Friday, December 31, 2010

The Top Million Dollar Way Stories for 2010

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

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

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.

Wrap-Up: North Dakota Oil, 2010 -- Huge $$$$ All Around

Link here. Regular readers "know" all this. Nothing new.

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
When they talk about "truck trips," it takes about one (1) million gallons of fresh water to frack a well and the trucks carry about 7,500 - 8,000 gallons (125 truck-trips required just for the water).

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.