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Tuesday, July 26, 2011

Stripper Wells -- Not Only The Bakken

I had no intention of linking this article; it wasn't all that interesting. But then every once in awhile I get a comment from someone who is incredulous at the average amount of oil being produced by wells in North Dakota.

So, I'm linking the story for now. It may be useful later on.
According to the Interstate Oil and Gas Compact Commission (IOGCC), a stripper oil well is one that produces 10 barrels of oil per day (BOPD), or 60,000 cubic feet (Mcf) of natural gas per day or less.

According to the National Stripper Well Association (NSWA), most oil stripper wells average 2.01 barrels per day. There are around 400,000 of them in the United States, with about 320,000 still actively producing oil. Since 1994, the number of oil stripper wells has remained relatively constant.

Oil stripper wells accounted for over 16 percent of all the oil produced in the United States in 2009.

62 percent of the wells in Colorado are stripper wells.
When I was out in California this past month, I saw a lot of very, very old pumpers along the San Pedro Harbor and Huntington Beach that were pumping once again, something I don't recall seeing last year.

Is This Even Credible: Nabors Earns 65 Cents/Share; Analysts Forecast 25 Cents

Link here.
Nabors reported its second-quarter profit rose to $192 million, or 65 cents a share, from a year-ago profit of $43.6 million, or 15 cents. Revenue for the three months ended June 30 increased to $1.36 billion from $907 million a year ago. Profit from continuing operations was 23 cents a share. Analysts polled by FactSet Research had predicted Nabors would earn 25 cents a share on $1.33 billion in revenue.
Okay.

Nation's Economic Czar Moving His Company's Health Care Unit To China -- Absolutely Nothing To Do With The Bakken

Update

August 14, 2011: I don't know if it was a repeat or not, but I think it was: the segment on CBS' Sixty Minutes about US corporations moving overseas. I normally don't watch CBS or Sixty Minutes but I simply left the channel on when the PGA tournament ended. But I digress. A major piece of the segment was about the 600 "US" corporations that have moved much of their operations to Ireland for tax purpose. The US has the second highest corporate tax rate in the world, behind Japan, and the latter is considering lowering its tax rate.

The show ended noting that GE moved much of its operations and many of its companies to Ireland. The US corporate tax rate is 35%. By moving many of its operations and many of its companies to Ireland. By doing so, GE has lowered it corporate tax rate to .... drum roll ... 3.5%.  No, the decimal is not in the wrong spot: three point five percent.

Original Post

From the Boston Globe, not exactly a conservative newspaper:
General Electric Co.’s health care unit, the world’s biggest maker of medical imaging machines, is moving the headquarters of its 115-year-old X-ray business to Beijing.
Yes, General Electric is moving the headquarters of its health care unit, the world's biggest maker of medical imaging machings, from its present location in Wisconsin (a flyover state in the United States) to the capital of China.

No jobs will be cut, and only a "handful" of executives will actually move to China. I wonder if they will be allowed to use corporate jets to fly back to the states for business meetings and technology conferences?

Although only a "handful" of executives will actually move to China,
The X-ray business, whose financial results aren’t reported separately by GE, will hire 65 new engineers and support staff at a new Chengdu facility, the company said. GE has hired “a large number’’ of engineers who are in training, LeGrand said. GE, based in Fairfield, Conn., also has a global research center in Shanghai.
The CEO of GE is the president's economic advisor.

I cannot make this stuff up. And thank goodness for the internet. This was not reported on MSNBC this evening.

The Boston Globe did not note in this story that GE paid no federal income taxes in 2010.

Seven (7) New Permits -- Bakken, North Dakota, USA

Daily activity report, July 26, 2011 --

Operators: GMX Resources (2), Dakota-3, CLR, Fidelity, MRO, and Hess

Fields: Deep Water Creek Bay, Sanish, New Hradec, McGregory Buttes, Dollar Joe, and one wildcat.

Hess has the wildcat in McKenzie County.

GMXR has a multi-well permit in Stark County, New Hradec field.

Nice wells reported today:
  • 19220, 1,057, BTA, 20711 Saccaro 310 1H, Williams
  • 19106, 912, Arsenal, Arsenal Energy Brenlee 100-19H, Mountrail
  • 19764, 3,249, BEXP, Vachal 3-34 1H, Mountrail
Whiting's TF wells in McKenzie County came in a bit low:
  • 19084, 188, WLL, Mosser 11-27TFH, McKenzie
Of the fourteen confidential wells that reported "plugged or producing" today, only two were CLR wells. Whiting had three; Slawson had two; Petro-Hunt had two. Others were all singles. 

    Mountainview Adds Interest in the Bakken -- Acquires 20% Interest in 67,00 Acres (Net: 13,400) -- Bakken, North Dakota, USA

    Link here.
    Mountainview Energy Ltd. is pleased to announce that it has entered into a binding letter of intent to acquire a 20% interest in approximately 67,000 acres (approximately 13,400 net acres) in the Medicine Lake Prospect located in Divide County, North Dakota and Richland, Roosevelt and Sheridan County, Montana.

    The cost: issuance of up to 33,115,111 common shares of the Mountainview at $0.65CAD per share. The acquisition along with the acreage currently held by Mountainview in Divide County, North Dakota, and Richland, Roosevelt and Sheridan County, Montana, brings the corporation's combined acreage in the Williston Basin to approximately 25,400 net acres.
    I thought I knew the other half of the party, but then realized that party did not have property in Divide County, or Montana, so I do not know who Mountainview partnered with.

    Most of the permits issued for Divide County, North Dakota, in 2010 have been executed. Most of the 2011 permits are yet to be drilled. From this list one might be able to start thinking about who the other party might be.

    Permits issued in Divide County in 2011


    20285 Baytex
    20474 Baytex
    20569 Baytex
    20587 Baytex
    20684 Baytex
    20758 Baytex
    20759 Baytex
    20942 Baytex
    21147 Baytex
    20540 CLR
    20576 CLR
    20609 CLR
    20610 CLR
    20611 CLR
    20612 CLR
    20688 CLR
    20768 CLR
    20813 CLR
    20814 CLR
    20815 CLR
    20816 CLR
    20843 CLR
    21149 CLR
    21177 CLR
    21179 CLR
    20281 Crescent
    20322 Crescent Point
    20735 Crescent Point
    20827 Crescent Point
    21162 Crescent Point
    21163 Kaiser-Francis
    21164 Kaiser-Francis
    9446 Murex
    20401 Murex
    20247 Newfield
    20263 Newfield
    20356 Newfield
    20496 Newfield
    20798 Newfield
    20573 North Plains
    21193 NorthPlains
    20646 Samson
    20756 Samson
    20757 Samson
    20251 Samson Resources
    20340 Samson Resources
    20341 Samson Resources
    20385 Samson Resources
    20792 Samson Resources
    20801 Samson Resources
    20802 Samson Resources
    20837 Samson Resources
    20869 Samson Resources
    20870 Samson Resources
    21107 Samson Resources
    21108 Samson Resources
    21136 Samson Resources
    21137 Samson Resources

    Cyclone Drilling Locator -- Cyclone 18 -- Bakken, North Dakota, USA

    I continue to update the information regarding Cyclone 18 that burned on July 24, 2011, at this site.

    Don alerted me to this link which shows you exactly the type of rig Cyclone 18 was. In addition, you can see where the Cyclone rigs are drilling. A great site.  When you get to the site, click on "North Dakota," and then click on the rig you are interested in. The "Cyclone" site is permanently linked at the sidebar on the right.

    Snapshot of Two Prolific Oil Fields -- Sanish vs Parshall -- Bakken, North Dakota, USA

    Parshall: pretty much "owned" by EOG

    Sanish: pretty much "owned" by WLL

    Parshall: one rig on site (today)

    Sanish: eight rigs on site (today)

    This is an interesting comment regarding the easternmost boundary of the Bakken in the Parshall oil field. Although EOG had the best wells early on in the current Bakken boom, it looks like Whiting had the better acreage in the Sanish oil field.

    A more comprehensive look is provided here

    For Investors Only -- Idle Rambling -- XOM, XTO, EOG

    Data points (links not provided):
    • XOM bought XTO last year for the natural gas play
    • XOM looking for another acquisition in natural gas
    • XOM prefers acquisition to be in area where XOM already operates
    • EOG has historically been a natural gas play
    • EOG's Yahoo profile mentions only natural gas, nothing about oil
    • EOG switching to emphasis on oil
    • EOG at the top of the list of T. Boone Pickens' top five energy picks
    • EOG was number 1 producer of oil in North Dakota in 2010
    • XTO #10 in production in North Dakota in 2010 and 2009; not on top ten list prior to 2009
    • XOM's operating cash flow: $55 billion annually; cash on hand: >$12 billion
    • EOG's market cap: $28 billion

    Another First for North Dakota: First State to Be Denied a Waiver for ObamaCare -- 733+ Waivers Granted Nationwide -- Including Every Union -- Eleven-Page Letter To Explain Reason for Denial

    It has been my impression that any entity that has asked for a waiver for ObamaCare has been granted. One can see the waivers that have been granted at the HHS site; 733 waivers plus countless more waivers for plans in Massachusetts, New Jersey, Tennessee, and Ohio.

    North Dakota becomes the first state to be denied a waiver.
    The federal Department of Health and Human Services has denied North Dakota's request to be exempt from a portion of the new health care law.

    North Dakota became the first state Friday to be denied an adjustment to the law's medical loss ratio requirements, which state that insurers must spend at least 80 percent of premiums on covering claims, using the other 20 percent to cover administrative costs. Those not meeting the standards must return the money to consumers as a rebate.
    North Dakota is among the states with the fewest number of health insurers and was hoping a waiver would help attract more insurers, but this won't happen. 

    HHS will start denying all waiver requests in September, 2011. It looks like HHS is starting now. Was North Dakota just too late getting its waiver request in or is the state just too red?




    OXY Profit Up 71 Percent; $2.23 vs $2.15

    Link here.
    Occidental Petroleum Corp. says its second-quarter profit jumped 71 percent as the company took advantage of higher oil prices.

    The Los Angeles oil and natural gas producer reported earnings of $1.82 billion, or $2.23 per shareThat compares with $1.06 billion, or $1.31 per share, for the same part of 2010. Revenue increased 34 percent to $6.17 billion.
    Most interesting data point: sold oil for an average of $1.03 in the second quarter. $1.03.

    Music Has Always Been A Matter of Energy To Me -- A Car With The Gas Needle On Empty Can Run About Fifty More Miles With The Right Music Very Loud On The Radio -- Hunter S Thompson

    "Music has always been a matter of energy to a me, a question of fuel. Sentimental people call it inspiration, but what they really mean is fuel. I have always needed fuel. I am a serious consumer. On some nights I still believe that a car with the gas needle on empty can run about fifty more miles if you have the right music very loud on the radio." -- Hunter S. Thompson

    For those who enjoy music, I have another recommendation. Sometime ago I recommended Pandora.com, but I think there's even a better alternative out there: Live365.com.

    When you get there, you can choose among several radio station. You might have to play aroudn with the site until you get it figured out, but once you do, it's phenomenal. I have to thank Tom McMahon for linking it at his site.

    At Live365.com I started by listening to the Top 40 station taken directly from the 60's with the news and commercials from the 1960's.

    Then, last night I went to Classic Country or Country Gold.

    Tonight I'm listening to "1st Cav Medics - 60's" -- nothing but music and AFVN video clips from the 1960's. Absolutely incredible.

    The advantages of Live365.com:
    • No limit on how many hours/month you can listen for free on Live365; Pandora limits one to 40 hours
    • Multiple "radio stations" on Live365.com with unlimited music; Pandora is limited in content
    • Disc jockies on Live365.com
    • No commercial interruptions on Live365.com or very few (commercials from the 1960's don't count; they are a hoot; AFVN "public service announcements" certainly don't count