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Saturday, November 20, 2010

China's Largest Refiner Halts Diesel Exports -- Not a Bakken Story

I have no idea if this story will become a bigger story by Monday or if it's just a single pixel on my radar scope.

But there's something about the story that intrigues me.

China's largest oil refiner has halted diesel exports. There is not a real shortage of diesel in China. The government has withheld diesel in an attempt to slow the economy. It has resulted in unintended consequences. The price of diesel has increased dramatically, driving prices of food significantly higher (farmers use lots of diesel in crop production).

So, in response to the (non)-shortage of diesel, Sinopec, China's largest oil refiner, has halted all diesel exports to bring more diesel to the market that the government has withheld. It appears it is not illegal in China to try to meet diesel needs; it's just that the government is not going to release its strategic reserves. (I don't know how this works, but I assume a US analogy: if the govt decided to increase oil storage in the strategic reserve to point of decreasing amount of oil available to American refiners; American refiners could respond by importing more oil from foreign sources, or increase domestic drilling.)

What makes the newspapers is seldom the full story. The real question is what is really going on with diesel in China? Is there really nothing more to the story? How will this play out Monday in the oil markets? Could there be a perception that there is a shortage of oil in China? Is there a shortage of oil in China? Is this just a "cover" story by the Chinese government? This may turn out to be a non-story, just as the shortage is a non-shortage, but something tells me this could get very interesting.

Overview of the December NDIC Hearing Dockets, North Dakota, USA

Some comments on the December, 2010, NDIC hearing dockets.

A lot of cases for the December dockets, but many of them are simply pooling cases. One step closer to drilling, but boring to go through all of them.

The most notable observation: the number of infill wells and the number of wells they plan to put in each spacing unit. Most spacing units are now 1280-acre units, but there are still a lot of 640-acre units.
  • 13803: North Plains, to establish 2 1280-acre units and up to 7 wells in each 1280-acre unit, Corinth-Bakken, Williams and Divide. 
  • 13807: QEP, extend Heart Butte and/or Van Hook-Bakken to create 1 2560-acre unit and allow up to ten horizontal wells
  • 13838: Newfield, create 1 1280-acre unit, 4 wells, Williams.
  • 13839: Newfield, amend Fertile Valley-Bakken, create 1 1280-acre unit, 4 wells, Divide.
  • 13840: Newfield, create a 1280-acre unit, five wells, Williams.
  • 13729, cont'd: ERF, 4 wells on a 1280-acre unit, Eagle Nest-Bakken, Dunn.
  • 13855 - 13861: seven cases in which BEXP will request to drill 4 wells on each 1280-acre unit. Mountrail.
  • 13880: Newfield, complete 3 wells on a 640-acre unit, Sand Creek-Bakken, McKenzie.
  • 13936 - 13940: five cases in which Hunt requests to drill 3 wells in each 640-acre unit, and/or each 1280-acre unit, in various fields, increase density (infill) wells.
  • 13941: Fidelity, complete 3 wells on each 640-acre unit in Sanish-Bakken, Mountrail.
  • 13792: Whiting, to establish 6 1280-acre units in the Sanish-Bakken to drill an infill well on each

The second observation: Whiting's emphasis on its Lewis and Clark Prospect:
  • 13791: Whiting, to establish 8 1280-acre units in Golden Valley County; to target the Lodgepole formation (I could be wrong, but I believe the most productive well in the history of North Dakota oil industry is a Lodgepole well, and that well is still producing)
The third observation: increased activity by some smaller players:
  • 13802: North Plains, to extend the Corinth-Bakken, to establish 9 1280-acre units, Williams
  • 13837: GeoResources, extend Bull Butte-Bakken, 34 1280-acre units, 1 well each, Williams
Fourth observation: More and more requests to extend existing fields; eventually, because the Bakken is a continuous reservoir, I assume every last acre will be in a defined field
  • 13812: EOG, extend Van Hook and/or Parshall-Bakken to create 10 1920-acre units
  • 13851: Tracker,  expand existing Ellsworth Field to include 32 more sections
Things that need repeating:
  • 13837: GeoResources, extend Bull Butte-Bakken, 34 1280-acre units, 1 well each, Williams.
  • 13851: Tracker, expand existing Ellsworth Field to include 32 more sections, McKenzie
  • 13812: EOG, extend Van Hook and/or Parshall-Bakken to create 10 1920-acre units
  • 13802: North Plains, to extend the Corinth-Bakken, to establish 9 1280-acre units, Williams
  • 13791: Whiting, establish 8 1280-acre units in Golden Valley County; target the Lodgepole formation.

December, 2010, Dockets

Wednesday, December 15, 2010

13757: Hess, temporary spacing for AV-Iverson-162-94-2314H-1, Burke County.
13758: Hess, temporary spacing for EN-Dolan-157-94-2833H-1, Mountrail County.
13759: Hess, to commingle oil and gas from the EN-Will Trust B wells in Mountrail County.
13760: Hess, to commingle oil and gas from EN-Dolan wells in Mountrail County.
13761: Hess, to commingle oil and gas from EN-Wefald wells in Mountrail County.
13762: Hess, to commingle oil and gas from EN-Frandson wells in Mountrail County.
13763: Hess, to commingle oil and gas from EN-Trinity wells in Mountrail County.
13764: Hess, pooling in Forthun-Bakken, Divide County.
13552, cont'd: Hess, pooling in Robinson Lake-Bakken, Mountrail County.
13556, cont'd: Hess, pooling in Westberg-Bakken, McKenzie.
13557, cont'd: Hess, pooling in Blue Buttes-Bakken, McKenzie.
13765: Oasis, temporary spacing for Kjorstad 5300 24-22H, Williams.
13766: Oasis, to amend Cottonwood-Bakken, to allow flaring for another six months.
13767: Oasis, to amend Sorkness-Bakken, to allow flaring for another six months.
13768: Oasis, to amend Squires-Bakken, to allow flaring for another six months.
13769: Oasis, to amend Robinson Lake-Bakken, to allow flaring for another six months.
13770: Oasis, to create two 1280-acre spacing units, Camp-Bakken, McKenzie.
13771: Oasis, pooling in Squires-Bakken, Williams.
13772: Oasis, to revoke an Encore permit, Lindvid 24-11NEH, Camp-Bakken, McKenzie.
13773: American, temporary spacing for Olson 15-36H, Williams.
13774: American, pooling in Ray-Bakken, Williams.
13775: American, pooling in Ray-Bakken, Williams.
13776: American, pooling in Ray-Bakken, Williams.
13777: American, pooling in Ray-Bakken, Williams.
13778: American, pooling in Dollar Joe-Bakken, Williams.
13779: American, pooling in Dollar Joe-Bakken, Williams.
13780: American, pooling in Dolalr Joe-Bakken, Williams.
13781: American, pooling in Bear Creek-Bakken, Dunn.
13782: PDC, proper spacing for Coteau-Bakken, Burke.
13783: BTA, pooling in Stockyard Creek-Bakken, Williams.
13784: BR, to extend Westberg-Bakken or Sand Creek-Bakken by two 1280-acre units, McKenzie.
13785: BR, pooling in Westberg-Bakken, McKenzie.
13786: BR, pooling in Banks-Bakken, McKenzie.
13787: BR, pooling in Elidah-Bakken, McKenzie.
13788: BR, pooling in Haystack Butte-Bakken, McKenzie.
13789: BR, pooling in Haystack Butte-Bakken, McKenzie.
13790: KOG, four wells on three 1280-acre units, Twin Buttes-Bakken, Dunn.
13791: Whiting, to establish 8 1280-acre unit in Golden Valley County; to target the Lodgepole formation
13792: Whiting, to establish 6 1280-acre units in the Sanish-Bakken to drill an infill well on each
13793: Whiting, pooling in Sanish-Bakken, Mountrail
13564, cont'd: Whiting, proper spacing in Ray-Red River Gas Pool, Williams.
13565, cont'd: Whiting, pooling in Elkhorn Ranch-Bakken, Billings.
13794: MRO, request to let wells in Big Bend-Bakken to produce at maximum through June 30, 2011
13795: MRO, request to let wells in Reunion Bay-Bakken to produce at maximum through June 30, 11
13586, cont'd: MRO, to establish 4 1280-acre units in Deep Water Bay or Parshall-Bakken; 1 well each
13796: Murex, revoke Zavanna permit, Lassey 16-21H, Glass Bluff-Bakken, McKenzie.
13797: True Oil, to extend Red Wing Creek-Madison Pool; one 960-acre unit, McKenzie.
13798: Ursa, to establish a 1280-acre unit in Hay Draw-Bakken, McKenzie.
13799: Ursa, to establish a 1280-acre unit in Tree Top-Bakken, Billings.
13582, cont'd: Helis, amend Blue Buttes-Bakken, McKenzie, for 1280-acre spacing.
13583, cont'd: Helis, pooling in Blue Buttes-Bakken, McKenzie.
13584, cont'd: Helis, amend Grail-Bakken for 1280-acre spacing, McKenzie.
13585, cont'd: Helis, pooling in four spacing units in Grail-Bakken, McKenzie.
13026, cont'd: Paul Rankin, a Lodgepole well, border of Williams and McKenzie counties.
13800: North Plains, pooling the Comford 9-12-H, Corinth-Bakken, Williams.
13801: North Plains, risk penalty to complete the Comford 9-12H, Williams.
13802: North Plains, to extend the Corinth-Bakken, to establish 9 1280-acre units, Williams.
13803: North Plains, to establish 2 1280-acre unit and up to 7 wells in each 1280-acre unit, Corinth-Bakken, Williams and Divide. 
13422, cont'd: Petrogulf, pooling for Anschutz Twist 31-4H and Neal 1-33-28H 144-95, Dunn.
13594, cont'd: Peak, proper spacing for the South Fork-Bakken, Dunn.
13599, cont'd: Peak, risk penalty for Wisness 21-34H, Pembroke-Bakken, McKenzie.
13804: QEP, proper spacing for Deep Water Creek Bay-Bakken, Dunn.
13805: QEP, extend Deep Water Creek Bay, creating 4 800-acre units, McLean.
13806: QEP, to allow flaring for max production in Deep Water Creek Bay, Dunn and McLean.
13807: QEP, extend Heart Butte and/or Van Hook-Bakken to create 1 2560-acre unit and allow up to ten horizontal wells
13591, cont'd: QEP, proper spacing for Rupple 1-4H-150-90, McLean.

Thursday, December 16, 2010

13808: EOG, temporary spacing for Round Prairie 2-20H, Williams.
13809: EOG, temporary spacing for Lebron 1-01H, Williams.
13810: EOG, risk penalty for Fertile 29-27H, Parshall-Bakken.
13811: EOG, ament Thompson Lake-Bakken to allow drilling of horizontal wells on drilling pads at the center of two 1920-acre spacing units, Burke.
13812: EOG, extend Van Hook and/or Parshall-Bakken to create 10 1920-acre units; one well each.
13813: ERF, temporary spacing for Henry Bad Gun 17A-20-1H, Dunn.
13619, cont'd: ERF, extend Spotted Horn-Bakken to create 2 1280-acre unts; 4 wells on each, McKenzie.
13620, cont'd: ERF, extend Antelope-Sanish to create 2 1280-acre units, 4 wells on each, McKenzie.
13814: CLR, proper spacing for Edge-Bakken, McKenzie.
13815: CLR, XTO: proper spacing for Lindahl-Bakken, Williams.
13816: CLR, extend Poe and/or Sakakawea-Bakken, 1 1280-acre unit; one well.
13817: CLR, amend Cedar Coulee and Rattlesnake Point-Bakken to create a 2560-acre unit; 4 wells; Dunn.
12014, cont'd: CLR, temporary spacing for Traxel 1-31H, Mercer.
13447, cont'd: CLR, amend Stoneview-Bakken, creat 2 320-acre units; 1 well each.
13818: BEXP, Zavanna, proper spacing for Stony Creek-Bakken, Williams.
13819: BEXP, plugging back the Brown 30-19 1-H; inadvertently drilled, Mountrail.
13820: BEXP, amend, to allow 3 horizontal wells, Williams County.
13821: BEXP, amend Todd-Bakken, create 3 1280-acre units, 1 well each, Williams.
13822: BEXP, extend Todd-Bakken, create 2 1280-acre units, 1 well each, Williams, McKenzie.
13823: Encore, risk penalty, Klamm 34-9NWH, Siverston-Bakken, McKenzie.
13824: Encore, extend North Fork-Bakken, create 1 1280-acre unit, 1 well each, McKenzie.
13825: Encore, extend Siverston-Bakken, creat 3 1280-acre units, 1 well eac, McKenzie.
13826: Encore, to create 1 1280-acre unit, McKenzie.
13827: Encore, to extend Elk-Bakken, 3 1280-acre units; McKenzie, Williams.
13828: Anschutz, amend Murphy Creek-Bakken, 1 1280-acre unit, 1 well, Dunn.
13829: Anschutz, amend St Anthony-Bakken, create 1 1280-acre unit, 1 well, Dunn.
13830: Anschutz, create a 1280-acre unit in Dunn County.
13831: Anschutz: waive requirement for a cement bond log, Evelyn Kary 1-15-22H-144-97, Dunn.
13832: Ballantyen, amend Clear Water-Bakken, create 1 1280-acre unit, 3 wells, Mountrail.
13833: Baytex, complete Larson 3-162-99H, Divide.
13834: Fidelity, to create 3 1280-acre units, 1 well each, Stark County.
13835: Fidelity, create 1 1280-acre unit, 1 well, Stark County.
13836: Fidelity, extend St Anthony-Bakken, create 1 1280-acre unit, 1 well, Stark County.
13837: GeoResources, extend Bull Butte-Bakken, 34 1280-acre units, 1 well each, Williams.
13838: Newfield, create 1 1280-acre unit, 4 wells, Williams.
13839: Newfield, amend Fertile Valley-Bakken, create 1 1280-acre unit, 4 wells, Divide.
13840: Newfield, create a 1280-acre unit, five wells, Williams.
13841: Newfield, create a 1280-acre unit, thre wells, Williams.
13842: Newfield, extend Poe-Bakken, create 1 1280-acre unit, 3 wells, McKenzie.
13843: Samson Resources, extend Blooming Prairie-Bakken, create 4 1280-acre units, 1 wells each, Divide.
13844: Samson Resources, amend Foothills-Bakken, create 1 1280-acre unit, 1 well, Burke.
13845: Samson Resources, amnd Ambrose-Bakken, create 1 1280-acre unit, 1 well, Divide.
13846: Slawson, extend Clear Water-Bakken, 3 1280-acre units, 1 well each, Mountrail.
13847: Slawson, amend Kittleson-Slough-Bakken, create 4 1280-acre units, 1 well each, Mountrail.
13848: Ward Williston and Silver Oak Energy, amend North Westhope-Madison to drill multiple wells
13849: Zenergy, amend Eagle Nest-Bakken, 1 1280-acre, 1 well, Dunn.
13850: Zenergy, amend Spotted Horn-Bakken, create 1 640-acre unit, McKenzie.
13669, cont'd: Hunt, amend Ross-Bakken, create 1 960-acre unit, Mountrail.
13851: Tracker, temporary spacing for Gudmunsen 27-1H; expand existing Ellsworth Field to include 32 more sections; allow 180-day flaring.
13852: Tracker, temporary spacing for Wahlstrom 18-1H, McKenzie; expand Foreman Butte field by 10 sections; allow 180-day flaring.
13729, cont'd: ERF, 4 wells on a 1280-acre unit, Eagle Nest-Bakken, Dunn.
13853: Arsenal Energy, complete 2 wells on a 1280-acre unit, Stanley-Bakken, Mountrail.
13854: BEXP, pooling in Catwalk-Bakken, Williams.
13855: BEXP, amend Alger-Bakken, 4 wells on each 1280-acre unit, 5 units. Mountrail.
13856: BEXP, Bull Butte-Bakken, 1 1280-acre unit, 4 wells.
13857: BEXP, Todd-Bakken, 1 1280-acre unit, 4 wells.
13858: BEXP, Painted Woods-Bakken, 1 1280-acre unit, 4 wells.
13859: BEXP, Banks-Bakken, 1 1280-acre unit, 4 wells.
13860: BEXP, Camp-Bakken, 1 1280-acre unit, 4 wells.
13861: BEXP, Briar Creek-Bakken, 1 1280-acre unit, 4 wells.
13862: Encore, pooling in Elk-Bakken, McKenzie.
13863: Encore, pooling in Elk-Bakken, McKenzie.
13864: Encore, pooling in Elk-Bakken, McKenzie.
13865: Encore, pooling in North Tobacco Garden-Bakken, McKenzie.
13866: Encore, pooling in Siverston-Bakken, McKenzie.
13867: Encore, pooling in Siverston-Bakken, McKenzie.
13868: Encore, pooling in Siverston-Bakken, McKenzie.
13869: Encore, pooling in Siverston-Bakken, McKenzie.
13870: Encore, pooling in Siverston-Bakken, McKenzie.
13871: Encore, pooling in Siverston-Bakken, McKenzie.
13872: Encore, pooling in Siverston-Bakken, McKenzie.
13873: Encore, pooling in Siverston-Bakken, McKenzie.
13874: Encore, pooling in Siverston-Bakken, McKenzie.
13875: Encore, pooling in Siverston-Bakken, McKenzie.
13876: Encore, pooling in North Fork-Bakken, McKenzie.
13877: Encore, pooling in Murphy Creek-Bakken, McKenzie.
13878: Encore, pooling in Murphy Creek-Bakken, McKenzie.
13879: Newfield, pooling in South Tobacco Garden-Bakken, McKenzie.
13880: Newfield, complete 3 wells on a 640-acre unit, Sand Creek-Bakken, McKenzie. 
13881: EOG, pooling in Thompson Lake-Bakken, Burke.
13882: EOG, pooling in Clear Water-Bakken, Mountrail.
13883: EOG, pooling in  Clear Water-Bakken, Mountrail.
13884: EOG, pooling in Clear Water-Bakken, Mountrail.
13885: EOG, pooling in Parshall-Bakken, Mountrail.
13886: EOG, pooling in Parshall-Bakken, Mountrail.
13887: EOG, pooling in Parshall-Bakken, Mountrail.
13888: EOG, pooling in Parshall-Bakken, Mountrail.
13889: EOG, pooling in Van Hook-Bakken, Mountrail.
13890: EOG, pooling in Van Hook-Bakken, Mountrail.
13891: EOG, pooling in Van Hook-Bakken, Mountrail.
13892: EOG, pooling in Squaw Creek-Bakken, McKenzie.
13893: EOG, complete 4 wells on each of 2 1280-acre units, Clarks Creek-Bakken, McKenzie.
13894: EOG, complete 4 wells on 1 1280-acre unit, Antelope-Sanish, McKenzie.
13895: EOG, 3 wells on each of 3 1280-acre units, Burke.
13896: CLR, pooling in Upland-Bakken, Divide.
13897: CLR, pooling in Upland-Bakken, Divide.
13898: CLR, pooling in Sadler-Bakken, Divide.
13899: CLR, 4 wells on each of 2 1280-acre units in Dolphin, Hamlet and/or Temple, Divide, Williams
13900: CLR, pooling in Corinth-Bakken, Williams.
13901: CLR, pooling in Banks-Bakken, Williams, McKenzie.
13902: CLR, pooling in Elm Tree-Bakken, McKenzie.
13903: CLR, pooling in Banks-Bakken, McKenzie.
13904: CLR, pooling in Banks-Bakken, McKenzie.
13905: CLR, poolingin Elidah-Bakken, McKenzie.
13906: CLR, pooling in Elidah-Bakken, McKenzie.
13907: CLR, pooling in Haystack Butte-Bakken, McKenzie.
13908: CLR, pooling in Haystack Butte-Bakken, McKenzie.
13909: CLR, pooling in Haystack Butte-Bakken, McKenzie.
13910: CLR, pooling in Ranch Creek-Bakken, McKenzie.
13911: CLR, pooling in Little Knife-Bakken, Dunn.
13912: CLR, pooling in Jim Creek-Bakken, Dunn.
13913: CLR, pooling in Little Knife-Bakken, Dunn.
13914: CLR, pooling in Little Knife-Bakken, Dunn.
13915: CLR, pooling in Jim Creek-Bakken, Dunn.
13916: CLR, poolking in Jim Creek-Bakken, Dunn.
13917: CLR, pooling in St Demetrius-Bakken, Billings.
13918: Anschutz, pooling in St Demetrius-Bakken, Billings.
13920: Anschutz, pooling in Murphy Creek-Bakken, Dunn.
13921: Anschutz, pooling in Russian Creek-Bakken, Dunn.
13922: Anschutz, pooling in St Anthony-Bakken, Dunn.
13923: Hunt, pooling in Clear Water-Bakken, Mountrail.
13924: Hunt, pooling in  Ross-Bakken, Mountrail.
13925: Hunt, pooling in Ross-Bakken, Mountrail.
13926: Hunt, pooling in Parshall-Bakken, Mountrail.
13927: Hunt, pooling in Parshall-Bakken, Mountrail.
13928: Hunt, pooling in Parshall-Bakken, Mountrail.
13929: Hunt, pooling in Parshall-Bakken, Mountrail.
13930: Hunt, pooling in Parshall-Bakken, Mountrail.
13931: Hunt, pooling in Bailey-Bakken, Dunn.
13932: Hunt, pooling in Bailey-Bakken, Dunn.
13933: Hunt, pooling in Bailey-Bakken, Dunn.
13934: Hunt, pooling in Bailey-Bakken, Dunn.
13935: Hunt, pooling in Bailey-Bakken, Dunn.
13936: Hunt, increase density, 3 wells in each 640-acre unit, and each 1280-acre unit, Bailey-Bakken.
13937: Hunt, increase density, 3 wells in each 640- and each 1280-acre unit, Parshall-Bakken.
13938: Hunt, increase density, 3 wells in each 640- and each 1280-acre unit, Ross-Bakken, Mountrail.
13939: Hunt, increase density wells, 3 wells in each 640- and each 1280-acre unit, Lake Ilo-Bakken, Dunn.
13940: Hunt, increase density wells, 3 wells in each 640- and each 1280-acre unit, Clear Water-Bakken, Dunn.
13941: Fidelity, complete 3 wells on each 640-acre unit in Sanish-Bakken, Mountrail.
13942: Fidelity, complete 2 wells on each 640-acre unit Stanley-Bakken, Mountrail.
13943: Samson Resources, flaring from Moe 9-162-98H, Blooming Prairie-Bakken, Divide.
13944: Samson Resource, flaring from Vassen 27-163-99H, Ambrose-Bakken, Divide.
13945: Samson Resources, flaring from Sparks 8-162-98-2H, Blooming Prairie-Bakken, Divide.
13946: Slawson, salt water disposal, Van Hook, Mountrail.
13947: Slawson, salt water disposal, Sanish, Mountrail.
13948: Slawson, flaring at a gas gathering facility, Big Bend-Bakken, Mountrail.
13949: SHD, flaring in Deep Water Creek Bay-Bakken, McLean and Dunn.
13950: Zenergy, flaring in Reunion Bay-Bakken, McKenzie, Mountrail and Dunn.
13951: Tracker, pooling in Little Knife-Bakken, Dunn.

Global Warming -- Not A Bakken Story

From the AP, Saturday, November 20, 2010, another "global warming" story. Does anyone else see the inconsistency in the lead paragraph of this article? If not I will point it out in the comments. But here are the two lead paragraphs:
The last time the world warmed, 120,000 years ago, the Cancun coastline was swamped by a 7-foot (2.1-meter) rise in sea level in a few decades. A week from now at that Mexican resort, frustrated negotiators will try again to head off a new global deluge.

The disappointment of Copenhagen — the failure of the annual U.N. conference to produce a climate agreement last year in the Danish capital — has raised doubts about whether the long-running, 194-nation talks can ever agree on a legally binding treaty for reining in global warming.
Whether or not there is any global warming occurring is still being argued (just a few years ago, a Newsweek front cover article said the earth was entering another ice age). What part man plays in climate change is really difficult to sort out when one considers the internal inconsistency of the story above.

"The last time the world warmed, 120,000 years ago, the Cancun coastline was swamped ..."

Okay, 120,000 years ago, I assume the "global warming" argument is that the warm age back then was caused by all those Neanderthals and Homo sapiens competing to see who could burn the most coal to warm their caves. Or maybe it was their gasoline-burning monster SUVs used in stampeding woolly mammoths over the sides of cliffs.



'Nuf Said

$175 Million Natural Gas Processing Plant at Watford City Approved

Perhaps more on this later. Here's the story.

The link has been broken, as is customary for these small regional newspapers.

Here's the lead paragraph of that story:
North Dakota’s Public Service Commission has approved construction of the $175 million plant, which will be built about 4½ miles northeast of Watford City in McKenzie County. It will collect gas from about 300 wells in eastern McKenzie County and southwestern Mountrail County in northwestern North Dakota.