For those interested in the Occidental story, see comments at the posting.
See my posting dated October 21, 2010.
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Friday, December 10, 2010
Exports from Nation's Busiest Port Nearing Pre-Recession Levels -- Not a Bakken Story
This is a huge story. I started linking stories about the cargo volume at the ports of Los Angeles and Long Beach over a year ago.
This is very exciting.
This is a list of busiest ports worldwide based on containers, not oil tankers or bulk shipping such as wheat.
This is very exciting.
This is a list of busiest ports worldwide based on containers, not oil tankers or bulk shipping such as wheat.
Update on Oil For America and the Lodgepole -- North Dakota, USA
For those who have been following the Lodgepole story and Oil for America, there is a rumor that the first two wells were successful. At the link, there is an update dated December 10, 2010, as well as background to the story for those who are not familiar with it.
If these wells are indeed successful, this is going to be a big story.
I'm sure there will be much more to write about next week if not sooner.
If these wells are indeed successful, this is going to be a big story.
I'm sure there will be much more to write about next week if not sooner.
The Heart of the Bakken Gets Record Amount of Snow: One Foot
The previous record was set in 1929. Williston got one foot of snow which easily surpassed the record set in 1929, which was five (5) inches (all numbers rounded).
At one point, the snow was falling at the rate of two inches an hour.
Using Whiting's method of calculating IPs, this works out to more than four feet in one 24-hour period. Using BEXP's method of calculating IPs, this works out to more than 48 feet of snow in one 24-hour period. And, of course, using the method of calculating IPs by a company I won't name, this equates to two inches. Period.
At one point, the snow was falling at the rate of two inches an hour.
Using Whiting's method of calculating IPs, this works out to more than four feet in one 24-hour period. Using BEXP's method of calculating IPs, this works out to more than 48 feet of snow in one 24-hour period. And, of course, using the method of calculating IPs by a company I won't name, this equates to two inches. Period.
Six (6) New Permits in North Dakota -- Things Seem To Be Slowing Down As We Get Closer to Year End
Producers: BEXP, Petro-Hunt, Whiting, and Samson Resources.
Oil fields: Painted Woods, Elkhorn Ranch, and four (4) wildcats.
The two Petro-Hunt wells will be on one pad inside the Fort Berthold Indian Reservation; and, the two Samson Resources wells be on one pad in Divide County. All four wells are wildcats.
Meanwhile, in today's daily activity report, EOG reported a nice well (1,154); and, Slawson reported a nice well (1,770). Both were in Mountrail County.
Oil fields: Painted Woods, Elkhorn Ranch, and four (4) wildcats.
The two Petro-Hunt wells will be on one pad inside the Fort Berthold Indian Reservation; and, the two Samson Resources wells be on one pad in Divide County. All four wells are wildcats.
Meanwhile, in today's daily activity report, EOG reported a nice well (1,154); and, Slawson reported a nice well (1,770). Both were in Mountrail County.
Lots of Activity in the Bakken Today
There was lots of activity in the Bakken today with the OXY announcement but I will be out and about this evening, so no more posts until I get back.
Sorry.
However, there's a ton of new information posted, as well as lots of old information to wade through.
Enjoy.
Sorry.
However, there's a ton of new information posted, as well as lots of old information to wade through.
Enjoy.
Denbury and The Williston Basin
Here's the link, an Investopedia article. Again, a very interesting article following on the heels of the OXY story posted just an hour or so ago.
Thesis: although DNR's main focus is on enhanced oil recovery, DNR has a growing acreage position in the North Dakota Bakken (remember, DNR bought Encore, a Bakken oil exploration and production company not long ago).
Denbury, according to Eric Fox at Investopedia:
Thesis: although DNR's main focus is on enhanced oil recovery, DNR has a growing acreage position in the North Dakota Bakken (remember, DNR bought Encore, a Bakken oil exploration and production company not long ago).
Denbury, according to Eric Fox at Investopedia:
- 275,000 net acres under lease in the ND Bakken formation
- Approximately 76,000 of those acres in the Almond and northeast Foothills area
- The rest in the "core area of its play in the Williston Basin; 73,300 net acres
- The company estimates it has 350 million barrels of oil equivalent in the Bakken
- It is operating five (5) rigs
- 2011: DNR to focus on its core are in the Camp and Cherry Hills areas
- The rest of its Bakken acreage is held by production and not under pressure to drill there
- DNR has six wells being completed and another five being drilled (Cherry, Murphy Creek, and Charlson)
- Well cost, on the high side: $6.8 to $7.8 million/well
- Also, DNR is re-fracking wells that had originally been completed with only one hydraulic fracturing stage
Three Interesting Wells Being Reported Today -- Bakken, North Dakota, USA
18906, 2,640, BEXP, Michael Owan 26-35 1-H, Painted Woods, Bakken
19028, DRL, Sagebrush, Erikson Et Al 3B, Madison -- Not the Bakken pool
18909, 674, CLR, Rollefstad 2-3H, Antelope; Sanish pool -- Not the Bakken pool
First, the BEXP well is yet another Owan well west of Williston; pretty spectacular.
For newbies: note the Sagebrush well into the Madison, one of the most prolific formations in North Dakota; this is not the Bakken. I believe through 2009, the Madison produced 51% of all oil produced to date in North Dakota.
Finally, the CLR well. I don't see "Sanish Pool" very often. See comment below about definition of the
Sanish Pool." I need to update this information at this link, but that will have to wait.
19028, DRL, Sagebrush, Erikson Et Al 3B, Madison -- Not the Bakken pool
18909, 674, CLR, Rollefstad 2-3H, Antelope; Sanish pool -- Not the Bakken pool
First, the BEXP well is yet another Owan well west of Williston; pretty spectacular.
For newbies: note the Sagebrush well into the Madison, one of the most prolific formations in North Dakota; this is not the Bakken. I believe through 2009, the Madison produced 51% of all oil produced to date in North Dakota.
Finally, the CLR well. I don't see "Sanish Pool" very often. See comment below about definition of the
Sanish Pool." I need to update this information at this link, but that will have to wait.
Oxy Bets On The Bakken
This is huge. I have to thank "James" for alerting me to this story.
Oxy bets on the Bakken (MarketWatch). The Motley Fool article on OXY/Bakken.
This story just broke about 10:30 a.m. EST, Friday, December 10, 2010.
Details:
With regard to "Plains All American Pipeline LP," I posted the following in mid-November:
Oxy bets on the Bakken (MarketWatch). The Motley Fool article on OXY/Bakken.
This story just broke about 10:30 a.m. EST, Friday, December 10, 2010.
Details:
- Oxy to sell interests in Argentina, to China Petrochemical Corp (Sinopec)
- Oxy will buy 180,000 acres in the Bakken and Three Forks formations in North Dakota from a private seller for $1.4 billion ($7,777/acre -- same "ballpark" as ERF and WMB recent purchases).
- Oxy is also a key player in ownership of Plains All American Pipeline, LP.
With regard to "Plains All American Pipeline LP," I posted the following in mid-November:
Plains All American Pipeline, L.P., today announced that it has entered into a definitive agreement with Nexen Holdings U.S.A. Inc. to purchase entities that hold crude oil gathering and transportation assets that primarily service Bakken area producers. Total consideration is estimated at $210 million, including approximately $170 million for the business and physical assets and approximately $40 million for approximately 400,000 barrels of inventory and other working capital adjustments. Subject to regulatory approval, the transaction is scheduled to close by year-end 2010.
The assets are primarily located in Northwestern North Dakota and Northeastern Montana and include: a lease gathering business that currently handles approximately 55,000 barrels per day; the Robinson Lake pipeline, a FERC regulated 20-mile, 8-inch pipeline that currently handles approximately 18,000 barrels per day; 8 truck terminals and various other contractual rights.
166.
New record.
This record of 166 active rigs includes only six BEXP rigs. I believe BEXP has seven rigs in the Bakken (maybe the seventh is in Montana, if not inactive) with an eighth on the way in 2011.
All 22 CLR rigs are on the active list.
Only 10 EOG rigs are on the list. I believe I have seen as many as 11 EOG rigs.
Whiting has 15 rigs on the list.
The ten Hess rigs are on the list.
Oasis is up to eight rigs, which I think, is a new high for them.
This record of 166 active rigs includes only six BEXP rigs. I believe BEXP has seven rigs in the Bakken (maybe the seventh is in Montana, if not inactive) with an eighth on the way in 2011.
All 22 CLR rigs are on the active list.
Only 10 EOG rigs are on the list. I believe I have seen as many as 11 EOG rigs.
Whiting has 15 rigs on the list.
The ten Hess rigs are on the list.
Oasis is up to eight rigs, which I think, is a new high for them.
Deere Sells Wind Business -- Not A Bakken Story
Most likely the tax credits for "wind energy" ran out of this division making it an ideal time for Deere to sell this business.
Exelon, who bought the wind business from Deere, is an interesting energy company in its own right.
We've probably seen the end of new wind energy projects in the near time, with lots of trading back and forth of current wind farms. If not the end of new wind energy projects, certainly a lot fewer.
Exelon, who bought the wind business from Deere, is an interesting energy company in its own right.
We've probably seen the end of new wind energy projects in the near time, with lots of trading back and forth of current wind farms. If not the end of new wind energy projects, certainly a lot fewer.
Cancun Global Warming Conference: Hit With Coldest Weather in 100 Years -- Not a Bakken Story
Thank goodness for the internet. This is another story that mainstream media would not print, except perhaps buried in a some story buried in the back pages.
By the way, I can't get to the linked site due too many hits on that particular server.
"The server is busy; check back later."
This alternate site will get you to the same story.
By the way, I can't get to the linked site due too many hits on that particular server.
"The server is busy; check back later."
This alternate site will get you to the same story.
Not News -- Global Demand For Oil Will Rise in 2011
This is not news; it was posted at this site a couple days ago with the link, but now the mainstream media is starting to post it: global demand for oil will rise in 2011.
Based on recent events in the US, it appears the US will continue to be seen as a consumer of oil, and not a producer. Just saying.
Based on recent events in the US, it appears the US will continue to be seen as a consumer of oil, and not a producer. Just saying.
Update on Potash Well -- North Dakota
December 9, 2010: The well should be completed sometime next week.
Something tells me it will be a mixed report: potash is there; whether it's commercially relevant, that's another story; and how it will affect North Dakota environment is the big question.
Something tells me it will be a mixed report: potash is there; whether it's commercially relevant, that's another story; and how it will affect North Dakota environment is the big question.
Shooting From The Hip -- For Investors Only
Note: when I posted the list below, I was unaware that Newfield would soon be added to the S&P 500; that announcement was made December 10, 2010. -- posted December 11, 2010.
Without any real analysis, except a gut feeling based on everything I've posted / read this past three months, these are the "Bakken" companies that excite me the most:
Whiting: cash flow in Sanish; expanding in TFS and perhaps the Lodgepole
Newfield: expanding in ND Bakken; big presence in Alberta Bakken
KOG: price action
Oasis: IPO
NOG: unique business model
CLR: 22 rigs; "face" of the Bakken
ENB: doubling takeaway capacity in the Bakken
EEP: high distribution of profits back to investors
WHX: high distribution of profits back to investors
Of those listed, I accumulate shares in NOG, WHX, ENB, EEP.
I kick myself, as an investor, for not investing in OAS and KOG early on.
To some extent, I wonder if I missed Newfield early on.
For newbies: there has been a huge run-up in some of the companies noted above, and I am not recommending investing or not investing at this particular time. This is just idle chatter I would engage in if I were sitting in on a coffee klatsch at the Economart in Williston.
*******
Original Posting
Without any real analysis, except a gut feeling based on everything I've posted / read this past three months, these are the "Bakken" companies that excite me the most:
Whiting: cash flow in Sanish; expanding in TFS and perhaps the Lodgepole
Newfield: expanding in ND Bakken; big presence in Alberta Bakken
KOG: price action
Oasis: IPO
NOG: unique business model
CLR: 22 rigs; "face" of the Bakken
ENB: doubling takeaway capacity in the Bakken
EEP: high distribution of profits back to investors
WHX: high distribution of profits back to investors
Of those listed, I accumulate shares in NOG, WHX, ENB, EEP.
I kick myself, as an investor, for not investing in OAS and KOG early on.
To some extent, I wonder if I missed Newfield early on.
For newbies: there has been a huge run-up in some of the companies noted above, and I am not recommending investing or not investing at this particular time. This is just idle chatter I would engage in if I were sitting in on a coffee klatsch at the Economart in Williston.
Ethanol -- How Much It Really Costs Us -- Not A Bakken Story
One nice thing about the debate over the "Obama Tax Cut Bill" / "Bust Tax Cut Extension Bill" is: I am reminded how much ethanol costs us.
To garner more votes for this tax bill, there is a provision to extend the 45 cents/gallon subsidy for one more year for ethanol. I had forgotten that subsidy. And, of course, the federal mandate that a certain amount of ethanol must be added to gasoline.
That link by the way reports that the provision will also keep the 54 cents/gallon tariff on imported biodiesel fuel. Interesting, huh? No tariff on toys from China, but tariff on cheap fuel from Brazil to artificially keep our own energy prices up. (I'm shooting from this hip on this; I don't know all the particulars, but I bet I'm pretty close.)
Everyone pretty much agrees that the cost of ethanol helps keep price of oil and gasoline a bit higher than it would be without the ethanol factor. As much as I dislike ethanol (it costs as much energy to make as it delivers; it converts a foodstock into fuel), there may be some mitigating factors. But one has to admit, ethanol is nothing more than an agricultural subsidy.
To garner more votes for this tax bill, there is a provision to extend the 45 cents/gallon subsidy for one more year for ethanol. I had forgotten that subsidy. And, of course, the federal mandate that a certain amount of ethanol must be added to gasoline.
That link by the way reports that the provision will also keep the 54 cents/gallon tariff on imported biodiesel fuel. Interesting, huh? No tariff on toys from China, but tariff on cheap fuel from Brazil to artificially keep our own energy prices up. (I'm shooting from this hip on this; I don't know all the particulars, but I bet I'm pretty close.)
Everyone pretty much agrees that the cost of ethanol helps keep price of oil and gasoline a bit higher than it would be without the ethanol factor. As much as I dislike ethanol (it costs as much energy to make as it delivers; it converts a foodstock into fuel), there may be some mitigating factors. But one has to admit, ethanol is nothing more than an agricultural subsidy.