We're starting to see the type of daily activity reports I've been expecting for some time now that "we" have 130 active rigs in North Dakota.
With eleven (11) new permits today, "we're" on track for 1,300 new permits this calendar year. That's huge.
This exceeds any past year in the current boom.
For comparison with other years, click here.
Thursday, June 17, 2010
Sagebrush: Seven (7) Wells In Same Location
Sagebrush just got five (5) permits for five (5) wells, all in section 30, T162N-82W.
It turns out Sagebrush already has two wells in that section.
Here's what's going on. These seven wells all have the same location: SWSE 30-162-82
19027, Confidential, Erickson Et Al 1B, permit granted May 13, 2010.
19028, Confidential, Erickson Et Al 3B, rig on site, permit granted May 13, 2010.
19139, Confidential, Erickson Et Al 1A, permit granted June 17, 2010.
19140, Confidential, Erickson Et Al 4B, permit granted June 17, 2010.
19141, Confidential, Erickson Et Al 3A, permit granted June 17, 2010.
19142, Confidential, Erickson Et Al 4A, permit granted June 17, 2010.
19143, Confidential, Erickson Et Al 2B, permit granted June 17, 2010.
They already "hold" control of the location so there was no hurry to grab these permits, but the fact they are going to put seven wells in one section suggests they are trying something new, even for the Bakken.
One more permit for "2A" and it looks like this could be two Eco-Pads next to each other, four wells on an Eco-Pad.
On the other hand, is it possible that 1, 2, 3, and 4 represent four different pay zones, and A and B represent horizontals running in opposite directions? Looking at the GIS map doesn't offer many hints.
It turns out Sagebrush already has two wells in that section.
Here's what's going on. These seven wells all have the same location: SWSE 30-162-82
19027, Confidential, Erickson Et Al 1B, permit granted May 13, 2010.
19028, Confidential, Erickson Et Al 3B, rig on site, permit granted May 13, 2010.
19139, Confidential, Erickson Et Al 1A, permit granted June 17, 2010.
19140, Confidential, Erickson Et Al 4B, permit granted June 17, 2010.
19141, Confidential, Erickson Et Al 3A, permit granted June 17, 2010.
19142, Confidential, Erickson Et Al 4A, permit granted June 17, 2010.
19143, Confidential, Erickson Et Al 2B, permit granted June 17, 2010.
They already "hold" control of the location so there was no hurry to grab these permits, but the fact they are going to put seven wells in one section suggests they are trying something new, even for the Bakken.
One more permit for "2A" and it looks like this could be two Eco-Pads next to each other, four wells on an Eco-Pad.
On the other hand, is it possible that 1, 2, 3, and 4 represent four different pay zones, and A and B represent horizontals running in opposite directions? Looking at the GIS map doesn't offer many hints.
Eleven (11) New Permits Today! Ho, ho, ho -- Sagebrush!
We're starting to see the type of daily activity reports I would have expected by now with 129 active rigs in North Dakota.
NDIC granted eleven (11) new permits, including five wells on one pad in Renville field in Bottineau County, for Sagebrush. Five seems to be an unusual number I haven't been particularly enamored with the Renville, but who knows. These should be fun to watch.
Ho, ho, ho -- what have we here.....while typing the above, I searched a bit more. This could be very, very exciting.
The five new permits that Sagebrush just got in the Renville field are going to be place exactly where Sagebrush already has two other confidential wells. Sagebrush must have struck something interesting. This is so interesting I will post a separate note for these seven wells/permits.
June 20, 2010: after posting the above, others noted the same thing. This thread may be interesting to follow over time.
NDIC granted eleven (11) new permits, including five wells on one pad in Renville field in Bottineau County, for Sagebrush. Five seems to be an unusual number I haven't been particularly enamored with the Renville, but who knows. These should be fun to watch.
Ho, ho, ho -- what have we here.....while typing the above, I searched a bit more. This could be very, very exciting.
The five new permits that Sagebrush just got in the Renville field are going to be place exactly where Sagebrush already has two other confidential wells. Sagebrush must have struck something interesting. This is so interesting I will post a separate note for these seven wells/permits.
June 20, 2010: after posting the above, others noted the same thing. This thread may be interesting to follow over time.
Update on Cottonwood Field Posted
A minor update on the Cottonwood Field has been posted. It might be of some interest to some folks since much of the acreage in this field may be controlled by Oasis which supposedly went public yesterday (June 16, 2010). I do not know for sure who controls the majority of the acreage in this field, but you see my thoughts at Cottonwood Field.
Marathon Just Reported a Nice Well
Marathon reported a nice well in Reunion Bay with an IP of 3,459.
Wynn Resorts Laid Off 260 People This Past Week
Yes, that is the data point the writer makes to show us where the job losses are coming from following another dismal jobless claims report.
The jobless report today was not good news.
I read that article three times while completing this note. Not once does the article mention the number of laid off folks in the gulf due to the administration's six-month moratorium on deep-sea drilling and the on-going re-evaluation of rules and regulations governing shallow-water drilling.
Those jobless numbers in the gulf region are going to get worse.
Just this week, casino owner Wynn Resorts laid off more than 260 workers in its two Las Vegas casino hotels in a move expected to save nearly $8 million."...just this week..." --- wow. "...just this week..."
The jobless report today was not good news.
The number of people filing new claims for jobless benefits jumped last week after three straight declines, another sign that the pace of layoffs has not slowed.Somehow the 260 Wynn Resorts employees hardly makes a dent in the 12,000. How many oil-related jobs in Louisiana have been lost in the past week?
Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, the Labor Department said Thursday. It was the highest level in a month and overshadowed a report that consumer prices remain essentially flat.
I read that article three times while completing this note. Not once does the article mention the number of laid off folks in the gulf due to the administration's six-month moratorium on deep-sea drilling and the on-going re-evaluation of rules and regulations governing shallow-water drilling.
Those jobless numbers in the gulf region are going to get worse.
Dickinson Won't Re-Open Swimming Pool
Due to costs for renovation, Dickinson won't re-open swimming pool.
One would think that with all the oil money in the state of North Dakota, money could be found for the swimming pool. Assuming folks want the pool; maybe they don't.
June 18, 2010: Comment -- the state will reduce employers' compensation premiums by $81 million. Couldn't they take just $1 million and put in a new swimming pool in Dickinson. In fact, for $8 million, they could put a new swimming pool in each of the eight largest cities in North Dakota. Oh, well.
One would think that with all the oil money in the state of North Dakota, money could be found for the swimming pool. Assuming folks want the pool; maybe they don't.
June 18, 2010: Comment -- the state will reduce employers' compensation premiums by $81 million. Couldn't they take just $1 million and put in a new swimming pool in Dickinson. In fact, for $8 million, they could put a new swimming pool in each of the eight largest cities in North Dakota. Oh, well.
What Green Energy Costs: Temporary Rate Increase Granted to MDU
MDU's utility rates will go up almost 8% -- at least temporarily -- to pay for a) Big Stone II, a coal-fired power plant that Minnesota decided "not to accept"; and, b) MDU's wind farms.
It's a very complicated story but we're starting to see how much "green energy" will cost.
Expect higher costs if Congress passes "cap and trade."
Meanwhile, here in Boston, where I am, folks are still complaining about the cost of wind energy, and the turbines aren't even up yet. Cape Wind is the wind farm project off Teddy Kennedy's (RIP) coastline -- you know, the kind of wind project that "everyone" wants until they find out the cost.
In today's Boston Globe, there are two stories, one on the front page below the fold and one on the front page of the business section.
Front page: Wal-Mart says Cape Wind will increase their utility costs. Fact: the starting price for Cape Wind electricity is more than double the current basic residential rate for conventional power. The project is not expect to come on-line until 2013.
Business page: at a public hearing in local area, opponents and supporters of Cape Wind voiced their concern and/or support. Bottom line: rates will go up significantly, and their will be turbines off Teddy Kennedy's (RIP) coastline. Teddy was a true environmentalist. He would be proud.
The local utility company, National Grid, signed a contract for half the power generated from Cape Wind; the $3 billion was needed by the project to start construction. National Grid also signed a contract for the other half of the power generated by Cape Wind but will "assign" those rights to other buyers. Good luck.
National Grid could get stuck with the entire bill.
It's a very complicated story but we're starting to see how much "green energy" will cost.
Expect higher costs if Congress passes "cap and trade."
Meanwhile, here in Boston, where I am, folks are still complaining about the cost of wind energy, and the turbines aren't even up yet. Cape Wind is the wind farm project off Teddy Kennedy's (RIP) coastline -- you know, the kind of wind project that "everyone" wants until they find out the cost.
In today's Boston Globe, there are two stories, one on the front page below the fold and one on the front page of the business section.
Front page: Wal-Mart says Cape Wind will increase their utility costs. Fact: the starting price for Cape Wind electricity is more than double the current basic residential rate for conventional power. The project is not expect to come on-line until 2013.
Business page: at a public hearing in local area, opponents and supporters of Cape Wind voiced their concern and/or support. Bottom line: rates will go up significantly, and their will be turbines off Teddy Kennedy's (RIP) coastline. Teddy was a true environmentalist. He would be proud.
The local utility company, National Grid, signed a contract for half the power generated from Cape Wind; the $3 billion was needed by the project to start construction. National Grid also signed a contract for the other half of the power generated by Cape Wind but will "assign" those rights to other buyers. Good luck.
National Grid could get stuck with the entire bill.
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