 54 wells/permits in this field of 101 sections (the prolific Parshall field has 162 sections). [Note: both fields could be expanded over time. The Parshall field could be extended north and east. EOG is not the only producer interested in the Clear Water field; Hess was granted two permits in the Clear Water on December 16, 2009.

c. North Dakota had a record-breaking land lease auction, November, 2009. Producers and developers did not lease this land to watch the prairie grass grow. Record setting lease prices (up to $8,000/acre) for the February, 2010 land lease auction.

d. All major producers in the Bakken have announced a) an increase in their capital expenditure program; and, b) an increase in the number of rigs they will be operating.

e. Although a lot of consolidation that resulted from slump in oil prices in 2008 seems to be ending, there are still significant deals being made. The relationship between NOG (publicly traded) seems to be growing with Slawson (not publicly traded). XOM buys XTO. Denbury buys Encore.

f. Several major producers or exploration companies have recently concluded new share offerings: KOG, BEXP, NOG, raising cash for their 2009-2010 program. These companies are not raising cash just to invest in money market funds.

g. Current data suggests 20+ stage fracturing will become the norm in the Bakken.

h. It appears that more companies are drilling 1280-acre spacing wells.  Even EOG, historically drilling short laterals, now has applications in for long lateral wells. Compare head-to-head results, 640- vs 1280-acre spacing.

i. Time to complete a well has decreased significantly, which will result in at least two things: a) more wells being drilled in a calendar year; and b) less cost to drill. Some producers are drilling wells in 16 days; however, time to completion not that much shorter due to long time to complete fracture stimulation.

j. The US has adjusted to an unemployment rate of 10%.  The strength of the dollar has increased, and oil continues to rise in price (January, 2010).

k. Could the choke point for increasing oil production and getting oil out of the state be the pipelines? Although still lagging, the pipeline capacity to get the oil out of North Dakota has increased remarkably, and EOG's rail head to ship oil out by tanker went operational December 31,2009, about two months ahead of schedule. [Nice overview posted here, dated November 16, 2009.]

l. If an eco-pad with four wells on it actually works out, it's going to be quite a story. Can you imagine initial production (IP) numbers based on an Eco-Pad with four (4) laterals versus a single well with a single lateral?

*****

I think the biggest trend in "the Bakken" right now is multi-stage fracturing (remember, this was originally posted November 5, 2009). Examples abound but the history of Hess may be as good as any and better than most. It's hard to believe that only a year ago there was not a lot of talk about the number of stages of fracturing. All of a sudden, it seems, the number of stages of fracturing has become a hot topic of discussion. A few months ago, Halliburton announced a huge ($20 million) expansion in its complex east of Williston. And shortly after that, BEXP announced that 20-stage fracturing will become the standard. Discussion groups continue to bemoan the shortage of frac crews.

This site says we will soon see 32-stage fracturing, and it will not be long before operators/drillers could see 60-stage fracturing.

It also appears that producers are studying the best time to actually accomplish the fracturing. The timing may depend more on the finances/availability of frack crews/price of oil rather than simply fracturing immediately after the well has reached total depth. There were suggestions/rumors on message boards that EOG was studying the timing of fracturing. EOG has stated it is researching the optimum number of fracturing stages.

There may be a good example of this trend line. The Charlson 44-33H came off the confidential list today. Its IP was under 300 bopd, and yet two months later, its average daily production is over 500 bopd. So, the questions: when did they do the frac; and how many stages?

The Bakken Blog posts a wonderful review of multi-stage fracturing. Posted November 6, 2009.

*****

This may or may not be important in the future as a trend (cost and time to drill a horizontal Bakken well), but I don't want to lose the link. If you scroll to the top of that link, Slawson reports that it has put in a horizontal well in 16 days and for less than $3 million. The rule of thumb for a horizontal well in North Dakota: 30 days (it used to be 45 days) and $4 - 6 million.  [Note: since this was posted a long time ago, NOG and Slawson have strengthened their relationship.]

*****

The trend in prices paid for oil leases from the state of North Dakota can be found by clicking here. North Dakota state holds an auction every three months. The November 3, 2009, auction hit a record ($71 million vs $30 million in 1980).


Original post: November 5, 2009. Some of this page was updated: July 20, 2010.

Things on my mind

UK faces 'oil crunch' within five years. February 10, 2010.

1. Everything points to continuing excitement in the Bakken. The number of active rigs is now up to 99 (March 6, 2010), 30+ more than when I first posted observations about the increase in rigs in North Dakota back in early November. The Grand Forks Herald reports (January 24, 2010) that there could be 110 - 120 rigs in North Dakota by mid-summer.

2. Oil takeaway capacity as of January, 2010, in North Dakota: 410,000 barrels/day. Pipeline takeaway capacity: 350,000 bbls/day. EOG railroad terminal: 60,000 bbls/day. New Dickinson railroad terminal, scheduled to be operational in October, 2010, another 60,000 bbls/day.

3. My father says that vehicular traffic has increased significantly in  Williston (November 26, 2009).

4. Even the NY Times has noticed that mid-tier companies have been buying up great acreage in the continental US while the majors (like XOM) were ignoring the US, and looking for oil/gas in politically unstable areas overseas. December 15, 2009.

5. Five areas of significant drilling activity: a) Parshall-Sanish oil fields north of the reservation; b) the Van Hook / Big Bend areas inside the reservation, especially Slawson; c) the area immediately around Williston, especially to the west, to include eastern Montana; d) the Highway 50 Corridor: on either side of Highway 50 southeast of Kenmare, and north of Parshall, the Clearwater oil field, especially EOG; and e) Ambrose, a ways north of Williston. [Update: Slawson hit a great well in Van Hook: IP of 1,208 bopd and 42,000 bbls in first 59 days -- Fox 1-28H. Also, EOG announced a great Van Hook well, the Van Hook 100-15H, with a 1,390 bopd, and this targeted the Three Forks Sanish. February 9, 2010.]

6.  Is EOG asking for 570 more wells in the Parshall? If you want excitement, look at the Ross oil field, T156N-R90W, section 27, where you will see six EOG wells spaced 50' from each other in a line, 500' from the section line. Follow this discussion thread regarding the two 2560-acre spacing units which will be allowed to have as many as six horizontal wells each. One spacing unit: sections 26, 26, 28, and 29. The other spacing unit: sections  20, 21, 22, and 23. January 24, 2010.

7.  The RS-Feldman well, about 4 miles northwest of Stanley. This appears to be the best Hess well in the Bakken and it may be due to multiple stage fracturing. The presentation by Harold Hamm, November 19, 2009, continues to support my opinion that the increased success in the Bakken is due to multiple fracturing. Some companies are still doing single-stage fracturing -- but I think single-stage fracturing is a thing of the past. Even EOG is studying the "right" number of stages.

8. GeoResources, Inc., announces an aggressive 2010 in North Dakota. GEOI is getting a lot of interesting comments on Yahoo!Finance message boards. Oil and Gas Journal has short article on GeoResources, March, 2010.

9. Slawson may be the next big story. Look at the results of the the November 3, 2009, North Dakota state land lease auction. In 2007, Slawson had 7 permits in the Williston Basin; in 2008, Slawon had 27 permits; 28 in 2009; and 12, as of March 6, 2010. Of the 27 permits granted in 2008, we have yet to hear the outcome of 14 of those permits. The other 13 have resulted in very good wells with IPs ranging from 248 to 2,205 bopd with an average of 791 bopd.

10. There are now 99 active rigs in North Dakota up from a low of "around 33" in the of autumn, 2008. Many of the big producers are still bringing in new rigs. Harold Hamm, CEO of Continental Resources, says he might have 18 rigs in North Dakota this time next year (mid-2010), a significant increase over the 5 rigs CLR had in 2009. EOG has stated it could triple the number of rigs they have, from 5 to 15. March 6, 2010.

11. Look at the IPs of the wells reported on November 5, 2009 and the wells that reported on December 14.  Cut the IP in half, and assume that amount will be produced on a daily basis for the first year, and multiply by $70. Then assume that the wells will be productive for seven years (on a declining basis) but subject to re-fracturing. The numbers are staggering. And not all those IPs were exceptional, many well below 1,000 boepd.

12. The companies engaged in fracking are going to be very, very busy: it appears the norm is now 24-stage fracturing, +/- four stages. Some opine that we may soon see 60-stage fracturing. I have to study it again, but it appears the mathematical relationship between fracturing and exposure to oil is exponential initially, but with increased stages, there comes a point of diminishing return.. Regardless, it appears that fracturing increases the initial amount of production, delays the need for a pump (albeit a very short period of time), and increases the ultimate total recovery of oil from a well. (My hunch: frac stages remain somewhere between 14 and 20.)



13. EOG typically has 70 - 80 wells on the confidential list. It has been opined that EOG could drill between 225 and 250 wells in 2010. And that's just one producer working in the Williston Basin, albeit the one with the most rigs (six now and going to 13 or 14 in 2010).

14. The area around Williston is very, very active. There are two areas: west of Williston, mostly BEXP. And then northeast of Williston, the Spring Brook area. In the Stony Creek field there are 11 wells/permits on the confidential list. The BEXP well on SE edge of Williston reported an IP of 3,394 bbls/day, which BEXP says is their largest IP reported to date.

15. Harold Hamm, CEO of Continental Resources, opines there may be double the amount of recoverable oil in "the Bakken" forecast by the USGS in 2008. CLR's goal is to double its proved reserves in the Bakken over the next five years.

16. North Dakota is #4 in oil production in the United States, surpassing Louisiana. I never thought that would happen, ever. In December, 2006, Mountrail County produced 1,300 barrels of oil per day; this past October (2009), Mountrail County produced almost 100,000 barrels of oil per day. At $60/barrel, 43 wells in Mountrail County produced $100,000,000 worth of oil at the wellhead over a three month time period, ending in October.

17. Reports that there is yet another formation, the Birdbear, amenable to horizontal drilling are intriguing, but statements saying this is a "new" formation are incorrect. This formation has produced oil, albeit not much, for decades. Incidentally, WLL re-entered an old well that was producing from the Birdbear Formation; exited with a horizontal and ended up with a 2,000 boepd IP in the Bakken (December 8, 2009).


Updated: March 6, 2010.

Producers returning to where it all started

I just posted the other day -- I forget where I posted it -- but it was in response to someone who opined that we are already seeing the beginning of the end in the Bakken in terms of more good wells. I reminded folks that the Elm Coulee Creek, the oil field that started the current boom back in 2000, was very quiet. This field was drilled before widespread multiple-stage fracturing was being accomplished, and I opined that it was possible that producers would move back into Elm Coulee with new technology, new procedures, and perhaps, even, new formations.

My point was this: I don't agree that we are seeing the beginning of the end of excitement in the Bakken. 

So, today it was quite a surprise to find an article in the Sidney Herald reporting that activity was increasing once more in Elm Coulee Creek. This is very, very exciting.

Bakken: News

Most news in "the Bakken" has to do with news in general regarding the oil industry in North Dakota. Only new information specific to the Bakken will be played on this page and thus I doubt much will be posted on this page.

****

January 24, 2010:  Slawson remains one of the more interesting operators in the Bakken. Shares not publicly traded.


December 13, 2009: A "penny-stock" company is jumping into the Bakken fray. Ticker symbol CAVR.PK and recent price about 20 cents. Buying acreage in northeast Montana, looking for discovery well. The article is interesting for comments on "the Bakken," not necessarily as an investment.  UPDATE: On Thursday, Jan 21, 2010, share price was down to 10 cents; the next day, Friday, Jan 22, 2010, the price slid another three (3) cents. January 24, 2010.


December 7, 2009:  This is pretty incredible. Three oil companies are pursuing either the Bakken or the formation directly under the Bakken (Birdbear?) as far west as Browning, Montana. This is all the way over to the Rocky Mountains. The three oil companies: Newfield, Anschutz, and Rosetta Resources.

November 27, 2009: United States crude oil production for 2009 is on target to have its biggest one-year jump since 1970, according to a Platts analysis of industry data. With U.S. oil production averaging 5.268 million barrels per day (b/d) through October, the gain in U.S. output will be the most since the country produced 9.637-million b/d in 1970, which turned out to be the peak year of U.S. crude output. The article attributes much of this gain to the Bakken. 

The nightmare continues

Is it just me or am I missing something? At a time when banks are failing at record numbers, the administration (excepting the Treasury) wants to make it even tougher for banks to survive by regulating them more and taxing them at higher rates. 

AP reports, January 22, 2010: "Regulators shut down banks Friday in Florida, Missouri, New Mexico, Oregon and Washington, bringing to nine the number of bank failures so far in 2010, following 140 closures last year in the toughest economic environment since the Great Depression."

Dithering

Is it just me or am I missing something with regard to Obama's most recent push to concentrate on banking reform?

Is this his conversation in the oval office on his one-year anniversary in the White House: "Now that we've spent a year getting nowhere with health care reform, let's spend the next year on bank reform. Even my staunchest supporters, Barney Frank and Christopher Dodd tell me even if supported, it won't pass for four or five years. And my own Treasury Secretary, Tim Geithner, is against it."

Meanwhile, according to CNBC, on January 22, 2010, the day President Obama declares war on the banking industry, unemployment rose in 43 states with New York and New Jersey setting new multi-year highs.

And then we have statistics like these: "Michigan shed 15,700 jobs, but 31,000 people left the labor force. That caused the state's jobless rate to fall slightly, to 14.6 percent from 14.7 percent. Michigan has the nation's highest unemployment rate." That's right: Michigan's unemployment rate, the highest in the nation, drops 0.1 percent because 31,000 people left the labor force. The only way to explain the administration's war on bankers: President Obama wants New York and New Jersey to feel Michigan's pain. By regulating the banks, Mayor Bloomberg of New York City says jobs will be lost in his city and his state.

By the way, North Dakota had the lowest unemployment rate of 4.4 percent.

First Time Visitors

WELCOME

A Basic Analysis of the Bakken Boom, February, 2010.

Is the Bakken over-hyped?

A Brief History of the Bakken: January, 2010.

Video of drilling and fracturing, March, 2010.

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.

[My first site had a fair amount of political commentary, but that commentary seemed to detract from my overall message. That was one of the reasons I started this site, starting completely over. I planned not to add political commentary, but on the first anniversary of this administration when I see so much double-speak, and opportunities lost, I was unable to maintain my silence. I will be adding political commentary periodically. Sorry.]

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, 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.

Background: The Blog

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
Analysis of the Bakken, 2006. "Bakken shale may prove to be productive." 

*****

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.

Updated: February 7, 2010.

Welcome.

Please go to the welcome message that was updated January 16, 2010.

Docket, NDIC, January 13 - 14, 2010

For my use only.

NDIC docket for January 13 - 14, 2010
Eco-Pads (?) in Red

11967: Helis Oil, proper spacing

11968: EOG: revoke a Slawson permit

11969: Whiting: add 12 sections to DeMores and 1 hz 1280-acre well to each (6 total)

11970: Whiting: 6 1280-acre wells as noted in 11969 preceding

11971: Whiting: add 8 sections to Bicentennial for 4 1280-acre wells

11972: Whiting: 4 1280-acre wells as noted in 11971 preceding

11973: Whiting: extend Alger two sections for one well

11974: Whiting: 1 1280-acre wells as noted in 11973 preceding

11975: Whiting: 1 1280-acre well

11976: Whiting: 1 1280-acre well

11977: Whiting: 1 1280-acre well

11978: Whiting: 1 1280-acre well

11979: Whiting: 1 1280-acre well

11980: Whiting: 3 1280-acre wells

11981: Whiting: 3 1280-acre wells

11982: Whiting: 3 1280-acre wells

11983: KOG: maximize #14-33-28H Two Shields Butte production

11984: KOG: 1 well

11985: KOG: 1 well

11986: KOG: 4 1280-acre wells

11987: Petro-Hunt: 5 1280-acre wells

11988: Petro-Hunt: allow up to 2 hz wells per 1280-acres, North Tioga pool

11989: Petro-Hunt: maximize production in the Charlson pool

11990: Petro-Hunt: 4 1280-acre wells

11991: Hess: 2 2560-acre spacing in Ross Pool (12 wells total)

11992: Hess: permit to flare gas

11993: Hess: permit to flare gas

11840 (cont’d): Hess: 1 – 1280-acre well

11994: BR: 1 1280-acre well

11995: BR: 1 1280-acre well

11996: Marathon: permit to flare gas

11997: Marathon: permit to flare gas

11998: Marathon: 1 1280-acre well

11999: Marathon: 1 1280-acre well

12000: Marathon: 1 1280-acre well

12001: Marathon: 1 1280-acre well

12002: Oasis: 2 1280-acre wells

12003: Oasis: 30 1280-acre wells (Todd Pool, Williams)

11830 (cont’d): Oasis: 7 1280-acre wells (Painted Woods/Squires)

11832: Oasis: 14 1280-acre wells

12004: Questar: 20 640-acre wells (Dunn/McLean; Deep Water Creek Bay)

12005: Questar: 6 640-acre wells (McLean; Deep Water Creek Bay)

12006: Questar: 2 640-acre wells; Dunn and McLean

12007: North Plains Energy: revoke an Encore permit

12008: North Plains Energy: 1 1280-acre well

11414 (cont’d): Windsor: 9 1280-acre wells

11763 (cont’d): confiscate equipment from Baleen

SUBTOTAL: 152 wells

January 13, 2009, afternoon

12015: Peak: 2 640–acre wells

12016: Peak: 3 640-acre wells

12017: Peak: 1 640 acre well

11936 (cont’d): Peak: 1 640-acre well

11937 (cont’d): Peak: 1 640-acre well

11938 (cont’d) Peak: 5 640-acre wells

12018: Peak: 9 1280-acre wells

12019: Slawson: increase to two 640-acre wells on 6 sections (12 total) – Big Bend

11906 (cont’d): Slawson: 2 640-acre wells (Van Hook)

11907 (cont’d): Slawson: 2 640 wells, Van Hook; increase density wells

11909 (cont’d): Slawson: 1 640-acre well, Van Hook, pooling

11910 (cont’d): Slawson: 1 640-acre well, Van Hook, pooling

11911 (cont’d): Slawson: 1 640-acre well, Van Hook, pooling

11912 (cont’d): Slawson: 1 640-acre well, Van Hook, pooling

11913 (cont’d): Slawson: 1 640-acre well, Van Hook, pooling

11914 (cont’d) – 11929: Slawson: same as above; pooling one well.

SUBTOTAL: 59

January 14, 2009

11853 (cont’d): Fidelity, Murex, Oasis, Slawson, WLL, Sinclair: new rules for the Sanish

12009: Encore: new rules for the Bear Creek

12010: Zenergy: new rules for Elidah field

12011: BR, CLR: new rules for Pershing

12012: Encore: pooling 1 1280-well

11947: Zenergy: 30 1280-acre wells (Banks, Elidah, Siverston/McKenzie)

12013: CLR: new rules for Rattlesnake Point

12014: CLR -- #1-31H Traxel – temporary spacing; Mercer County

12020: CLR: 2 1280-acre wells

12021: CLR: 2 1280-acre wells

12022: CLR; 2 1280-acre wells

12023: CLR: pooling 1 1280-acre well

12024: CLR: pooling 1 1280-acre well

12025: CLR: pooling 1 1280-acre well

12026: CLR: 1 2560-acre spacing for up to 4 wells

12027: CLR: 1 2560-acre spacing for up to 4 wells

12028: CLR: pooling 2 1280-acre wells

12029: CLR: pooling 1 1280-acre well

12030: CLR 1 2560-acre spacing for up to 4 wells

12031: CLR: pooling 1 3-section well -- how would this work?

12032: CLR: 1 2560-acre spacing for up to 4 wells

12033: CLR 2 1280-acre wells

12034: CLR: 1 1280-acre well

12035: CLR 2 1280-acre wells

12036: CLR 2 1280-acre wells

12037: CLR: 1 1280-acre well; density increase well

12038: CLR: pooling 1 1280-acre well

12039 – 12044: CLR pooling 1 128-acre well for each case

11854 (cont’d): CLR: 2 1280-acre wells

11866 (cont’d): CLR: pooling 1 1280-acre well

11432 (cont’d): CLR: asking to produce from several wells

11722 (cont’d): CLR: pooling 1 1280-acre well

11861 (cont’d): CLR 1 1280-acre well; increase density well

12045: Tracker: pooling 1 1280-acre well

12046: Tracker: pooling 1 1280-acre well

12047: Hess: review an Oasis permit

12048: XTO: 2 1280-acre wells

12049: XTO: 1 1280-acre well

12050: XTO: 1 1280-acre well

12051: XTO: 2 1280-acre wells

12052: XTO: an increase density 1280-acre well

12053: XTO: 2 additional increase density 1280-acre wells

12054: XTO: pooling 1 1280-acre well

12055: XTO: 2 additional increase density 1280-acre wells

12056: XTO: pooling 1 1280-acre well

12057: XTO: pooling 1 1280-acre well

12058: XTO: pooling 1 1280-acre well

12059: Anschutz: 1 1280-acre well

11893 (cont’d): Anschutz: pooling 1 1280-acre well

12060: BEXP: 2 1280-acre wells

12061: BEXP: pooling 1 1280-acre well

12062: BEXP: pooling 1 1280-acre well

12063: BEXP: pooling 1 1280-acre well

12064: BEXP: pooling 1 1280-acre well

12065 – 12066: BEXP: pooling 1 1280-acre well for each case

11869 (cont’d): BEXP: pooling 1 1280-acre well

11870 (cont’d): BEXP: pooling 1 1280-acre well

11872 (cont’d): BEXP: 1 1280-acre well (154-102, section 20/29 – near Dad’s)

11873 (cont’d): BEXP: BEXP: 1 1280-acre well

12067: Fidelity: to allow flaring

12068: Newfield: develop an existing well

12069: Newfield: pooling 1 640-acre well

12070 – 12071: Newfield: pooling 640-acre wells per case

11691 (cont’d): Newfield – develop an existing field

12072: Simray: complete an existing well

12073: EOG: 7 wells of various spacing (Parshall)

12074: EOG: poling 1 1280-acre well

12075: EOG: pooling 1 1280-acre well

12076: EOG: 19 320-acre wells in Souris-Spearfish/Madison Pools (Bottineau County)

12077: EOG: 2 320-acre wells for Clear Water

12078: EOG: pooling 1 640-acre well in the Clear Water

12079: EOG: pooling one Clear Water 640-acre well

12080: EOG: pooling 1 Van Hook 640-acre well

11673 (cont’d): EOG: develop an existing well

12081: EOG: pooling 1 640-acre well

12082: Prima – to develop an existing well

11764: Eagle; request to inject a well

SUBTOTAL: 146

TOTAL: for this entire docket -- 357 wells.

There may be some double counting: it appears there is at least a 3-step process:
1) Establishing rules for a particular oil field; required before requesting a permit for a well
2) Requesting a permit for a well (or wells) in a particular location; required before pooling
3) Requesting a permit to pool for a well (or wells) in a particular location; last step before actual drilling.  Steps 2 and 3 would be same well.

Other energy news coming out of North Dakota

I really didn't want to do this, but there is so much exciting news coming out of the energy sector in North Dakota, I felt I had to add new information to my blog.

Specifically, I had not wanted to talk about coal or wind energy but there are some exciting stories coming out of North Dakota, so I feel compelled to provide this information at least once in awhile.

January 16, 2010: Clean coal technology.  Due to zoning issues, the plant will initially operate as a demonstration project. The zoning commission (with at least one new member) will begin deliberations on the zoning application February 1, 2010. The original approved application was thrown out by a judge due to technical errors in the original zoning application. (No comment.)