Pages

Monday, March 14, 2011

George Bush Reading to Elementary Classroom On 9/11

Radiation is being detected outside of Tokyo. Tokyo is about the same distance from the damaged nuclear reactors as Washington, DC, is from Pittsburg, PA. My hunch: this is much, much, more serious than folks first thought; the story will be told by the end of the week, one way or the other.

Saudi deployed troops to Bahrain to establish order.

UK is ready to go-it-alone to establish a no-fly zone before Western dithering determines outcome.

Hawaii: first state to see $4/gallon gasoline average; permitorium in the Gulf of Mexico continues.

Housing report for February described as "awful" by CNBC Squawk Box; core inflation edging up.
President Obama's Schedule, Wednesday March 16, 2011
President Obama's Schedule, Tuesday, March 15, 2011
President Obama's Schedule, Monday, March 14, 2011
  • Speech on reforming US education at Kenmore Middle School, Arlington, Virginia
  • To visit a classroom at the Arlington, Virginia, school
  • Bilateral meeting with Denmark Prime Minister Lars Lokke Rasmussen
  • Meeting with senior advisors and General David Petraeus (subject: most likely Afghanistan)
  • Evening: DNC event closed to the press
President Obama's Schedule, Sunday, March 13, 2011
[Life is full of irony. I was taken to task for posting a story on investing ideas following the Japanese earthquake, tsunami, and post-quake tremblers. I have to agree; it was in poor taste and has been removed. The irony is that while that comment taking me to task was being written and sent to me, I was working on the above posting. I'll be taken to task for writing this one also, and in due time, it, too, will be removed.]

    Samson (SSN) To Start Fracking Today? Any Update?

    Someone reminded me that SSN was supposed to start fracking today. I have not heard anything. Curious if anyone has heard anything.

    I also corrected a link regarding five Canadian companies for those interested in the Alberta Bakken and Canadian oil sands in an earlier post.

    Here's the update regarding SSN fracking.

    SSN update for the Stockyard Creek oil field, March 16, 2011:
    Samson O&G advised that the fracture stimulation equipment is on location and rigged up on the Rodney #1-14 well. The stimulation job is expected to take approximately 4 days, during which the 16 stages will see a planned 2 million pounds of proppant placed.

    Samson's fifth well, the Earl #1-13, is expected to be stimulated on March 28th, however this date might be displaced because of a competing well which is ahead in the frac schedule is likely to be delayed such that March 28th date is maintained.
    For the full press release, click here.

    Five (5) New Permits -- Lots of Reporting From the Bakken, North Dakota, USA

    Producers: Newfield, KOG, Whiting, EOG, and Hess.

    Fields:  Westberg, Pembroke, Clear Water, Big Bend and a wildcat.

    The Whiting wildcat is in McKenzie County.

    Several great wells reported today, including (some may have reported earlier through press release):

    • 19081, 788, Fidelity, Lynn 12-20-29H
    • 19271, 1,820, Whiting, Bernard Roggenbuch 24-25H
    • 19282, 1,346, Oasis, Bean 5703 42-34H
    • 19517, 1,870, Whiting, Heiple 14-3XH
    • 18714, 900, Murex, Brian Webb 32-5H
    • 18971, 894, EOG, Liberty 09-23H
    • 19004, 1,440, EOG, Mandaree 12-07H
    • 19018, 927, EOG, Van Hook 15-15H
    • 19170, 1,882, EOG, Bear Den 07-17H
    • 19353, 756, CLR, Violet 1-21H
    These are some very good wells.

    174: New Record

    174 active drilling rigs in North Dakota.

    For Investors: Buzz on the Street -- Wow: I'm More Bullish Than Ever on the Bakken

    Updates

    March 14, 2011, five hours later: Devon Energy/CEO notes that there are multiple sources of energy, but when one source of energy is constrained, the cost of the other sources of energy go up. So, when nuclear energy is constrained, the price of oil and natural gas will go up, all else being equal.

    March 14, 2011, one hour later: CVX/CEO featured on "Closing Bell," CNBC. CVX will focus on liquified natural gas going forward. Short term, nuclear reactors in Japan off-line; will need heating oil, natural gas, etc. Long term impact not known. [Japan will rethink nuclear energy.]

    March 14, 2011, one hour later: price of oil will actually be up for the day, even as Japan demand destruction continues.

    Original Post

    Two interesting data points that Jim Cramer ("Mad Money," CNBC) makes:
    • Nuclear energy is "dead" for the next few years in the US (no new approvals; older plants looking for re-licensing will be denied)
    • Current administration favors using 40 percent of corn crop for ethanol
    Conclusion Cramer draws from these data points:
    • Natural gas will be the winner
    It is interesting to see that something drove the price of oil down (all the way to $100; wow, he said with tongue firmly in cheek; noting the recent high never hit $106, and pundits feel fundamental value of oil, based on supply and demand, is south of $60/bbl) but oil has now recovered, and is, in fact, back up over $101. Folks, $100-oil is very bullish for the Bakken companies. Dow leaders today include CVX and XOM. With CVX and XOM up on a day when the market plummets (third day in a row?) suggests that these investors think price of oil will trend higher.

    Sometime ago I opined that investors have had three opportunities to invest in the Bakken. I wonder if we are seeing the fourth opportunity? 

    Of course it is coincidence, but it is interesting that on the very day that natural gas looks better and better as the bridge to energy independence, MDU names a new president/CEO for its natural gas and oil production division.

    As long as I'm rambling, here are some interesting commentaries from the past:
    And again I ask, are we seeing a fourth opportunity to invest in the Bakken?

    Oil Prices -- Permitorium -- No Action Over Libya -- Golfing While Japan Drowns -- Avoided Wisconsin -- Polling Not Unexpected

    Updates

    March 15, 2011: Obama approval rating lowest since September, 2010.

    Original Posting

    It appears 56% disapproval is an all-time high.

    Polling not unexpected but I am still surprised. I would not have guessed that so many people actually follow the news. On the other hand, perhaps it is all about the price of oil --> price of gasoline.

    While traveling I cannot tune into "Morning Joe," Hardball," etc., so I have to turn to the internet to find out political buzz. Something tells me the Rasmussen polls are not reported on MSNBC.

    Bakken Underappreciated -- Bakken, North Dakota, USA

    This story was published earlier, but appears now in the Oil and Gas Journal.com, dated February 16, 2011.

    Some data points from the CLR presentation:
    • CLR feels the "Bakken" is underappreciated
    • Overall "Bakken" play with ultimate recovery of 24 billion barrels
    • Might be the world's largest oil discovery in 30 - 40 years
    • Close to 2 billion of the 24 billion will come from the underlying Three Forks formation
    • Production now exceeds 400,000 bopd including North Dakota and Montana
    • The Bakken is "continuous" under 15,000 square miles
    • Industry has complete 2,750 wells since 2000
    • Drilling 20,000 feet; 9,000 feet down and 9,500 foot laterals
    • Frac stages generally 18-30, with diminishing returns after 18-24 stages
    Other produces and/or government agencies may or may not agree with CLR's observations.

    The last data point is still open to the jury. BEXP is routinely accomplishing 30 - 34 frac stages, and a 40-stage frac recently set a new industry record.

    It has been said that Three Forks formation wells should have EURs a bit less than Bakken formation wells. If accurate, then there must be a lot fewer Three Forks formation wells if the TF will only account for 2 billion of the total 24 billion barrels.

    With regard to the CLR statement that there is a feeling that the Bakken is underestimated, this could very well be due to the conservative, circumspect, and reserved nature of the Scandinavians and Germans who populate the area. Even rock stars and celebrities have been noted to complain about the reserved reception they get at the Minot Hostfest, a Scandinavian folk festival held every autumn.

    Some Nice Wells Coming Off Confidential List Today -- Bakken, North Dakota, USA

    Some nice wells coming off confidential list today:
    All wells coming off confidential list are reported elsewhere

    MDU To Have New Executive: President/CEO of MDU's Resources' Natual Gas and Oil Production Business

    I haven't had the chance to write much about MDU lately.

    MDU seems to keep on "marching" along, taking care of business during the US economic slowdown.

    Kent Wells has been named the new president/CEO of MDU's Resources' Natural Gas and Oil Production business. He will be based in Denver, Colorado, and report directly to MDU's president and chief executive, Terry D. Hildestad.

    Wells has a very impressive 30-year history in the natural gas business with BP and Amoco.

    MDU's Pipeline and Energy Services business will remain a separate entity.