This really is remarkable. I went to confirm that "we" had gone to 155 active rigs in North Dakota. I was sent that alert earlier today. When I finally found time to visit the NDIC site, I was surprised to find that "we" had gone to 156 rigs.
Quite incredible.
Click here to see the phenomenal progression.
Here's the story in the Minot Daily News regarding this new record.
Someone sent in a note that Minot is in the middle of a boom that is quite extraordinary. In addition to oil, the Air Force Base just north of north is expanding (with a second B-52 squadron assigned there now), and something else that escapes me right now.
Williston is the "center" of the basin, but ... and don't take this out of context ... Minot has always been a destination for those living in western North Dakota and southern Canada, not Williston. In 2000, Minot, the fourth largest city in North Dakota, had a population of 37,000 which probably did not include the Air Force base. Williston, on the other hand had only 12,000. Grand Forks, the third largest city, had a census count of 51,000. I assume there is talk that Minot could surpass Grand Forks. I doubt that will happen, but on the other hand, as we go through some data regarding the Bakken this upcoming week, one has to wonder.
By the way, back in May of this year (only four months ago), the director of the NDIC opined that it was unlikely that "we" would break the record set back in 1981. The director felt that lack of water for fracking and lack of housing for workers would prevent that many active drilling rigs.
Friday, October 8, 2010
How To Read an Oil Drilling Permit
Since starting this blog, I have learned a lot about the drilling industry in North Dakota. I probably now know about 1.5 percent of all that I have yet to learn about the industry, up from one percent a year ago.
I am reminded of that because when I started this, I did not know how to interpret the 25-word summary of an oil drilling permit issued by the North Dakota Industrial Commission. (I define a "word" as an alphanumeric entity with a space on either side. The legal description of a well, with all the hyphens, is a very long word, by this definition.)
I can now interpret them, but there are still nuances in each of those permits, many of which I don't catch, and many I probably don't even know exist.
There are three terms that describe where an oil well will be drilled in relation to an existing spaced oil field: development, extension and wildcat. A development well is a well that is drilled within a designated spaced oil field. An extension well is a well that is drilled within a mile of a designated spaced oil field. A wildcat is a well to be drilled outside and not not near a designated spaced oil field.
I bring that up because at one time I only cared about "wildcats." Actually,except for "wildcats," I never paid any attention to where the well was located in relation to an existing oil field. Not so much any more. I now find all three terms equally interesting as we start to see multiple wells in one section. One could almost argue "we" need to add more terms to select from for this part of the description. I can think of "infill" and "wing" as examples.
Last month, the Minot Daily News had a nice article on how to interpret oil drilling permits.
This is also linked on my FAQs tab at the top of the blog site.
With a few more abbreviations in an oil drilling permit, one might be able to get the critical information down to 140 characters, suitable for twittering.
I am reminded of that because when I started this, I did not know how to interpret the 25-word summary of an oil drilling permit issued by the North Dakota Industrial Commission. (I define a "word" as an alphanumeric entity with a space on either side. The legal description of a well, with all the hyphens, is a very long word, by this definition.)
I can now interpret them, but there are still nuances in each of those permits, many of which I don't catch, and many I probably don't even know exist.
There are three terms that describe where an oil well will be drilled in relation to an existing spaced oil field: development, extension and wildcat. A development well is a well that is drilled within a designated spaced oil field. An extension well is a well that is drilled within a mile of a designated spaced oil field. A wildcat is a well to be drilled outside and not not near a designated spaced oil field.
I bring that up because at one time I only cared about "wildcats." Actually,except for "wildcats," I never paid any attention to where the well was located in relation to an existing oil field. Not so much any more. I now find all three terms equally interesting as we start to see multiple wells in one section. One could almost argue "we" need to add more terms to select from for this part of the description. I can think of "infill" and "wing" as examples.
Last month, the Minot Daily News had a nice article on how to interpret oil drilling permits.
This is also linked on my FAQs tab at the top of the blog site.
With a few more abbreviations in an oil drilling permit, one might be able to get the critical information down to 140 characters, suitable for twittering.
Update at Minot Air Force Base, North Dakota (USA) - Not a Bakken Story
With all the emphasis on the Bakken and oil in North Dakota, it's easy to forget that the state has a few other things going on.
For many decades the United States Air Force has had a big presence in North Dakota: Grand Forks AFB and Minot AFB.
In the past year or so, a second squadron of B-52s were brought to Minot AFB. Although not quite as big a story as the Bakken it does bring additional revenue into North Dakota. In this Minot Press story, it is about a new dormitory for the base.
This is a pretty mundane story in the big scheme of things, but for me it brings back wonderful memories. In another life, I was fortunate enough to have flown in a B-52 out of Grand Forks AFB. It was an eight-hour flight, flying low level over (and through) the Rocky Mountains.
Meanwhile, the lead story, in the Fargo Forum, is .... drum roll.... drum roll .... the interview with Bristol Palin. The Fargo Forum bills itself as "North Dakota's #1 news website!" Oooo-kay. The reason I bring this up: I, too, was having trouble finding any news in the oil patch this morning. I guess "we" are all taking a collective breath after all the news this past week: a) price of oil well over $80. (Now trending back down.); b) North Dakota sets new record for number of active drilling rigs (153); c) updates on Hess planning to drill Bakken-like wells near Paris, France; and, d) all the new oil drilling permits being issued this past week.
For many decades the United States Air Force has had a big presence in North Dakota: Grand Forks AFB and Minot AFB.
In the past year or so, a second squadron of B-52s were brought to Minot AFB. Although not quite as big a story as the Bakken it does bring additional revenue into North Dakota. In this Minot Press story, it is about a new dormitory for the base.
This is a pretty mundane story in the big scheme of things, but for me it brings back wonderful memories. In another life, I was fortunate enough to have flown in a B-52 out of Grand Forks AFB. It was an eight-hour flight, flying low level over (and through) the Rocky Mountains.
*****
Meanwhile, the lead story, in the Fargo Forum, is .... drum roll.... drum roll .... the interview with Bristol Palin. The Fargo Forum bills itself as "North Dakota's #1 news website!" Oooo-kay. The reason I bring this up: I, too, was having trouble finding any news in the oil patch this morning. I guess "we" are all taking a collective breath after all the news this past week: a) price of oil well over $80. (Now trending back down.); b) North Dakota sets new record for number of active drilling rigs (153); c) updates on Hess planning to drill Bakken-like wells near Paris, France; and, d) all the new oil drilling permits being issued this past week.
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