Memo to Jim: This is Sioux Country

Someone sent me a memo to send to Jim Cramer at CNBC's Mad Money. I'll see that he gets it.

Today, Friday, February 25, 2011, Jim Cramer had two long segments on the Bakken, one before a commercial break, and then a second segment after the commercial break.

The first segment was on the Bakken itself and the producers he liked: Hess, EOG, CLR, WLL, BEXP, and Oasis.

The second segment was on other ways to play the Bakken:

• NOG: unique business model
• HAL: fracking
• CRR: fracking ceramics

At the end of the show he gave a shout-out to the "North Dakota State Bison" which was wonderful, but it is the University of North Dakota that has a closer connection to the oil industry in North Dakota (at least as far as I know).

All core samples are sent to UND. This is a great story. I won't paraphrase it. I will let you enjoy the story; it's another great story due to North Dakota visionaries many, many years ago.

It's from UND's Discovery On-Line edition, May 4, 2010.

From the article:

Considering how much the supply and price of crude oil impacts the global economy, one of the world’s most valuable rock collections might be located at the University of North Dakota in the Wilson M. Laird Core and Sample Library.

The shelves of the library’s voluminous, climate-controlled warehouse are stacked nearly to the ceiling with long boxes containing cylindrical rock cores and smaller boxes of pulverized rock cuttings taken from virtually every oil well drilled in North Dakota’s Williston Basin, making it a one-of-a-kind resource.

“We’re probably the most complete state collection in the U.S.,” said library director Julie LeFever.  “Most states have some form of repository similar to this, but they’re not as complete.”

Operated by the North Dakota Geological Survey, the library is the state repository for information on what lies beneath the state’s surface.  About 90 percent of the material stored here deals with oil exploration, but there are also core samples related to U.S. Air Force missile silos, Red River Valley geology, landfills and coal bed methane, among others.

Trivia Hour -- NDIC Hearing Dockets -- March, 2011: How Much Can One Find in the March Dockets? -- Bakken, North Dakota, USA

NDIC has posted the March, 2011, hearing dockets, and I have posted a brief summary of same.

See the trivia one can derive from the hearings:

1. It's not just about the Bakken any more! Look at this:  "proper spacing for the Lodgepole."

• 14304: MRO, proper spacing for Murphy Creek-Lodgepole, Dunn County
• See comments below [this item was added to original post. Thank you to those who missed my oversight on this one.]

2. We are starting to see as many as four wells on 640-acre spacing units

• 14428: Enerplus, complete not more than 2 wells on a 320-acre unit, and not more than 4 wells on a 640-acre unit in Mandaree-Bakken, Dunn, McKenzie (one of several examples)

3. Slawson is going to try something we don't see often: going into a producing horizontal well, but opening the vertical portion to another formation

• Case 14386: Slawson wants to go back into Ambush 1-31-30H and open a portion of the vertical section of the well to the Lodgepole Formation in Williams County

4. Williams County is going to get really, really busy

• 14418: EOG, complete not more than 2 wells in each 1280-acre unit; 15 units, 30 wells, Painted Woods-Bakken, Williams
• 14419: EOG, complete not more than 2 wells in a 1280-acre unit, Rosebud, Williams
• 14421: EOG, complete not more than 2 wells on each 1280-acre unit; 3 units, 6 wells total, Round Prairie-Bakken, Williams

5. Larger units

• 14085, cont'd: Zenergy, extend Van Hook-Bakken, 1 3840-acre unit, 9 wells, eliminate the 1220 setback rule
• 14321: Hess, to establish a 2560-acre unit in Manitou or Alkali Creek-Bakken, Mountrail 

6.  For all those naysayers who said EOG was leaving Bottineau and the Spearfish -- not so fast

• 13429, cont'd: temporary spacing for Boundary 4-27H, Bottineau (Spearfish)

7. Wildcats farther east, all the way into Ward County

• 14371: Behm, complete a vertical well, Halden 11-8, Ward, 8-156-87; this is a vertical well; what formation is Behm targeting?

8. Many great fields getting bigger; just a couple examples

• 14363: Enerplus, to establish 7 1280-acre units in Heart Butte-Bakken, 4 wells each, Dunn
• 14354: Enerplus, to establish 4 1280-acre units in South Fork-Bakken, 4 wells each, Dunn

9. New fields? One of many examples:

• 14309: Cornerstone, establish 14 640-acre units in Burke County

10.  WLL is "putting the pedal to the metal in the Sanish":

• 14327: WLL, to establish 2 additional wells to be drilled on 10 spacing units in the Sanish-Bakken pool, Mountrail County, 20 wells in all

11.  It looks like ALL the drillers are getting tired of production restrictions due to flaring and lack of infrastructure. They've thrown in the towel and are asking for relief in the most prolific (and "oldest" Bakken field in North Dakota, the Parshall. After the 4Q10 earnings reports, one understands why these companies want restrictions lifted; the flaring restrictions and North Dakota winter depressed production significantly

• 14434: EOG, Slawson, Hunt, BEXP, Sinclair, to allow flaring of gas unrestricted in Parshall-Bakken, Mountrail  

11. Everyone is getting into  the act. In the old days, it was only WLL that put 6 - 8 wells on a 1280-acre unit; now everyone is doing it; one of many examples:

• 14075, cont'd: Newfield, create 1 1280-acre unit, Williams, 5 wells including the existing well

I'm curious if anyone else can see any trends, innovations, or peculiarities in the NDIC March hearing dockets? Or something I missed or misinterpreted?

NDIC Hearing Dockets -- March, 2011

Abbreviate summary for personal use only.
Full case at NDIC home page.
For summary of trends, innovations, peculiarities derived from the docket, click here. 

Wednesday, March 23, 2011 (9 pages)

14304: MRO, proper spacing for Murphy Creek-Lodgepole, Dunn County.
14305: MRO, temporary spacing for Watson USA 14-32H, McKenzie
14306: MRO, request to produce at max efficient rate for Van Hook-Bakken pool
14274, cont'd: MRO, pooling in Antelope-Bakken, McKenzie
13986, cont'd: MRO, temporary spacing for Spotted Bear USA 21011H, McLean
14307: Ursa, temporary spacing for Borseth 15-22, McKenzie
14308: Cornerstone, temporary spacing for Paradox 11-16H, Burke
14309: Cornerstone, establish 14 640-acre units in Burke County
14310: BR, appropriate spacing for BR 11-1H, Red Wing Creek-Madison, McKenzie
14311: BR, add a 1280-acre unit to Roughrider -Bakken, McKenzie
14312: BR, pooling in Sand Creek-Bakken, McKenzie
14313: Sequel, to extend Kittleson Slough Field to include 6 more sections; 1280-acre spacing, Mountrail
14314: Sequel, to include 2 more sections in Cottonwood-Bakken, Mountrail
14315: Sequel, to establish 3 1280-acre units in McKenzie; one well each unit
14316: Sequel, to establish a 1280-acre unit in McKenzie; one well
14317: Sequel, to extend Cinnamon Creek-Bakken, 4 1280-acre unit; 1 well each, McKenzie
14318: Sequel, to extend Flat Top Butte-Bakken, 7 1280-acre units, 1 wel each, McKenzie
14319: SM, to establish 8 1280-acre unit, McKenzie, 1 well each
14231, cont'd: SM, to suspend a CLR permit for Koeser 1-11H, McKenzie
14320: Hess, to allow flaring from EN-Trout-157-93 3130H-1, Big Butte Field, Mountrail
14321: Hess, to establish a 2560-acre unit in Manitou or Alkali Creek-Bakken, Mountrail
14322: Hess, to designate two sections as a 1280-acre unit, Mountrail
14323: Hess, pooling for a spacing unit in Elm Tree-Bakken, McKenzie
14324: Hess, pooling in Blue Buttes-Bakken, McKenzie
14245, cont'd: Hess Bakken Investments II Corp, to suspend a Sinclair Robert Peterson 11-3H well, McKenzie
14325: Hess Bakken Investments II Corp, to extend Truax-Bakken, 2 1280-acre units; Williams and McKenzie
14326: KOG, to extend Banks-Bakken, 2 1280-acre units, 2 wells each
14327: WLL, to establish 2 additional wells to be drilled on 10 spacing units in the Sanish-Bakken pool, Mountrail County, 20 wells in all
14328: WLL, to establish 7 1280-acre units in Golden Valley County; 1 well each
14329: WLL, to include another 1280-acre unit in Rossevelt-Bakken pool, Billings County
14330: WLL, pooling in Big Stick-Bakken, Billings
14331: WLL, pooling in Big Stick-Bakken, Billings
14332: WLL, conversion of Mann 33-18SWD to saltwater disposal, Stark County
13997, cont'd: WLL, temporary spacing for Teddy 44-13TFH, Billings
13998, cont'd: WLL, temporary spacing for Teddy 44-30TFH, Billings
13564, cont'd: WLL, to include another 1280-acre unit in Elkhorn Ranch-Bakken, Billings
13565, cont'd: WLL, pooling in Elkhorn Ranch-Bakken, Billings
14333: Petro-Hunt, to include 12 1280-acre units in Little Knife-Bakken; 6 wells in each; 72 wells, Billings
14334: Luff, to allow a second well on a 480-acre unit in Haley-Red River Pool (240-acre spacing), Dunn, McKenzie, and Billings
14335: Oasis, pooling in Bull Butte-Bakken, Williams
14336: Oasis, pooling in Bull Butte-Bakken, Williams
14337: Oasis, pooling in Bull Butte-Bakken, Williams
14338: Oasis, pooling in Bull Butte-Bakken, Williams
14339: Oasis, to allow flaring from Sandaker 5602 11-13H, Williams
14340: Oasis, to allow flaring from Njos Federal 5602 11-13H, Williams
14341: Oasis, to allow flaring from Hynek 5693-42-35H, Mountrail
14342: Oasis, to allow flaring from Rebne 11-7H, Burke
14343: Oasis, pooling in Squires-Bakken, Williams
14344: pooling in Squires-Bakken, Williams
14345: Oasis, pooling in Squires-Bakken, Williams
14346: Oasis, to authorize saltwater disposal, Arnson SWD 5603 24-8, Bull Butte, Williams
14347: Murex, to authorize saltwater disposal, Murex SWD 1, Ragged Butte, McKenzie
14003, cont'd: Prairie Disposal, to authorize conversion of Mendenhall Unit 1 into a saltwater disposal well, Hofflund field, Williams
14348: North Plains, to maximize production and allow flaring from Sorenson Federal 15-5H, Sand Creek-Bakken, McKenzie
14349: North Plains, pooling for Sorenson Federal 15-5H, Sand Creek, McKenzie
14350: North Plains, pooling for Scanlan 3-5H, Truax field, Williams

Thursday, March 24, 2011 (14 pages)

14351, Anschutz, proper spacing for Cabernet-Bakken, Dunn
14352: Anschutz, to extend Little Knife-Bakken, 1 1280-acre unit; 1 well, Dunn
14353: Anschutz, to establish 2 1280-acre units in Willmen-Bakken, in Billings Country, 1 well each
14354: Anschtuz, to establish a 640-acre unit, one vertical well, Dunn County
14059, cont'd: Anschutz, temporary spacing for Andrew Schmidt 13-10H-143-97, Dunn
14355: CLR, proper spacing for Northwest McGregor-Bakken, Williams
14356: CLR, to create a 2560-acre unit in Elm Tree-Bakken, McKenzie; 4 wells
14357: CRL, create a 1280-acre unit in Billings County, one well
14062, cont'd: CLR, temporary spacing for Norway 1-5H, McKenzie
13814, cont'd: CLR, to define field limits of Edge-Bakken pool, McKenzie
13447, cont'd: CLR, to create 2 320-acre units in Stoneview-Bakken; 1 well each, Burke
13815, cont'd: CLR, proper spacing to develop Lindahl-Bakken, Williams
14358: Flatirons Resources, proper spacing for South Pleasant-Madison, Renville
14359: BEXP, temporary spacing for Knoshaug 14-11, Williams
14360: BEXP, temporary spacing for Gibbins 1-12, Williams
14361: Enerplus, temporary spacing for Ethan Hall 6B-7-1H, Dunn
14362: Enerplus, plugging back Roberts Trust 13C-2HTF; inadvertently drilled, Dunn
14363: Enerplus, to establish 7 1280-acre units in Heart Butte-Bakken, 4 wells each, Dunn
14354: Enerplus, to establish 4 1280-acre units in South Fork-Bakken, 4 wells each, Dunn
14365: Enerplus, to establish 3 1280-acre units in Mandaree-Bakken, 4 wells each, Dunn
14366: Enerplus, to establish 3 1280-acre units in Eagle Nest-Bakken, 4 wells each, McKenzie
14367: Enerplus, to establish 1 1280-acre unit in Spotted Horn-Bakken, 4 wells each, McKenzie
13813, cont'd: Enerplus, temporary spacing for Henry Bad Gun 17A-20-1H, Dunn
14368: Fidelity, temporary spacing for Oukrop 34-34H, Stark
14061, cont'd: Fidelity, temporary spacing for Kostelecky 31-6H, Stark
14369: Hunt, temporary spacing for Halliday 1-11-2H, Dunn
14370: Encore, temporary spacing for Schutz 1, McKenzie
14371: Behm, complete a vertical well, Halden 11-8, Ward, 8-156-87
14372: Crescent Point, extend West Ambrose, 1 1600-acre unit, Divide, 1 well
14373: Denbury, extend Camp-Bakken, 1 1280-acre unit, 1 well, McKenzie
14374: Denbury, extend South Tobacco Garden-Bakken, 3 1280-acre units, 1 wells each, McKenzie
14375: EOG, extend Kittleson Slough-Bakken, 1 1280-acre unit, Mountrail, 3 wells each
14376: EOG, extend Painted Woods-Bakken, 3 1280-acre units, 2 wells each
14377: EOG, to create field rules for Sixmile and/or Eightmile-Bakken pools to establish 4 1280-acre units, 2 wells each, Williams
14378: EOG, extend Painted Woods-Bakken, 2 1280-acre units, 1 well each, Williams
13429, cont'd: EOG, temporary spacing for Boundary 4-27H, Bottineau (Spearfish)
13622, cont'd: EOG, temporary spacing for Model 1-05H, Mountrail
13808, cont'd: EOG, temporary spacing for Round Prairie 2-20H, Williams
14379: Pride, to create 1 1280-acre unit, Golden Valley
14380: Samson Resources, extend Fotthills-Bakken, 1 1280-acre unit, 1 well, Burke
14381: Samson Resources, establish 1 1280-acre unit in Ross-Bakken, 1 well, Mountrail
14382: Spotted Hawk Development, extend Heart Butte-Bakken, 5 640-acre units, 1 wells each, Dunn and McLean
14383: Spotted Hawk Development, extend Heart Butte, 1 3840-acre unit, 1 well, McLean, Dunn
14384: Spotted Hawk Development, extend Van Hook-Bakken, 1 3200-acre unit, 1 well, McLean, Dunn
14385: Spotted Hawk Development, extend Deep Water Creek Bay-Bakken, 1 1920-acre unit, 1 well, McLean and Dunn
14386: Slawson, complete Ambush 1-31-30H, Williams, with a portion of the vertical section of the well to open to the Lodgepole Formation
14015, cont'd: Slawson, temporary spacing for Cyclone 1-21-16H, McKenzie
13594, cont'd:  Peak, proper spacing for the South Fork-Bakken, Dunn
14081, cont'd: Sinclair, temporary spacing for Bighorn 1-6H, Dunn
14087, cont'd: Sinclair, pooling in Mary-Bakken, Dunn
14085, cont'd: Zenergy, extend Van Hook-Bakken, 1 3840-acre unit, 9 wells, eliminate the 1220 setback rule
14387: Newfield, temporary spacing for Sandhill, Williams
14388: Newfield, extend Epping-Bakken, 1 1280-acre unit, 1 well, Williams
14389: Newfield, create 1 1280-acre unit in Williams, 4 wells
14390: Newfield, create 1 1280-acre unit, 1 well, Williams
14075, cont'd: Newfield, create 1 1280-acre unit, Williams, 5 wells including the existing well
14391: Newfield, revoking XTO permit for Berg Federal 21X-30, McKenzie
14392: Newfield, revoking Zavanna permit to drill SS 20-17 1H, Williams
14393: CLR, risk penalty legalese, Orf 1-17H, Ranch Creek-Bakken, McKenzie
14394: CLR, pooling a spacing unit for four wells in Stoneview-Bakken, Burke
14395: CLR, pooling in North Tioga-Bakken, Burke
14396: CLR, pooling in Mary-Bakken, McKenzie
14397: Newfield, pooling in Sand Creek-Bakken, McKenzie
14398: Newfield, pooling in Tobacco Garden-Bakken, McKenzie
14399: Newfield, pooling in Tobacco Garden-Bakkeen, McKenzie
14400: Newfield, pooling in South Tobacco Garden, McKenzie
14401: Denbury, pooling in South Tobacco Garden, McKenzie
14402: Denbury, pooling in South Tobacco Garden, McKenzie
14403: Denbury, pooling in South Tobacco Garden, McKenzie
14404: Denbury, pooling in Siverston, McKenzie
14405: Denbury, pooling in Siverston, McKenzie
14406: Denbury, pooling in Siverston, McKenzie
14407: Denbury, pooling in Siverston, McKenzie
14408: Denbury, pooling in Siverston, McKenzie
14409: Denbury, pooling in Siverston, McKenzie
14410: Denbury, pooling in Siverston, McKenzie
14411: Denbury, pooling in Siverston, McKenzie
14412: Hunt, pooling in Wolf Bay, Dunn
14413: Hunt, pooling in Wolf Bay, Dunn
14414: Fidelity, pooling in Heart River, Stark
14415: Fidelity, pooling in Heart River, Stark
14416: Anschutz, pooling in Little Knife, Dunn
14417: BEXP, saltwater disposal well, Trenton SWD 1, Rosebud, Williams
14418: EOG, complete not more than 2 wells in each 1280-acre unit; 15 units, 30 wells, Painted Woods-Bakken, Williams
14419: EOG, complete not more than 2 wells in a 1280-acre unit, Rosebud, Williams
14420: EOG, complete not more than 4 wells on a 1280-acre unit, Clarks Creek, McKenzie
14421: EOG, complete not more than 2 wells on each 1280-acre unit; 3 units, 6 wells total, Round Prairie-Bakken, Williams
14422: XTO, risk penalty legalese in McGregor-Bakken, Williams
14423: XTO, complete not more than 3 wells on 1 1280-acre unit, West Capa-Bakken, Williams
14424: XTO, complete not more than 3 wells on a 1280-acre unit, Capa-Bakken, Williams
14425: XTO, complete not more than 3 wells on a 1280-acre unit, Haystack Butte-Bakken, Dunn
14426: XTO, complete not more than 3 wells on an overlapping 1280-acre unit, McGregor-Bakken, Williams
14427:  Baytex, risk penalty legalese in Ambrose-Bakken, Divide
14428: Enerplus, complete not more than 2 wells on a 320-acre unit, and not more than 4 wells on a 640-acre unit in Mandaree-Bakken, Dunn, McKenzie
14429: Enerplus, complete not more than 4 wells on each 640-acre unit, 4 units, 16 wells total, McGregory Buttes-Bakken, Dunn
14430: RM Resources, convert to saltwater disposal well, Hawkinson 1-27, Dunn
14431: RM Resources, convert to saltwater disposal well, Bank of North Dakota 1-22, Dunn
14432: Sinclair, to complete not more than 2 wells on a 640-acre unit, Sanish-Bakken, Mountrail
14433: Denbury, XTO, to allow flaring of  gas, Charlson-Bakken, Williams, McKenzie
14434: EOG, Slawson, Hunt, BEXP, Sinclair, to allow flaring of gas unrestricted in Parshall-Bakken, Mountrail 


Finis -- unless the state publishes a supplement

Investors: NOG Added to S&P MidCap 400 -- February 25, 2011

Jim Cramer, CNBC's "Mad Money" host noted that NOG had a huge move today but he admitted he did not know why.

It was reported a few days ago that NOG was added to the S&P MidCap 400 today.

Check it out for yourself at the S&P MidCap 400 website. The site links two announcements. One of the announcements is NOG added to the index today. It looks like the site does not keep these announcements around long so if you are reading this months after initial posting, it might not be there any more.

New York, NY, February 23, 2011 – S&P MidCap 400 constituent Navigant Consulting Inc. (NYSE:NCI) will replace Genoptix Inc. (NASD:GXDX) in the S&P SmallCap 600 index, and Northern Oil and Gas Inc. (NYSE Amex:NOG) will replace Navigant Consulting in the S&P MidCap 400 after the close of trading on Friday, February 25, 2011. Genoptix is being acquired by S&P Global 1200 constituent Novartis AG in a deal expected to be completed soon, pending final conditions. Navigant Consulting’s market capitalization is below $490 million, making it more representative of the small cap space.

Standard & Poor’s will monitor this transaction, and post any relevant updates on its website: www.standardandpoors.com.

Navigant Consulting is a specialty consulting firm. Headquartered in Chicago, IL, the company will be added to the S&P Small Cap 600 GICS (Global Industry Classification Standard) Research & Consulting Services Sub-Industry index.

Northern Oil and Gas acquires, explores and develops oil and natural gas properties. Headquartered in Wayzata, MN, the company will be added to the S&P Midcap 400 GICS Oil & Gas Exploration & Production Sub-Industry index.

Mutual funds with emphasis on midcap stocks can now add NOG to their portfolios.

Wow, Wow, Wow -- Nine (9) More Permits in North Dakota -- USA

While Jim Cramer was raving, and "raving" is not too strong a word, about the Bakken, the NDIC was publishing their daily activity report. Today the report shows nine (9) more permits in the Bakken.

(By the way, the NDIC daily activity report today accidentally reported permit #20521 twice.

Producers: XTO (2), North Plains (2), Whiting (2), SM, Cornerstone, and BR.

Fields: Lost Bridge, Sand Creek, Golden Valley, Ambrose, Park, and a wildcat.

The two (2) XTO wells will be one pad in Lost Bridge oil field.

The two (2) North Plains wells will be on one pad in Sand Creek. Also, the BR permit is in Sand Creek.

Sand Creek is just forty sections; sharing a border with Charlson to the east (and Charlson is a very good field; southeast, across the river from Stockyard Creek). It's a very hot field right now.

Lost Bridge oil field is between the reservation on the east and Haystack Butte on the west.

The Cornerstone wildcat is very far north (not far from Canadian border) and quite a ways east (near Bowbells, North Dakota).

Comment: the most interesting thing about today's report -- two more companies putting multiple wells on one pad.

Many of the wells coming off confidential status are still in DRL status (no initial production reported). The companies are backlogged in getting their wells completed due to fracking backlog.

James Cramer -- Full Segment on the Bakken -- Friday, February 24

Typed as he talked; some of the numbers will be incorrect; I assume CNBC will have link later. [This is the link, but unfortunately not much there, and certainly not a transcriopt.]

Cramer's comments

CLR: 24 billion barrels
Bakken: big field ever discovered in the US
5x USGS 2008 survey;
Disparity: American technology
Today: 400,000 bopd
165 rigs operating
1 million bbls opd in a few years
Montana and North Dakota
The Bakken is a "rocket"
How to make "Mad Money" off it
What are the plays
The company that discovered oil in North Dakota in 1953 (sic): Amerada Hess

• 700,000 acres -- bought AEZ and TRZ LLC
• The Bakken not big enough to move their needle

EOG -- large cap like Hess

• Absolutely loved the EOG earnings report with regard to Bakken
• Hess, bigger, safer; EOG too much natural gas

The best ones

• CLR: 850,000 net acres in the Bakken; represents 47% of their bottom line
• WLL: 588,000 net acres in the Bakken
• BEXP: Cramer is getting calls "left and right" about BEXP; 375,000 acres in the Bakken; 270% yoy increase in production
• Oasis: 100% Bakken; 300,000 acres; no one cared about it last year

Bakken could more than double US domestic production

******

Now a second segment after the commercial break: indirect way to play the Bakken

NOG: Cramer doesn't know why it moved so much today (I do: it's been placed on S&P MidCap 400)

• Unique business model
• Some of the best acreage
• Acreage value keeps increasing

Halliburton -- doing fracking in the Bakken

• HAL can't meet demand
• Crews are tied up through 2012
• Working 24/7
• Barriers to entry huge
• The right sand
• Enormous experience

Nabors -- world's largest on-shore driller

• 33 rigs
• Pressure pumping trucks; exposure to fracking

Carbo-Ceramics (CCR) -- ceramic player

• World's largest supplier
• Best in show

The Bakken is a "rocket"

NDSU -- go Bison!

Later in show:  Repeats EOG.

COMMENT:
Jim Cramer failed to mention the pipelines. ENB. I would pick ENB or EEP over HAL.

Jim Cramer also failed to mention companies that make the rigs in the first place. FlexRigs. H&P.

UPDATE:

Tying up some loose ends regarding the recent Bakken segment on Jim Cramer's "Mad Money":

First, the ticker symbols for two companies mentioned in that post:

• Carbo Ceramics: CRR
• Helmerich and Payne: HP.

HP makes the FlexRig. This is quite an incredible story, August, 2007:

• A decade ago, Helmerich & Payne Inc. took a chance on a ground-up rig design based on a simple premise -- that an efficient and safe drilling rig would create value for its customers.
• H&P began designing what the company calls a FlexRig, a computerized drilling unit that allows the operator to punch a hole in the ground and move quickly between drilling locations.
• "We were highly criticized," Juan Pablo Tardio, a company spokesman, said of the early FlexRigs. "But no one had seen the efficiency we were able to achieve."
• The Tulsa-based contract drilling company built the first 50 FlexRigs on speculation and a belief that the industry needed a rig that could reach shallow targets between depths of 8,000 and 18,000 feet.

Saudi: Talk Vs Action

Lead story on CNBC at the top of the hour: 7:00 a.m. CST.

"Is Saudi all talk or can they really replace the oil loss due to events in Libya?"

The $147 question.

So far Saudi is only talking about increasing supplies.

Questions:

1. Does Saudi have the reserves? Short term Saudi has been decreasing production due to slowdown in global economy, so they have ability to quickly bring production back up to historical highs. However, long term, there are discussions on whether Saudi's reserves are as robust as they say they are.

2. Does Saudi have the right kind of oil? Libya's oil is sweet oil, like the Bakken oil. Refiners in Italy taking Libya's oil were "geared" for sweet oil. It is not as simple as flipping a switch to take Saudi oil, which is sour. Saudi is apparently talking about options: a) diverting sour crude to Asia and allowing other sources to divert sweet oil from Asia to Europe; b) see if European refiners can handle more Saudi sour.  Some can argue that by the time they sort this out, the Libyan crisis will have reached some sort of equilibrium (as price of gasoline goes up, demand goes down).

3. Does Saudi want to increase oil production? Long term Saudi has talked about need to "save" their resources for future generations. Short term, they enjoy the high price of oil, but realize that high prices can affect the global economy. Saudi is as invested in the world economy as the US, China, and Europe. Most interesting is this: it is no secret that Saudi is unhappy how Washington (as in DC) treated Mubarek (as in "throwing him under the bus" after 30 years of friendship). Some are suggesting that the Saudis are not eager to help the US. At the end of the day, these folks are capitalists and they will do what's best for themselves and their country.

4. Has Saudi seen this movie before? Yes, Saudi has seen the prequel and many sequels, and they know there will be more sequels.They will think about this carefully before rushing into anything.

For another perspective, click here. 

MonDak Energy Alliance Update -- Bakken, Williston, North Dakota

The Williston Herald provided an pdate from the MonDak Energy Alliance at their annual (?) meeting Wednesday (Feb 23, 2011) meeting in Williston.  (regional links break early and break often)

As usual, some numbers rounded.

Infrastructure

State government has budged $1 billion for infrastructure in western North Dakota: includes $230 million for state roads; $140 million for county and township roads.

Projects Update

Trenton Railport project

• 270-acre terminal site in Trenton, North Dakota
• Expected to be operational by end of year

Rangeland Energy (Sugarland, TX)

• A bulk storage plant and terminal will be constructed at Epping, North Dakota

Target Logistics

• Update on man-camps with 750 units in Williston, Tioga and Stanley (all North Dakota)