Conventional Saskatchewan Well Discovers New Pool -- Not a Bakken, But North of North Dakota -- Possibly At the Edge of the Northernmost Boundary of the Williston Basin

Link here.

Petro One reported that the first hole of its first summer drill program has led to the discovery of a previously unknown light oil pool on the Company's 100%-owned J5 property in Saskatchewan, Canada. This conventional vertical well demonstrated an excellent flow rate of 9.63 cubic metres (60.57 bbl) of light oil to surface in just 7.75 hours from the Viking sand at a depth of 736.5 m, without stimulation, swabbing or pumping.

As a result of this significant discovery, an expanded exploration and development drilling program of up to 17 additional wells has been planned on J5 to exploit the full potential of this newly identified reservoir.

Preparations are also under way for summer drill programs on other Petro One properties with strong light oil potential. Petro One holds 100% of the oil and gas rights to fourteen stand-along properties in Southeastern Saskatchewan and Southwestern Manitoba, including the J5 property, pursuant to leases issued by the Provincial Governments.

Perhaps completely unrelated to the Spearfish formation in northern North Dakota, but it makes one wonder.

The discovery sent the Canadian oil exploration company's shares up 33 percent to a more than two-year high.

The J5 property is well north of the Bakken/Spearfish in North Dakota, located about 400 miles northwest of Williston, North Dakota. But for me, looking through oily-covered glasses, hope springs eternal.

Williams County Nets $720 Thousand in Impact Grants -- Bakken, North Dakota, USA

Link here (regional links break early).

$720 thousand in impact grants for Williams County.

Townships, fire and ambulance districts in Williams County will soon be getting help through state energy impact grant dollars.

The state's Energy Development Impact Office has announced its final round of grant recipients before the program is converted into a new one approved by the Legislature this year.

A total of 79 requests totaling more than $15.1 million were submitted by entities in Williams County.

Of these, 49 requests were approved, with $720,400 awarded between them.

These totals were the second-most requested and approved. Mountrail County submitted a total of more than $22.3 million in requests and received $1.05 million in grant dollars.

Williams County Approves 900-Man-Camp North of Williston -- Bakken, North Dakota, USA

Link here (regional link will break).

The Williams County Commission voted to approve a proposed expansion of a temporary housing camp north of Williston on Monday.

The proposal was brought forward by Black Gold Oilfield Services out of Fairbanks, Alaska.

Black Gold was proposing an expansion of the 374-bed camp it received approval for in March, located north of the ATCO Lodge Williston.

The proposed expansion would increase the camp to a total of 900 beds.

Analysts Wrong About Marathon -- Motley Fool -- Bakken, North Dakota, USA

Link here.

Post break-up, there will be Marathon Oil (upstream) and Marathon Petroleum (downstream) -- if I don't have that backwards.

Motley Fool thinks Marathon Oil could rival Chevron or ConocoPhillips. And downstream, Motley Fool thinks it's only a matter of time before Marathon Petroleum grows larger than the largest independent now, Valero.

Would "Irony" Be The Right Word Here? -- Not a Bakken Story, But An Oil Story Nonetheless

Link here.

Whittier city official Bob Henderson has spent three decades, by his own account, helping rescue vast expanses of this hilly preserve from continued drilling by oil companies. As head of a conservation authority, his responsibility has been to protect the land.

But now, with oil hovering around $100 a barrel, the same man who led the charge to save the 1,290-acre Whittier Wilderness Preserve is interested in drilling there.

Proponents believe Whittier could get as much as $600 million over 25 years in oil revenues by using new technology that they say will only disturb 7 acres of the vast Whittier Hills.

Yup, with horizontal drilling, they could put in 8 wells on that 1,280-acre spacing. With EURs of 750,000, and at current price of about $100/bbl, let's see --- 8 x 750,000 x 100 --> exactly $600 million. And something tells me, the price of oil will be greater than $100/bbl five years from now.

Once drilled, eight small little pumps might be seen and that would be it.

Or he could just cover the entire 1,290 acres with solar panels.

Ten years ago while driving around the San Pedro Harbor, I used to see lots of very old pumps not pumping (stripper wells). Now, when I drive around, I see all of them -- literally all of them -- pumping, and some of these old donkey head pumps look very, very old, having not been repainted in ages. But at $100 oil even stripper wells work for some folks. A lot of these pumpers are in residential neighborhoods, protected by high steel fences, and hidden by hedges and palm trees.

Carpe Diem Has Another Nice Bakken-Related Post -- Bakken, North Dakota, USA

Link here.

Dateline: Bismarck, North Dakota.

"According to a new study from the Western Energy Alliance, North Dakota oil production could soon outpace imports from oil-rich nations like Russia, Iraq and Kuwait.

“The Bakken formation spanning North Dakota and Montana will lead oil production in the region, with an expected 685,000 barrels of oil and condensate a day by 2020 (see chart above),” the group states in a press release referring to a study done by EIS Solutions. “Combined with other western production, North Dakota will help lead the way in generating 1.3 million barrels of domestic oil production a day by the year 2020, which is more than the current amount of oil imported from Russia, Iraq and Kuwait combined.”

I remember when I first started this blog, folks said the Bakken was over-hyped. Yes, the importance of the Bakken is in the eyes of the beholder, but for many NoDaks, the Bakken was not over-hyped.

Natural Gas in Asia: $10; in US: $4 -- When Will Prices Balance?

When will US start shipping natural gas to Asia? Wall Street Journal link.

With natural gas, it's really a problem that it is a regional market, not a global market, and these nonconventional shales have just unlocked such a large volume of gas. And the fact a lot of these companies need to drill that acreage in order to hold it means that they're producing more gas than what the regional or the North American demand is.

And so on the natural gas side we're in a oversupplied market, and a lot of analysts have been calling for a turn in natural gas over the last three years. And it's just a market where the turn on natural gas always seems to get pushed out. And we think this year is no different, as supply is going to exceed demand in 2011. It's not until mid 2012, if anything, that we'll start seeing the market come back into balance.
 
TWST: Why hasn't this developed into a global market like oil?
 
Mr. Arif: Eventually it will. It's just a slower market. We were building regasification facilities thinking we were running out of natural gas five years ago. We've never built any liquefaction facilities to remove our excess natural gas. So there are a few proposals out there. There are a couple off of Western Canada's West Coast for proposal for some liquefaction. So eventually, once we get some liquefaction facilities built by 2015, 2016, we should be able to move towards the global natural gas price.

Investors with a long term horizon might do well accumulating shares in natural gas companies. 

California Businesses Fleeing The State -- To States Where There Is No Personal Income Tax -- Not a Bakken Story

Link here.

Companies are "disinvesting" in California at a rate five times greater than just two years ago, said Joseph Vranich, a business relocation expert based in Irvine. This includes leaving altogether, establishing divisions elsewhere or opting not to set up shop in California.

In Florida, [one CEO] found a better work pool, lower operating costs and no personal income taxes.

Meanwhile, the shutdown in Minnesota continues, and Obama threatens that he may not send out Social Security Checks (August 3). Military pension checks should go out at the end of the month (July 31), but those, too, are threatened.

Do you really think Social Security checks won't go out as scheduled? The media will blame the GOP, but history books will say it was "under the Obama presidency" that for the first time ever the US defaulted.

Something tells me one of two things will happen: a) a deal will be made, even if it's a short-term, small deal; or, b) the Treasury Department will find ways to move money around. Or maybe China will float us a loan.

Despite Everything, Oil Tested the $95 Floor, and Is Back Up Again Today

Link here.

Oil rose Tuesday as OPEC and the Energy Information Administration held onto their views that the global appetite for oil will grow to record levels this year despite a shaky global economic recovery.

Benchmark West Texas Intermediate crude for August delivery rose $1.37 to $96.52 per barrel in afternoon trading. Brent crude fell 18 cents to $117.06 per barrel on the ICE Futures exchange in London.

While OPEC thinks global demand will continue to increase this year to the highest levels ever, the monthly report it released Tuesday said that demand won't grow as much as it previously expected.

The cartel said daily world consumption will increase this year by 1.36 million barrels -- down from an earlier estimate of 1.38 million barrels -- to an average 88.18 million barrels.

1.38 million vs 1.36 million --- a rounding error. I doubt anyone can forecast oil consumption that closely.

Today's rebound in the price of oil comes even after the report that the dollar hit a four-month high agains the Euro. Generally speaking, all things being equal, at the end of the day, the bottom line, if the dollar strengthens, the price of oil falls. Remember, the average price paid for a bbl of US-Strategic-Petroleum crude oil sold for $107/bbl. Just saying. Most of the oil went into off-shore "vessels."

The Williston Wire Is Now Linked -- Bakken, North Dakota, USA

A reader reminded me of "The Williston Wire." I had forgotten to link that site at the sidebar at the right under "external links." That link is now there.

At the current issue of The Williston Wire it is being reported that the Williston Works Department is now posting an interactive map of Williston:

The Williston Public Works department has added a new clickable, interactive map of Williston to the city's websites.  The online map has been used by the public works department for 2 to 3 years - but now they are making it available to the public.  The map provides all types of information about Williston - you can conduct a query search to determine the owner and legal description of a parcel or subdivision; find out where utility lines are located for sanitary, storm and water; even view an aerial shot of a section of the city.

The interactive map is here or here.

Relocation Map for Those Moving To the Heart of the Bakken -- Williston, Bakken, North Dakota, USA

I can't remember if I have posted this "relocation map" before. I happened to run across it through pure serendipity this morning. It's a PDF file.

I do not know how current it is. I believe it is published by the Williston Chamber of Commerce; if so, it should be updated periodically.

It does have some interesting items that I had not seen before, including two "future" truck routes, one northeast of Williston, and one west of Williston.

$10 Light Bulbs -- The Truth Is Out -- Not a Bakken Story

Link here.

Light bulb manufacturers can make $2 to $3 on a light bulb that sells for $10 to $15. They can't make that kind of money on 50-cent incandescent lights.

And the windfall would be in the first two years of the ban. Huge. And promoted by General Electric, which, by the way, paid no federal taxes last year (2010).

But popular backlash may change things.

The lighting industry largely backed a 2007 move to phase out incandescent light bulbs. But amid a consumer and political backlash, that support seems far more tepid now.

The House planned to vote Tuesday on a bill by Rep. Joe Barton, R-Texas, to repeal parts of the 2007 Energy Independence and Security Act. Those sections didn't ban incandescents explicitly, but set efficiency standards that they can't meet. The 100-watt bulb phases out Jan. 1.

But Myron Ebell, president of the libertarian Freedom Action, replied, "The whole point was to twist government rules so light bulb makers will be guaranteed a much bigger profit. They can't make much money selling bulbs at 25 or 50 cents a pop. They can make money on bulbs that cost $2, $3 or even $25."

Compact fluorescent lamps and light emitting diodes cost considerably more than standard incandescents. LEDs aren't quite ready for prime time. Meanwhile, concerns over CFLs — they contain mercury, many people hate the light they give off and doubts as to whether they are really money savers long-term — have mounted.

For Investors Only: Eight Top-Rated Stock Picks -- The Street

Link here.

The list includes CVX, HAL, and SLB. The latter two are in the Bakken.

The 15 Most-Watched Oil and Gas Stocks According to Motley Fool

The 15 most-watched oil and gas stocks include: Chesapeake (#1), KOG, BEXP, and SSN -- all in the Bakken, North Dakota, USA.

Full list at Motley Fool.

The list suggests how really thin the market is, or how few people really invest in the market for themselves, especially when SSN and KOG are on the list, and XOM, CVX, COP are not. Absolutely incredible. KOG? Who woulda thought?

Nissan Leaf: Solar Recharging? -- Not a Bakken Story

Link here.

This is a very interesting story. There are three very interesting points made in this article.

First, Nissan realizes that recharging electric vehicles is going to disrupt the neighborhood grid. It's my understanding that the transformers you see hanging on the utility lines in your neighborhood are not rated to handle more than one or two rechargeable electrical vehicles in your neighborhood. Once electric vehicles catch on, General Electric will have to build enough transformers to replace all those we currently have.

Second, and I did not know this. A typical electric vehicle battery, when fully charged, has enough stored electricity to power the typical American home for about two days. This should be great for those who experience temporary outages due to storms, or brownouts due to maximum drain on the regional grid.

Third, the batteries have a much longer useful life than the automobile itself. I did not know that.

Nissan's Leaf went on sale late last year, but the automaker is looking ahead to about five years time when aging Leaf vehicles may offer alternative business opportunities in using their lithium-ion batteries as a storage place for electricity.

Nissan Motor Corp. acknowledges that, once the Leaf catches on, a flood of used batteries could result as the life span of a battery is longer than an electric vehicle's.

Even after a Leaf is ready to be scrapped, its battery is likely to have 80 percent of its capacity. On the plus side, the Leaf with its high-capacity battery can store the equivalent of two days of household electricity use, Nissan said.

It sounds like the article is suggesting that folks could put used Leaf batteries in their basements or garages, and put solar panels on their roofs to recharge these redundant batteries.

The Debt Limit Debate -- My Biggest Fear -- Not a Bakken Story

With regard to the debt limit debate: this is my biggest fear -- another $4 trillion bill that no one reads.

The president has proposed a grand $4 trillion debt reduction bill. He has promised to reduce the nation's debt by $4 trillion over the next ten years, in exchange for "just a little increased spending" in other areas (undefined, for the most part, but probably include eduction, job training, police and fire, homeland security, and renewable energy).

My concern is that the bill has been already written by the White House, it will be passed in the dead of night, no one will have read it, and the $4 trillion debt reduction is "smoke and mirrors," and the "just a little bit of increased spending" is another huge spending spree that will peak going into the 2012 elections, to help incumbents (in both parties) keep their seats.

Summer, 2011, Bakken Breakout Has Been Published -- Bakken, North Dakota, USA

The summer, 2011, edition of the Bakken Breakout has been published.

The current edition is linked at the sidebar at the right, near the top.

Published by the Bismarck Tribune, this is one of the best glossies concerning the Bakken. Another one is Talkin' the Bakken, published monthly, by subscription.

Wow! Cisco Could Cut Workforce by 10,000 -- Not a Bakken Story

Link here.

10,000 jobs. Remember: the June jobs report showed that the US "created" only 18,000 "new" jobs. That horrendous number puts "10,000" into perspective.

Williams Wins Approval For Pipeline Expansion Along Mid-Atlantic -- Nothing To Do With the Bakken

Link here.

The Federal Energy Regulatory Commission (FERC) has approved Williams Partners' proposal to expand its Transco natural gas pipeline to provide an additional 142,000 dekatherms of incremental firm natural gas transportation capacity to serve growing markets in the Mid-Atlantic region by November 2012.

The Mid-Atlantic Connector expansion project is designed to provide power generation and local distribution customers in Virginia and Maryland with incremental firm transportation capacity from a Transco interconnection with East Tennessee Natural Gas in Rockingham County, N.C.

But the Keystone XL project bringing oil from Canada languishes.

Oil Imports in May -- Huge -- Explains Tapping the SPR? -- Full Tanks at Cushing

I don't get it.

US economy slowing down? Horrendous job reports? Oil tanks at Cushing full? Record levels of oil stored in US?

And then this: huge imports of oil into US in May, 2011.

The U.S. trade deficit surged in May to the highest level in more than two and a half years, driven upward by a big increase in oil imports.

The Commerce Department said Tuesday that the deficit increased 15.1 percent to $50.2 billion in May. That's the largest imbalance since October 2008.

Exports declined 0.5 percent to $174.9 billion. Imports rose 2.6 percent to $225.1 billion. Oil prices have fallen since May, so the effect of higher prices should ease some in the coming months.

Something tells me that helps explain the decision to release oil from the SPR.

Here We Go -- Unitization in the Bakken, North Dakota, USA -- BR Wants to Unitize Lost Bridge Oil Field; XTO "Owns" The Field?

Updates

July 12, 2011: I am being told that possibly BR is doing contract work for XTO (XOM) due to BR's experience elsewhere in North Dakota with unitization. BR was involved with unitization in Cedar Hills oil field south of Marmarth, North Dakota; the other operator was CLR.

Original Post

Link here.

BR has an application into the NDIC to unitize the Lost Bridge oil field. It is interesting that BR has the application because it was my feeling that XTO (XOM) pretty much owned the field. This was based on the permits and wells already in the Lost Bridge oil field, not any review or knowledge of actual net acreage controlled by any operator in the field.

It is interesting: according to the NDIC, BR has no permits filed in Lost Bridge oil field.

NDIC Dockets -- Unitization in Lost Bridge -- Bakken, North Dakota, USA

Note: the NDIC generally holds hearings during the third week of the month. These three cases are being held very early. I don't know if this means something new, if NDIC is taking a well-deserved vacation later in the month of August, or if we will see additional cases later. 

Thursday, August 4, 2011

15332: BR, unitization in Lost Bridge-Bakken, Dunn County
15333: BR, unitization in Lost Bridge-Bakken, Dunn County

Thursday, August 4, 2011, Supplement

15334: Lantech, saltwater disposal

Thursday, August 25, 2011

15332, cont'd: BR, unitization in Lost Bridge-Bakken, Dunn County
15333, cont'd: BR, unitization in Lost Bridge-Bakken, Dunn County

NDIC Hearing Dockets -- August , 2011 -- Early Dockets -- More To Follow? -- Bakken, North Dakota, USA

NDIC has posted a few cases for August, but they are in early. NDIC usually holds hearings around the third week of the month. More to follow, I'm sure (perhaps the NDIC takes a well-deserved holiday in August).

The cases posted so far:

August 4, 2011

15332: BR, unitization for the Lost Bridge-Bakken unit, Dunn County
15333: BR, unitization for the Lost Bridge-Bakken unit, Dunn County

August 4, 2011, Supplement

15334: Landtech, saltwater disposal

Three Fundamentally Sound, Fast Growing Equities -- Seeking Alpha -- Bakken, North Dakota, USA

Link here.

The three companies? A perennial favorite of Jim Cramer's and two in the Bakken: Apache, Hess, and Oxy.