Trivia in Beaver Lodge Oil Field -- Bakken, North Dakota, USA

Beaver Lodge oil field was where the very first North Dakota oil was was discovered, back in 1951.

Today, Murex announced another nice well in Beaver Lodge:

• 19233, 1,747, Murex, Mandy Kay 14-23H, Beaver Lodge, Bakken; 41K in 3 months; 19 frac stages; Bakken formation

Back in January, 2011, I posted a short trivia note regarding two other wells also named after women and also located in Beaver Lodge:

• 16186, 439, Murex, Angie Marie 13-24H, Beaver Lodge, Bakken, cumulative: 228,742 bbls.
• 16358, 223, Murex, Megan Brooke 15-22H, Beaver Lodge, Bakken, cumulative: 101,569 bbls.

At the time of the January posting, I estimated the Angie Marie had produced $10 million at the wellhead, and now we have another Murex well in the same oil field.


For newbies, I consider 100,000 bbls a significant milestone.

North Dakota vs South Dakota Re: Cell Phone Usage

North Dakota: among 10 states in which more than 30 percent of adults use cell phones exclusively (no land line phones)

South Dakota: among 8 states in which that figure is less than 17 percent

North Dakota spokesman on theory why the difference:

• College students make up greater percentage of adults in North Dakota
• North Dakota is flatter
• Data is wrong

Am I missing something?

• It's possible there are a greater percentage of college students in North Dakota but I doubt it could make that big a difference. South Dakota has several colleges similar to North Dakota's
• North Dakota flatter than South Dakota? LOL -- except for the relatively small area of the Black Hills the two states could not be more alike
• Data could be wrong -- won't even go there

One has to assume 99.99% of all oil workers use cell phones exclusively. Innumerable new oil support services also supporting the oil industry; I'm sure their personnel pretty much use cell phones exclusively

Am I missing something? Probably.

Newfield (NFX): Another Operator in the Bakken With a Dedicated Frac Team

Link here.

I can't keep track of all the Bakken-companies that now have dedicated frac teams but that seems to be a growing requirement.

KOG announced this past week that it would have a dedicated frac team 14 days/month. KOG has 2 operated rigs; getting a third; and executing plans to have a fourth rig by the end of the year.

Now, NFX announces it will have a dedicated frac team; NFX has 5 operated rigs.

Oasis has a second dedicated frac team and expects to have a third by 2012.

BEXP should have two dedicated frac teams on board by now.

WLL has two dedicated frac teams, see 1Q11 earnings report. WLL estimates that each crew can frac 100 wells per year.

One can assume the larger Bakken-companies have their own dedicated frac teams or long-term contracts with independent companies to provide dedicated service.

Newfield Earnings 1Q11 -- 5 Rigs in the Bakken -- Drilling Super Extended Laterals (SXLs) -- Bakken, North Dakota, USA

Link here.

Excerpt regarding the Williston Basin from earnings press release:

Newfield is running five operated drilling rigs in the Williston Basin. Current net production is about 5,000 BOEPD and the Company has 10 wells in various stages of completion (average lateral length approximately 8,600’). Dedicated fracture stimulation services arrived in the field in April and completions are underway with initial volumes from the new wells expected late in the second quarter of 2011.

Substantially all of the Company’s planned wells in 2011 are super extended lateral (SXLs) wells. Three horizontal wells were recently completed with an average initial gross production rate (24-hour) of approximately 3,900 BOEPD. This average includes a recent record completion which had an initial gross production rate (24-hour average) of 4,468 BOEPD.

Data points:

• Five (5) operated rigs
• Ten (10) wells in various stages of completion
• Dedicated fracture teams to arrive in April
• Drilling super extended laterals
• Average 24-hour flowback IPs of 3,900 boepd
• Recently a record completion with initial 24-hour flowback of 4,468 boepd

SeekingAlpha: Seven More Oil Companies To Consider

This is part VII of his series. I have linked some, but not all in the series. This one focuses on companies with market caps greater than $7 billion.

There were several from the Bakken, including Whiting, Continental Resources, and Denbury.

Obama to Rest of the World: Drill, Drill, Drill. For the US: Delay, Delay, Delay

I assume the point I'm trying to make in this post will be hard for most to follow. It has nothing to do with the Bakken, but just an observation.

The theme is this: it's my perception that President Obama is telling everyone to drill, drill, drill, except for the United States. Again, it's just my perception. I assume everyone will have their own opinion of what they see.

Three points to consider:

• On his recent trip to Brazil, the president encouraged Brazil to drill, drill, drill offshore, and said US would be Brazil's biggest oil customer; America would assist Brazil in necessary drilling technology
• On his recent trip to China, essentially the same deals were made -- although the Chinese would not export their natural gas to the US; China obtained their technology from the US
• The US permitorium in the Gulf continues; and BLM continues to slow oil development onshore

Only One (1) New Permit Today -- Murex, Zenergy Each With a Great Well; Petro-Hunt With a Good Well; Corinthian Reports First Well -- Bakken, North Dakota, USA

The one new permit:

Operator: Anschutz

Field: Murphy Creek

Zenergy had a nice well:

• 19350, 1,162, Zenergy, Ceynar 29-32H, Bakken

Corinthian Exploration reports its first well (at least the first well I am aware of) in the Bottineau Spearfish

• 19384, 3, Corinthian, Bernstein 33C 1, Bottineau Spearfish; tested 2/11; 76 bbls first 25 days (Madison/Spearfish)

Other wells off the confidential list reporting IPs;

• 18905, 904, Petro-Hunt, Fort Berthold 152-94-13B-24-1H, McKenzie County
• 19233, 1,747, Murex, Mandy Kay 14-23H, Williams County

CNBC Interviews Bakken Fund Manager From Fargo, North Carolina

At 10:22 -- CNBC attempted live interview with Bakken fund, Williston Basis Mid-North America Fund (ICPAX) which is up 17% this year. Bakken-based fund.

From Fargo, North Carolina. That's what CNBC host said, "Fargo, North Carolina."

There was a glitch; unable to get audio, so no interview.

Now able to connect.

The Bakken is obviously not on Wall Street's radar scope, yet. Not even sure where the Bakken is.

Robert Walstad, CEO.

Best stocks:

Oil exploration

Oil services

Pipeline

Refineries

Well, duh.

Best stocks:

• EOG, CLR, WLL -- all equal; own each one of them

Demand destruction? How resilient?
Several of these companies will keep on drilling, even with prices as low as $50.

At least Walstad pronounces the Bakken relatively correctly. The CNBC anchor's British accent of the "Bakken" made it difficult to understand what he was saying.

***********

From interview directly to oil inventories.

"Unexpected drop in crude oil supplies."

Crude oil inventories down 2.3 million bbls; gasoline down 1.6 million barrels. Hmmm....I understand gasoline supplies going down as refineries cut back due to demand destruction at this prices, but I find it interesting that crude oil supplies have come down so much in the past three reporting periods (the past three weeks).

Next talking head says "demand destruction" won't occur until late 2Q11 or 3Q11; not sooner because driving season about ready to start. Remember, another $10 price rise in oil is only 25 cents/gallon gasoline.  He expects another $5 to $10 rise in oil price.

$5 Gasoline in the Nation's Capital

Link here. (This is a photograph slide show and the link will probably change over time.) It shows gasoline prices from $4.99 to $5.17 on an Exxon service station sign.

Wasn't it just last month that the president delivered his "Energy Security" speech? For those interested, the 46-minute speech is re-broadcast here.

This was the theme of his speech:

Now, here’s the thing -– we have been down this road before. Remember, it was just three years ago that gas prices topped $4 a gallon. I remember because I was in the middle of a presidential campaign. Working folks certainly remember because it hit a lot of people pretty hard. And because we were at the height of political season, you had all kinds of slogans and gimmicks and outraged politicians — they were waving their three-point plans for $2 a gallon gas. You remember that — “drill, baby, drill” – and we were going through all that. (Laughter.) And none of it was really going to do anything to solve the problem. There was a lot of hue and cry, a lot of fulminating and hand-wringing, but nothing actually happened. Imagine that in Washington. (Laughter.)

The truth is, none of these gimmicks, none of these slogans made a bit of difference. When gas prices finally did fall, it was mostly because the global recession had led to less demand for oil. Companies were producing less; the demand for petroleum went down; prices went down. Now that the economy is recovering, demand is back up. Add the turmoil in the Middle East, and it’s not surprising that oil prices are higher. And every time the price of a barrel of oil on the world market rises by $10, a gallon of gas goes up by about 25 cents.

The point is the ups and downs in gas prices historically have tended to be temporary. But when you look at the long-term trends, there are going to be more ups in gas prices than downs in gas prices. And that’s because you’ve got countries like India and China that are growing at a rapid clip, and as 2 billion more people start consuming more goods — they want cars just like we’ve got cars; they want to use energy to make their lives a little easier just like we’ve got — it is absolutely certain that demand will go up a lot faster than supply. It’s just a fact.

So here’s the bottom line: There are no quick fixes. Anybody who tells you otherwise isn’t telling you the truth. And we will keep on being a victim to shifts in the oil market until we finally get serious about a long-term policy for a secure, affordable energy future.

Putting things in bold helps follow the thought process. 

Despite Global Warming Almost 700 New Islands Discovered Worldwide

It was my understanding that disappearance of oceanic islands was a foregone conclusion due to global warming.

I had trouble finding a good source to link anything that would support that "belief." This was about the best I could do.

Meanwhile, researchers from Duke University and Meredith College, Raleigh, North Carolina, have discovered 657 new islands this past year.

The researchers identified a total of 2,149 barrier islands worldwide using satellite images, topographical maps and navigational charts. The new total is significantly higher than the 1,492 islands identified in a 2001 survey conducted without the aid of publicly available satellite imagery. 

As a reminder, the trend line for global warming is 0.145 degrees per decade. Over the next ten years, it is expected that the average global temperature will rise 0.145 degrees.

By the way, just for the fun of it, the worse heat wave on record in the history of the United States was 1936. The 1936 heat wave has its own Wikipedia page. I don't  think global warming was an issue then.

Mandan, North Dakota, High School Moving to iPads -- Not a Bakken Story

Link here (regional links break often and break early).

In place of textbooks, Mandan High School will use iPads for three of its science courses beginning next year.

The iPad is truly magical. Just as the SmartPhone is not considered a PC or a "computer," the iPad is not a computer. Do not expect an iPad to replace your desktop or laptop computer.

One Year Anniversary, BP Spill in the Gulf: Permitorium Continues

Link here.

XOM/CEO said he would be concerned if the public or regulators were to be told that “this industry was operating on the edge of its capabilities as we moved into ever-deeper water.”

He added: “[That] flies in the face of 14,000 wells that were drilled without this happening.” A year after the accident, only 10 fresh drilling permits have been issued in the gulf.

“We are not back to business as usual. I can’t really see the end,” XOM/CEO said.

Repeat: XOM/CEO sees no relief in sight with regard to the permitorium.

I see oil futures are over $1.22, solidly over $109 today.

CNBC reminds us of the million(s) of jobs lost in the Gulf region related to the spill and the permitorium.

CNBC reporting suggests Gulf fishing and Florida beaches are completely (as in 100%) back to normal.

Meanwhile President Obama praised Gulf clean-up workers.

Obama says that while workers have "made significant progress, the job isn't done."