Bloomberg is reporting that North Dakota has surpassed Oklahoma in number of active drilling rigs.
North Dakota now accounts for almost 5 percent of oil produced in the United States.
Saturday, July 31, 2010
North Dakota Number One in Sunflowers
One can add to the list of North Dakota firsts: sunflowers.
North Dakota leads the pack with its sunflower acreage, says the marketing director for the National Sunflower Association (NSA).North Dakota is also number one in honey production for those who may have forgotten.
North Dakota has 865,000 acres of sunflowers this year, which is 98 percent of last year’s national acreage. South Dakota is second in sunflower production, behind North Dakota with 630,000 acres.
There has been a growth in acreage in the midwest regions of North Dakota, Majkrzak said. These regions have been producing the best crops over the past years, he added. What was once a very dry environment in this region has become a great growing region for sunflowers due to slightly increased rain fall, he adds.
According to the NSA, sun oil is up 58 percent over last year’s level for the first eight months of this marketing season. This rise is due to a decline in Canadian imports.
The Cost of Going Green
Customers of two utilities in the Bakken will be getting inserts in their monthly bills explaining why their rates are going up. MDU and Otter Tail are being reimbursed for a brand new utility plant that customers in Minnesota refuse to accept because it uses electricity generated by coal. Never mind that this was a state-of-the-art power plant.
Oh, I can't resist. The big story here is how inexpensive coal energy is -- the plant, on average, cost each ND consumer less than $1.51/month for three years.
The PSC recently approved a plan for the two utilities to recoup $13.8 million in development costs with slight increases in customers’ electric bills. The utilities calculated the sum as the share North Dakota customers should pay for the Big Stone II project.
The plan says an average North Dakota residential electric customer of Otter Tail will pay about 62 cents extra each month for three years. A typical MDU customer will pay $1.51.
Otter Tail, based in Fergus Falls, Minn., and Bismarck-based MDU were part of a group of utilities that proposed building Big Stone II next to an existing power plant near Milbank, S.D.
The project, which was five years in the making, was abandoned last November. Its supporters cited uncertain financing, weaker demand for electricity and uncertainty about federal regulation of coal-fired power plants as reasons for its demise.No comment required; the story speaks for itself.
Oh, I can't resist. The big story here is how inexpensive coal energy is -- the plant, on average, cost each ND consumer less than $1.51/month for three years.
I guess the "weaker demand for electricity" means electric vehicles don't figure into Minnesota's future. Or larger television screens. Or more computers. Or more Fortune 500 companies. For some, the phrase "weaker demand for electricity" equates with "slower growth."
August 17, 2010: MDU asks for 13 percent rate increase in Montana to cover costs of wind energy.
August 16, 2010: The story keeps getting better. I hope the Minnesota folks don't mind higher utility bill; it looks like Xcel will be asking for a rate increase. Xcel recently announced they will be shutting down/retrofitting a coal-powered utility plant to comply with Colorado's greenhouse gas emissions laws. Wanna bet Big Stone II is eventually opened up for Minnesota customers. I can't make this stuff up.
August 1, 2010: This is priceless. One of Minnesota's largest utilty, Xcel, has a "Saver Switch" power management system which allows it to remotely control residential use of electricity. For the first time in three years Xcel had to "flip" that switch due to heavy electrical demand on their system because of the heat wave and the heavy use of residential air conditioners. And just a few days ago, Minnesota reports that there is "weaker demand for electricity." Remember all the flower children of the '60s in Berkeley? They now run the show when it comes to making strategic decisions in certain states.
*****
UPDATE
August 17, 2010: MDU asks for 13 percent rate increase in Montana to cover costs of wind energy.
August 16, 2010: The story keeps getting better. I hope the Minnesota folks don't mind higher utility bill; it looks like Xcel will be asking for a rate increase. Xcel recently announced they will be shutting down/retrofitting a coal-powered utility plant to comply with Colorado's greenhouse gas emissions laws. Wanna bet Big Stone II is eventually opened up for Minnesota customers. I can't make this stuff up.
August 1, 2010: This is priceless. One of Minnesota's largest utilty, Xcel, has a "Saver Switch" power management system which allows it to remotely control residential use of electricity. For the first time in three years Xcel had to "flip" that switch due to heavy electrical demand on their system because of the heat wave and the heavy use of residential air conditioners. And just a few days ago, Minnesota reports that there is "weaker demand for electricity." Remember all the flower children of the '60s in Berkeley? They now run the show when it comes to making strategic decisions in certain states.
Friday, July 30, 2010
Montana Governor: Upset That Congress Didn't Pass Broad Energy Bill
Governor Brian Schweitzer says he is upset Congress did not pass a broad energy bill.
The governor says he is against "cap and trade."
But without an energy bill, the governor says, energy companies, especially coal companies, will not know how to factor potential "cap and trade" risks.
A couple of thoughts:
Unanswered Prayers, Garth Brooks
Update: July 31, 2010 -- I admit I'm wrong. Congress is going to stay out of this. Congress will let EPA step in, make the rules, and then individual Congressmen/women can talk to their constituents. Those in favor will say they support the EPA; those against what the EPA does will say Congress will have to take a look. Meanwhile, the damage will have been done. Other thoughts here.
The governor says he is against "cap and trade."
But without an energy bill, the governor says, energy companies, especially coal companies, will not know how to factor potential "cap and trade" risks.
A couple of thoughts:
- Thank goodness for unanswered prayers. In this case, those praying for an energy bill to bring this issue to closure might be happy a bill was not passed.
- My hunch is that coal companies now know the worst that could affect them, and can plan accordingly. Anything less onerous, and the profits will drop to the bottom line.
- Utilities and "big oil" have already begun to sort this out: by buying "renewable" energy assets, they have more than enough assets to "cap and trade," making any future bill moot for them. Coal companies, if smart, will do the same. It's not that hard. Enbridge has seven wind farms and one solar farm (the largest in the world, by the way).
- Governor Schweitzer and Senator John Kerry seem to have a lot in common. That's just my take after spending lots of time in Boston this summer.
- Excessive cap and trade
- Ridiculous fracking regulations
- Taxes on oil companies to pay for health care
- Unlimited risk for clean-up expenses
Unanswered Prayers, Garth Brooks
*****
UPDATES
Update: July 31, 2010 -- I admit I'm wrong. Congress is going to stay out of this. Congress will let EPA step in, make the rules, and then individual Congressmen/women can talk to their constituents. Those in favor will say they support the EPA; those against what the EPA does will say Congress will have to take a look. Meanwhile, the damage will have been done. Other thoughts here.
EOG Opens Multi-Million Dollar Office in Stanley, ND (USA)
This is really an incredible story. Some data points, from the EOG/CEO:
Update on the the EOG - BNSF railroad oil loading facility: the facilty has been open since the beginning of the year. It was built to handle 100,000 bopd; it currently ships 30,000 bopd.
This link is also likely to break in about thirty days, requiring password (free or paid) to search archives.
- Expectation that the Bakken to produce four billion barrels of oil over the next few decades
- Suggests the Bakken will be one of the top five fields in the history of the US
- Estimates royalties to private individuals of $5 billion
- Estimates taxes to the state of $3.6 billion
- EOG expects to drill 78 new wells in calendar year 2010
Update on the the EOG - BNSF railroad oil loading facility: the facilty has been open since the beginning of the year. It was built to handle 100,000 bopd; it currently ships 30,000 bopd.
This link is also likely to break in about thirty days, requiring password (free or paid) to search archives.
USA 2D-3-1H Goes Past One Million Barrels
A well spudded early in the current Bakken boom surpassed the one million barrels of oil; this does not include a bit of natural gas. At $50/bbl, this well has produced ... oh, oh, my calculator won't go that high. Anyway, it's produced a lot. And it's my understanding it's a Three Forks Sanish well.
Note: in June, 2010, it was still producing 15,000 bbls/month; at $50/bbl = $750,000/month at the well head. And some folks think my exuberance over the Bakken is over-hyped.
The well was spudded in 2006. I track the well, file #16059, here.
This well is in the Charlson oil field.
Note: in June, 2010, it was still producing 15,000 bbls/month; at $50/bbl = $750,000/month at the well head. And some folks think my exuberance over the Bakken is over-hyped.
The well was spudded in 2006. I track the well, file #16059, here.
This well is in the Charlson oil field.
This Is Way, Way Off-Topic: ATT to the Bakken
This is way off topic but it is too good a story to resist.
Today, the Bismarck Tribune is reporting that ATT will soon provide wireless service in North Dakota. That is great news for those of us who travel with iPads.
However, that's not the point of this story.
If one is familiar with the current marketing war between ATT and Verizon, this story has a bit of irony.
Verizon started the controversial ad war by stating it covered much, much more of the continental United States, and true enough, when looking at the map of coverage, there are huge ATT gaps across fly-over country in the US.
ATT went to court suing Verizon over misleading ads. ATT lost.
ATT countered with a pretty good ad showing that (despite the gaps across fly-over country), ATT coverage reaches 97% of Americans.
I guess ATT is trying to fill in that fly-over gap by bringing wireless to North Dakota, one of the larger fly-over states.
But here's the irony: how ATT is entering this new territory. ATT has bought the Alltel network from Verizon wireless which covered North Dakota, and much of the other fly-over country.
It appears ATT's geographic coverage will increase at the expense of Verizon's. I doubt the change will move the needle with regard to actual subscribers. But it makes the iPad a more viable tablet in North Dakota.
I can't make this stuff up.
[Note: ATT and Verizon announced the sale of Alltel assets back in May, 2009, but the deal is finally completed. Lots of federal red tape to get through to close the deal.]
Telstar, The Tornados, 1962
Named for the ATT communications satellite, Telstar. The writer of this song received no royalties for this song. He was accused of plagiarism. The court finally ruled in his favor ... one year after his death. It is unlikely the composer ever heard the song he was accused of stealing --- that song was only released in France. This is the first single by a British band to reach number one on the U.S. Billboard Hot 100, and was also a number one hit in the UK.
Today, the Bismarck Tribune is reporting that ATT will soon provide wireless service in North Dakota. That is great news for those of us who travel with iPads.
However, that's not the point of this story.
If one is familiar with the current marketing war between ATT and Verizon, this story has a bit of irony.
Verizon started the controversial ad war by stating it covered much, much more of the continental United States, and true enough, when looking at the map of coverage, there are huge ATT gaps across fly-over country in the US.
ATT went to court suing Verizon over misleading ads. ATT lost.
ATT countered with a pretty good ad showing that (despite the gaps across fly-over country), ATT coverage reaches 97% of Americans.
I guess ATT is trying to fill in that fly-over gap by bringing wireless to North Dakota, one of the larger fly-over states.
But here's the irony: how ATT is entering this new territory. ATT has bought the Alltel network from Verizon wireless which covered North Dakota, and much of the other fly-over country.
It appears ATT's geographic coverage will increase at the expense of Verizon's. I doubt the change will move the needle with regard to actual subscribers. But it makes the iPad a more viable tablet in North Dakota.
I can't make this stuff up.
[Note: ATT and Verizon announced the sale of Alltel assets back in May, 2009, but the deal is finally completed. Lots of federal red tape to get through to close the deal.]
Telstar, The Tornados, 1962
Named for the ATT communications satellite, Telstar. The writer of this song received no royalties for this song. He was accused of plagiarism. The court finally ruled in his favor ... one year after his death. It is unlikely the composer ever heard the song he was accused of stealing --- that song was only released in France. This is the first single by a British band to reach number one on the U.S. Billboard Hot 100, and was also a number one hit in the UK.
Experienced Roughnecks From the Gulf Flying into the Bakken
The Oil Patch Hotline is reporting some interesting news:
- 139 active rigs now, another dozen are expected between now and the end of the year
- Critical shortage of roughnecks is forcing some operators to fly in workers from the Gulf
- New computer controlled rigs can cost $16 million to build; require experienced hands
- Day rates for these rigs: $16,000
- Roughnecks from Louisiana are in the Bakken for two weeks; then fly home for two weeks
- At $16,000 day rates, producers fleeing natural gas and moving to oil
- Five companies mention they will have more rigs in the Bakken by the end of the year
Thursday, July 29, 2010
142
140 active rigs this morning, and now, tonight, July 29, 2010, 142 active rigs in North Dakota. Another record.
EPA Update
Congress says "no" to federal fracking rules. (For now.)
EPA continues study which is due out not later than 2012.
This link may be broken and require a password/subscription to search archives.
UPDATE: Williston Herald has article on same. July 30, 2010.
EPA continues study which is due out not later than 2012.
This link may be broken and require a password/subscription to search archives.
UPDATE: Williston Herald has article on same. July 30, 2010.
Enbridge Response to Spill
I posted several positive notes about Enbridge and Enbridge Energy Partners recently.
I thought it necessary to link Enbridge's website response to the oil spill, even though it did not occur in North Dakota, in light of those postings.
This is the front page of their response. These are the updates.
I hold ENB and trade in and out of EEP for the dividend. I still hold both.
[Update, September 24, 2010: ENB expects to have line 6B opened by Monday, a couple days from now.]
I thought it necessary to link Enbridge's website response to the oil spill, even though it did not occur in North Dakota, in light of those postings.
This is the front page of their response. These are the updates.
I hold ENB and trade in and out of EEP for the dividend. I still hold both.
[Update, September 24, 2010: ENB expects to have line 6B opened by Monday, a couple days from now.]
XOM: Earnings More Than Double
More data that the recession / global downturn is waning: XOM's second quarter income nearly doubled to $7.56 billion.
This is XOM's highest quarterly profit since the $7.82 billion earned in the last three months of 2008.
[XOM's record-setting (and anomalous) quarter was the third quarter of 2008, when it earned $14.84 billion, mostly due to the fact that oil had spiked to nearly $150 per barrel; this quarter, the price of oil ranged from $60 to $80.]
XOM's profits hit a six-year low in the second quarter, 2009, and that explains why the numbers seem so much better this quarter, year-over-year.
XOM said it increased production of oil and natural gas by 8 percent. At first glance that sounds impressive; it is very difficult for a company the size of XOM to increase production and reserves. To do so, they need some large fields. On the other hand, if this "8 percent increase" is year-over-year," that is compared to its 2Q 2009, that doesn't sound all that great. As noted above, 2Q 2009 was a six-year low for XOM.
This is the tie-in to the Bakken: during the period, Exxon completed the acquisition of natural gas producer XTO Energy. The deal, valued at $29 billion, immediately made Exxon the largest natural gas company in the U.S. [XTO, in turn, bought out Headington and Hunt Petroleum, both big players in the Bakken, in 2008.]
This is XOM's highest quarterly profit since the $7.82 billion earned in the last three months of 2008.
[XOM's record-setting (and anomalous) quarter was the third quarter of 2008, when it earned $14.84 billion, mostly due to the fact that oil had spiked to nearly $150 per barrel; this quarter, the price of oil ranged from $60 to $80.]
XOM's profits hit a six-year low in the second quarter, 2009, and that explains why the numbers seem so much better this quarter, year-over-year.
XOM said it increased production of oil and natural gas by 8 percent. At first glance that sounds impressive; it is very difficult for a company the size of XOM to increase production and reserves. To do so, they need some large fields. On the other hand, if this "8 percent increase" is year-over-year," that is compared to its 2Q 2009, that doesn't sound all that great. As noted above, 2Q 2009 was a six-year low for XOM.
This is the tie-in to the Bakken: during the period, Exxon completed the acquisition of natural gas producer XTO Energy. The deal, valued at $29 billion, immediately made Exxon the largest natural gas company in the U.S. [XTO, in turn, bought out Headington and Hunt Petroleum, both big players in the Bakken, in 2008.]
Tractor Supply Announces 2-1 Stock Split; Maintains Quarterly Div
I have a warm spot in my heart for Tractor Supply for various reasons which I won't go into here.
I like to think that the Tractor Supply store in Williston (which has recently moved to a new location) is partly responsible for the good news coming out of this company.
I like to think that the Tractor Supply store in Williston (which has recently moved to a new location) is partly responsible for the good news coming out of this company.
Niobrara in Wyoming
This website is still about the oil industry in North Dakota but because many oil companies working in the Bakken are also in Wyoming and Montana, I have added this update about the Niobrara.
Niobrara in Wyoming.
Niobrara in Wyoming.
Recent state and federal lease auctions attracted hundreds of bidders, and many paid jaw-dropping prices for parcels in the Niobrara play. One state parcel went for $3,200 per acre. A little more than a year ago, new oil drilling in the region wasn't even imaginable, and a mineral lease might have gone for $10 per acre.
Wednesday, July 28, 2010
139
I was heading for bed but wanted to update the blog one last time. I checked the "Current Active Drilling Rig List," saw "139" and moved on, thinking we had already crossed that threshold. But then I noted the "record" which was 138.
Incredible. 136 earlier today and now, at the end of the day (bless those roughnecks), "we're" up to 139, another record.
I just loaded highlights of Whiting's 2Q 2010 earnings. Someone should check my math, but year-over-year their production has increased almost 10,000 barrels/day. At $50/bbl, that works out to $500,00/day increase in cash flow since last year. I don't know about you, but for a small mid-cap company in North Dakota, $500,000/day increase seems like a lot. Again, I may have my calculations wrong; if so, someone will correct me.
Incredible. 136 earlier today and now, at the end of the day (bless those roughnecks), "we're" up to 139, another record.
I just loaded highlights of Whiting's 2Q 2010 earnings. Someone should check my math, but year-over-year their production has increased almost 10,000 barrels/day. At $50/bbl, that works out to $500,00/day increase in cash flow since last year. I don't know about you, but for a small mid-cap company in North Dakota, $500,000/day increase seems like a lot. Again, I may have my calculations wrong; if so, someone will correct me.
Whiting's 2Q 2010 Results
2Q 2010, PowerPoint Presentation
Whiting's 2Q, 2010, Results -- their press release, Investopedia Recap
Operations Update: Sanish
$5 million/well
Time to drill to depth (20,000 feet), including 10,000 foot laterals: average, 20 days
Two wells drilled in 15 days (from spud date to total depth)
With an average of 19 fewer days on site, WLL saves about $900,000/well in drilling costs
Takeaway
Saving $1 - $2/bbl shipping in Enbridge pipeline rather than by truck
Enbridge will add takeaway capacity in first quarter 2011
Operations Update: Lewis and Clark (Golden Valley, Billings, Stark Counties)
Adding to acreage: now potential for at least 500 wells that could target the TFS
Federal 32-4HBKCE, 1,970; 51,000 boe in first six months of production; TFS
Whiting's 2Q, 2010, Results -- their press release, Investopedia Recap
- Record Production
- Q2 2010 64,600 boe/d up 17% from 55,309 boe/d in Q2 2009
- Q2 2010 daily production up 8% over Q1 2010
- June 2010 65,690 boe/d Up 5% vs. 62,545 boe/d in March 2010
- Production from Sanish and Parshall Fields in North Dakota increases 17% to 27,380 boe/d in June 2010 from 23,365 boe/d in March 2010
- Production from our two EOR projects increases 3% to 17,250 boe/d in Q2 2010 from 16,800 boe/d in Q1 2010
- 2010 Production Guidance Raised to 15% to 17% over 2009
- Net income available to common shareholders of $119.9 million ($2.12 per Diluted Share)
- Adjusted net income of $72.2 Million ($1.31 per Diluted Share)
- Q2 2010 discretionary cash flow totals $228.2 million
*****
Operations Update: Sanish
- Completed 21 operated wells in Sanish field; bringing to 40 completed wells so far in 2010
- WLL now has 108 wells in the Sanish
- Of the 40 new wells: 36 were Bakken; 26 of these were infill; four were TFS
- Whiting completed two high-volume wells in the Sanish field just before the end of the quarter
- Fladeland 12-10H: 4,126; an in-fill well; 30 fracture stages
- The Fladeland 12-10H was the 3rd highest IP for WLL
- Maki 11-27, 4,761, October 24, 2009
- Richardson Federal 11-9H, 4,570, October 22, 2008
- Hansen 12-20H, 3,863, 18 fracture stages
- 11 operated wells were being completed or awaiting completion
- 9 operated wells were being drilled
- WLL intends to drill a total of 90 operated wells in 2010
- Participate in another 8 non-operated wells
- 52 net wells
- Of the 98: 88 Bakken, 10 TFS
- WLL estimates there are at least 57 Bakken wells and 128 TFS wells yet to be drilled in the Sanish field
$5 million/well
Time to drill to depth (20,000 feet), including 10,000 foot laterals: average, 20 days
Two wells drilled in 15 days (from spud date to total depth)
With an average of 19 fewer days on site, WLL saves about $900,000/well in drilling costs
Takeaway
Saving $1 - $2/bbl shipping in Enbridge pipeline rather than by truck
Enbridge will add takeaway capacity in first quarter 2011
Operations Update: Lewis and Clark (Golden Valley, Billings, Stark Counties)
Adding to acreage: now potential for at least 500 wells that could target the TFS
Federal 32-4HBKCE, 1,970; 51,000 boe in first six months of production; TFS
Let Them Eat Cake
I can understand why many folks in this country feel the tax cuts on the "rich" need to expire.
In a country where single moms worry about the cost of routine health care for their babies, I have to agree that something is way out of proportion when a single wedding cake will cost $11,000.
I truly hope everyone enjoys their cake.
"Let them eat cake." Wow, does that sound familiar.
[This is not political: I would say the same thing regardless of whose wedding it was.]
In a country where single moms worry about the cost of routine health care for their babies, I have to agree that something is way out of proportion when a single wedding cake will cost $11,000.
I truly hope everyone enjoys their cake.
"Let them eat cake." Wow, does that sound familiar.
[This is not political: I would say the same thing regardless of whose wedding it was.]
The Bakken: It's Not Just In the Williston Basin -- Calgary Herald
This is just a reminder for newbies that "the Bakken" may exist beyond the Williston Basin.
Most folks, including me, generally think of the Bakken in the Williston Basin: North Dakota, eastern Montana, and Saskatchewan. But it turns out it may extend west in Canada to Alberta.
Most folks, including me, generally think of the Bakken in the Williston Basin: North Dakota, eastern Montana, and Saskatchewan. But it turns out it may extend west in Canada to Alberta.
In the wake of swirling rumours about a new Bakken shale oil play in southern Albert -- possibly the driving force behind $48 million spent for five parcels north of Lethbridge in the last provincial drilling rights sale -- come a pair of analysts' research reports praising the formation.We'll see.
TechTicker: Oil Prices Stabilize; EOG, APA, NOG Benefit
This is purely an investment press release from TechTicker. Take it for what it's worth.
The article caught my eye for two reasons:
Chris Edmonds, managing principal at FIG Partners Energy Research & Capital Group, says [oil] prices are likely range-bound for the time being. Current prices suggest healthy demand but he doesn’t expect prices to go much higher than $80 “until we get more clarity on the economy.”Goldman Sachs says current prices are too cheap – telling clients this week prices are significantly lower than fundamentals warrant.
"Those who have resources to drill and exploit are those who will perform best over long periods of time," Edmonds tells Aaron in this interview. Based on that he recommends investing in Apache, EOG Resources and Northern Oil and Gas.Disclosure: Edmonds' firm has an investment banking relationship with Northern Oil & Gas. He does not own shares of any of the stocks mentioned.
The article caught my eye for two reasons:
- There's a huge difference between EOG and NOG.
- I have shares of NOG but do not hold EOG or APA.
Coast Guard Out of Its Depth in Fighting Oil Rig Fires
Coast Guard admits it does not have expertise to fight oil rig fires and that its actions may have contributed to sinking of the rig in the gulf.
The Coast Guard also pressured BP into removing the "temporary seal" despite the fact that it worked and was working at the time Thad Allen wanted it removed. The Coast Guard lost that battle.
I can't make this stuff up.
The key paragraphs which will tie this thing up in court for years:
The Coast Guard also pressured BP into removing the "temporary seal" despite the fact that it worked and was working at the time Thad Allen wanted it removed. The Coast Guard lost that battle.
I can't make this stuff up.
The key paragraphs which will tie this thing up in court for years:
The question of what caused the platform to collapse into the Gulf two days later remains unanswered and could prove vital to ongoing legal proceedings and congressional investigations.Yup.
That is because the riser pipe from which the majority of BP’s oil spewed did not start leaking until after the rig sank. Experts and some lawsuits have openly tied the sinking of the drilling vessel to the severity of the leak.
ND Oil Patch Sets New Production Record
Bismarck Tribune:
This link is likely to be broken in the near future, requiring a password, possibly paid, to access archives.
North Dakota's oil patch is turning out about 300,000 barrels of crude per day, or double the state's production two years ago.Preliminary reports suggest production in July is about 310,000 barrels/day.
Lynn Helms, director of the state Department of Mineral Resources, said the state produced a record 9.2 million barrels in May, up from 8.5 million barrels in April, the latest figures available because oil production numbers typically lag at least two months.
This link is likely to be broken in the near future, requiring a password, possibly paid, to access archives.
State On Pace for Active Rig Record
Williston Herald:
Helms states that it will take two to three years for infrastructure to catch up to be able to support 175 rigs.
The all-time record for active rigs in North Dakota was 146 in October, 1981. However, that is comparing apples to oranges. Those rigs were drilling vertical wells; it is said that some of the current horizontal wells are equal to eight of those 1980's vertical wells.
This link is likely to be broken in the near future, requiring a password, possibly paid, to access archives.
North Dakota Oil and Gas Division Director Lynn Helms said the level of oil activity is approaching full capacity for the infrastructure the state has to handle it. However, he expects the activity to continue to climb.Helms states infrastructure can support about 150 active rigs. The highest number of rigs reported in the current boom has been 138, just a couple days ago. Today it is 136, but the number varies on a daily basis as rigs are moved or refurbished.
Helms states that it will take two to three years for infrastructure to catch up to be able to support 175 rigs.
The all-time record for active rigs in North Dakota was 146 in October, 1981. However, that is comparing apples to oranges. Those rigs were drilling vertical wells; it is said that some of the current horizontal wells are equal to eight of those 1980's vertical wells.
This link is likely to be broken in the near future, requiring a password, possibly paid, to access archives.
Tuesday, July 27, 2010
More on ONEOK and Natural Gas Infrastructure in the Bakken
For some, this will be old news. I missed it earlier, mostly because I don't follow natural gas as closely as oil. For me, the Bakken means oil.
However, going forward, it appears natural gas is going to be every bit as big a story as Bakken oil before this saga plays itself out.
A couple days ago I posted an update about a natural gas pipeline that will connect the Bakken to the Overland Pass Pipeline. I would have missed the story but one of my readers sent it to me which I very much appreciated.
Well, it turns out, there is more to the story with regard to ONEOK. Again, to some extent, some folks will see this as a recommendation for investing. I am not posting it for that reason. I just find it extraordinarily interesting, how much money is being spent on projects in North Dakota.
So, with all that as background here are some data points from an April 21, 2010, press release from ONEOK:
Again, this is not a recommendation one way or the other for investors. It is simply a story I find intriguing, and it helps me connect the dots with regard to the natural gas and natural gas pipeline story in North Dakota.
I think folks who were less-than-impressed with the stories first coming out of the Bakken, missed the first, second, and third derivatives of those stories. Natural gas infrastructure is a second or third derivative to the whole Bakken story. Of course, the derivatives that follow include jobs and income for the state government.
July 30, 2010: Bismarck Tribune reports on the story.
However, going forward, it appears natural gas is going to be every bit as big a story as Bakken oil before this saga plays itself out.
A couple days ago I posted an update about a natural gas pipeline that will connect the Bakken to the Overland Pass Pipeline. I would have missed the story but one of my readers sent it to me which I very much appreciated.
Well, it turns out, there is more to the story with regard to ONEOK. Again, to some extent, some folks will see this as a recommendation for investing. I am not posting it for that reason. I just find it extraordinarily interesting, how much money is being spent on projects in North Dakota.
So, with all that as background here are some data points from an April 21, 2010, press release from ONEOK:
ONEOK will construct a new 100 million cubic feet per day (MMcf/d) natural gas processing facility - the Garden Creek plant - in eastern McKenzie County, N.D. This plant and related expansions are estimated to cost between $150 million and $210 million and will double the partnership's natural gas processing capacity in the Williston Basin. Completion is expected in the fourth quarter of 2011.This was the story that got me interested in ONEOK. (Same link as first link above, the one in the third paragraph.)
In addition to the construction of a new natural gas processing plant, ONEOK Partners' natural gas gathering and processing segment will invest an additional $200 million to $205 million during 2010 and 2011 for new well connections, expansions and upgrades to its existing natural gas gathering system infrastructure in the Bakken Shale.
ONEOK Partners is the largest independent operator of natural gas gathering and processing facilities in the Bakken Shale region, with a gathering system of more than 3,500 miles. In March 2009, it completed a $46 million expansion of its Grasslands natural gas processing facility in North Dakota and since 2007 has invested more than $80 million in new well connections and related infrastructure upgrades to existing natural gas gathering systems in the region.
Again, this is not a recommendation one way or the other for investors. It is simply a story I find intriguing, and it helps me connect the dots with regard to the natural gas and natural gas pipeline story in North Dakota.
I think folks who were less-than-impressed with the stories first coming out of the Bakken, missed the first, second, and third derivatives of those stories. Natural gas infrastructure is a second or third derivative to the whole Bakken story. Of course, the derivatives that follow include jobs and income for the state government.
*****
UPDATES
July 30, 2010: Bismarck Tribune reports on the story.
So, the Stimulus Money Has Run Out
As predicted, the stimulus money ($800 billion) that kept state governments has run out and now the states are demanding $75 billion from Washington to keep them afloat for another two years.
California, Illinois, Pennsylvania and New York top the list of those states needing help.
The good news: it's only another $75 billion.
The bad news: it's only another $75 billion.
UPDATE, July 27, 2010: The states say they will lay off 500,000 if they don't get the $75 billion. You do the math: divide $75 billion by 500,000 and you get $150,000 per state salaried worker. That's pretty good pay. No state should be paying an average $150,000/state worker and in the fly-over states it would be a travesty if they paid over $90,000; and downright criminal if they paid more than $50,000 in the poorest states, most of them in the deep south. Who is kidding whom?
California, Illinois, Pennsylvania and New York top the list of those states needing help.
The good news: it's only another $75 billion.
The bad news: it's only another $75 billion.
UPDATE, July 27, 2010: The states say they will lay off 500,000 if they don't get the $75 billion. You do the math: divide $75 billion by 500,000 and you get $150,000 per state salaried worker. That's pretty good pay. No state should be paying an average $150,000/state worker and in the fly-over states it would be a travesty if they paid over $90,000; and downright criminal if they paid more than $50,000 in the poorest states, most of them in the deep south. Who is kidding whom?
You Gotta Be Kidding: $GM's Volt > $GM's Cadillac
General Motors on Tuesday set a price of $41,000 for its electric Chevrolet Volt, $5,000 more than the top-selling sedan from its luxury Cadillac brand and $8,000 more than its nearest competitor, the Nissan Leaf.
With a price of $41,000, the Volt will cost as much as some luxury vehicles. The top-selling Cadillac CTS has a price starting at $35,165.
GM will limit production and will limit sales of the Volt to minimize financial loss.
The federal government and the California state government will both offer rebates totaling in excess of $8,000.
This is where we're headed folks with renewable energy. (By the way, most electricity used to charge the Volt will still come from coal-powered utility plants.)
How far can the Volt go on one charge? The promoters say 40 miles. After that a "small" gasoline engine kicks in. Someone wanna bet the promoters are exaggerating just a tad?
With each charge, the battery loses efficiency. By three years it will need to be replaced to continue to provide that 40-mile stretch. The battery is an integral part of the chassis and battery replacement is a major service component which I have not yet seen addressed.
No wonder this company needed a bailout.
I can't make this stuff up.
UPDATE, July 27, 2010: Washington Times story.
Greg Lang sent me the following:
Bottom line: The Chevy Volt is a "halo" car as GM describes it. It is designed to bring people into the showroom. It will have no effect on the energy story in the US, and GM will limit its production because it will take a loss on each sale. But it will make for great advertising, marketing and public relations. Sort of like oil companies buying a wind farm.
With a price of $41,000, the Volt will cost as much as some luxury vehicles. The top-selling Cadillac CTS has a price starting at $35,165.
GM will limit production and will limit sales of the Volt to minimize financial loss.
The federal government and the California state government will both offer rebates totaling in excess of $8,000.
This is where we're headed folks with renewable energy. (By the way, most electricity used to charge the Volt will still come from coal-powered utility plants.)
How far can the Volt go on one charge? The promoters say 40 miles. After that a "small" gasoline engine kicks in. Someone wanna bet the promoters are exaggerating just a tad?
With each charge, the battery loses efficiency. By three years it will need to be replaced to continue to provide that 40-mile stretch. The battery is an integral part of the chassis and battery replacement is a major service component which I have not yet seen addressed.
No wonder this company needed a bailout.
I can't make this stuff up.
UPDATE, July 27, 2010: Washington Times story.
Greg Lang sent me the following:
USA EPA plans to rate this at 100 miles per gallon for CAFE (Corporate Average Fuel Economy) calculations according to one claim I have heard. Other stories put the Volt at up to 250 MPG. To comprehend CAFE think of a lot of $20 or $30 USD restaurant tabs and then throw in a few "high roller" $100 to $250 tabs. The "average" goes way up. In the USA, the "big" vehicles tend to garner a premium price and even with all the "tricks" they use more fuel.
Basically on Volt might cover three to five big Caddy "crossover" type vehicles under CAFE. Thus the Volt will cause use of even more fuel!
There is a long history of use of electric vehicles and hybrids. They are usually lithium (like laptops and cellphones) and tend to last eight years. (Regular car batteries are designed around "Cold cranking Amps" not deep cycle. You can buy a "primo" car battery for $200 to $300 versus $50 to $100 for a three to five year car battery).
Actually, it takes relatively little power to propel a medium sized car at say 65MPH. You could drive the Volt Coast to Coast but it might need a few short "rest breaks". with the engine running toi charge up the batteries when going up mountains on the interstates at y65MPH. No big deal.
The grand scheme of the Volt is that you plug it in at night at your home/garage charging station (easy if you have the dedicated parking spot) and "go battery" when you start out. If you do a lot of short trips under ideal conditions this is great. In a perfect world scenario you would drive exactly 40 miles every day, plug it in and then it could recharge at night when electrical demand is low. Workplaces might have charge plugs but electrical demand is highest during "business hours".
As they say with EPA rating, "your mileage will vary and probably be lower". Extreme cold reduces battery output by half (same with your cell in the glove compartment) and you will need to run the engine to provide radiator heat and heated seats. Figure 20 mile battery range and that is on longer trips with hot coolant storage. When it's hot you will like AC, which sucks up a lot of power. Figure 20 mile range here.
Let's do the math here. If you figure you will just make it home 365 days a year and live in and even climate place like Hawaii (ain't many of them) you will get 365x40=14600 miles per year driving without engine fuel. At the 20 mile range scenarios you will get 7300 miles per year. Theoretically, you could do this but this is not driving patterns.
If you discharge the battery and then turn on the small engine this is not efficient. Those home backup generators can cost fifty cents per kilowatt hour to run. Worth it if you have a freezer full of meat and a power outage but pricey. Battery charging is at best 50% efficient, meaning two kilowatt hours in for every kilowatt hours out. It can work when you plug into the grid but pricey with the small on board engine.
Basically, the Volt would be ideal for a person like myself. I live in urban Minneapolis. When I worked nights downtown it was 3.6 miles to work. My (now deceased) parents lived 14 miles away from me. Most other stuff I did in the cities. I could potentially go days or weeks at a time without starting the engine or using fuel, especially if it has a built in 100 volt charger to "top off" when I was at my parents house.
Here is the quandary: When gas wasn't much more than a dollar a gallon (cheap) and I was visiting my parents and commuting to work I drove 6000 miles to work. The Volt looks like a compact to mid-size so I will compare it to the 1986 Toyota 2x4 "stick" four cylinder I was driving then which got 20 to 25 MPG like my current Ford Ranger 4x2 four cylinder "stick". These or a conventional Volt equivalent will use 250 to 300 gallons of gas per year.
Do the math. These are not consuming the fuel.
I will cross post this on my fourfiftygas.com.
Bottom line: The Chevy Volt is a "halo" car as GM describes it. It is designed to bring people into the showroom. It will have no effect on the energy story in the US, and GM will limit its production because it will take a loss on each sale. But it will make for great advertising, marketing and public relations. Sort of like oil companies buying a wind farm.
Brigham Reports a "Brigham Gusher" in Camp Oil Field
18601, 3,301, BEXP, Abelmann State 21-16 1-H, Camp
All of a sudden Camp Oil Field is getting interesting. There have been some 640-acre spaced wells, short laterals in this relatively small field east of Williston, and south of the river. There was a fair amount of activity in the past (vertical wells) but not much until now.
But now we have the BEXP well noted above and, looking at the GIS map server at the NDIC website, there are two rigs on site in Camp field right now (July 27, 2010): #18957, SM (St Mary), Lee 13-8H; and, #18868, BEXP, Abelmann 23-14 1-H.
All of a sudden Camp Oil Field is getting interesting. There have been some 640-acre spaced wells, short laterals in this relatively small field east of Williston, and south of the river. There was a fair amount of activity in the past (vertical wells) but not much until now.
But now we have the BEXP well noted above and, looking at the GIS map server at the NDIC website, there are two rigs on site in Camp field right now (July 27, 2010): #18957, SM (St Mary), Lee 13-8H; and, #18868, BEXP, Abelmann 23-14 1-H.
XTO Reports a Nice Well in Grinnell Oil Field
16838, 1,097, XTO, Thomas 44X-18, Grinnell, Bakken. Location: SESE 18-154-95.
Based on its file number, this permit was granted back in 2007, October time-frame. According to my database the initial permit was granted to Headington; the permit was listed as expired as of 2008. XTO bought Headington (a privately held company) and Hunt Petroleum in 2008. [Note: XOM and XTO are in the process of merging, though XTO will retain its identity and keeps its head office in Ft Worth, Texas.]
The well is situated between two producing wells, #16612 and #16613. Both of those wells are long horizontals, and both are completely under the river (unless the river has changed its channel). The Grinnell oil field has only about 30 sections and is almost completely under the lake. It is directly west of a pretty good field, the Charlson, and directly north of the Sand Creek which is getting some attention now: Newfield has recently reported a couple of good wells in Sand Creek.
Based on its file number, this permit was granted back in 2007, October time-frame. According to my database the initial permit was granted to Headington; the permit was listed as expired as of 2008. XTO bought Headington (a privately held company) and Hunt Petroleum in 2008. [Note: XOM and XTO are in the process of merging, though XTO will retain its identity and keeps its head office in Ft Worth, Texas.]
The well is situated between two producing wells, #16612 and #16613. Both of those wells are long horizontals, and both are completely under the river (unless the river has changed its channel). The Grinnell oil field has only about 30 sections and is almost completely under the lake. It is directly west of a pretty good field, the Charlson, and directly north of the Sand Creek which is getting some attention now: Newfield has recently reported a couple of good wells in Sand Creek.
Is the Bakken Over-Hyped?
Two or three years ago there were many, many websites that argued that the Bakken was over-hyped. I often left comments on those blogs. One blog-master got so tired for my positive comments about the Bakken, she banned me from her site. Smile.
No, the Bakken won't solve the world's problems, and it won't make the US energy independent, but it certainly has been a boon to North Dakota. It's been a very interesting story. I've learned much about the oil industry, and maybe even more about the politics of oil. But I digress, as I usually do.
Today, again, another story, this time in Reuters with a story that reminds us of the impact that the Bakken has had on North Dakota.
The Reuters story: North Dakota and Alaska lead job creation. Original link from the Drudge Report.
July 30, 2010: Bakken counties lead North Dakota in wages.
No, the Bakken won't solve the world's problems, and it won't make the US energy independent, but it certainly has been a boon to North Dakota. It's been a very interesting story. I've learned much about the oil industry, and maybe even more about the politics of oil. But I digress, as I usually do.
Today, again, another story, this time in Reuters with a story that reminds us of the impact that the Bakken has had on North Dakota.
The Reuters story: North Dakota and Alaska lead job creation. Original link from the Drudge Report.
*****
July 30, 2010: Bakken counties lead North Dakota in wages.
Monday, July 26, 2010
Wow -- More Pipeline Activity in the Bakken: ONEOK
ONEOK Partners L.P. has said it plans to build a 525- to 615-mile NGL pipeline, which will transport unfractionated NGLs from the Bakken Shale in the Williston Basin in North Dakota, at a cost of about $450 million to $550 million. The new pipeline from the Bakken will hook up to the partnership's Overland Pass Pipeline, a 760-mile NGL pipeline extending from southern Wyoming to Conway, Kansas.
This is a very timely story, at least for this blog. Just yesterday I opined about the issues surrounding the flaring of natural gas in North Dakota.
I wonder if the pipeline will run due south through South Dakota and Nebraska to meet up with the Overland Pass Pipeline. The other option would be to run it southwest to Wyoming, which has its own advantages.
Trivia: the Overland Pass Pipeline is operated by Overland Pass Pipeline Company L.L.C., a joint venture between ONEOK Partners L.P. and a subsidiary of Williams (WMB).
This is a very timely story, at least for this blog. Just yesterday I opined about the issues surrounding the flaring of natural gas in North Dakota.
I wonder if the pipeline will run due south through South Dakota and Nebraska to meet up with the Overland Pass Pipeline. The other option would be to run it southwest to Wyoming, which has its own advantages.
*****
The 760-mile natural gas liquids project originates in Opal, Wyo., and terminates near Conway, Kan., at one of the nation’s primary natural gas liquids supply and storage hubs.By the way, as long as I've rambled this long, on July 26, 2010 -- that would be today -- WMB announced its intention to exercise its option to increase its ownership in the pipeline from 1 to 50 percent.
The natural gas liquids pipeline travels through 23 counties in three states: five in Wyoming, six in Colorado and 12 in Kansas. The pipeline is designed to transport approximately 110,000 barrels per day with the ability to expand capacity to 255,000 barrels per day with additional pump facilities.
The Overland Pass Pipeline is a 760-mile natural gas liquids (NGL) pipeline from Opal to the Mid-Continent NGL market center in Conway, Kansas.There are only two -- only two -- NGL hubs in the US where mixed NGL products are fractionated, or separated, into individual components:
The pipeline, which went into service in November 2008, can transport approximately 140,000 barrels per day with the ability to expand capacity to 255,000 barrels per day with additional pump facilities. The market center in Conway is a primary NGL distribution and storage hub.
- Mont Belvieu, Texas
- Conway, Kansas (multiple sites: Bushton, Hutchinson, Mitchell, and Conway -- all in the Conway area)
Another BP Quickie
"They" can't find any oil along the coast to clean up.
Unless something suddenly changes or gets worse, this is quickly becoming a non-story. Too bad the federal government just didn't let the experts try to solve this problem from the beginning.
The government was putting great pressure on BP to remove the "temporary" seal that seemed to be working. Only through the persistence of BP were they allowed to keep the seal in place. Had they removed the seal, hundreds of thousands of more gallons would have spilled into the gulf, making for great video at the site of the spill.
Hmmm....
Update, August 7, 2010: govt scientists say whatever oil is left is quickly being degraded.
For being the worse spill ever in the Gulf of Mexico, it certainly turned into a non-story. Sure, sequelae to follow, especially political and regulatory, but from the media standpoint: no eye-catching video or stills of oil-covered birds, seals, or polar bears.
Update, August 31, 2010: beaches and water safe enough for baby sea turtles to be released into the gulf. Yes, this is a non-story, but lawyers and politicians will milk it for all it's worth. [A non-story except for the families and friends affected by the 11 deaths which seem to have been forgotten by all.]
National Anthem
Unless something suddenly changes or gets worse, this is quickly becoming a non-story. Too bad the federal government just didn't let the experts try to solve this problem from the beginning.
The government was putting great pressure on BP to remove the "temporary" seal that seemed to be working. Only through the persistence of BP were they allowed to keep the seal in place. Had they removed the seal, hundreds of thousands of more gallons would have spilled into the gulf, making for great video at the site of the spill.
Hmmm....
Update, August 7, 2010: govt scientists say whatever oil is left is quickly being degraded.
For being the worse spill ever in the Gulf of Mexico, it certainly turned into a non-story. Sure, sequelae to follow, especially political and regulatory, but from the media standpoint: no eye-catching video or stills of oil-covered birds, seals, or polar bears.
Update, August 31, 2010: beaches and water safe enough for baby sea turtles to be released into the gulf. Yes, this is a non-story, but lawyers and politicians will milk it for all it's worth. [A non-story except for the families and friends affected by the 11 deaths which seem to have been forgotten by all.]
National Anthem
Sunday, July 25, 2010
Disjointed Data Points -- For Now, Including Mega-Units
I have no idea where I'm going with this, but there are some interesting things being talked about among those closer to the Bakken, and among those who are much more knowledgeable than I am. I think all of this is still being sorted out.
1. Mega-units : This refers to spacing units that are greater than 1280 acres, generally 2560 acres. Several wells have already been drilled on 2560-acre spacing. [For basics in Bakken spacing, click on FAQs at the top of this page, or click here.]
2. I count no less than seven (7) 2560-acre units in the "Whiting-owned Sanish oil field." These are all 2-section x 2-section units and all wells are short laterals or the standard "long laterals," no super-long laterals. [And, of course, there would not be, in a 2 x 2 configuration.]
6. These very long laterals would require significantly more fracture stages.
7. Pending 1280-acre units: Take a look at Case Number 12245, Order 14497, March 23, 2010, of the North Dakota Industrial Commission by clicking here. In one order, the NDIC authorized the drilling of approximately 1,525 horizontal wells on that number of 1280-acre spacing units. This affected 85 (if I counted correctly) townships across North Dakota and there were eighteen (18) spacing units of 1280 acres each in every one of these townships with exception of but a handful.
8. Pending 2560-acre units: A similar case to authorize "across the board" 2560-acre spacing units was not approved by the commission. Requests to approve 2560-acre spacing units will be considered on a case-by-case basis. (Case 12244, Order 14496)
9. It is assumed that multi-well pads would be the norm for mega-pads, but I'm not sure that will be true in all cases.
11. By the way, has anyone ever wondered how they know where these horizontal well bore heads actually go? GPS technology is used and NDIC knows exactly where these horizontals are.
12. Going back to paragraph 2 above: I noted that one 2560-acre unit had six wells, all short laterals. The NDGS estimates the EUR by county (ultimately by section), whereas oil well companies estimate EURs per well. In an earlier post, I calculated that the EUR/section in the Sanish is about 350,000 bbls according to NDGS numbers. So, these four sections have a EUR of about 1.4 million barrels. But 1.4 million/6 wells = 233,000 bbls/well, far less than the 500,000 to 750,000 bbls EUR/well that oil companies forecast for wells in prolific oil fields like the Sanish. Worse, if some of these wells are targeting the TFS and some the Middle Bakken, the numbers are even farther apart. I remain confused.
1. Mega-units : This refers to spacing units that are greater than 1280 acres, generally 2560 acres. Several wells have already been drilled on 2560-acre spacing. [For basics in Bakken spacing, click on FAQs at the top of this page, or click here.]
2. I count no less than seven (7) 2560-acre units in the "Whiting-owned Sanish oil field." These are all 2-section x 2-section units and all wells are short laterals or the standard "long laterals," no super-long laterals. [And, of course, there would not be, in a 2 x 2 configuration.]
- There are six wells in one of these units; all are short laterals with one still confidential, and one being drilled.
- On the second 2560-acre unit, there are four wells, all producing, all short laterals.
- On the third 2560-acre unit, there are three wells, ditto.
- On the fourth 2560-acre unit, there are three wells, all producing, all long laterals.
- On the fifth 2560-acre unit, there are two wells, ditto.
- On the sixth 2560-acre unit, there are two wells producing, both long laterals; and, two being drilled.
- On the seventh 2560-acre unit, there are two long laterals producing, two short laterals producing, and one still on the confidential list.
- Some are not yet drilled on.
- I was able to find two such units with wells, but they were both standard long laterals (file numbers: 17742, 17292, and 17432) all in the North Fork oil field.
- There are no horizontals longer than the "standard" long lateral.
- There are reports that EOG will drill a 1600-acre space well with a 2.5 mile lateral.
- With 640-acre spacing, it was easy to tell if a well was being drilled in the section where you owned minerals. Now, with 2560-acre spacing, your 10 acres might be in a section that is three sections (or even four sections) from the well itself.
- With 640-acre spacing, you might not receive any royalties even if your minerals were just feet away from a well. Now, with 2560-acre spacing, you might end up with a few royalty dollars from a well that is spudded almost four miles away from your acreage. At least that's what others are saying.
6. These very long laterals would require significantly more fracture stages.
7. Pending 1280-acre units: Take a look at Case Number 12245, Order 14497, March 23, 2010, of the North Dakota Industrial Commission by clicking here. In one order, the NDIC authorized the drilling of approximately 1,525 horizontal wells on that number of 1280-acre spacing units. This affected 85 (if I counted correctly) townships across North Dakota and there were eighteen (18) spacing units of 1280 acres each in every one of these townships with exception of but a handful.
8. Pending 2560-acre units: A similar case to authorize "across the board" 2560-acre spacing units was not approved by the commission. Requests to approve 2560-acre spacing units will be considered on a case-by-case basis. (Case 12244, Order 14496)
9. It is assumed that multi-well pads would be the norm for mega-pads, but I'm not sure that will be true in all cases.
- A 2-section by 2-section 2560-acre unit lends itself well to an Eco-Pad, two laterals going north and two laterals going south, for example. Even a 1-section by 4-section unit can be exploited with "standard" long laterals by placing the multi-well pad between the second and the third section, again with two laterals going one direction and two laterals going the opposite direction.
- However, some are suggesting that it is possible that a 4-mile lateral could be drilled from one end of the 1 x 4 mega-unit. I thought this was crazy but apparently it's been done elsewhere, and the deep water wells have horizontals that go that distance. It would require a different kind of rig than what is currently available in North Dakota.
11. By the way, has anyone ever wondered how they know where these horizontal well bore heads actually go? GPS technology is used and NDIC knows exactly where these horizontals are.
12. Going back to paragraph 2 above: I noted that one 2560-acre unit had six wells, all short laterals. The NDGS estimates the EUR by county (ultimately by section), whereas oil well companies estimate EURs per well. In an earlier post, I calculated that the EUR/section in the Sanish is about 350,000 bbls according to NDGS numbers. So, these four sections have a EUR of about 1.4 million barrels. But 1.4 million/6 wells = 233,000 bbls/well, far less than the 500,000 to 750,000 bbls EUR/well that oil companies forecast for wells in prolific oil fields like the Sanish. Worse, if some of these wells are targeting the TFS and some the Middle Bakken, the numbers are even farther apart. I remain confused.
- If each of those six wells produces 200,000 bbls overs its lifetime, that equals 1.2 million bbls. At $50/bbl, that equals $60 million for the six wells which would have cost about $36 million.
- If each of those six wells produces 400,000 bbls over its lifetime that works out to $120 million at $50/bbl. Remember, the oil companies opine up to 750,000 bbls/well EUR in these most prolific fields.
- On the other hand, if the four sections produce a total of 1.4 million bbls (NDGS estimates, as I calculate them), that amounts to about $70 million at $50/bbl.
- It's a crap shoot. Even the SEC agrees.
Top Stories: Weeks 28 - 29 -- July 13, 2010 - July 26, 2010
Newfield Directional Wells Drilled in 2.8 Days (Utah), July 24, 2010
Enbridge: Putting the Pieces Together, July 23, 2010
Congress Shelves Comprehensive Energy Bill, July 22, 2010
Enbridge to Double Capacity in the Bakken, July 21, 2010
Origin of the Eco-Pad, July 21, 2010
Three Forks Sanish Formation Review, Part I, July 20, 2010
Three Forks Sanish Formation Review, Part II, July 21, 2010
BP to Sell Assets to Apache, July 20, 2010
Update on Coal Projects in the Bakken Area, July 20, 2010
Natural Gas: Just a Matter of Time, July 19, 2010
SE vs MDU, July 19, 2010
On Track for 1,315 Permits This Year, July 19, 2010
Home Prices Rise in 20 Countries, July 19, 2010
China: World's Biggest Energy Consumer, July 19, 2010
ERF vs MDU, July 18, 2010
Bakken Impact Moves Williston Ahead of Minot, Grand Forks, July 18, 2010
Parshall Wells Runs, May, 2010, July 17, 2010
Bakken Activity Overwhelms Attorneys; Royalties Delayed, July 17, 2010
Update on Stark County, July 16, 2010
Lodgepole: Idle Rambling, July 16, 2010
EOG, Bottineau County, Scandia, July 15, 2010
Questar Spins Off QEP, July 15, 2010
Hope and Change for the American Farmer, July 14, 2010
A Recession. What Recession? July 14, 2010
Los Angeles Port: Record Activity, July 14, 2010
Enbridge: Putting the Pieces Together, July 23, 2010
Congress Shelves Comprehensive Energy Bill, July 22, 2010
Enbridge to Double Capacity in the Bakken, July 21, 2010
Origin of the Eco-Pad, July 21, 2010
Three Forks Sanish Formation Review, Part I, July 20, 2010
Three Forks Sanish Formation Review, Part II, July 21, 2010
BP to Sell Assets to Apache, July 20, 2010
Update on Coal Projects in the Bakken Area, July 20, 2010
Natural Gas: Just a Matter of Time, July 19, 2010
SE vs MDU, July 19, 2010
On Track for 1,315 Permits This Year, July 19, 2010
Home Prices Rise in 20 Countries, July 19, 2010
China: World's Biggest Energy Consumer, July 19, 2010
ERF vs MDU, July 18, 2010
Bakken Impact Moves Williston Ahead of Minot, Grand Forks, July 18, 2010
Parshall Wells Runs, May, 2010, July 17, 2010
Bakken Activity Overwhelms Attorneys; Royalties Delayed, July 17, 2010
Update on Stark County, July 16, 2010
Lodgepole: Idle Rambling, July 16, 2010
EOG, Bottineau County, Scandia, July 15, 2010
Questar Spins Off QEP, July 15, 2010
Hope and Change for the American Farmer, July 14, 2010
A Recession. What Recession? July 14, 2010
Los Angeles Port: Record Activity, July 14, 2010
Bakken Acronyms and Glossaries
I keep running into acronyms in various presentations and needed a spot to keep track of them.
Most of these terms are "old hat" to everyone else, and readily available at the Schlumberger glossary site, but for newbies, hopefully this page will be of some help.
Oil and gas glossary.
"SXL" was not in the Schlumberger glossary and that's what prompted this webpage.
CAGR: compound annual growth rate
EUR: estimated ultimate recovery
FBIR: Fort Berthold Indian Reservation
HBP: held by production
IRR: Internal Rate of Return
MHA: Mandan, Hidatsa, Arikara; Three Affiliated Tribes (TAT); Fort Berthold Indian Reservation
NPV: Net Present Value
P1 (90), P2 (50), P3 (10), PUD (90): "slang" for oil and / or natural gas reserves
Pooling: generally the last step before drilling commences
PIP: precision identified perforations, a type of simultaneous, multi-stage fracturing; compare with "plug and perf"
PUD: proved undeveloped reserves (90% chance to recover oil with existing technology, but requires new wells)
ROCE: return on capital employed (commonly used)
ROEC: return on economic capital (not as commonly used)
SHD: Spotted Hawk Development LLC (the oil exploration and production company of MHA)
SXL: super-extended laterals; an acronym I first saw with the recent Newfield presentation; Newfield discussed SXLs back in February, 2010. These are laterals greater than 5,000 feet, something CLR has been doing for quite some time. Most of us just refer to laterals as "short laterals" or "long laterals."
Well Status Definitions
If you arrived here from another link looking for "Areas of Interest, by Producer," this information has been moved. Click here.
On many corporate presentations, one sees PDP, PBP, PNP, and PUD. Here is a note from a discussion thread regarding these acronyms:
Most of these terms are "old hat" to everyone else, and readily available at the Schlumberger glossary site, but for newbies, hopefully this page will be of some help.
Oil and gas glossary.
"SXL" was not in the Schlumberger glossary and that's what prompted this webpage.
ACRONYMS AND DEFINITIONS
CAGR: compound annual growth rate
EUR: estimated ultimate recovery
FBIR: Fort Berthold Indian Reservation
HBP: held by production
IRR: Internal Rate of Return
NPV is the difference between cash inflows and cash outflows. It shows the overall profitability of each well. This NPV is figured using these values:LOE: lease operating expense
This produces a 75% IRR (Internal Rate of Return). The IRR is best described as the rate of growth a project is estimated to generate.
- $8.9 Million in Well Costs
- EUR (Estimated Ultimate Recovery) of 600 Mboe
- 5-31-11 NYMEX Strip
MHA: Mandan, Hidatsa, Arikara; Three Affiliated Tribes (TAT); Fort Berthold Indian Reservation
NPV: Net Present Value
NPV is the difference between cash inflows and cash outflows. It shows the overall profitability of each well. This NPV is figured using these values:OOIP: original oil in place
This produces a 75% IRR (Internal Rate of Return). The IRR is best described as the rate of growth a project is estimated to generate.
- $8.9 Million in Well Costs
- EUR (Estimated Ultimate Recovery) of 600 Mboe
- 5-31-11 NYMEX Strip
P1 (90), P2 (50), P3 (10), PUD (90): "slang" for oil and / or natural gas reserves
Pooling: generally the last step before drilling commences
PIP: precision identified perforations, a type of simultaneous, multi-stage fracturing; compare with "plug and perf"
PUD: proved undeveloped reserves (90% chance to recover oil with existing technology, but requires new wells)
ROCE: return on capital employed (commonly used)
ROEC: return on economic capital (not as commonly used)
SHD: Spotted Hawk Development LLC (the oil exploration and production company of MHA)
SXL: super-extended laterals; an acronym I first saw with the recent Newfield presentation; Newfield discussed SXLs back in February, 2010. These are laterals greater than 5,000 feet, something CLR has been doing for quite some time. Most of us just refer to laterals as "short laterals" or "long laterals."
Well Status Definitions
- Ontario's official well status definitions: Although these come from the Canadian province of Ontario, I find them helpful
If you arrived here from another link looking for "Areas of Interest, by Producer," this information has been moved. Click here.
On many corporate presentations, one sees PDP, PBP, PNP, and PUD. Here is a note from a discussion thread regarding these acronyms:
When evaluating the value of a field the reserves are broken down into PDP, PUD, PBP and PNP as general categories: Proved Producing, Proved Undeveloped (not yet drilled), Proved Behind Pipe (drilled but waiting for a recompletion to that reservoir) and Proved Non-producing (maybe waiting for a pipeline to be built). And this obviously just covers the proved categories. Possible and probable are the other two big categories. To fall into any proved category a well has to be drilled and logged thru the reservoir. And then, according to SEC regs, the proved category only extends one offset location in four directions from the well. One well might indicate a 2,000 acre productive field but the regs might only allow four 40 acre units classified as proved (PUD) around the discovery well.This source probably has one of the best definitions of PDP, PUD, PBP, and PNP.
Obviously "reserve" numbers tossed out by national oil companies (NOCs) don't come close to fitting this protocol. And as someone pointed out, the number that counts most is proved producing. And the category Proved Undeveloped is very dependent on development cost/oil prices. A field might have 500 million bbls of PUD reserves at $80/bbl but only 100 million bbls of PDP at $40/bbl.
Bakken Production Held Back By Flaring
(You know it's a quiet day in the oil patch if I'm reporting on flaring. Smile.)
If I remember correctly, NDIC put in restrictions on producers to limit production if they were flaring gas. ( I believe that had to do with MDU's request to designate the Cottonwood Field a year or so ago: as part of the agreement, only so much oil could be produced in that field pending natural gas pipelines being put in.) North Dakota has one of the highest rates of flaring gas at the time I posted that, and NDIC wanted the flaring to be minimized.
There's an interesting thread at the Bakken Discussion Group : there is still a delay in getting natural gas lines put in. I have no idea if this is having a material effect on oil production, but my assumption is that in some areas, production may be held back until natural gas lines are in.
The Bismarck Tribune reported on the issue of flaring one year ago. At that time, North Dakota was burning off one-third of its natural gas compared to 1 percent nationwide and 3 percent worldwide.
In May of this year (2010), the Williston Basin Interstate Pipeline Company announced plans to increase its capacity by 33 percent.
Additional background can be found here.
Temporary Flaring in Dunn County, North Dakota (USA)
If I remember correctly, NDIC put in restrictions on producers to limit production if they were flaring gas. ( I believe that had to do with MDU's request to designate the Cottonwood Field a year or so ago: as part of the agreement, only so much oil could be produced in that field pending natural gas pipelines being put in.) North Dakota has one of the highest rates of flaring gas at the time I posted that, and NDIC wanted the flaring to be minimized.
There's an interesting thread at the Bakken Discussion Group : there is still a delay in getting natural gas lines put in. I have no idea if this is having a material effect on oil production, but my assumption is that in some areas, production may be held back until natural gas lines are in.
The Bismarck Tribune reported on the issue of flaring one year ago. At that time, North Dakota was burning off one-third of its natural gas compared to 1 percent nationwide and 3 percent worldwide.
In May of this year (2010), the Williston Basin Interstate Pipeline Company announced plans to increase its capacity by 33 percent.
Additional background can be found here.
Temporary Flaring in Dunn County, North Dakota (USA)
Saturday, July 24, 2010
Newfield Directional Wells in Utah Being Drilled in 2.8 Days
Transcript here.
Newfield website here.
Yahoo!Financial: NFX
According to the 2Q, 2010, earnings conference call, Newfield set a company record drilling a directional well in 2.8 days, in their Monument Butte play in Utah. They have a 5-rig, 375 well/year program.
From their mid-year operational update:
Newfield website here.
Yahoo!Financial: NFX
According to the 2Q, 2010, earnings conference call, Newfield set a company record drilling a directional well in 2.8 days, in their Monument Butte play in Utah. They have a 5-rig, 375 well/year program.
Our drilling team in Monument Butte continues to impress and set a recent drilling record of 2.8 days. That’s rig up to rig release and it was on a 20-acre directional well. Our improved drilling efficiencies are allowing us to drill an estimated 375 wells this year, with a five-rig program. It really puts it in perspective when you realize that we are turning a new oil well to sales every day now. This is the essence of a resource play and we are fortunate to have won this oil.See the rest of the transcript here.
From their mid-year operational update:
Increasing production [in Monument Butte] is primarily attributable to improved drilling efficiencies. The Company recently set a drilling record (rig-up to rig-release) of 2.8 days on a 20-acre directional well. This compares to a 2009 average of 5.5 days and an average of approximately 6.5 days when Newfield acquired the field in 2004. Year-to-date average performance is 4.5 days. Recent gross well costs in Monument Butte range from $700,000 – $900,000. The Company is operating five rigs today and expects to drill about 375 wells in 2010.Now, back to the Bakken:
I’ll move on now to the Williston Basin. Our production in this region is the head of original plans and has nearly doubled since the beginning of the year. That production today is more than 4,000 barrels of oil equivalent. We added a fourth operating rig to our program last week and expect that our net production at year end 2010 will be about 6,500 barrels per day in this region.In Q & A:
We have about 160,000 net acres under active development along the Nissan and west of the Nissan, and year-to-date we expect to drill 25 or so wells in the full-year of 2010 cycle. Most of our producing wells to date have had lateral lengths around 4,000 feet, we expect in the second half that half of these wells we will drill, will have extended lateral lengths up to as long as 9,000 feet.
We continue to involve our completion designs to achieve the best results. In our operations release we detail recent well results and you can see several of the wells of initial production rates in excess of 3,000 barrels of oil equivalent per day and 30 day averages of a 1,000 barrels of oil equivalent per day or more.
In our Westberg development area on the Nesson Anticline, our recent Garvey Federal 1-29 well is our best to date and had an initial production rate of more than 3,800 barrels of oil equivalent per day from a 3,900-foot lateral.
We’re also seeing good results in our new assessment areas west of the Nesson in the Aquarium/Watford are a Bluefin well had an IP of about 2,500 barrels of oil equivalent per day and was our first Bakken well on this acreage area. More than half of remaining 120 wells this year will have lateral lengths of approximately 9,000 feet.
As a result of our improved drilling and completions we’re now seeing increased UR’s in the range of 500,000 to 750,000 barrels. Recent drilling complete cost for the Williston wells range from $6 to $8 million, gross.
- 14 - 16 fracture stages
- Fracture: "We’re pumping sand for a bulk of the job and tailing with ceramics."
- NDGS estimates 200,000 - 300,000 bbls EUR in each section in the major Bakken counties
- Companies estimate 500,000 - 750,000 bbls EUR/well
- If there is only one long lateral, that about makes sense
- In the Sanish and the Parshall, we are seeing well in excess of one well/section
- So, are we comparing apples and oranges? The companies look at EUR/well; the state looks at EUR/acreage
Low-Hanging Fruit in the Energy Sector
Americans have a habit of being wasteful because so much of what we have is inexpensive and/or easy to replace.
Energy is no exception. For decades energy has been relatively inexpensive in the United States and it was easy to ignore some of the inefficiencies in the energy sector. But with energy becoming more expensive, and/or the government putting in place new energy regulations, it is my contention that there is some "low-hanging fruit" in the energy arena in which to make a bit of money.
This is a "cut and paste" note from a longer note I sent my son-in-law. We had been discussing my contention, that within the energy sector, there must be some "low-hanging fruit." This note should probably be cleaned up because it talks about much more than just "low-hanging fruit," but I hate re-writing.
Whatever.
Those interested in investing in Enbridge should find it very interesting:
So, here goes:
Someone who reads my blog passed on to me that Enbridge (parent company of EEP) just bought a huge wind farm in Colorado; I remembered that Enbridge had bought a solar farm in Ontario and that brought me back to one our discussions some time ago.
I mentioned that with energy becoming more expensive, and the fact that energy in America (both the US and Canada) has historically been quite "cheap," there must be a lot of "low-hanging fruit" -- or a lot of inefficiencies that could be transformed easily into money-paying ventures.
It appears Enbridge (a natural gas company has done just that).
1. WASTE HEAT RECOVERY FACILITIES: Enbridge has one of the longest natural gas pipelines (if not the longest) in North America, from NW Canada to Illinois. The compressor stations can take waste heat and generate enough electricity for 5,000 homes.
2. HYBRID FUEL CELL: Enbridge put a hybrid fuel cell in its headquaraters parking lot to generate electricity from unused waste heat. The parking lot (22 parking spaces) generates enough electricity for 1,700 homes.
3. So, this natural gas pipeline company has found some low-hanging fruit and converting it to money-making ventures.
4. Solar energy: But then, this natural gas pipeline company does something I never thought it would do -- it bought the Solar Farm in Ontaria, Canada from First Solar. I never thought anything of it at the time, but it is the world's largest solar cell farm -- yes, in the world -- of all places, it's located in Canada. It's a 40-MW farm, and now they will double it to 80 MW, and will be remain the largest in the world by far, until a 125-MW farm in Australia comes on line in 2012.
5. And Enbridge just bought its seventh (7th) wind farm -- this one is 75 miles west of Denver.
Enbridge reports earnings this week, July 28. Enbridge Energy Partners, L.C., reported earnings yesterday, blowing through estimates, reporting income 14 cents higher than forecast.
Energy is no exception. For decades energy has been relatively inexpensive in the United States and it was easy to ignore some of the inefficiencies in the energy sector. But with energy becoming more expensive, and/or the government putting in place new energy regulations, it is my contention that there is some "low-hanging fruit" in the energy arena in which to make a bit of money.
This is a "cut and paste" note from a longer note I sent my son-in-law. We had been discussing my contention, that within the energy sector, there must be some "low-hanging fruit." This note should probably be cleaned up because it talks about much more than just "low-hanging fruit," but I hate re-writing.
Whatever.
Those interested in investing in Enbridge should find it very interesting:
So, here goes:
*****
I mentioned that with energy becoming more expensive, and the fact that energy in America (both the US and Canada) has historically been quite "cheap," there must be a lot of "low-hanging fruit" -- or a lot of inefficiencies that could be transformed easily into money-paying ventures.
It appears Enbridge (a natural gas company has done just that).
1. WASTE HEAT RECOVERY FACILITIES: Enbridge has one of the longest natural gas pipelines (if not the longest) in North America, from NW Canada to Illinois. The compressor stations can take waste heat and generate enough electricity for 5,000 homes.
Enbridge operates four non-regulated waste heat recovery facilities located in Saskatchewan along the Alliance Pipeline.
Electricity is generated by harnessing the waste heat produced by Alliance Canada's gas turbines at its compressor stations and converting it to electrical energy. Each of the four units produce approximately 5 megawatts (MW) of power – enough energy to power the equivalent of approximately 5,000 homes.
Investors can invest in that project through the Enbridge Income Fund (ENF.UT).
In 2008, Enbridge officially launched the world’s first hybrid fuel cell power plant that is designed for gas utility pressure reduction stations.
The plant converts unused pipeline energy, a byproduct of distributing natural gas to customers, into ultra-clean electricity. Built on approximately 22 parking spots in the company’s parking lot, the fuel cell operates without burning any fuel to produce about 2.2 megawatts of environmentally preferred, near zero-emissions electricity, enough to serve about 1,700 Ontario homes.
Enbridge has exclusive North American distribution rights for the hybrid fuel cell technology. We plan to replicate the plant throughout our distribution network in Ontario and market the hybrid fuel cell to other natural gas pipeline companies in North America.
3. So, this natural gas pipeline company has found some low-hanging fruit and converting it to money-making ventures.
4. Solar energy: But then, this natural gas pipeline company does something I never thought it would do -- it bought the Solar Farm in Ontaria, Canada from First Solar. I never thought anything of it at the time, but it is the world's largest solar cell farm -- yes, in the world -- of all places, it's located in Canada. It's a 40-MW farm, and now they will double it to 80 MW, and will be remain the largest in the world by far, until a 125-MW farm in Australia comes on line in 2012.
5. And Enbridge just bought its seventh (7th) wind farm -- this one is 75 miles west of Denver.
*****
That's it. There are more Enbridge stories below this one, posted within the last couple of days. Enbridge reports earnings this week, July 28. Enbridge Energy Partners, L.C., reported earnings yesterday, blowing through estimates, reporting income 14 cents higher than forecast.
Fidelity Reports a Nice Well in the Sanish
Fidelity reports a nice well in the Sanish, an oil field mostly controlled by WLL:
- 18345, 996, Fidelity, Deadwood Canyon Ranch 44-33H, Sanish
- 18318, 1,929, WLL, Fladeland 11-10H, Sanish
- 18302, 555, Fidelity, Fladeland 12-15H-22, Sanish
- 18347, 2,301, WLL, Fladeland 44-9H, Sanish
- 18346, 777, Fidelity, Deadwood Canyon Ranch 11-33H, Sanish -- among WLL wells with 1,500 boepd IPs
- 18345, 996, Fidelity, Deadwood Canyon Ranch 44-33H, Sanish -- among WLL wells with 1,500 boepd IPs (again, the method for calculating IPs may be different; the NDIC reports might show these wells closer together in production)
Oasis Reports a Nice Well Northwest of Williston
It looks like Oasis is reporting a nice well:
From the nomenclature for an Oasis well it is easy to determine where the well is located: the first four digits, in this case "5602" refers to T156N-102W. The last one/two numbers preceding the "H" (in most cases) is the section number.
I believe Oasis has a fair amount of leased acreage in this area. These are the permits that Oasis has in the local area of this most recent well northwest of Williston (as of July 23, 2010):
- 18567, 1,835, Oasis, Njos Federal 5602 11-13H, Wildcat (156-102)
- 18418, DRL, Sandaker 5602 11-13H
From the nomenclature for an Oasis well it is easy to determine where the well is located: the first four digits, in this case "5602" refers to T156N-102W. The last one/two numbers preceding the "H" (in most cases) is the section number.
I believe Oasis has a fair amount of leased acreage in this area. These are the permits that Oasis has in the local area of this most recent well northwest of Williston (as of July 23, 2010):
- 18623, Odin Jorgenson 5502 44-8H, Wildcat
- 18799, Stowers 5502 43-8H, Squires
- 18801, Contreras 5502 42-7H, Squires
- 18802, Vuki 5502 42-7H, Squires
- 18817, Kjos 5502 44-24H, Squires
- Andre 5501 13-4H, Missouri Ridge
- 19046, McFarland 5502 44-12H, Squires
- 19097, Merritt 5693 11-24H, Alger
- 19131, Somerset 5602 12-17H, Bull Butte
- 19132, Ellis 5602 12-17H, Bull Butte
- 19267, Holmes 5601 44-32H, Wildcat
- 19235, Dixon 5602 44-34H, Wildcat
- 19282, Bean 5703 42-34H, Bull Butte
- 19307, Devon 5601 12-17H, Wildcat
- 19308, Glover 5601 12-17H, Wildcat
- 18914, Ellis 5602 42-8H, Bull Butte
- 18915, Somerset 5602 42-8H, Bull Butte
Friday, July 23, 2010
Enbridge: Putting the Pieces Together
Locator: 10010ENB.
Quick Links
Enbridge Renewable Projects
Canadian-US Pipeline System
March 1, 2023: update, Enbridge's EHOT, Flanagan South crude oil pipeline expansion.
September 18, 2019: Minnesota Supreme Court won't take case regarding Enbridge Line 3. The company and the state will be allowed to move forward.
June 3, 2019: well, that last win didn't last. The Minnesota State Court of Appeals ruled that the environmental impact statement for Enbridge Line 3 was inadequate.
March 28, 2019: Enbridge Line 3 wins (again) in Minnesota.
February 5, 2019: Line 4 temporarily shut down in anticipation of protestors who planned to sabotage equipment/damage property. Line 4 segment relocation project: 3/4 of one mile.
August 24, 2018: Enbridge to buy Spectra Energy Partners.
March 30, 2017: Zacks update on Enbridge/Spectra Energy merger.
September 6, 2016: Enbridge to buy Spectra Energy.
December 8 2015: The Dickinson Press is reporting that two Enbridge pipeline projects are stuck in Minnesota regulatory quagmire: the Sandpiper (new) and Line 3 replacement (it is deteriorating in Wisconsin).
November 30, 2015: Enbridge acquired a 100% interest in the 103-megawatt (MW) New Creek Wind Project for a total value of about $0.2 billion from independent U.S. renewable energy developer, EverPower Wind Holdings, LLC. However, the company’s shares fell 2.3% following this announcement. [$2 million / MW wind.]
November 6, 2015: Enbridge buys into UK off-shore wind for almost $6 million / MW.
July 7, 2015: for the archives -- Enbridge (EEP) assets.
November 28, 2014: Line 3 update.
October 25, 2014: Line 9 update.
September 30, 2014: Enbridge eyes Mainline expansion.
September 8, 2014: update on Clipper - Line 3 cross US/Canadian border.
July 18, 2014: Enbridge dedicates a 300 MW-wind farm in Alberta, the largest wind farm in western Canada.
June 7, 2014: Canadian government approves Enbridge's Northern Gateway pipeline, from Alberta, to the western British Canadian coast. It will be many years before this pipeline is completed (if ever).
March 18, 2014: update on the four Enbridge projects in northern Minnesota.
March 6, 2014: Enbridge to replace Line No. 3; Enbridge to reverse Line No. 9.
September 30, 2013: Enbridge to build 50-km pipeline in Canadian oil sands to support Japanese/Chinese oil field.
May 29, 2013: Platt's update on status of reversal of line 9A. Nothing new, but another look at the Enbridge status.
March 10, 2013: under the radar. With the reversal of Enbridge's Line 9 (Detroit, MI/Sarnia, Ontario, to Montreal, Ontaria), Enbridge has options to move Canadian oil to east coast for export to Europe, and Bakken oil to east coast refineries in the US. [The link may be "broken" temporarily; after posting, I put it into draft status to be posted at a later date when it might have more relevance.]
March 10, 2013: short summary on Enbridge projects.
March 3, 2013: Enbridge reiterates it will not mix Bakken oil with Canadian sands heavy oil; the Sandpiper will be a twin pipeline.
February 15, 2013: Enbridge completing the America segment of the massive MATL wind energy transmission line from Canada and through Montana.
January 13, 2012: Enbridge announces another $600 million to be added to the "massive" $6.2 billion project announced in December.
December 7, 2012: $14.5 billion in new expansion.
December 6, 2012: Enbridge increases dividend.
November 25, 2012: so, now, Enbridge Rail to transport Bakken oil to Philadelphia-area refineries.
November 23, 2012: ENB announces it will add a 36-inch pipeline to its mainline system between Edmonton, Alberta, Canada, and Hardisty, Alberta, Canada. The segment will be just slightly more than 100 miles long. Cost: $1.8 billion; capacity eventually to 800,000 bopd. Does Hardisty ring a bell? TransCanada Corp. said Wednesday (May 9, 2012) it will proceed with the construction of an oil terminal in Hardisty, Alberta, which will serve as the starting point of the proposed Keystone XL pipeline. More evidence that Enbridge continues to take advantage of President Obama's decision to kill Keystone XL 1.0.
November 1, 2012: superficial overview of ENB -- Motley Fool;
October 22, 2012: Enbridge to buy some midstream assets from Encana, Peace River Arch region in northwest Alberta; $265 million (Canadian);
October 4, 2012: Enbridge says high capacity pipeline needed from the Bakken to Superior, Wisconsin
Enbridge talking about a new pipeline from the Bakken to Superior, Wisconsin.
"Fair to say it would be quite high capacity," he said. "If you look at the growth curve of the Bakken, there's no question that a conduit more 100,000 bbls a day, or 150,000 bbls a day, or 200,000 is probably needed."August 18, 2012: front page story in the LA Times regarding Enbridge.
August 8, 2012: EEP -- growth and dividends, at SeekingAlpha.com.
July 23, 2012: NTSB rules on Michigan 2010 Enbridge spill.
May 18, 2012: Enbridge announces expansion of capacity going east from the Bakken and Alberta.
April 27, 2012: Enbridge must be hitting on all cylinders; new 52-week high.
April 21, 2012: race between Enbridge and TransCanada to relieve congestion at Cushing.
April 13, 2012: ENB's Northern Gateway ($5.5 billion; to be completed in 2017) faces competition from Kinder Morgan's recently announced $5.0 billion TransMountain pipeline from Alberta to Vancouver.
January 7, 2012: EPP to build a $2 billion, 1,230-mile long ethane pipeline from Texas to Ohio, Pennsylvania, or West Virginia, the ATEX Express pipeline.
January 6, 2012: EPP and ENB to expand Seaway pipeline and build a new pipeline from Houston to Port Arthur giving shippers access to heavy refining.
January 6, 2012: Canadian government approves Enbridge application to build a Canadian pipeline just north of North Dakota to carry Bakken oil.
January 5, 2012: Why Enbridge entered the crude-by-rail industry.
January 3, 2011: Update on Enbridge and unit-trains.
December 28, 2011: Seaway reversal on track, but an even bigger story -- Enbridge to lay a new pipeline from Cushing to the Gulf.
November 12, 2011: Focus on the east-west Enbridge pipeline now that the Keystone XL is dead.
November 12, 2011: Acquires 50% ownership in the Lac Alfred Wind Farm Project from EDF Canada
August 25, 2011: Enbridge pipeline gains traction.
July 26, 2011: archived investing stories on the family of Enbridge companies up to this date.
July 23, 2011: Enbridge's Beaver Lodge Loop pipeline project on track despite recent flooding.
The Beaver Lodge Loop Project is designed to add up to 145,000 barrels per day into the company's North Dakota System Berthold station.July 7, 2011: Update of pipeline activity and projects it the Williston Basin
July 22, 2011: National Geographic and Enbridge.
July 7, 2011: Enbridge thinks about shipping oil to eastern Canada -- again.
Enbridge Inc is in talks with refiners and Western Canadian oil producers about establishing new pipeline access to Eastern refineries in a revamp of a concept it floated three years ago, an executive said on Wednesday.June 22, 2011: ENB looks to increase capacity by building a railroad oil loading facility west of Minot, near Berthold.
The idea is to ship light crude oil to refineries in Quebec and beyond, which pay higher crude costs due to the wide pricing spread between oil on the Atlantic Coast compared with Western Canadian supply, said Richard Bird, Enbridge's chief financial officer.
Comment: this story plus the IEA's recent panic-release of the SPR suggests refiners are having more and more difficulty getting enough of the "right kind" of oil to their sites.
April 2, 2011: reminder -- ENB recomends a 2:1 stock split, effective May 25, 2011.
February 21, 2011: Enbridge is a "rock." SeekingAlpha.
February 14, 2011: Enbridge Energy pipeline expansion secures 100,000 bpd capacity commitments Co and Enbridge Income Fund Holdings announced that additional shippers have finalized capacity commitments to the Bakken Expansion Program. The expansion program is being undertaken on the Enbridge North Dakota System owned by EEP, and the Enbridge Saskatchewan System, owned by the Enbridge Income Fund. The total cost of the program is expected to be $560 million. The added capacity from this expansion will be 145,000 bpd, of which 25,000 bpd will be available by early 2011 following completion of the Portal Reversal Expansion Project, and the remaining 120,000 bpd by late 2012. Under the applicable regulatory arrangements a maximum of 115,000 bpd can be held by committed shippers and at least 30,000 bpd must be reserved for uncommitted volumes.
February 14, 2011: News article updating Enbridge's plans in North Dakota and Saskatchewan. This is a $560 million expansion program; I think it's all been discussed before. New information:
Enbridge pipelines ship the bulk of Canada’s oil exports to the United States. The expansion program will be handled through two affiliated companies: Enbridge Energy Partners LP and Enbridge Income Fund Holdings Inc.February 2, 2011: buys 15 MW-Amherstburg II (Ontario) and 5 MW-Tibury (Calgary).
The expansion will take the oil to a connection with Enbridge’s main line systems at Cromer, Manitoba, where it can be shipped to refineries in the U.S. Midcontinent and Central Canada.
The company said 25,000 bpd of the new capacity will be available early this year with the remaining 120,000 bpd in place by late 2012.
December 1, 2010: ENB increases dividend by 15%, from 42.5 cents to 49 cents/share.
November 24, 2010: Retirement portfolio includes ENB.
October 18, 2010: MLPs rise to new record highs.
October 5, 2010: ENB considering Monarch Pipeline from Cushing, Oklahoma, to Houston. ENB also stated that earnings and payouts would not be affected by recent spills.
July 30, 2010: EEP will buy Elk City natural gas gathering and processing system from Atlas Pipeline Partners LP; 800 miles of pipeline in Texas panhandle and southwestern Oklahoma; $682 million in cash.
July 27, 2010: oil spill in Midwest.
July 22, 2010: Enbridge to double pipeline capacity in the Bakken?
July 13, 2010: Enbridge affiliate (EEP?) to buy 250 MW wind farm east of Denver, CO
February 16, 2010: Seeking Alpha -- Enbridge's Vast Potential
December 8, 2010: Enbridge expanding Sarnia Solar Project to 80 MW
October 3, 2009: Enbridge buys 2nd largest solar farm in Canada from First Solar
This is how this page began: With the recent "hint" that Enbridge might double its pipeline capacity in the Bakken, I thought this was a good time to sort out Enbridge.
OVERVIEW AND LINKS
Enbridge: ENB.
Enbridge US Operations.
- Enbridge Energy Partners, LP, headquarters in Houston: EEP
- Enbridge Energy Management, L.L.C., manages the business affairs of EEP: EEQ
- Alliance Pipeline: natural gas pipeline from Canada to Illinois
- Enbridge Northern Gateway Project
- The Bakken
- Buys COP's Seaway Pipeline, November 16, 2011
Wind Farms
- Rampion Offshore Wind project, 400 MW; off the coast of Sussex, England; bought one-fourth interest in late 2015;
- Seven wind farms with completion of the Cedar Point Wind Farm in 2011
- Cedar Point, Colorado (75 miles east of Denver) -- first Enbridge wind farm in the US; 250-MW wind farm
- 50% ownership interest in the Lac Alfred Wind Farm Project from EDF Canada, November, 2011; 300MW; 150 whooping crane bird slicers and dicers
- Sarnia Solar Project, Ontario, Canada: the largest solar cell farm in the world at the time (40 MW); now expanded to 80 MW
- Amherstburg II (15 MW) and Tibury (5 MW) -- in Canada; joint venture between ENB and First Solar;
- Federal government approves 748 MW project in Mojave Desert and Imperial Valley; panels will cover 6,800 acres, a small part of the 11 million acres of public land in these deserts, October 5 ,2010
- Nevada: 50 MW Silver State project; first solar plant finished entirely on federal property under the jurisdiction of the BLM; BLM plans more solar on its land in six Western states;
- First Solar: First Solar Inc. bought the 150-megawatt Solar Gen 2 project in California from an affiliate of Goldman Sachs Group Inc., Energy Power Partners and a third unnamed partner. Terms of the deal weren’t disclosed.
Waste Heat Recovery Facilities:
Enbridge Income Fund and NRGreen Power partnership along the Alliance Pipeline
Alliance Pipeline: 50% owned by Enbridge; other 50% owned by Veresen.
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