This is a compilation of links to stories that I posted throughout the year (2010). If anyone has any significant stories about the North Dakota oil industry that occurred in 2010 that I missed, please feel free to send them my way.
The compilation is not organized any more than by subject; so it's still somewhat of a "mess" to go through, but it might be helpful to some.
I may re-organize it over the next few weeks, but probably not much.
New Companies In The Bakken
Newfield: I Completely Missed This One
Samson Oil and Gas is Not the Same as Samson Resources
American Energy Seeks 15 New Wells in North Dakota
Oasis Reports Spectacular Numbers in August
Investments
Oasis Petroleum Goes Public
BEXP Share Offering Over-Subscribed
NOG Offers 5 Million Shares in New Share Offering
BEXP Announces Massive Expansion Investment in Williston
EOG Buys Galveston Natural Gas
EOG Opens Multi-Million Dollar Office in Stanley, ND
ONEOK Announces Plans to Invest Another $300 Million in the Bakken
QEP Setting Up Shop in Parshall, North Dakota
KOG To Issue More Shares, December 2010
Investment Actions in the Bakken
Questar Spins Off QEP
Investment Strategies, August, 2010
Three Bakken Companies Announce Huge Offerings to Raise Cash
NOG Offers 10 Million Shares; Doubles CAPEX for 2011
QEP Setting Up Shop in Parshall
Newfield To Be Added to S&P 500
Mergers, Acquisitions, Swaps, Exchanges of Acreage
American O&G Sells All Holdings in Powder River Basin, Wyoming to Become Pure-Bakken Play
February State Lease Sale Second Highest in History: $47 Million
Anschutz Finds a Buyer. Who Is It? (October, 2010)
KOG Acquires Significant Amount of New Acreage; Huge Story (October, 2010)
Enerplus Completes Bakken Acquisition (October, 2010)
Hess Acquires TRZ LLC For Cash
Williams Buys Seven (7) Percent of the Reservation
Two More Investments in the Bakken: Williams and ERF
Oasis Acquires 10,000 Acres in Richland County (Montana)
Occidental Petroleum Buys Into the Bakken
Multi-Well Pads
Hess With Permits For Six-Well Pad (will be one of many) Here,
CLR Announces First Eco-Pad; Origin of the Eco-Pad
Slawson Specializing in Two-Well Pads; Pad With Three Wells
Another Six-Well Pad for Hess
Another Six-Well Pad for Hess
IPs and Six-Well Pads for Hess
Wells Per Section and Production
Record Production: 1 Million Bbls in Four Years
How Many Wells Can You Drill in a Section?
Whiting's "X" Designated Wells
Four Mile Laterals? Unstacked Dual Laterals
CLR Increases EUR Estimates by 20%
CLR Announces 21% Increase in Proved Reserves
Encore Ups Their Estimates by 350%
Seven Great WLL Wells
Five Whiting Wells in One Section
Six Horizontal Wells and Three Vertical Wells in One Section
Multiple Wells Per Section
An Early Eco-Pad Reported Production
Flurry of Whiting Activity North of Belfield
Typical BEXP Story: Five High Producers Announced
Bull Butte: Up to Nine (9) Wells on One Spacing Unit
Squaw Creek: Multiple Wells on 320-Acre Spacing Units
Record IPs, Production Records, Active Rigs, Wells, Record Leases
166 Rigs: High for the Year
Record IP in the Bakken: 5,133 (BEXP, of course)
Six Wells That Have Each Produced More Than 500,000 Bbls So Far This Boom
150 Active Rigs on April 1, 2010
EOG Says Reserves Have Increased 5-Fold Over Previous Year
20,000 Wells in the Bakken?
$5,000/Acre
$8,600/Acre in the Sanish
Enerplus Pays $10,00/Acre in the Bakken
Lodgepole Land Services Pays $11,600/Acre
$12,500/Acre
North Dakota Lease Auction Record -- Doubled the Previous Record
2010: Three State Land Lease Auctions -- 137,000 Acres, $270 Million
Monster Wells
First Well in This Boom To Produce One Million Barrels
$1 Billion/Year from Oil for North Dakota State
A New Record: 40-Stage Fracturing
Owan Wells West of Williston
CLR's Request for 238 Wells in One Hearing Docket
CLR's Potential
One Million Barrels/Day By 2020?
ERF: Recovering as Much as 20% of the Bakken Reserves
ND Oil Reserves Jump 83% in 2009
Global Oil Demand Sets Record
Dunn County: 250 - 400 New Wells/Year for Next 3 - 5 Years
State Lease Sales
CLR To Double Number of Rigs Over Next Five Years
Fracking
More Than Enough Water for Fracking: US Army Corps of Engineers
Blasting the Bakken: a New Technique to Release More Oil
Early in the Year: Six-Month Backlog in Fracking
Halliburton Fracking Crews Go 24/7
More Than Enough Water to Frack
BEXP Has Two Dedicated Frack Crews
A New Record: 40-Stage Fracturing
Results of Re-Fracking
SM Reports a 3-Well Simul-Frac
Production Delays Due to Lack of Fracking Crews
Pipelines
Arrow Pipeline / XTO Partnership in the Reservation
Arrow Pipeline in the Reservation
Enbridge to Double Capacity in the Bakken
ONEOK To Invest $200 Million in Pipeline Project
Update on Keystone XL Project (October, 2010)
Update on TransCanada's MarketLink Pipeline: Bakken to the Gulf Coast, A First (October, 2010)
PAA's Bakken North Project; $200 Million Project; 50,000 Bbls/Day; Scalable to 75K
Natural Gas
$175 Million Natural Gas Gathering and Processing Plant to be Built Near Watford City, ND
Natural Gas Processing Plant At Watford City Approved
$500 Million Natural Gas Plant to be Built Near Tioga, ND
Whiting Seeks Natural Gas Facility Near Belfield, ND; Update on the Belfield Facility
Railroad Oil Loading and Shipping
New Facility, Dickinson, Operational by October, 2010
Rail Oil Loading Facility Update -- December, 2010
Another Crude Oil Rail Loading Facility Announced, Williston -- $100 Million
Takeaway
Louisiana Receives First Bakken Shipment (NuStar Energy)
One Million Barrels/Day?
Still a Bottleneck as of September, 2010
Enbridge to Increase Takeaway Capacity
Rail vs Pipeline Cost to Ship Oil
Thoughts On Takeaway Capacity, December, 2010
Work Force
$1 Million Facility To House Oilfield Workers, north of Dickinson, Utah Company
2010 Winter Olympic Housing (Vancouver, Canada) Moving to Williston
Housing Crisis in Williston: reported in the New York Times
Louisiana Roughnecks Being Flown into North Dakota
Five New Man-Camps In Williston Area
Another Man-Camp: South Heart
NDIC
Sweeping Changes for the Bakken: Larger Spacing Units
Mega-Units (6400-acre spacing units)
Mega-Units; Spotted Hawk Development
Formations
Spearfish: EOG Targets the Spearfish in north-central North Dakota; Drill in 4 days; 1/5th the Cost; EOG Spearfish Wells in Bottineau; 2,000 to 7,000 More Wells in Bottineau County
Slawson and NOG Partner to Test Whether Middle Bakken / Three Forks Communicate
Birdbear Gets Acknowledged As Another Oil-Producing Formation ; More Here
Three Forks Sanish Reported as a "New" Formation; May Have As Much Oil as the Bakken
Three Forks Review: Part I and Part II
Madison Formation: Still #1 in 2009
Lodgepole: Ramblings in Stark County
The Tyler Formation
Leasing Starts Targeting Tyler Formation
A Niobrara Update / Primer
The Lodgepole: An Update
The Lodgepole: An Update (Yup, Again)
Lodgepole and Oil for America
Zastoupil 1-17 (Lodgepole) Has Spudded
The Reservation
Overview
Spotted Horn Field Update
Stark County
Update on Stark County
Coal
Overview of Coal Projects in North Dakota
Coal Beneficiation: A Huge Success Story
Potash
Connecting the Potash Dots
Potash Well Spudded
Williston
Building Permits Set Record
Miscellaneous
North Dakota Stomps California in Honey Production
UN Defeats Proposal to Help Save the Polar Bear (at the link, scroll down to March 18, 2010)
#1 in Caviar
#1 in Carbon Capture and Storage?
#1 in Growth Over Past 10 Years
#1 in Potash?
#1 in Premarin?
Commentaries
Price of Oil and Investing
ND Production Compared To Other States
IPs and Production
Scenario for Price Spike in Oil (October, 2010)
Opportunity Knocks For a Third Time in the Bakken - December, 2010
Takeaway Capacity vs Production One Year From Now
Work Left in the Bakken: Staggering
Zavanna
Whiting's "Cash Cows" in the Sanish
1,500 Wells in 2011
Harold Hamm: The Bakken Has Almost Twice as Much Oil as the North Slope, Alaska
Companies That Excite Me in the Bakken
ND Budget: $100 Oil; 425,000 Bbls/Day
2000 Wells, 200 Rigs in 2011
Friday, December 31, 2010
Week 52: December 27 -- December 31, 2010
Spotted Horn Field Update
Top Ten Oil and Gas Self-Made Billionaires
2010 Wrap-Up: Lots of $$$$ All-Around
Zastoupil 1-17 Has Spudded: A New Lodgepole Well
Bull Butte: Up to Nine (9) Wells on One Spacing Unit
Squaw Creek: Multiple Wells on One 320-Acre Spacing Unit
Update on a Monster Well: USA 2D-3-1H, > 1 Million Barrels in Four Years
Another Man-Camp: South Heart
CLR to Double the Number of Rigs Over Next Five Years
2000 Wells, 200 Rigs in 2011
Top Ten Oil and Gas Self-Made Billionaires
2010 Wrap-Up: Lots of $$$$ All-Around
Zastoupil 1-17 Has Spudded: A New Lodgepole Well
Bull Butte: Up to Nine (9) Wells on One Spacing Unit
Squaw Creek: Multiple Wells on One 320-Acre Spacing Unit
Update on a Monster Well: USA 2D-3-1H, > 1 Million Barrels in Four Years
Another Man-Camp: South Heart
CLR to Double the Number of Rigs Over Next Five Years
2000 Wells, 200 Rigs in 2011
Spotted Horn Update -- Bakken, North Dakota, USA
For those interested, I have updated Spotted Horn oil field.
Top Ten Oil and Gas Self-Made Billionaires
Link here.
The list is not quite accurate.
At least one individual inherited at least a start from his father.
A couple of the men are on the list but have sold their holdings.
Harold Hamm is truly self-made (from all that I know) and he is still deeply involved in the industry. His oil company, Continental Resources, is the "face" of the Bakken. CLR has 22 rigs in North Dakota and there are reports CLR plans to double that number over the next five (5) years.
The list is not quite accurate.
At least one individual inherited at least a start from his father.
A couple of the men are on the list but have sold their holdings.
Harold Hamm is truly self-made (from all that I know) and he is still deeply involved in the industry. His oil company, Continental Resources, is the "face" of the Bakken. CLR has 22 rigs in North Dakota and there are reports CLR plans to double that number over the next five (5) years.
Wrap-Up: North Dakota Oil, 2010 -- Huge $$$$ All Around
Link here. Regular readers "know" all this. Nothing new.
Snippets:
Seventy-five (75) percent of oil is still trucked from wells in North Dakota; that's how far behind the infrastructure is.
When I get the time and if I remember, I will put the link that reminds folks that analysts expect drilling to continue until 2030 and production to continue through 2100. Okay, I found the time and the link: here's the link.
Snippets:
- Expectation: 20,000 more wells over next 10 - 20 years
- Each well drilled generally requires more than 2,000 trips by heavy trucks carrying equipment, water, sand and other materials, meaning the patch will need more than $900 million for construction and upkeep to county and township roads during the next 20 years
- The state’s oil and gas energy impact fund has been increased, from the present $8 million to $100 million for the coming biennium
- Of the $100 million, $35 million is allotted to oil hub cities Minot, Williston and Dickinson, collectively
- For the first time in history, the budget includes a “special” fund for county and township roads in “oil country,” about $142 million
Seventy-five (75) percent of oil is still trucked from wells in North Dakota; that's how far behind the infrastructure is.
When I get the time and if I remember, I will put the link that reminds folks that analysts expect drilling to continue until 2030 and production to continue through 2100. Okay, I found the time and the link: here's the link.
Thursday, December 30, 2010
Four (4) More New Permits -- North Dakota, USA
Producers: EOG, Zenergy, Hunt.
Fields: Mandaree, Painted Woods, and one wildcat.
EOG will place two wells on one pad (again).
The Mandaree is a good little field inside the reservation. EOG has some great acreage.
Fields: Mandaree, Painted Woods, and one wildcat.
EOG will place two wells on one pad (again).
The Mandaree is a good little field inside the reservation. EOG has some great acreage.
1675: That's The Number of New Permits Issued So Far in 2010 -- North Dakota, USA
My database shows that North Dakota issued 1,675 oil well permits for calendar year 2010 as of December 29, 2010 (my database is subject to error and will be off by five permits, I assume, but it's pretty close). That puts the state on track to issue 1,684 permits for the year.
It will be interesting to see how close my projections have been for the year. Regardless, this compares with less than a 1,000 permits, the previous "best" showing. I think NDIC is projecting about 2,000 permits to be issued in 2011.
It will be interesting to see how close my projections have been for the year. Regardless, this compares with less than a 1,000 permits, the previous "best" showing. I think NDIC is projecting about 2,000 permits to be issued in 2011.
Update on the Lodgepole Formation -- Zastoupil 1-17 Has Spudded -- North Dakota, USA
This is an update on activity in the Lodgepole.
To re-acquaint yourself with the Lodgepole, you may want to re-look at this posting first.
I am now being told that Armstrong has spudded the Zastoupil well that is located on/near the Dickinson golf course. According to the GIS map, it is just outside Dickinson's corporate boundary on the southwest side of town.
Drilling permit 19975 in Stark County. This is a Lodgepole formation well, located in section 17-T139N-R96.
PATTERSON 183 ARMSTRONG OP INC ZASTOUPIL 1-17 SESW 17-139N-96W STK 19975 12/26/2010
(Note: the GIS map shows permit 13817 just 1500 feet to the northwest of permit 19975. Permit 13817 was cancelled. That, in and of itself, is very interesting. Remember, these are vertical wells, and the Lodgepole has been very difficult to hit. Perhaps with new technology, or with new understanding of the Lodgepole the driller had a reason to move the well 1500 feet to the southeast.)
For me, the results of this well will be huge. Everyone knows the Lodgepole can be an exciting formation; the problem has been "hitting" it. If the code is cracked and the Lodgepole can be hit consistently, it will be a game changer. Lodgepole wells are conventional wells; they don't required fracking. Lodgepole reefs may be found throughout the Williston Basin, not just in the Dickinson area (Stark County).
To re-acquaint yourself with the Lodgepole, you may want to re-look at this posting first.
I am now being told that Armstrong has spudded the Zastoupil well that is located on/near the Dickinson golf course. According to the GIS map, it is just outside Dickinson's corporate boundary on the southwest side of town.
Drilling permit 19975 in Stark County. This is a Lodgepole formation well, located in section 17-T139N-R96.
PATTERSON 183 ARMSTRONG OP INC ZASTOUPIL 1-17 SESW 17-139N-96W STK 19975 12/26/2010
(Note: the GIS map shows permit 13817 just 1500 feet to the northwest of permit 19975. Permit 13817 was cancelled. That, in and of itself, is very interesting. Remember, these are vertical wells, and the Lodgepole has been very difficult to hit. Perhaps with new technology, or with new understanding of the Lodgepole the driller had a reason to move the well 1500 feet to the southeast.)
For me, the results of this well will be huge. Everyone knows the Lodgepole can be an exciting formation; the problem has been "hitting" it. If the code is cracked and the Lodgepole can be hit consistently, it will be a game changer. Lodgepole wells are conventional wells; they don't required fracking. Lodgepole reefs may be found throughout the Williston Basin, not just in the Dickinson area (Stark County).
A Look At Bull Butte -- Up to Nine Wells on One 1280-Acre Spacing Unit -- Bakken, North Dakota, USA
With all the news coming out of the Bakken, it's hard to keep track of some of the more interesting bits of trivia. Looking for something else, I happened to be reminded of this, case 13400 on the NDIC hearing docket back in September, 2010, in which Hess requested a permit for up to nine wells on one 1280-acre spacing unit.
Big Butte,Mountrail County.
Big Butte,Mountrail County.
A Re-Look at Squaw Creek -- Multiple Wells on One 320-Acre Unit -- Bakken, North Dakota, USA
Some folks may have noticed another EOG permit in Squaw Creek this past week:
20238, Zenergy, Dakota-3 Spotted Horn 26-35H, 26-149-94.
For those of you who might have missed it, you may want to look at Squaw Creek again.
EOG, in the September hearing dockets, requested multiple wells on 320-acre spacing in Squaw Creek. This was case 13277: note -- this was not wells on multiple 320-acre spacing units, but rather multiple horizontal wells on a single 320-acre spacing unit.
Just saying.
20238, Zenergy, Dakota-3 Spotted Horn 26-35H, 26-149-94.
For those of you who might have missed it, you may want to look at Squaw Creek again.
EOG, in the September hearing dockets, requested multiple wells on 320-acre spacing in Squaw Creek. This was case 13277: note -- this was not wells on multiple 320-acre spacing units, but rather multiple horizontal wells on a single 320-acre spacing unit.
Just saying.
Chance of Rain During Rose Bowl Game Increases Slightly -- Not a Bakken Story
Some readers from the Midwest and the Northeast mentioned they will be flying into southern California for this weekend's Rose Bowl game. "We" are in between storms out here. Weather should be dry but cool for the parade. Original forecasts suggested warmer weather in the afternoon, but now "they" are talking about increasing chance of light rain during the game.
Recommendations: layered clothing, light ponchos, umbrellas.
Recommendations: layered clothing, light ponchos, umbrellas.
Wednesday, December 29, 2010
Eight (8) New Permits -- North Dakota, USA
Producers:OXY (2), Zenergy (2), Sequel, True, CLR, and EOG.
Fields: Dimond, Heart Butte, Squaw Creek, Rider, Red Wing Creek, St Demetrius, and Parshall.
OXY is wasting no time; four permits since closing the deal on Bakken acreage just weeks ago.
Slawson, with another nice well, reported earlier today.
Fields: Dimond, Heart Butte, Squaw Creek, Rider, Red Wing Creek, St Demetrius, and Parshall.
OXY is wasting no time; four permits since closing the deal on Bakken acreage just weeks ago.
Slawson, with another nice well, reported earlier today.
Investopedia: EOG
Link here.
EOG has reached its strategic goal to focus on oil rather than natural gas.
This author, like me, offered no reason why Newfield and EOG terminated plans to buy/sell assets in the Marcellus. I commented on the transaction which provided as good a rationale as any.
EOG has reached its strategic goal to focus on oil rather than natural gas.
This author, like me, offered no reason why Newfield and EOG terminated plans to buy/sell assets in the Marcellus. I commented on the transaction which provided as good a rationale as any.
La Dolce Vita -- Not a Bakken Story
Link here.
The link will take you to a sentimental, personal reminisce. Nothing about oil. Nothing about anything, except idle rambling.
The link will take you to a sentimental, personal reminisce. Nothing about oil. Nothing about anything, except idle rambling.
Fargo's "Snow Bash" Canceled: Too Much Snow -- North Dakota, USA
I can't make this stuff up.
Al Gore had to cancel plans to attend Fargo's annual New Year's Eve "Snow Bash."
Photograph of Fargo:
Maybe the mayor will send Mr Gore a signed photograph.
Al Gore had to cancel plans to attend Fargo's annual New Year's Eve "Snow Bash."
Photograph of Fargo:
Maybe the mayor will send Mr Gore a signed photograph.
Applebee's in the Heart of the Bakken: #2
The Applebee's restaurant in Williston is the second busiest Applebee's restaurant in its region which includes North Dakota, Minnesota, Arizona, and California. Yup, second busiest in a region that includes California.
The busiest Applebee's in the four-state region? Minot. Okay.
The busiest Applebee's in the four-state region? Minot. Okay.
Bloomberg: Oil Poised to Rally to $97
Link here.
Based on technical factors. If I understand the analysis correctly, it is based simply on "reading the charts." It would not matter what the commodity was. Based on the chart and based on futures, the analysts "see" a $97 price.
What makes this particularly interesting is the fact that speculators (including the one billion speculators in China who all want to drive automobiles) see two things: a) the technical analysis; and, b) the fact that the current administration as stopped all off-shore drilling around the US. That's a bit of hyperbole, but not much.
Back in January, 2010 -- that's about a year ago.
A year later, December, 2010 -- still predicting $100/bbl.
$1000 gold. $100 oil. 10% unemployment.
(Yeah, I know: gold is closer to $1500 than a thousand, but the 1000-100-10 grabs my eye.)
Speaking of "grabbing my eye": I saw "True Grit," the new Coen brothers movie last night for the second time. Talk about a great movie.
I came home, and started reading a new book, Women Writing About Men, by Jane Miller, c. 1986. It's a "feminist" book, probably one that was in vogue back then. I don't care for her writing style, but after reading the first chapter (or was it the introduction?) I had an epiphany with regard to the movie "True Grit." As Harold Bloom would say, I think folks, including critics, have been misreading "True Grit." It may be even better than folks realize. And that's why the Coen brothers are geniuses.
Based on technical factors. If I understand the analysis correctly, it is based simply on "reading the charts." It would not matter what the commodity was. Based on the chart and based on futures, the analysts "see" a $97 price.
What makes this particularly interesting is the fact that speculators (including the one billion speculators in China who all want to drive automobiles) see two things: a) the technical analysis; and, b) the fact that the current administration as stopped all off-shore drilling around the US. That's a bit of hyperbole, but not much.
Back in January, 2010 -- that's about a year ago.
A year later, December, 2010 -- still predicting $100/bbl.
$1000 gold. $100 oil. 10% unemployment.
(Yeah, I know: gold is closer to $1500 than a thousand, but the 1000-100-10 grabs my eye.)
Speaking of "grabbing my eye": I saw "True Grit," the new Coen brothers movie last night for the second time. Talk about a great movie.
I came home, and started reading a new book, Women Writing About Men, by Jane Miller, c. 1986. It's a "feminist" book, probably one that was in vogue back then. I don't care for her writing style, but after reading the first chapter (or was it the introduction?) I had an epiphany with regard to the movie "True Grit." As Harold Bloom would say, I think folks, including critics, have been misreading "True Grit." It may be even better than folks realize. And that's why the Coen brothers are geniuses.
Is the Weather Affecting Operations in North Dakota?
I opined a week or so ago that production targets will be missed this last calendar quarter due to the December snow storm. (Here's the link.)
But this is all one needs to know. Oil is at a two-year high ($91/bbl) and the number of active rigs in North Dakota has plummeted from a high of 166 a week or so ago to 156 today.
Just saying.
Could be a buying opportunity when earnings reports come out.
But this is all one needs to know. Oil is at a two-year high ($91/bbl) and the number of active rigs in North Dakota has plummeted from a high of 166 a week or so ago to 156 today.
Just saying.
Could be a buying opportunity when earnings reports come out.
Update on Monster Well: the USA 2D-3-1H
A reader sent me the NDIC production history for this well, which I have on my "monster well" page.
This well began production in October, 2006. Now, exactly four years later (October 2010), the cumulative oil production for this well is 1,064,957 barrels. At $50/bbl, that's $50 million at the well head.
The well has shown minimal decline rate and is currently down to 13,000 bbls/month. At $75/bbl, that's $12 million/year. The well has been paid for. If it's on a pump (and I don't know that it is), it costs a few pennies a day to run the pump, and if there's a pipeline to the well now, there's minimal trucking costs. But even if the oil is still trucked out, it's a heck of a well.
And that's why oilmen keep drilling: hoping for the big one.
The nice thing about the Bakken / Three Fork Sanish: there is seldom a dry hole, so even the less productive wells eventually pay for themselves and provide cash flow in the meantime. Can you imagine what it would be like if three out of ten wells were dry?
This well began production in October, 2006. Now, exactly four years later (October 2010), the cumulative oil production for this well is 1,064,957 barrels. At $50/bbl, that's $50 million at the well head.
The well has shown minimal decline rate and is currently down to 13,000 bbls/month. At $75/bbl, that's $12 million/year. The well has been paid for. If it's on a pump (and I don't know that it is), it costs a few pennies a day to run the pump, and if there's a pipeline to the well now, there's minimal trucking costs. But even if the oil is still trucked out, it's a heck of a well.
And that's why oilmen keep drilling: hoping for the big one.
The nice thing about the Bakken / Three Fork Sanish: there is seldom a dry hole, so even the less productive wells eventually pay for themselves and provide cash flow in the meantime. Can you imagine what it would be like if three out of ten wells were dry?
Twelve (12) New Permits Past Two Days -- North Dakota, USA
It looks like "we" will finish out the year with a flourish: twelve new permits the past two days.
Producers: Slawson (2), Samson (2), MRO, SM, Murex, Tracker, Zenergy, Helis, Whiting, and Continental.
Fields: Ambrose, Bailey, Poe, West Bank, Glass Bluff, Lake Trenton, Grail, Sanish, Big Bend, and Jim Creek.
The two Samson Resources wells will be on the same pad in Ambrose field.
The two Slawson wells will be on the same pad in Big Bend (wanna bet NOG will have working interests in these wells?).
NOTE: Much of the following has been previously reported on this blog.
MRO reported out a nice Weninger (19064) well with an IP of 807, and a Benz well with an IP of 786. SM reported three wells: 516, 494, and 273. In addition, yesterday SM reported the Lee well (18957), 1,719, in McKenzie County.
But it was Whiting with a couple of nice wells: Froehlich (18833), 1,832, and Kubas (18837), 1,780, both TFH wells and both in Stark County. Remember, Whiting has announced a flurry of activity in Stark County to include a new industrial park north of Belfield.
Whiting also announced the Dishman (18947), 2,595, in the Sanish.
Producers: Slawson (2), Samson (2), MRO, SM, Murex, Tracker, Zenergy, Helis, Whiting, and Continental.
Fields: Ambrose, Bailey, Poe, West Bank, Glass Bluff, Lake Trenton, Grail, Sanish, Big Bend, and Jim Creek.
The two Samson Resources wells will be on the same pad in Ambrose field.
The two Slawson wells will be on the same pad in Big Bend (wanna bet NOG will have working interests in these wells?).
NOTE: Much of the following has been previously reported on this blog.
MRO reported out a nice Weninger (19064) well with an IP of 807, and a Benz well with an IP of 786. SM reported three wells: 516, 494, and 273. In addition, yesterday SM reported the Lee well (18957), 1,719, in McKenzie County.
But it was Whiting with a couple of nice wells: Froehlich (18833), 1,832, and Kubas (18837), 1,780, both TFH wells and both in Stark County. Remember, Whiting has announced a flurry of activity in Stark County to include a new industrial park north of Belfield.
Whiting also announced the Dishman (18947), 2,595, in the Sanish.
Tuesday, December 28, 2010
Little Old Lady From Pasadena -- Nothing To Do With The Bakken
For the folks coming down to Pasadena this weekend for the Tournament of Roses Parade and the Rose Bowl. (No, Betty White is not the "little old lady from Pasadena" but something tells me that's something we may see in the next year or so. Smile.)
(Sorry about the size of the picture; I will look for better imbed later.)
Little Old Lady From Pasadena, Jan and Dean
(Sorry about the size of the picture; I will look for better imbed later.)
Week 51: December 20 - December 26, 2010
There's No Bakken Without Hydraulic Frackin' -- Lynn Helm's Upbeat Report
EOG Not Hitting On All Cylinders
SM Outlook For North Dakota
Tyler Formation: It Hasn't Been Forgotten
Three Bakken Plays (For Investors) -- A Flashback
Bakken Breakout in 2011 -- Bismarck Tribune Special Edition
Icahn Doubles Down on Chesapeake -- Not a Bakken Story
A Nice EOG Well -- on 320-Acre Spacing
Williams (WMB) Completes Bakken Purchase (7 Percent of the Reservation)
December, 2010, Snowstorm Will Impact Production Targets
The Lodgepole -- Something to Watch
A Renville County Well to Watch
Hess Closes Bakken Deal -- Adds 85,000 Acres
NDIC Hearing Dockets, January, 2010
Thoughts on Takeaway Capacity
ND Budget: $100 Oil, 425,000 Bbls/Day
State Lease Sales -- North Dakota
EOG Not Hitting On All Cylinders
SM Outlook For North Dakota
Tyler Formation: It Hasn't Been Forgotten
Three Bakken Plays (For Investors) -- A Flashback
Bakken Breakout in 2011 -- Bismarck Tribune Special Edition
Icahn Doubles Down on Chesapeake -- Not a Bakken Story
A Nice EOG Well -- on 320-Acre Spacing
Williams (WMB) Completes Bakken Purchase (7 Percent of the Reservation)
December, 2010, Snowstorm Will Impact Production Targets
The Lodgepole -- Something to Watch
A Renville County Well to Watch
Hess Closes Bakken Deal -- Adds 85,000 Acres
NDIC Hearing Dockets, January, 2010
Thoughts on Takeaway Capacity
ND Budget: $100 Oil, 425,000 Bbls/Day
State Lease Sales -- North Dakota
Monday, December 27, 2010
Was I The Only One Who Missed This? CLR To Double Number of Rigs Over Next Five Years
CLR has 22 rigs in North Dakota.
Minot Daily Press is reporting that the CLR/CEO has said he plans to double that number of rigs in North Dakota over the next five years.
2 x 22 = 44.
Okay.
44 x $7 million/well x one well/month = $308 million/month in drilling costs. That is a lot of investment in North Dakota; and, that's just one company, albeit the one with the most rigs. Someone correct me if my math is wrong. (The most recent CLR presentation, December, 2010, shows a Bakken well to cost $6.5 million to complete.) However, not all CLR wells are Bakken wells, and it may cost more or less to complete wells targeting other formations.
[Update: in the original post, I used $5 million as my figure for drilling a well. Someone commented (see below) that a better figure to use was $7 million, so I changed my note above, as it is now. It should be noted that GEOI just completed a well for $5.6 million. -- January 17, 2011.]
Minot Daily Press is reporting that the CLR/CEO has said he plans to double that number of rigs in North Dakota over the next five years.
2 x 22 = 44.
Okay.
44 x $7 million/well x one well/month = $308 million/month in drilling costs. That is a lot of investment in North Dakota; and, that's just one company, albeit the one with the most rigs. Someone correct me if my math is wrong. (The most recent CLR presentation, December, 2010, shows a Bakken well to cost $6.5 million to complete.) However, not all CLR wells are Bakken wells, and it may cost more or less to complete wells targeting other formations.
[Update: in the original post, I used $5 million as my figure for drilling a well. Someone commented (see below) that a better figure to use was $7 million, so I changed my note above, as it is now. It should be noted that GEOI just completed a well for $5.6 million. -- January 17, 2011.]
Several Nice Wells Reported Out Today
A big thank you to Karen:
Look at that nice Whiting well in Zenith oil field. This is an important well; it's in the southwest part of North Dakota where the Bakken thins out and the Three Forks Sanish extends (or "pinches out" as others have said).
Meanwhile, some lackluster Hess wells based on IPs; disappointing because the Alger field is a "good" field, historically:
- 16327, 786, MRO, Benz 14-21H, Bailey, Bakken
- 18957, 1,719, SM, Lee 13-8H, Camp, Bakken
- 18947, 2,595, WLL, Dishman 13-19H, Sanish, Bakken (previously reported)
- 18837, 1,780, WLL, Kubas 11-13TFH, Wildcat, Bakken
- 18833, 1,832, WLL, Froehlich 44-8TFH, Zenith, Bakken
Look at that nice Whiting well in Zenith oil field. This is an important well; it's in the southwest part of North Dakota where the Bakken thins out and the Three Forks Sanish extends (or "pinches out" as others have said).
Meanwhile, some lackluster Hess wells based on IPs; disappointing because the Alger field is a "good" field, historically:
- 18674, 436, Hess, EN-Rehak-155-93-0718H-1, Alger, Bakken
- 18945, 112, Hess, AV-Hansen-163-94-1918H-1, Forthun, Bakken
Associated Press: North Dakota's Top Story of the Year -- Oil.
Duh.
I might have thought the number one story would be that Senator Byron Dorgan did not run for re-election. After all, he voted for the biggest legislative success at the federal level in 2010.
I might have thought the number one story would be that Senator Byron Dorgan did not run for re-election. After all, he voted for the biggest legislative success at the federal level in 2010.
For Investors Only: MRO (Marathon) and a Mention of the Bakken
Link here.
I have bought and sold and bought and sold Marathon over the years (unusual for me because I am pretty much a buy and accumulate sort of trader) and I think I still have some MRO tax losses that I am carrying forward. Just joking. But I don't recall making money on MRO.
At the time I originally got interested in MRO I did not realize that about 50 percent of the company was involved in refining; I always thought of MRO as strictly E&P -- wow, was I wrong. Nothing like investing a few dollars to learn more about a company. Smile.
I have bought and sold and bought and sold Marathon over the years (unusual for me because I am pretty much a buy and accumulate sort of trader) and I think I still have some MRO tax losses that I am carrying forward. Just joking. But I don't recall making money on MRO.
At the time I originally got interested in MRO I did not realize that about 50 percent of the company was involved in refining; I always thought of MRO as strictly E&P -- wow, was I wrong. Nothing like investing a few dollars to learn more about a company. Smile.
Week 50: December 13 -- December 19, 2010
More Than Enough Water for Fracking: Water for 10,000 Wells/Year Set Aside by US Army Corps of Engineers
Oasis Robust Guidance for 2011
Several Bullish Articles on Price of Oil Going Forward
Earthstone in the Bakken: New Name for Basic Earth Science System
Dunn County: 250 - 400 New Wells/Year for Next 3 - 5 Years
Three Peak Grasslands Wells Now Operated by KOG
Four OXY Permits in North Dakota
Huge Beef Plant in the Works for North Dakota
Oasis Exuberance in the Bakken
BEXP Reports Five High Rate Bakken Completions
Oasis Robust Guidance for 2011
Several Bullish Articles on Price of Oil Going Forward
Earthstone in the Bakken: New Name for Basic Earth Science System
Dunn County: 250 - 400 New Wells/Year for Next 3 - 5 Years
Three Peak Grasslands Wells Now Operated by KOG
Four OXY Permits in North Dakota
Huge Beef Plant in the Works for North Dakota
Oasis Exuberance in the Bakken
BEXP Reports Five High Rate Bakken Completions
Brazil Has Record Employment -- Not a Bakken Story
Here's another example of a country that has its act together, at least when putting its folks to work.
If I had the interest or the time, I might find it interesting to compare what Brazil is doing in the energy field compared to what the US is doing. It might be enlightening.
I could be wrong, but with the advantages America has compared to Brazil, I find it remarkable that Brazil can exceed during a global recession.
If I had the interest or the time, I might find it interesting to compare what Brazil is doing in the energy field compared to what the US is doing. It might be enlightening.
I could be wrong, but with the advantages America has compared to Brazil, I find it remarkable that Brazil can exceed during a global recession.
200 Rigs, 2000 Wells, in 2011
Update
On August 26, 2011, "we" hit 200 active drilling rigs in North Dakota.
Original Post
Folks who thought life in the oil patch was a whirlwind this year, should hang onto their hats.
What’s forecast will be gale-force winds by comparison.
Lynn Helms, director of the Department of Mineral Resources, said he expects 2,000 new Bakken-Three Forks wells will be drilled in 2011.
That number will more than double the new wells drilled this year and is the same as the number of all Bakken wells ever drilled.
“It’s going to be big, bigger than anything we've had yet,” said Helms.
He says that with some confidence because he’s got 870 well permits ready to go for next year and another 10 to 20 permit applications coming in every week.
Sunday, December 26, 2010
Happy Boxing Day -- Not a Bakken Story
Without question, there is nothing that brings a bigger smile on my face than hearing/watching Darlene Love singing her classic:
2010
This is the 2010 performance. Ms Love has celebrated her 72nd birthday.
But among them all, her 2000 version is the best.
This is the 2010 performance. Ms Love has celebrated her 72nd birthday.
But among them all, her 2000 version is the best.
"There Is No Bakken Without Hydraulic Frackin'"
... and those out to destroy the domestic oil industry know it.
Link here.
You don't need a weatherman to watch which way the wind blows:
Bob Dylan covers, Alanis Morissette
Just saying.
Link here.
You don't need a weatherman to watch which way the wind blows:
Just saying.
High School Degrees: Irrelevant?
Twenty percent of American high school graduates cannot pass the US Army entrance examination.
In Minnesota: 14 percent of white-, 20 percent of Hispanic-, and 40 percent of African-American-high school graduates cannot pass the US Army entrance exam.
Link is here.
A couple of comments:
a. If a high school graduate cannot pass the US Army entrance exam, he/she will not survive the "real" world. The Army is one big training program; it provides a drug-free, structured environment; it abounds with educators and mentors. There is minimal competition among recruits; they are trained to survive as team members. The American economy is all about individual competition and survival skills.
b. The report is somewhat skewed. The report is based on data from nearly 350,000 high school grads age 17-20 who took the Army's Armed Services Vocational Aptitude Battery between 2004 and 2009. Generally speaking, it is my feeling that the lower-performing students apply to join the Army as enlisted recruits. So, things are not as bad as the report makes things out to be. When the report says that 40 percent of African-American high school graduates cannot pass the Armed Services test, it is not referring to the African-American student body as a whole, just those African-Americans coming out of high school who have tried to enlist in the Army.
c. It sounds like the problem is not that these students are not proficient enough to meet US Army standards, but the fact that schools have dumb-downed so much that they confer high school degrees on these folks.
d. Maybe it's even worse. Think of all the students that didn't consider the military because they knew they couldn't hack the entrance exams or the other requirements. Wow.
In Minnesota: 14 percent of white-, 20 percent of Hispanic-, and 40 percent of African-American-high school graduates cannot pass the US Army entrance exam.
Link is here.
A couple of comments:
a. If a high school graduate cannot pass the US Army entrance exam, he/she will not survive the "real" world. The Army is one big training program; it provides a drug-free, structured environment; it abounds with educators and mentors. There is minimal competition among recruits; they are trained to survive as team members. The American economy is all about individual competition and survival skills.
b. The report is somewhat skewed. The report is based on data from nearly 350,000 high school grads age 17-20 who took the Army's Armed Services Vocational Aptitude Battery between 2004 and 2009. Generally speaking, it is my feeling that the lower-performing students apply to join the Army as enlisted recruits. So, things are not as bad as the report makes things out to be. When the report says that 40 percent of African-American high school graduates cannot pass the Armed Services test, it is not referring to the African-American student body as a whole, just those African-Americans coming out of high school who have tried to enlist in the Army.
c. It sounds like the problem is not that these students are not proficient enough to meet US Army standards, but the fact that schools have dumb-downed so much that they confer high school degrees on these folks.
d. Maybe it's even worse. Think of all the students that didn't consider the military because they knew they couldn't hack the entrance exams or the other requirements. Wow.
But We're Gonna Keep Calling It Global Warming -- Not a Bakken Story
A monster winter storm bigger than some Midwest cities have seen in years slogged toward the nation's midsection Monday (January 31, 2011) as the region geared up its defenses...... when it hits the northeast, this will be the third huge snowstorm this year to hit DC, New York, and Boston.
The white Christmas in the South was one for the record books. Columbia, South Carolina, had its first significant Christmas snow since weather records were first kept in 1887. Atlanta, Georgia, had just over an inch of snow—the first measurable accumulation on Christmas Day since the 1880s.
Snow in Phoenix. All we need now is an Al Gore sighting.
NOAA: Coldest December "EVER" in Florida.
Global warming destroys Florida strawberries.
I'm not going to re-print or re-link all the stories about the devastating cold and snowstorms in Europe -- that occurred during the autumn, before the first day of winter -- and the snowstorms that are now hitting the East Coast, just a couple days into winter.
UK (Great Britain): coldest winter in 1,000 years.
Berlin, Germany: most snow in 110 years!
South China hit hard by freezing weather.
It's not surprising that the NY Times continues to fall for this scam; global warming is causing the cold weather. I would love to hear the explanation for the global warming that occurred in 1000 A.D., the time of the Vikings.
And this is pretty incredible: even sea creatures affected by the frigid cold, December 27, 2010.
Old news, but still a hoot:Al Gore Sued by 30.000 Scientists
The white Christmas in the South was one for the record books. Columbia, South Carolina, had its first significant Christmas snow since weather records were first kept in 1887. Atlanta, Georgia, had just over an inch of snow—the first measurable accumulation on Christmas Day since the 1880s.
Snow in Phoenix. All we need now is an Al Gore sighting.
NOAA: Coldest December "EVER" in Florida.
Global warming destroys Florida strawberries.
I'm not going to re-print or re-link all the stories about the devastating cold and snowstorms in Europe -- that occurred during the autumn, before the first day of winter -- and the snowstorms that are now hitting the East Coast, just a couple days into winter.
UK (Great Britain): coldest winter in 1,000 years.
Berlin, Germany: most snow in 110 years!
South China hit hard by freezing weather.
It's not surprising that the NY Times continues to fall for this scam; global warming is causing the cold weather. I would love to hear the explanation for the global warming that occurred in 1000 A.D., the time of the Vikings.
About 900 AD until about 1350 AD there was a warming trend that caused the seas to rapidly rise displacing people; including the Vikings who then invaded England. The Norse records indicate that They were able to grow vineyards in Iceland, Labrador, Newfoundland. For hundreds of years the world temps were much warmer than today. As suddenly as the world had warmed, in 10 years it cooled off again sending Earth into a mini ice age with the 1700's the coldest in 1000 years. it even snowed in New England in June 1814! All of a sudden about 1880, the climate suddenly started getting much warmer and has been increasing in the last century. The world has warmed almost 2 degrees since the 19th century. The world would have to warm up ANOTHER 12 degrees to reach the temps of the 6th to the 13th centuries.An occasional glimmer of common sense, however, exists. Thank goodness for the internet. Without it, we would only hear ABC, CBS, and NBC's version.
And this is pretty incredible: even sea creatures affected by the frigid cold, December 27, 2010.
Old news, but still a hoot:
Saturday, December 25, 2010
Christmas Day: Out-Of-State Workers in the Oil Patch
Nice human interest story about the out-of-state workers in the oil patch, in the Bismarck Tribune on Christmas Day.
Re-Financing in the State of Fruits and Nuts -- This is NOT a Bakken Story
First some data points / background (some of the data points are direct quotes from today's story in the LA Times):
The ports of Los Angeles and Long Beach (two separate ports located right next to each other) are the busiest container ports in the United States. The ports handle almost twenty (20) percent of the nation's Asian imports. The ports are now the nation's busiest gateway for international trade in part because of something called the Alameda Corridor.
The Alameda Corridor takes freight trains from the Los Angeles - Long Beach Ports to connect with transcontinental rails: The $2.4-billion Alameda Corridor enables freight trains to travel from the ports to the transcontinental yards near downtown Los Angeles in 30 minutes, down from four hours on the meandering track they previously used.
The ports of Los Angeles and Long Beach are celebrating one of their biggest one-year increases in trade in the last 25 years. That means it's also a good year for the Alameda Corridor, a 20-mile express route built to speed the flow of cargo from the ports to the region's railroad hub and on to retail shelves across the U.S.
Moody's has cut Alameda Corridor's debt rating despite a very, very strong year due to heavy debt load that needs refinancing. This puts the corridor in a bind: Its bonds were downgraded in part because it hadn't yet refinanced its debt, and now refinancing is complicated by the downgrade.
The Corridor has several places to obtain new financing, but the Corridor authority's governing board had hoped to refinance its debt by the end of the year through a Federal Rail Administration loan. But on Dec. 14, federal officials said a decision had been postponed pending "further discussions ... concerning the terms of the proposed loan."
Comment:
Okay, this is the same government / administration that just called in twenty CEOs to discuss ways of putting folks back to work and to chastise American corporations for not putting their huge piles of cash to work. This is the same government that has bailed out the banks on Wall Street, General Motors, and state pension plans across the country.
And now, when offered an opportunity to re-finance one of the most important transportation hubs in the US, it balks, it delays, it ... And it's not a bailout. The government will be getting a great return on its money. I am flabbergasted this has even become a story. It was the lead story in the business section in today's LA Times. The second story was the huge liability costs for Toyota following recalls and acceleration problems in their coal-powered cars.
Anyway, I find this incredible. The refinancing is not simply to refinance debt for a better rate, but the money will go toward major improvements in the corridor, making the Corridor better and putting more people to work. It might help if "they" said this was a "green energy" project. It might help to bring in Steven Spielberg to re-brand the corridor.
I can't make this stuff up.
The ports of Los Angeles and Long Beach (two separate ports located right next to each other) are the busiest container ports in the United States. The ports handle almost twenty (20) percent of the nation's Asian imports. The ports are now the nation's busiest gateway for international trade in part because of something called the Alameda Corridor.
The Alameda Corridor takes freight trains from the Los Angeles - Long Beach Ports to connect with transcontinental rails: The $2.4-billion Alameda Corridor enables freight trains to travel from the ports to the transcontinental yards near downtown Los Angeles in 30 minutes, down from four hours on the meandering track they previously used.
The ports of Los Angeles and Long Beach are celebrating one of their biggest one-year increases in trade in the last 25 years. That means it's also a good year for the Alameda Corridor, a 20-mile express route built to speed the flow of cargo from the ports to the region's railroad hub and on to retail shelves across the U.S.
Moody's has cut Alameda Corridor's debt rating despite a very, very strong year due to heavy debt load that needs refinancing. This puts the corridor in a bind: Its bonds were downgraded in part because it hadn't yet refinanced its debt, and now refinancing is complicated by the downgrade.
The Corridor has several places to obtain new financing, but the Corridor authority's governing board had hoped to refinance its debt by the end of the year through a Federal Rail Administration loan. But on Dec. 14, federal officials said a decision had been postponed pending "further discussions ... concerning the terms of the proposed loan."
Comment:
Okay, this is the same government / administration that just called in twenty CEOs to discuss ways of putting folks back to work and to chastise American corporations for not putting their huge piles of cash to work. This is the same government that has bailed out the banks on Wall Street, General Motors, and state pension plans across the country.
And now, when offered an opportunity to re-finance one of the most important transportation hubs in the US, it balks, it delays, it ... And it's not a bailout. The government will be getting a great return on its money. I am flabbergasted this has even become a story. It was the lead story in the business section in today's LA Times. The second story was the huge liability costs for Toyota following recalls and acceleration problems in their coal-powered cars.
Anyway, I find this incredible. The refinancing is not simply to refinance debt for a better rate, but the money will go toward major improvements in the corridor, making the Corridor better and putting more people to work. It might help if "they" said this was a "green energy" project. It might help to bring in Steven Spielberg to re-brand the corridor.
I can't make this stuff up.
EOG: Not Hitting On All Cylinders
Link here.
But I would never bet against them; could be a great investment opportunity.
So, Merry Christmas to all.
Rambling.
I love it when Christmas falls on a Saturday.
Thursday, one last push, visiting stores, family, restaurant overlooking the Pacific.
Friday, a great movie, "True Grit," and here in south Los Angeles, $5/ticket for seniors in brand new theater. Wife made duck for Christmas Eve dinner; annual tradition. Opened some gifts last night; more this a.m. I got lots of new socks and V-neck t-shirts.
This a.m., in bed watching Chicago parade; opening gifts (socks, t-shirts) in bed; surfing the net on the iPad; taking and making phone calls to family. Missed a phone call from area code "496" which doesn't exist in the US. Russia as a "496" area code.
Family for dinner this afternoon.
And then, we still have one more day. Boxing Day tomorrow.
And then, it starts all over again, this next weekend -- New Year's Eve and Day.
We are very fortunate. What a great country. Oh, did I mention? Lots of socks and V-neck t-shirts.
And never a day without thoughts and prayers for the men and women in Iraq and Afghanistan, missing another Christmas with their families, most on one-year deployments, and many on their second or third tours of same.
But I would never bet against them; could be a great investment opportunity.
So, Merry Christmas to all.
Rambling.
I love it when Christmas falls on a Saturday.
Thursday, one last push, visiting stores, family, restaurant overlooking the Pacific.
Friday, a great movie, "True Grit," and here in south Los Angeles, $5/ticket for seniors in brand new theater. Wife made duck for Christmas Eve dinner; annual tradition. Opened some gifts last night; more this a.m. I got lots of new socks and V-neck t-shirts.
This a.m., in bed watching Chicago parade; opening gifts (socks, t-shirts) in bed; surfing the net on the iPad; taking and making phone calls to family. Missed a phone call from area code "496" which doesn't exist in the US. Russia as a "496" area code.
Family for dinner this afternoon.
And then, we still have one more day. Boxing Day tomorrow.
And then, it starts all over again, this next weekend -- New Year's Eve and Day.
We are very fortunate. What a great country. Oh, did I mention? Lots of socks and V-neck t-shirts.
And never a day without thoughts and prayers for the men and women in Iraq and Afghanistan, missing another Christmas with their families, most on one-year deployments, and many on their second or third tours of same.
Largest FedEx Feeder Operation in the US: Grand Forks, ND -- Not a Bakken Story
Another great North Dakota human interest story.
It is incredible what the free market system can develop.
By the way, I have become very impressed with the US Postal Service over the years, also. I don't think I've ever lost a package or a letter, and the smoothness in forwarding mail for up to six months while I'm traveling is awesome.
It is incredible what the free market system can develop.
By the way, I have become very impressed with the US Postal Service over the years, also. I don't think I've ever lost a package or a letter, and the smoothness in forwarding mail for up to six months while I'm traveling is awesome.
Friday, December 24, 2010
California Rebate For Coal-Powered Cars May Not Be Adequately Funded -- Not a Bakken Story
From the LA Times, December 24, 2010, page B1:
California consumers counting on a $5,000 state rebate for purchasing a coal-powered car may be in for a shock: the money may not be there when they go to collect.
The state has only $8 million left to pay for rebates for coal-powered cars. That's enough to pay out incentives to about 1,600 buyers, but that is well below the expected pace of sales for vehicles such as the Nissan Leaf, which is just now hitting the market. The funds are not expected to last past mid-2011, and the state of California's budget means that the state is unlikely to provide more funding.
According to the Nissan website, the Leaf has a manufacturer's recommended sales price of $32,780 which may qualify for a federal credit anywhere from $0 to $7,500, and as noted above, a California rebate of up to $5,000.
By the way, a Californian will pay state sales tax based on the price of the car before the rebate or credit. The LA Times estimates that to be about $1,200 in sales tax, due at time of sales, whereas one won't see the tax credit until they file their taxes, in some cases, almost a year later.
California consumers counting on a $5,000 state rebate for purchasing a coal-powered car may be in for a shock: the money may not be there when they go to collect.
The state has only $8 million left to pay for rebates for coal-powered cars. That's enough to pay out incentives to about 1,600 buyers, but that is well below the expected pace of sales for vehicles such as the Nissan Leaf, which is just now hitting the market. The funds are not expected to last past mid-2011, and the state of California's budget means that the state is unlikely to provide more funding.
According to the Nissan website, the Leaf has a manufacturer's recommended sales price of $32,780 which may qualify for a federal credit anywhere from $0 to $7,500, and as noted above, a California rebate of up to $5,000.
By the way, a Californian will pay state sales tax based on the price of the car before the rebate or credit. The LA Times estimates that to be about $1,200 in sales tax, due at time of sales, whereas one won't see the tax credit until they file their taxes, in some cases, almost a year later.
EPA To Take Over Greenhouse Gas Permits in Texas -- Not a Bakken Story
Merry Christmas! From the LA Times, dated December 24, 2010, page AA2:
(Since North Dakota was not mentioned in the article, it sounds like North Dakota will comply with the EPA's mandate.)
The Environmental Protection Agency announced Thursday (yesterday) that it was taking the unprecedented step of directly issuing air permits to Texas industries, citing the state's unwillingness to comply with greenhouse gas regulations that take effect January 2, 2011.Sounds like a face-off.
EPA officials indicated that they were taking over Clean Air Act permits for greenhouse gas emissions because "officials in Texas have made clear ... they have no intention of implementing this portion of the federal air-permitting program."
Comment: Even before the regulation goes into effect, the federal government takes a preemptive shot across the bow. The story goes on to say that the EPA plans to issue greenhouse gas permits in Arizona, Arkansas, Florida, Idaho, Kansas, Oregon and Wyoming. But those states have indicated they were revising their permitting process to comply with greenhouse gas emission regulations.
(Since North Dakota was not mentioned in the article, it sounds like North Dakota will comply with the EPA's mandate.)
Merry Christmas -- Sort Of --
To My Politically-Correct Friends:
Please accept with no obligation, implied or explicit, my best wishes for an environmentally conscious, socially responsible, low-stress, non-addictive, gender-neutral celebration of the winter solstice holiday, practiced within the most enjoyable traditions of the religious persuasion of your choice, or secular practices of your choice, with respect for the religious/secular persuasion and/or traditions of others, or their choice not to practice religious or secular traditions at all. I also wish you a fiscally successful, personally fulfilling and medically uncomplicated recognition of the onset of the generally accepted calendar year 2011 but not without due respect for the calendars of choice of other cultures whose contributions to society have helped make America great. Not to imply that America is necessarily greater than any other country nor the only America in the Western Hemisphere. Also, this wish is made without regard to the race, creed, color, age, physical ability, religious faith or sexual preference of the wishee.
To All My Other Friends:
Merry Christmas and a Happy New Year!
(This was not original; it is a "cut and paste" from a note I was sent, modified slightly so as not to insult anyone, which it still might do. If it does, I apologize.)
Please accept with no obligation, implied or explicit, my best wishes for an environmentally conscious, socially responsible, low-stress, non-addictive, gender-neutral celebration of the winter solstice holiday, practiced within the most enjoyable traditions of the religious persuasion of your choice, or secular practices of your choice, with respect for the religious/secular persuasion and/or traditions of others, or their choice not to practice religious or secular traditions at all. I also wish you a fiscally successful, personally fulfilling and medically uncomplicated recognition of the onset of the generally accepted calendar year 2011 but not without due respect for the calendars of choice of other cultures whose contributions to society have helped make America great. Not to imply that America is necessarily greater than any other country nor the only America in the Western Hemisphere. Also, this wish is made without regard to the race, creed, color, age, physical ability, religious faith or sexual preference of the wishee.
To All My Other Friends:
Merry Christmas and a Happy New Year!
(This was not original; it is a "cut and paste" from a note I was sent, modified slightly so as not to insult anyone, which it still might do. If it does, I apologize.)
China's Oil Demand Hits Record in November
Link here.
Meanwhile, the moratoria continue on drilling around the US, and weather is going to adversely affect Bakken production in December.
OPEC target: $100 oil.
Reiterated, OPEC target: $100 oil.
Meanwhile, the moratoria continue on drilling around the US, and weather is going to adversely affect Bakken production in December.
OPEC target: $100 oil.
Reiterated, OPEC target: $100 oil.
Thursday, December 23, 2010
Two (2) New Permits -- North Dakota, USA
Producer: Tracker.
Field: Both Tracker wells on one pad in Banks oil field.
Same daily activity report broke out results of a CLR Eco-Pad: four producing wells averaging about 750 bbls IP (3,000 bbls/day from one pad; two 1,280-acre spacing units).
Field: Both Tracker wells on one pad in Banks oil field.
Same daily activity report broke out results of a CLR Eco-Pad: four producing wells averaging about 750 bbls IP (3,000 bbls/day from one pad; two 1,280-acre spacing units).
SM Outlook for 2011
Link here.
- 2011 CAPEX: $840 million for drilling; 60% ($500 million) in Eagle Ford; 20% ($170 million) in the Bakken and Three Forks
- In Eagle Ford, SM's partner is Anadarko Petroleum; 10 rigs in 2011 versus current 7 rigs
- Still has a significant natural gas exposure
Three Bakken Plays -- Flashback
This story was published a month ago but in light of $91 oil, I thought folks might want to take a second look.
I accumulate shares in one of the companies mentioned but none in the others.
Update: actually two companies. I've accumulated shares in one of the companies mentioned for more than 30 years; forgot all about it. Started accumulating well before I even heard of the Bakken.
I accumulate shares in one of the companies mentioned but none in the others.
Update: actually two companies. I've accumulated shares in one of the companies mentioned for more than 30 years; forgot all about it. Started accumulating well before I even heard of the Bakken.
China Will Baiilout the EU -- Not a Bakken Story
This story speaks volumes.
Meanwhile the US will litigate everything and continue to promote the scam that resulted in a "lost decade" for Americans.
There is some good news. The US leads the world in twitters and social networking. That reminds me, I have to check my Facebook site.
Meanwhile the US will litigate everything and continue to promote the scam that resulted in a "lost decade" for Americans.
There is some good news. The US leads the world in twitters and social networking. That reminds me, I have to check my Facebook site.
$91 Oil
Solidly above $91 today.
After a huge run-up this year, it's up almost another dollar today.
Update: it's now up $1.08.
While traveling, I don't have access to CNBC. I assume the talking heads say fundamentals don't support $90 oil and that it's speculators running up the price.
Yup, one billion speculators in China who all want to own cars and guys like Icahn who have just doubled their position in oil and gas.
After a huge run-up this year, it's up almost another dollar today.
Update: it's now up $1.08.
While traveling, I don't have access to CNBC. I assume the talking heads say fundamentals don't support $90 oil and that it's speculators running up the price.
Yup, one billion speculators in China who all want to own cars and guys like Icahn who have just doubled their position in oil and gas.
Bakken Breakout 2011
Special section from Bismarck Tribune.
I said a year ago that 2010 would be a watershed year for the Bakken. It was.
Now 2011 to be a breakout year.
The special edition is incredible. It is simply spectacular on the iPad. Wow, can lay here in my bed and just savor the 48 pages. I love the ads, especiaaly the full-page BNSF ad for shipping oil by rail. Buying BNSF will turn out to be Warren Buffett's best buy ever.
The link is also at the sidebar at the right near the top, in case you forget to bookmark it.
I said a year ago that 2010 would be a watershed year for the Bakken. It was.
Now 2011 to be a breakout year.
The special edition is incredible. It is simply spectacular on the iPad. Wow, can lay here in my bed and just savor the 48 pages. I love the ads, especiaaly the full-page BNSF ad for shipping oil by rail. Buying BNSF will turn out to be Warren Buffett's best buy ever.
The link is also at the sidebar at the right near the top, in case you forget to bookmark it.
Wednesday, December 22, 2010
Icahn Doubles Stake in Chesapeake -- Not a Bakken Story
This may not be a Bakken story, but it speaks volumes. We've already had a pretty good run-up in oil and gas, and now Mr Icahn doubles his position in Chesapeake, considered by most to be primarily a natural gas company.
I can't remember all I've posted over the past year, but I believe I have posted that my hunch is that the "big boys" know something about natural gas that the rest of us may not be seeing.
Or maybe, again, I'm just looking through rose-colored (oil-covered) glasses.
Link is here.
For those interested in news closer to home, this link also mentions NOG in passing.
Another investor bullish on natural gas at SeekingAlpha, December 27, 2010.
I can't remember all I've posted over the past year, but I believe I have posted that my hunch is that the "big boys" know something about natural gas that the rest of us may not be seeing.
Or maybe, again, I'm just looking through rose-colored (oil-covered) glasses.
Link is here.
For those interested in news closer to home, this link also mentions NOG in passing.
Another investor bullish on natural gas at SeekingAlpha, December 27, 2010.
Baker Hughes Could Add Hundreds of Jobs in Oklahoma Over Next Ten Years -- Not a Bakken Story
Link here.
This actually isn't a very important story in the big scheme of things, but it's important to those living in northeastern Oklahoma.
What struck me: this is another example of all the domestic jobs, most of them high-paying with great benefits, that are available in the oil and gas industry. But, as I've noted before, 2000 - 2010 will go down as the "lost decade" when the nation was sidetracked by a scam and lost its focus on energy independence.
I don't hold out much hope for the next few years due to moratoria on drilling off-shore the United States, to include Alaska, and the moratoria on hydraulic fracking in upstate New York.
I see that Jay Leno is now driving a coal-powered hybrid.
This actually isn't a very important story in the big scheme of things, but it's important to those living in northeastern Oklahoma.
What struck me: this is another example of all the domestic jobs, most of them high-paying with great benefits, that are available in the oil and gas industry. But, as I've noted before, 2000 - 2010 will go down as the "lost decade" when the nation was sidetracked by a scam and lost its focus on energy independence.
I don't hold out much hope for the next few years due to moratoria on drilling off-shore the United States, to include Alaska, and the moratoria on hydraulic fracking in upstate New York.
I see that Jay Leno is now driving a coal-powered hybrid.
A Nice EOG Well -- Bakken, North Dakota, USA
Link here.
My database shows that this permit used to belong to "Duncan" with a different well name.
What make this EOG well interesting is that the IP is pretty good for any Bakken well, 754, but it's a very good well when one considers this was on 320-acre spacing, and only 13,000 feet deep. Also, note, after four months, there has been no decline rate in production.
At least that's what I am seeing.
My database shows that this permit used to belong to "Duncan" with a different well name.
What make this EOG well interesting is that the IP is pretty good for any Bakken well, 754, but it's a very good well when one considers this was on 320-acre spacing, and only 13,000 feet deep. Also, note, after four months, there has been no decline rate in production.
At least that's what I am seeing.
Four (4) New Permits / Some Nice Wells -- North Dakota, USA
Producers: EOG (2), Anschutz, and Whiting.
Fields: Kittleson Slough, Sanish, St Anthony, and one wildcat.
Fidelity: 1,658, Kinnoin 24-13H, one of Fidelity's best wells ever in the Bakken. This one was in Mountrail County.
Whiting: two wells -- 1,557 and 2,654; Teddy 44-30TFH and Strobeck 12-1H. The former is in Billings County; the latter is in Mountrail County. I believe these have been reported out earlier in press releases or corporate presentations.
The wildcat is an EOG permit, 20219, a short lateral, Wildrose 1-06H, in Lot 4 6-155N-103W, Williams County. The wildcat is one mile north of the Hebron oil field, and one mile north of another EOG well still on confidential list: 19239, Lebron 1-01H, which is producing. This activity is all west-north-west of Williston, along the Montana border.
Fields: Kittleson Slough, Sanish, St Anthony, and one wildcat.
Fidelity: 1,658, Kinnoin 24-13H, one of Fidelity's best wells ever in the Bakken. This one was in Mountrail County.
Whiting: two wells -- 1,557 and 2,654; Teddy 44-30TFH and Strobeck 12-1H. The former is in Billings County; the latter is in Mountrail County. I believe these have been reported out earlier in press releases or corporate presentations.
The wildcat is an EOG permit, 20219, a short lateral, Wildrose 1-06H, in Lot 4 6-155N-103W, Williams County. The wildcat is one mile north of the Hebron oil field, and one mile north of another EOG well still on confidential list: 19239, Lebron 1-01H, which is producing. This activity is all west-north-west of Williston, along the Montana border.
Newfield / EOG Mutually Agree to End Marcellus Agreement
Link here.
I don't think the sale would have been material to either company, but Newfield investors are probably happy.
The text suggests this was in Pennsylvania and, if so, not related to current moratorium on hydraulic fracking in New York state.
I don't think the sale would have been material to either company, but Newfield investors are probably happy.
The text suggests this was in Pennsylvania and, if so, not related to current moratorium on hydraulic fracking in New York state.
Nice Op-Ed About Texas -- Not a Bakken Story
Here's the link.
I think the "no-income-tax" explanation is a bit over-blown, but there's no question it plays a role.
Interesting observations on immigration. I am pro-immigration but with secure borders. And rule of law.
I think the "no-income-tax" explanation is a bit over-blown, but there's no question it plays a role.
Interesting observations on immigration. I am pro-immigration but with secure borders. And rule of law.
Domestic Crude Supplies Drop
For the second week in a row, domestic crude oil supplies have dropped.
I opined a few weeks after the Gulf moratorium that it would only be a matter of time that effects would be seen.
Note: this is not the driving season, and commercial aircraft are taken out of service between Thanksgiving and Christmas due to less demand. And yet crude oil supplies are down.
Very, very interesting. Despite my comments in second paragraph above, I am still surprised to see the decline now. I thought it would take a bit longer.
I opined a few weeks after the Gulf moratorium that it would only be a matter of time that effects would be seen.
Note: this is not the driving season, and commercial aircraft are taken out of service between Thanksgiving and Christmas due to less demand. And yet crude oil supplies are down.
Very, very interesting. Despite my comments in second paragraph above, I am still surprised to see the decline now. I thought it would take a bit longer.
Tuesday, December 21, 2010
Williams (WMB) Completes Bakken Purchase -- Bakken, North Dakota, USA
Update
June 27, 2011: Dakota-3 LLC is a subsidiary of WMB.
Original Post
Link here.
Reported earlier, but I think this is first time that I saw the seller listed as Dakota-3 LLC.
Maybe it was there the first time, and I just forgot. Yes, here it is, my original posting on this purchase, and at the time, the seller was listed as "private." The acreage represents seven (7) percent of the Fort Berthold Indian Reservation.
Anyway, 85,800 acres and assets for $925 million cash. Assets include three rigs; Williams plans to have six rigs by end of 2012. Acreage alone, that works out to about $11,000/acre -- but of course the assets have to be considered. But $11,000/acre is in the ballpark of $5,000 to $12,000/acre in this part of the Bakken.
Coastal Caribbean has about 8,000 acres in this part of the Bakken and market cap for that company is $3 million. I'm doing this from memory, so I could be wrong. Update: I am wrong; see comments below. An undated Coastal website says it has 8,000 acres in North Dakota (well down from the 25,000 acres it said it had in 2005; in addition, other than saying the acreage is in southwestern North Dakota, I have no additional information where it may be located. If I remember, I will remove this entire paragraph in a few days since it has nothing to do with the Williams acquisition.
(So, the obvious question is: who was backing Dakota-3 LLC to begin with? Williams?)
Four (4) New Permits -- North Dakota, USA
Producers: Oasis, BEXP, SM, XTO
Fields: Bull Butte, Todd, Heart Butte and West Ambrose
Fields: Bull Butte, Todd, Heart Butte and West Ambrose
EU Seeks Answers On Snow Nightmare -- Not a Bakken Story
That's the headline: EU Seeks Answers For Snow Nightmare
I can't make this stuff up. As expected "they" are blaming the current snowstorm and record cold spell on global warming -- too much water vapor (not CO2 this time). Water vapor is a much bigger component of greenhouse gases than CO2.
The snow nightmare is not unexpected. When governments spend a decade planning for global warming while failing to prepare for a more likely scenario, this is not a surprise. Anyone with a Farmer's Almanac would have known that winter storms would be a bigger issue than global warming. Sort of reminds me of the fable of the ant and the grasshopper.
Just saying.
I can't make this stuff up. As expected "they" are blaming the current snowstorm and record cold spell on global warming -- too much water vapor (not CO2 this time). Water vapor is a much bigger component of greenhouse gases than CO2.
The snow nightmare is not unexpected. When governments spend a decade planning for global warming while failing to prepare for a more likely scenario, this is not a surprise. Anyone with a Farmer's Almanac would have known that winter storms would be a bigger issue than global warming. Sort of reminds me of the fable of the ant and the grasshopper.
Just saying.
For Newbies and Investors: The Record Snow In Bakken Country Will Impact Production Targets -- North Dakota, USA
The fourth quarter production numbers are not going to look good. More on this later, perhaps, but I've opined about it earlier -- within the last day or so.
It's hard to say how these production numbers will affect share price. Share prices are moving up with price of oil and with expectation that proved reserves will continue to increase.
Share prices will move down if investors do not understand the reason for the impact is due to a temporary event.
My hunch: there may be a buying opportunity in January/February for those interested in investing in the Bakken. Just a hunch.
If someone wants to understand how production numbers can throw a wrench in one's investing plans, look at what happened to WHX in the third quarter when production numbers were not met due to closed Enbridge pipeline following a spill. EOG took a shellacking, also, but for different reasons.
I think the oil spill actually helped WHX in the long run; that's a trust and will end when it sells a pre-determined amount of oil. Oil was selling for significantly less this summer when the spill occurred than now. I assume most oil is sold on contract, so it may not have amounted to a hill of beans, or a cup of oil, but just a random thought, while I'm rambling.
It's hard to say how these production numbers will affect share price. Share prices are moving up with price of oil and with expectation that proved reserves will continue to increase.
Share prices will move down if investors do not understand the reason for the impact is due to a temporary event.
My hunch: there may be a buying opportunity in January/February for those interested in investing in the Bakken. Just a hunch.
If someone wants to understand how production numbers can throw a wrench in one's investing plans, look at what happened to WHX in the third quarter when production numbers were not met due to closed Enbridge pipeline following a spill. EOG took a shellacking, also, but for different reasons.
I think the oil spill actually helped WHX in the long run; that's a trust and will end when it sells a pre-determined amount of oil. Oil was selling for significantly less this summer when the spill occurred than now. I assume most oil is sold on contract, so it may not have amounted to a hill of beans, or a cup of oil, but just a random thought, while I'm rambling.
Another One To Watch -- In Renville County
More on this later, but this one is yet another well to watch.
See comments below for update.
I follow Renegade at this page: http://milliondollarway.blogspot.com/2009/10/bakken-other-producers.html.
At some point, Renegade may get its own page. Smile.
- 19472, Renegade, A Trout 6H 3-14
See comments below for update.
I follow Renegade at this page: http://milliondollarway.blogspot.com/2009/10/bakken-other-producers.html.
At some point, Renegade may get its own page. Smile.
Keeping Track of the Lodgepole -- This May Be Something to Watch
This is for my benefit only.
This may be an interesting thread before it's over regarding the Lodgepole.
The Traxell well in 31-146-89.
This may be an interesting thread before it's over regarding the Lodgepole.
The Traxell well in 31-146-89.
BEXP Reports Another Nice Well: Smith Farm 23-14 1-H -- Bakken, North Dakota, USA
Say what you want about BEXP and their IPs, but the company is, if anything, consistent and predictable. In a field I can't recall seeing another well in this current boom, BEXP reports an IP of 1,721 bbls (24-hour max flowback, no doubt) from the Smith Farm 23-14 1-H well in Cow Creek Field.
The iPad -- Not a Bakken Story
I'm still in bed, blogging and reading e-mail for the past two hours on my iPad. I got so absorbed in those two tasks, I forgot all about the scores of apps, plus all the books that are free for downloading.
It truly is incredible. I do not own any shares in AAPL but I love their products.
I may just stay in bed all day; it continues to rain in sunny southern California.
More on my thoughts on the iPad and urban living at this site.
It appears to me that more and more YouTube videos now play on the iPad. That did not seem to be the case earlier.
It truly is incredible. I do not own any shares in AAPL but I love their products.
I may just stay in bed all day; it continues to rain in sunny southern California.
More on my thoughts on the iPad and urban living at this site.
It appears to me that more and more YouTube videos now play on the iPad. That did not seem to be the case earlier.
Snow Record in the Heart of the Bakken
CBS says Williston, with 26.4 inches of snow so far in December, has just set a new December record ... drum roll ... there are still eleven days left in the month.
This will slow production in the Bakken. Fracking and takeaway will be significantly impacted. Seventy-five percent of oil is trucked from the pads in North Dakota. And, of course, it takes scores of water trucks to frac a well.
This will slow production in the Bakken. Fracking and takeaway will be significantly impacted. Seventy-five percent of oil is trucked from the pads in North Dakota. And, of course, it takes scores of water trucks to frac a well.
BLM Sees Little Environmental Impact With Gas Drilling -- Not a Bakken Story
Well, this is refreshing news, for once.
$89.56: We're Not Going to Hit $90 Today But It Will Be Close
This is very, very interesting. I'm on the road so I don't have access to CNBC, but I assume the "talking heads" all agree that the fundamentals don't support this price and it's all being driven by speculators.
Yup. 1 billion speculators in China who all want to own cars.
I assume the moratoria on off-shore drilling in the Gulf, off Alaska, off the East coast, and off the West coast are still in place, along with all those lost jobs or potential oil industry jobs.
Update: I was wrong. "We" did hit $90. $90.02 to be exact. Incredible.
And from Rigzone: oil hits 2-year high.
Yup. 1 billion speculators in China who all want to own cars.
I assume the moratoria on off-shore drilling in the Gulf, off Alaska, off the East coast, and off the West coast are still in place, along with all those lost jobs or potential oil industry jobs.
Update: I was wrong. "We" did hit $90. $90.02 to be exact. Incredible.
And from Rigzone: oil hits 2-year high.
Acreage By Producer in The Bakken -- North Dakota
With Hess adding 85,000 net acres with acquisition of American Oil and Gas, folks may be interested in number of acres held by producers in the Bakken.
This link is helpful.
This link is helpful.
Hess Closes Deal On American Oil and Gas
Here's the link.
Hess adds 85,000 net acres in the ND Bakken.
AEZ shareholders were to get 0.1373 HES shares for each AEZ share which brings the deal to about #10.40/share for AEZ shareholders. The last price I saw on Yahoo!Financial was $10.20.
Hess adds 85,000 net acres in the ND Bakken.
AEZ shareholders were to get 0.1373 HES shares for each AEZ share which brings the deal to about #10.40/share for AEZ shareholders. The last price I saw on Yahoo!Financial was $10.20.
Monday, December 20, 2010
Seven (7) New Permits -- North Dakota, USA
Producers: CLR (5), Whiting (2)
Fields: Sanish, Oakdale, and one wildcat.
Four of the five CLR permits will be on one pad in the Oakdale field, an Eco-Pad.
Both of the Whiting wells are in the Sanish.
The wildcat is a CLR permit in Williams County.
Fields: Sanish, Oakdale, and one wildcat.
Four of the five CLR permits will be on one pad in the Oakdale field, an Eco-Pad.
Both of the Whiting wells are in the Sanish.
The wildcat is a CLR permit in Williams County.
Another Bullish Story for OIl: $100 Soon
And as long as it stays around $100, price of oil should not negatively impact the economy.
We'll see.
Here's the link.
We'll see.
Here's the link.
NDIC Hearing Dockets, January, 2011 -- Reader's Digest Version
Due to the fact that I am using the iPad and not a laptop or desktop, my summary of the January, 2011, hearing dockets will be limited to "significant" cases.
Wednesday, January 12, 2011
The Wednesday, January 12, 2011, hearing docket is 8 pages long, and consists mostly of developing and/or pooling existing wells. However, the following cases are interesting:
Case 13560: Cornerstone,to establish 22 640-acre spacing units, with one Bakken horizontal well in each unit, Burke County, no field give; new field?
Case 13985: BR, to drill up to 7 horizontal wells on 2 1280-acre spacing units in Blue Buttes-Bakken pool, McKenzie County
Case 13987: MRO, to establish a 5,120-acre spacing unit in McGregory Buttes-Bakken, Dunn County, for up to 8 horizontal wells
Case 13988: MRO, to establish a 3,840-acre spacing unit in Bailey-Bakken for up to 5 horizontal wells, Dunn County
Case 13805: QEP, to extend Deep Water Creek Bay Field creating 4 800-acre spacing units with 2 horizontal wells on each unit, McLean County
Case 13805: continued, QEP, to extend Heart Butte and/or Van Hook by creating one 2,560-acre spacing unit for up to 10 wells on that spacing unit
Case 14057: GADECO,LLC, extending Stockyard Creek-Bakken to create 2 1,280-acre units with 3 horizontal wells on each unit. According to this site, GADECO is a limited liability company formed in 2004 by Greenwood Village independent Jack J. Grynberg based in Greenwood Village, Colorado.
Thursday, January 13, 2011
The Thursday docket is ten pages long; these are the ones that caught my attention.
14017: CLR, amend Murphy Creek-Bakken to create a 2,560-acre spacing unit for 4 horizontal wells, Dunn County
13817: CLR, amend Rattlesnake Point-Bakken to create a 2,560-acre spacing unit for 4 horizontal wells, Dunn County
14023: EOG, extend Van Hook and/or Parshall to create one 1,920-acre spacing unit and 3 1,280-acre spacing units, with one horizontal well on each unit, Mountrail County
14026: Citation, extend Catwalk-Bakken to create 2 1,280-acre spacing units, one horizontal well each, Williams County
13838: Newfield, to create a 1,280-acre spacing unit with 4 horizontal wells, no field named; Williams County
13839: Newfield, to create a 1,280-acre spacing unit in Fertile Valley-Bakken with 4 horizontal wells, Divide County
13840: Newfield, to create a 1,280-acre spacing unit with 5 wells, no field, named, Williams County
13841: Newfield, to create a 1,280-acre spacing unit with 3 wells, no field named, Williams County
13619: ERF, extend Spotted Hawk-Bakken, to create 2 1,280-acre spacing units with 4 wells on each, McKenzie County
13692: EOG, Kittelson Slough-Bakken, 3 wells on 2 1,280-acre spacing units, Mountrail County
The Wednesday, January 12, 2011, hearing docket is 8 pages long, and consists mostly of developing and/or pooling existing wells. However, the following cases are interesting:
Case 13560: Cornerstone,to establish 22 640-acre spacing units, with one Bakken horizontal well in each unit, Burke County, no field give; new field?
Case 13985: BR, to drill up to 7 horizontal wells on 2 1280-acre spacing units in Blue Buttes-Bakken pool, McKenzie County
Case 13987: MRO, to establish a 5,120-acre spacing unit in McGregory Buttes-Bakken, Dunn County, for up to 8 horizontal wells
Case 13988: MRO, to establish a 3,840-acre spacing unit in Bailey-Bakken for up to 5 horizontal wells, Dunn County
Case 13805: QEP, to extend Deep Water Creek Bay Field creating 4 800-acre spacing units with 2 horizontal wells on each unit, McLean County
Case 13805: continued, QEP, to extend Heart Butte and/or Van Hook by creating one 2,560-acre spacing unit for up to 10 wells on that spacing unit
Case 14057: GADECO,LLC, extending Stockyard Creek-Bakken to create 2 1,280-acre units with 3 horizontal wells on each unit. According to this site, GADECO is a limited liability company formed in 2004 by Greenwood Village independent Jack J. Grynberg based in Greenwood Village, Colorado.
The Thursday docket is ten pages long; these are the ones that caught my attention.
14017: CLR, amend Murphy Creek-Bakken to create a 2,560-acre spacing unit for 4 horizontal wells, Dunn County
13817: CLR, amend Rattlesnake Point-Bakken to create a 2,560-acre spacing unit for 4 horizontal wells, Dunn County
14023: EOG, extend Van Hook and/or Parshall to create one 1,920-acre spacing unit and 3 1,280-acre spacing units, with one horizontal well on each unit, Mountrail County
14026: Citation, extend Catwalk-Bakken to create 2 1,280-acre spacing units, one horizontal well each, Williams County
13838: Newfield, to create a 1,280-acre spacing unit with 4 horizontal wells, no field named; Williams County
13839: Newfield, to create a 1,280-acre spacing unit in Fertile Valley-Bakken with 4 horizontal wells, Divide County
13840: Newfield, to create a 1,280-acre spacing unit with 5 wells, no field, named, Williams County
13841: Newfield, to create a 1,280-acre spacing unit with 3 wells, no field named, Williams County
13619: ERF, extend Spotted Hawk-Bakken, to create 2 1,280-acre spacing units with 4 wells on each, McKenzie County
13692: EOG, Kittelson Slough-Bakken, 3 wells on 2 1,280-acre spacing units, Mountrail County
Thoughts on Takeaway Capacity -- Bakken, North Dakota, USA
In the December, 2010, NDIC Director's Cut, it is reported that takeaway capacity continues to exceed productivity.
Hmmm.
Other data points from the same report:
By law / regulation, operators are not allowed to maximize oil production when natural gas is still being flared. Operators are putting in natural gas pipelines, it seems, as fast as they can to "get rid" of this problem. It's, of course, exacerbated by the fact that natural gas prices aren't all that great. So, if there's natural gas being flared at a site, you can bet that oil production is being choked back. Periodically on the monthly NDIC dockets you will see industry requests to waive the natural gas flaring rule.
With regard to price, I think it's becoming a wash whether rail or pipeline is better. Refineries pay less for North Dakota oil when it arrives by pipeline because it is mixed with less desirable heavy oil from Canada; refineries pay more for "pure" Bakken oil when it is shipped by rail, but it costs the producer more to ship it by rail.
For an individual mineral rights owner, the fact that he/she is not taking a loss on Bakken oil due to lack of takeaway capacity is good news.
But for the industry and for the state of North Dakota, having excess capacity is not good news. It highlights the fact that overall production is being held back, mostly due to lack of pipeline (oil and natural gas) infrastructure.
At least that's how I read it.
Hmmm.
Other data points from the same report:
75 percent of oil production is trucked from the padWhat does that suggest to me?
The amount of oil being shipped by train is increasing
The amount of oil being trucked to Canada is decreasing
Excessive flaring continues to be a problem
Daily production in November was impacted by snowstorms (trucks can't get to sites in inclement weather)
Takeaway capacity exceeds production only because production is impacted by infrastructure choke points, weather and the railroads' ability to scale up.The two data points we don't have:
To what extent (in bbls/day) does takeaway capacity exceed production?75 percent of productivity is impacted when trucks can't get to the site. But is inclement weather the only thing keeping trucks getting to the sites? Are there adequate number of trucks, adequate number of drivers on a daily basis to meet demand? How often are pumps turned off when on-site tanks are filled and trucks don't arrive on time?
To what extent can railroads scale up? (physically and economically)
By law / regulation, operators are not allowed to maximize oil production when natural gas is still being flared. Operators are putting in natural gas pipelines, it seems, as fast as they can to "get rid" of this problem. It's, of course, exacerbated by the fact that natural gas prices aren't all that great. So, if there's natural gas being flared at a site, you can bet that oil production is being choked back. Periodically on the monthly NDIC dockets you will see industry requests to waive the natural gas flaring rule.
With regard to price, I think it's becoming a wash whether rail or pipeline is better. Refineries pay less for North Dakota oil when it arrives by pipeline because it is mixed with less desirable heavy oil from Canada; refineries pay more for "pure" Bakken oil when it is shipped by rail, but it costs the producer more to ship it by rail.
For an individual mineral rights owner, the fact that he/she is not taking a loss on Bakken oil due to lack of takeaway capacity is good news.
But for the industry and for the state of North Dakota, having excess capacity is not good news. It highlights the fact that overall production is being held back, mostly due to lack of pipeline (oil and natural gas) infrastructure.
At least that's how I read it.
State Lease Sales Still Interesting -- North Dakota, USA
This is just idle chatter while waiting for today's news cycle to begin.
The quarterly state lease sale remains interesting.
Most of the attention in most recent sale (November, 2010) was in Williams and McKenzie Counties; relatively quiet elsewhere. Both Williams and McKenzie had sales exceeding $11 million whereas Mountrail did not even break the $1 million threshold.
It appears the largest bonus paid was $8,600/acre by Trinity Western for 3.34 acres under the river in McKenzie County.
Slawson paid $6,000/acre for 176 acres under the river, also in McKenzie County.
Total dollar amount paid to the state in the November lease sale: $42 million for 30,000 acres which works out to an average of $1,400/acre.
By comparison, the totals for August, 2010, were $64 million for 42,000 acres ($1,500/acre).
For May, 2010, $158 million for 53,000 acres ($3,000/acre).
And finally for February, 2010, $47 million for 40,000 acres ($1,200/acre).
As a reminder, in the best Bakken,the EUR for a well is conservatively estimated at 500,000 bbls. They will drill three wells per section = 1.5 million bbls EUR. Dividing by 640, that's 2,400 bbls/acre. At $50/bbl, that's $120,000/acre at the wellhead.
The quarterly state lease sale remains interesting.
Most of the attention in most recent sale (November, 2010) was in Williams and McKenzie Counties; relatively quiet elsewhere. Both Williams and McKenzie had sales exceeding $11 million whereas Mountrail did not even break the $1 million threshold.
It appears the largest bonus paid was $8,600/acre by Trinity Western for 3.34 acres under the river in McKenzie County.
Slawson paid $6,000/acre for 176 acres under the river, also in McKenzie County.
Total dollar amount paid to the state in the November lease sale: $42 million for 30,000 acres which works out to an average of $1,400/acre.
By comparison, the totals for August, 2010, were $64 million for 42,000 acres ($1,500/acre).
For May, 2010, $158 million for 53,000 acres ($3,000/acre).
And finally for February, 2010, $47 million for 40,000 acres ($1,200/acre).
As a reminder, in the best Bakken,the EUR for a well is conservatively estimated at 500,000 bbls. They will drill three wells per section = 1.5 million bbls EUR. Dividing by 640, that's 2,400 bbls/acre. At $50/bbl, that's $120,000/acre at the wellhead.
Number One in Flax
North Dakota will set another record in flax production and production is slated to increase next year.
North Dakota produces 95 percent of the nation's flax.
North Dakota produces 95 percent of the nation's flax.
Sunday, December 19, 2010
The iPad -- Not a Bakken Story -- But Surprising News, Nontheless
I have never owned a non-Apple personal computer. My first desktop computer was an Apple -- bought back in 1984 or thereabouts (I forget the exact year) and my daughters, starting at age two and six years of age, have grown up with them.
I bought an Apple iPad the first day the 3G (wireless) model became available (April 30, 2010), and I have found it incredible.
My wife and I live in various locations around the US (Boston, Los Angeles, San Antonio, and Williston [North Dakota]) following our grandchildren around, and could not afford to have wireless / internet cable in each of those locations. The iPad is perfect for our situation. In addition, while traveling, we are guaranteed wireless access wherever we end up. It truly is remarkable.
I didn't have the iPad yesterday while traveling because my wife had it in Los Angeles, where I am now.
This morning, without getting out of bed, I was able to catch up on all my e-mail, and update my blog using the iPad. I minimized my comments due to fact I was using the virtual keyboard, but now I'm up and about, and the iPad is in its dock with the not-so-miniature keyboard, and I can type to my heart's content.
I do not own stock in Apple, Inc. (Another mistake I made.) But not owning stock in Apple, Inc., I feel comfortable recommending one for a family member or yourself for a Christmas gift.
The second generation iPad is likely to be released in about two months, February, 2011. It will have at least one camera, maybe two (front-facing, and rear-facing) as well as a USB slot. I can only assume the price will go up if these add-ons are included. I have no need for either the camera or the USB slot. It's very possible the price of the first generation iPad will go down if the model is discontinued when the new model comes out. But even if it isn't, I am likely to get a second first-generation model, if only so my wife can keep hers (which I bought for her) and I will have one while traveling. They really are magical.
The 250 megabyte download on a monthly basis for $25 cannot be beat. If one doesn't download movies, the 250 megabytes is more than enough for e-mail and routine internet surfing.
Wow, wow, wow --- I just checked ATT iPad plans to make sure I was correct on the pricing, and wow, am I surprised! ATT has now lowered the monthly rate to $14.99.
That's incredible. The competition for wireless access must be huge.
Update: see comments below regarding ATT 3G coverage in North Dakota. Here's the link regarding ATT coverage: http://mobile.engadget.com/2010/06/23/atandt-seals-deal-on-verizons-divested-alltel-marhttp://mobile.engadget.com/2010/06/23/atandt-seals-deal-on-verizons-divested-alltel-markets/kets/.
Comment: I got a kick out of this requirement that Verizon sell Alltel wireless; it was a huge gift to ATT as far as I can see. What a great country. ATT, by the way, raised its dividend and is considering a 300 million share buyback.
I bought an Apple iPad the first day the 3G (wireless) model became available (April 30, 2010), and I have found it incredible.
My wife and I live in various locations around the US (Boston, Los Angeles, San Antonio, and Williston [North Dakota]) following our grandchildren around, and could not afford to have wireless / internet cable in each of those locations. The iPad is perfect for our situation. In addition, while traveling, we are guaranteed wireless access wherever we end up. It truly is remarkable.
I didn't have the iPad yesterday while traveling because my wife had it in Los Angeles, where I am now.
This morning, without getting out of bed, I was able to catch up on all my e-mail, and update my blog using the iPad. I minimized my comments due to fact I was using the virtual keyboard, but now I'm up and about, and the iPad is in its dock with the not-so-miniature keyboard, and I can type to my heart's content.
I do not own stock in Apple, Inc. (Another mistake I made.) But not owning stock in Apple, Inc., I feel comfortable recommending one for a family member or yourself for a Christmas gift.
The second generation iPad is likely to be released in about two months, February, 2011. It will have at least one camera, maybe two (front-facing, and rear-facing) as well as a USB slot. I can only assume the price will go up if these add-ons are included. I have no need for either the camera or the USB slot. It's very possible the price of the first generation iPad will go down if the model is discontinued when the new model comes out. But even if it isn't, I am likely to get a second first-generation model, if only so my wife can keep hers (which I bought for her) and I will have one while traveling. They really are magical.
The 250 megabyte download on a monthly basis for $25 cannot be beat. If one doesn't download movies, the 250 megabytes is more than enough for e-mail and routine internet surfing.
Wow, wow, wow --- I just checked ATT iPad plans to make sure I was correct on the pricing, and wow, am I surprised! ATT has now lowered the monthly rate to $14.99.
That's incredible. The competition for wireless access must be huge.
Update: see comments below regarding ATT 3G coverage in North Dakota. Here's the link regarding ATT coverage: http://mobile.engadget.com/2010/06/23/atandt-seals-deal-on-verizons-divested-alltel-marhttp://mobile.engadget.com/2010/06/23/atandt-seals-deal-on-verizons-divested-alltel-markets/kets/.
Comment: I got a kick out of this requirement that Verizon sell Alltel wireless; it was a huge gift to ATT as far as I can see. What a great country. ATT, by the way, raised its dividend and is considering a 300 million share buyback.
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