Permitorium Continues -- It Still Takes An Act of Congress

Link here.

Jim Adams, president and CEO of the Offshore Marine Service Association (OMSA), said that BOEMER's late-Friday announcement that it has issued an additional permit for deepwater drilling is misleading.

"There were 32 deepwater drilling operations already permitted when the President imposed his moratorium last year. Interior Secretary Salazar is merely allowing existing permit holders to resume their operations," said Adams. "This administration has yet to approve and permit a new deepwater exploration proposal submitted in the last 11 months."

Adams continued, "Secretary Salazar is treating Gulf workers like peasants, tossing us work crumb by crumb and expecting us to be grateful," Adams said. "We're tired of fighting for scraps. We want to get back to work—all of us, not just a handful of crews."

Adams noted that Secretary Salazar's latest announcement follows on the heels of another round of Congressional hearings this week on the Obama administration's de facto moratorium on deepwater drilling in the Gulf.

"It still takes Congressional intervention or court orders to compel the Interior Department to issue a scant number of 'permits'," Adams said.

Anything to kill the domestic drilling industry.

But great news for the Bakken.

WTI oil remains at $100/barrel.

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By the way, this is how the political process works:

• President Obama makes a speech that the Gulf of Mexico moratorium has been lifted.
• The Secretary of Interior Salazar institutes a new review process for drilling in the Gulf.
• President Obama makes a speech saying his new review process makes the Gulf safer.
• Oil companies ask for details on the new review process.
• The bureaucracy says they will get back to them.
• With great fanfare, the Secretary of State issues the first new permit using the new process.
• At a press conference, when asked about the permitorium, President Obama reminds the nation that permits are now being issued for drilling in the Gulf and that the moratorium has been lifted.
• A second permit is applied for. It is denied. Oil companies don't understand the process or the new requirements.
• Secretary of Interior says he will get back to the oil companies. 

Anything to kill the domestic oil industry.

Meanwhile the price of oil closed at the end of the week at over $101/barrel, and the administration blames speculators for the price of oil

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Some folks have written in to say my "political process" analysis is off-base. On CNBC "Squawk Box," Monday, March 21, 2011, the host noted that the US has issued the 2nd permit in the Gulf. It was met with much laughter when he said that "we're moving along" with regard to opening the Gulf again. They apparently see it the same way I do.

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March 21, 2011: A third permit has been issued.

Incredible Amount of Activity Around Williston -- Bakken, North Dakota, USA

 Locator: 10032B.

 

Updates

February 14, 2013: my, how times have changed. At the time of the original post, there were eleven (11) rigs actively drilling immediately north and west of Williston. Today, except for three rigs well east of Williston in Stockyard Creek, there are NO active rigs within sight of Williston.

A 4-well pad is in the process of completion (#22872, 22873, 22874, 22875).

See comment dated today: a reader says there will be a rig within sight of Williston next month.

Original Post

Back in the 60's and 80's when I was growing up in Williston, there were not a lot of wells in the immediate area even though my home town was the "center of the Williston Oil Basin."

Now when I visit Williston or look at the NDIC GIS map server, I am completely amazed at the amount of activity going on north and west of Williston. (By the way, after completing this post, I went back and updated the Painted Woods oil field, an important field west of Williston.)

There are currently eleven rigs actively drilling north and west in the immediate vicinity of Williston:

• 19252, 561, Enerplus/HRC/G3 Operating, LLC, Anderson 1-24-13H, w/c/Strandahl, t4/11; cum 131K 9/16; cu m179K 8/23;
  
• 19953, 1,543, Oasis Petroleum, Driesbach 5602 44-32H, Stoneview; t8/11; cum 162K 9/16; cum 219K 8/23;
  
• 19235, 1,023, Oasis Petroleum, Dixon 5602 44-34H, Bonetrail/Wildcat; t7/11; cum 140K 9/16; cum 194K 8/23;
  
• 18966, 148, Kraken Operating/CLR, Milloy 1-15H, Hebron; t10/11; cum 122K 9/16; cum 172K 8/23
• 20146, 1,889, Grayson Mill/Statoil/BEXP, Delorme 12-1 1H, Painted Woods; t6/11; cum 176K 9/16; cum 240K 8/23;
  
• 19409, 761, Grayson Mill/EOG, Mont 3-3403H, Painted Woods; t6/11; cum 201K 9/16; cum 261K 8/23;
  
• ****20160, 2,173, Grayson Mill/Statoil/BEXP, Field 18-19 3H, Todd; t10/11; cum 194K 9/16; cum 291K 8/23;
  
• 20282, 2,671, Grayson Mill/Statoil/BEXP, Williston Airport 2-11 1H, Todd, t10/11;cum 257K 9/16; cum 427K 8/23;
  
• 12167, SWD, Zenith Produced Water-Johnson, LLC, Wildcat (original operator: Texaco, Inc.), SWD
• 20049, 54 (no typo), Oasis, Charlie 5603 43-19H, Bull Butte (Kalil Field), t10/11; cum 73K 9/16; middle Bakken; closed hole frack; 2.3 million pounds sand frack; from the well file: four days to KOP; two days to complete the curve; difficulties with the horizontal, about 12 days to complete the lateral; highest gas concentration was 1,539 units; it has been speculated that the lack of gas shows in the False Bakken and the Upper Bakken Shale may be due to seepage upwards in tot he Lodgepole fracture zone. Open hole e-logs bolstered this assumption with a noticeable fracture zone ... in the Lodgepole formation. Throughout the lateral side track, a 1 - 5; intermittent flare was observed. Eighteen days total drilling despite some difficulties during hz drilling; off-line in early 2016; cum 114K 8/23;
  
• 11216, 143/SWD, QC Environmental Services/RM Resources, Eidsvoog 1-28H, Church; was a Madison; now a SWD

Rigs off site; wells being completed:

• 18623, 1,656, Oasis, Odin Jorgenson 5502 44-8H, wildcat/Squires, t2/11; cum 194K 9/16; cum 260K 8/23;
  
• 18799, 1,642, Oasis, Stowers 5502 43-8H, Squires; t2/11; cum 202K 9/16; cum 267K 8/23;
  
• 20018, 1,043, Oasis, Wales 5602 42-33H, Bull Butte (Kalil Field), t8/11; cum 136K 9/16; cum 184K 8/23;
  
• 19832, 1,262, Oasis, Traill 5502 31-4H, Squires, t7/11; cum 128K 9/16; cum 166K 8/23; cum 166K 8/23;
  
• 19529, 1,054, Grayson Mill / EOG, Round Prairie 5-0904H, Painted Woods, t5/11; cum 161K 12/14; cum 248K 8/23;
  
• 19414, 1,060, Oasis, Drumond 5501 44-21H, Wildcat/Missouri, t5/11; cum 161K 12/14; cum 300K 8/23;
  
• 19482, 464, Oasis, Twobins 5501 42-20H, Wildcat/Missouri, t5/11; cum 160K 12/14; cum 282K 8/23;
  
• 19307, 1,033, Oasis, Devon 5601 12-17H, Wildcat/Tyrone, t7/11; cum 129K 12/14; cum 224K 8/23;
  
• ***19308, 1,235, Oasis, Glover 5601 12-17H, Wildcat/Tyrone, t6/11; cum 137K 12/14; cum 230K 8/23;
• 19418, 1,030, Oasis, Baffin 5601 12-18H, Wildcat/Tyrone, t6/11; cum 141K 12/14; cum 226K 8/23;
  
• 19736, 653, Oasis, Lynn 5502 11-10H, Squires, t12/11; cum 98K 12/14; cum 174K 8/23;
  
• 19611, 1,211, Oasis, Hendricks 5602 42-36H, Wildcat/Tyrone, t4/11; cum 122K 12/14;  cum 192K 8/23;
• 19952, 1,596, Oasis, Jensen 5501 42-7H, Wildcat/Missouri, t6/11; cum 145K 12/14; cum 262K 8/23;
  
• 19615, 1,752, Oasis, Cowden 5404 13-35H, Painted Woods, t3/11; cum 153K 12/14; cum 244K 8/23;
  
• 19413, 1,260, Oasis, Moore 5304 13-1H, Painted Woods, t9/12; cum 183K 9/16; cum 267K 8/23;
  

Government Set to Relax Protections Granted Gray Wolves Under the Endangered Species Act

After years of litigation, the federal government is ready to remove some of the protections granted to gray wolves under the Endangered Species Act.

Facing mounting pressure from lawmakers over gray wolves, wildlife advocates reached an agreement with the Obama administration Friday to lift protections for the species in Montana and Idaho and allow hunting.

With Congress now threatening to intervene, the 10 national and local groups involved in Friday's settlement said they wanted to head off what they regard as precedent-setting legislation. They fear pending bills to delist wolves would broadly undermine the Endangered Species Act, with ramifications for imperiled fish, animals and plants nationwide.

I don't think this is a stretch to say that there are implications in this development for the Bakken and the EPA with regard to fracking.

By the way, some legislators in Montana feel the state's department of Fish, Wildlife and Parks department is stifling economic development.

Some lawmakers in the Capitol are making it clear they think the state Fish, Wildlife and Parks department wields too much power around Montana.


They have sponsored bills seeking to rein in the department by reducing its spending, jurisdiction and authority.

Three North Dakota Mushers Finish The Iditarod -- 2011

My seven-year-old granddaughter chose the Iditarod on her own as something to research for an art project for school.

She and her grandmother have been checking the status of the Iditarod on a daily basis, every day before going to school. I am very, very impressed how much my granddaughter has learned.

Tonight I checked into see how the Iditarod was finishing up for three North Dakota mushers.

Kelly Maixner, a Beach native, arrived at the finish line  in Nome at 11:30 a.m. local time Thursday, coming in 30th with 11 dogs. He completed the race in 10 days, 20 hours and 29 minutes, according to the race’s website.

Bismarck native Heather Siirtola was 46th.

Ellen Halverson, also from North Dakota, ranked last among the remaining racers, arrived at Koyuk at 5:46 a.m. Friday.

I am very impressed; two North Dakota women among the finishers. Very impressed.

Iditarod, 2011, Ceremonial Start, Anchorage

That Arnegard Fire? It's Out. -- Bakken, North Dakota, USA

With all that's going on in Japan (the disabled and deteriorating nuclear reactors), most of us had probably forgotten about the Arnegard well.

Not to fear, some of us still remember. I follow the Jaynes well story here.

The fire is out.

A crew battling an oil well blaze in northwestern North Dakota that had been burning for nearly two weeks doused the fire on Friday and temporarily capped the wellhead, the owner of the well said.

"It's back under control and no longer flaring," said Brent Collins, a spokesman for the well's owner, SM Energy Co. of Denver. "The fire is out."

Collins said well fire specialists from Houston-based Boots & Coots International Well Control Inc. stopped the fire Friday morning and were rebuilding the wellhead that afternoon. The process could take several days, he said.

"The mechanical and structural integrity is still intact, and we will be able to reuse the well," Collins said.
Weather delayed putting out the fire.

Apparently no one has complained about health concerns from the smoke, and there has been no environmental damage of consequence.

Six (6) New Permits -- North Dakota, USA

Producers: Oasis (2), EOG, CLR, Zenergy, and Whiting.

Fields: Parshall, Antelope, Bonetrail, Eightmile, and the Sanish.

The two permits for Oasis are for wells on one pad, Bonetrail field, Williams.

Daily activity report otherwise unremarkable.

This is a short clip of folks driving across the Little Missouri River Bridge, just a mile or so south of the North Unit of Teddy Roosevelt National Park, and due south of Watford City, McKenzie County. The bridge was undergoing repair/maintenance last year. I assume the project has been completed. Though short, it gives folks who have not been to North Dakota a look at some great scenery.

Crossing the Little Missouri River south of Watford City, McKenzie County, near the entrance to the North Unit, Teddy Roosevelt National Park

Hess Has a Sixth Permit/Well to Monitor Long Lateral #17117, EN-Person-156-94-1102H-1

The March 14, 2011, daily activity report listed another permit for an observation well monitoring #17117, EN-Person-156-94-1102H-1, a long lateral starting in section 11 and ending in section 2, T156N-R94W.

With this permit, there are now six permits/wells along this lateral. They do not have the "H" designation, and this, as well as their name (Person Observation) suggests these vertical wells are monitoring the effectiveness of initial fracturing.

The six permits along the horizontal #17117:

• 20500, EN-Person Observation 11-33, east side of the lateral
• 20315, EN-Person Observation 11-22, west side of the lateral
• 20442, EN-Person Observation 2-24, west side of the lateral
• 20361, EN-Person Observation 11-31, west side of the lateral
• 20539, EN-Person Observation 2-32, east side of the lateral
• 20599, EN-Person Observation 2-43, east side of the lateral

#17117, 345, EN-Person-156-94-1102H-1, Big Butte, Bakken, long lateral. Cumulative oil: 98K at about 2.5 years. Yet to pay for itself. Spud 7/3/08; IP test date 9/11/08. [Look how soon after reaching TD they were able to frack, test and calculate IP.] I am unable to determine number of frac stages but based on fact this is an early well, the number of stages was probably low.

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I assume these vertical wells are for monitoring, but there may be something else going on. Check out this article about EOG in Eagle Ford, south Texas.

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May 17, 2011: The discussion group is starting to discuss this.

$27 Billion Market Cap Oil Company: Largest Investment in Their Portfolio --Tioga, North Dakota -- Bakken

Link here. Regional links break early and often.

In the 2000 census, the population of Ray was 540 people.

Tioga Tribune.com reporting March 15, 2011, data points (some numbers rounded):

• Hess: Ray, North Dakota (Bakken) -- "single biggest investment for Hess in their portfolio."
• Presentation at special meeting in Ray by Hess executives last week; up from Houston
• Hess North American budget: $3 billion; Bakken to get 25 percent of that
• Main focus in 2010: acquire acreage
• Total Hess Bakken acreage: 647,000 core acres
• 18 rigs: enough work for next five years
• Hess spokesman: "This is the most amazing oil I have seen in my 30-year career."
• Hess concentrating on export infrastructure to minimize trucking and flaring
• Hess pipeline corridor: Red Sky Pipeline; extended from Palermo to Tioga; further extension this year
• Railspur under construction west of Tioga: 45,000 bbls daily
• Bakken employees: 250 production, 35 engineers, 85 at gas plant, 76 embedded contractors; thousands of other contractors
• No plans for a Hess refinery in the area

One major concern for emergency response personnel: finding wells

• Solution: an iPad app (not in the original article)

First thought I had when I read the spokesman comment that "this is the most amazing oil I have seen in my 30-year career" -- what was Fidelity doing all those years? Concentrating on natural gas. Hmmm.