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Saturday, November 12, 2011

Spearfish -- Legacy, Surge, and Hess -- Bottineau -- Williston Basin, North Dakota

For those following the Spearfish, but confused about which company is drilling where, Surge Energy has a nice slide in their current presentation.

When you get to the presentation, go to slide 16 to see where Legacy, Surge, Hess and EOG are drilling their Spearfish wells.

This is the November, 2011, presentation and it will change in the future, but my hunch is that this map will be kept in the presentation for quite some time.

MSNBC Follow Up -- Rock Center -- Brian Williams -- The Bakken, North Dakota, USA

Brian Williams

Rock Center

MSNBC (one of my least favorite stations but anyone who puts Tina Fey on is okay by me)

The Bakken, North Dakota, USA

The video

50,000 jobs but don't show up this winter

And that is true: there is a company who needs 500 truck drivers out here

Newburg Oil Field - Spearfish Formation -- Bottineau County

Raw data. I may or may not come back to this post. 

Spearfish wells in Newburg oil field, 35 miles northeast of Minot.


First column: well file / permit number
Second column: cumulative bbls of oil
File numbers in the 3XXX or lower, 1958 or before. Many of these wells are still producing.
File numbers in the 15XXX or higher were spudded in 2000 or later.

Many of these wells have been producing for 50 years.

EURs for Bakken wells are expected to average 603,000 barrels of oil.
16451,127,809
1655812,926
2079809,610
1864796,876
1592790,539
2361778,438
1985660,825
1877625,738
1941618,298
1755617,341
2127612,816
1682603,225
1566597,695
1733585,148
2130530,371
1853519,997
1983509,540
1866474,694
2073457,463
1654450,166
1990445,839
2712437,354
1778426,581
4948419,666
4004410,081
5175406,015
3158401,420
3294390,889
1948378,643
1810374,285
3856369,684
1978366,344
1893366,033
1949333,938
1685315,085
1984297,412
15026279,678
2282265,725
1997261,613
1675259,153
1611257,898
893254,800
2089251,567
15178232,490
7728232,335
1924227,072
5172226,557
7727211,653
1865208,977
1892194,879
14977188,361
2064176,512
2124166,177
1967150,893
15027135,096
1945131,585
1505129,799
2671123,083
1867122,395
1940114,519
2036114,041
1809110,133
15085108,575
1913104,491
1607102,543
15078101,309
187098,878
1536393,690
167789,740
215188,152
168485,981
194472,424
188872,363
199668,501
211350,519
1674544,576
194238,219
335437,397
192537,183
181131,532
203931,532
1664430,676
216130,023
1536225,289
1671221,071
1668811,032
394510,139

So, What Makes The Williston Basin So Exciting? -- Even Formations Like the Spearfish Can Be Surprising -- The Bakken, North Dakota, USA

I get a lot of folks asking questions about Bakken wells: how long will they produce; how much will they ultimately produce, etc.

There's a lot of history in the Williston Basin and operators can made educated guesses: the general consensus is that the average EUR for a Bakken well will be 603,000 bbls. Folks also suggest a Bakken well will produce for 25 to 35 years.

Every once in awhile it's fun to stumble upon an old well that almost defies imagination:
  • 2079, 33, Amerada/Hess, Newburg-Spearfish-Charles Unit M-711, s1958
This well was drilled in 1958 -- that's 54 years and it's still producing -- 54 years!
  • Still producing; on pump
  • Pool: Spearfish/Charles
  • Cumulative: 809,610 bbls to date. It is currently producing about 75 bbls/month. For most of it's history it produced between 500 and 1,200 bbls / month, although for a short time in the 1980s, they got it up to over 3,000 bbls/month. Unlike the Bakken, it had no steep decline curve
Look at that IP: 33. And look at the formation: the Spearfish-Charles.

I might come back to this field later.

About That Dry Hole In Stark County -- Not The Bakken, North Dakota, USA

Elsewhere they are talking about a dry well in Stark County.

They could have gotten their answer by coming to this site. See:
This is the only hole drilled by this company in North Dakota, at least under this name. This well was spudded in April, 2007, and reached the middle Bakken formation. It never did produce anything, and the company considered other options before finally asking the state for permission to permanently abandon the well.

Update: I see that the folks elsewhere got their answer from this site, but didn't cite the source. Smile. 

Focus on Enbridge -- The Bakken, North Dakota, USA

See disclaimer on the right; this is not an investment site.

I have accumulated shares in Enbridge for quite some time. Somehow I missed buying shares in TransCanada (Keystone XL); just one of those dumb-luck stories.

Link here.
Washington's decision to delay approval, which could end up killing the project, followed a campaign by protesters who complain oil sands crude is particularly energy intensive to extract, creating huge carbon emissions. They also point to a possible environmental disaster if the pipeline broke.

Keystone XL is one of two projects that oil sands producers have been counting on to increase financial returns by delivering to markets other than the oversupplied U.S. Midwest. Canada currently exports about 2 million barrels of oil a day, almost all of it to the United States.

Focus now turns to Enbridge Inc's ($5.4 billion) Northern Gateway pipeline across the Rocky Mountains to Canada's Pacific Coast, where more than half a million barrels of crude a day could be loaded onto tankers and shipped to Asia. [One half million barrels of crude is the entire daily output of the Bakken right now.]

"(There's) obviously growing energy demand in Asia as the economies continue to grow, and Canada will be looking for a buyer," said Sara MacIntyre, a spokeswoman for Harper.

Asked whether the Keystone delay might accelerate efforts to look for Pacific markets for tar sands crude, she told reporters: "It could be part of the discussions."
Wow.   
The Enbridge Northern Gateway Project involves a new twin pipeline system running from near Edmonton, Alberta, to a new marine terminal in Kitimat, British Columbia to export petroleum and import condensate.
I'm glad they kept it north of the border. If you think it's hard getting a pipeline across Nebraska, imagine the fun getting it across the US Rocky Mountains.

After this administration it will take another decade for the US to catch up with Canada. If we're lucky. It could get worse. 

Wow, Wow, Wow -- US Exporting Refined Products -- Record Refined Products Exported -- The Bakken, North Dakota, USA

Link here.
U.S. exports of refined fuels, particularly diesel, have surged to fresh all-time highs, helping to keep the prices of gasoline and diesel in this country at record levels for this time of year.

In August, the latest month for which Energy Department data are available, U.S. refiners exported a record average of 895,000 barrels a day of refined fuels, compared with 730,000 barrels a day during the first half of the year. Most went to Central and South America.

The Netherlands was the biggest buyer (146,000 barrels a day) of fuel exports in August, followed by Mexico (112,000 barrels), Panama (63,000), Brazil (56,000), Colombia (54,000), France (42,000) and Peru (41,000).
The explanation for the price of WTI oil melting up is starting to get clearer.
Exports of U.S. refined fuels are expected to increase, with global demand projected to rise sharply in the coming years, analysts say.
Expect to see a lot of rail traffic crossing Nebraska, fouling Omaha.

And this link:
Just as the average price for gas is set to hit $4 a gallon this week, the U.S. Energy Information Administration reports February was the third month out of four that the U.S. -- the world's most energy-hungry nation -- actually exported more oil that it imported.

Despite the notion that the U.S. is currently hugely reliant on foreign oil, the country sold 34,000 more barrels of petroleum products a day than it imported in November 2010. And, in both December and February, the U.S. sold 54,000 more barrels a day. Net imports have not been negative for nearly two decades.
At least we know where to place some of the blame if the price of gasoline keeps going up: Nebraska.

Hi-Rise Apartments Going up In Williston -- The Bakken, North Dakota, USA

Due to the high price of  land in and around Williston, developers are now putting up high-rise apartments on subdivided parcels.

This Frank Lloyd Wright-designed architectural marvel, dubbed the "Bakken Nest" by Frank's great-grandchildren, is just one example.  This two-bedroom, one bathroom, mother-in-law house, comes with a detached garage (seen to the lower left).

Access is through the cleverly disguised circular elevator, hydraulically powered using natural gas that would otherwise be flared.

The parcel of land, 24 square feet, sold for $55,000.

Update: Holm State 16-162-98H -- Lodgepole -- Not The Bakken, North Dakota, USA

This is one of several Lodgepole wells that should be very, very interesting.

  • 18719, DRL, Samson Resources, Holm State 16-162-98H
Depth: 7,222 feet
Fracture stimulated, 02-20-11 to 02-21-11 (one day)
Ten (10) stages
Sand frack with 630,580 pounds of sand

Note from the operator to NDIC on September 21, 2011: "Samson Resources Company respectfully wishes to inform the NDIC that Holm State #16-162-98H well is currently shut in. Design preparations are underway for upcoming re-completion. A re-completion sundry is forthcoming."

The geologist's report: The Samson Holm State 16-162-98H was an engineering and geologic success. 4623' of lateral section were drilled within the Minton objective. The remaining 453' of the horizontal well bore were drilled in the upper Lodgepole immediately below the Minton.

The horizontal well bore appears to be oil bearing based on sample examination, oil shows, and gas recordings. Oil showings at the shale shaker along with calcite and calcite filler hairline fractures in the drill cuttings indicate the presence of a fractured reservoir. The commercial potential of the Holm State 16-162-98H will be determined by completion operations, primarily with the frac job."

Random Photo of Kestrel Federal 5401 43-22H -- Williston -- The Bakken, North Dakota, USA

I keep forgetting to post a photo of the rig putting in Kestrel Federal 5401 43-22H right across from the Midway Bar on the frontage road, southwest Williston. Six tanks on site, I believe. An Oasis Petroleum well.

Well, Isn't That Interesting -- 201 Active Drilling Rigs -- Ties Record -- The Bakken, North Dakota, USA

Dynamic link here.

Be the first to alert me when "we" hit 202 active drilling rigs and you will receive free subscription to this website for one year, from date of alert. Conditions subject to change without notice.

Something I Should Have Posted Yesterday -- Veterans Day -- The Deck of Cards

One of my favorite albums is a double-lp with Tex Ritter's hits. I can't remember if this song is on that particular volume or elsewhere. A blog contributor reminded me of the song. I should have posted it yesterday.


The Deck of Cards, Tex Ritter

Side Dump Trailer -- West of Williston -- Heart of the Bakken, North Dakota, USA

Early Saturday morning, November 12, 2011 --- a side dump trailer turned his dump over a bit early.











For newbies: this is not normal.

Note also, all the truck traffic on the four-lane divided highway west of Williston. Traffic was backed up about halfway to the four-mile corner. Weather was a balmy 40 degrees -- long-sleeve weather for many. No rain.

Please feel free to copy/re-transmit the video and photos.

Glass Bluff Oil Field Updated -- The Bakken, North Dakota, USA

Link here.

A reader was gracious enough to send an update regarding this field, see first comment when you get to that post. It looks like the Amy Michelle well turned out to be a good well.

Regardless of whether you have an interest in the Glass Bluff oil field, this is a nice opportunity to compare fracking techniques of two companies in the same field and the results.

Williams County -- Heart of the Bakken -- Zoning Commission Recommends Approval of Proposed Diesel Refinery West of Trenton -- The Bakken, North Dakota, USA

Link here
After tabling the matter on two earlier occasions, the Williams County Planning and Zoning Commission voted to recommend approval of a proposed diesel refinery west of Trenton during its meeting Thursday evening.

Dakota Oil Processing was requesting to rezone 160 acres in Buford Township from agricultural zoning to industrial along North Dakota Highway 1804, west of Trenton near what is called the Marley Crossing.
Data points:
  • State permits have been acquired
  • 20,000 bpd diesel refinery
  • 93 acres of the 160-acre site would be used for the project
  • Refinery to be located on 20 acres of the 160-acre site
  • 73 acres to be for equipment as well as to provide a buffer zone
The vote was 5 - 2, one abstention, and one absent.

See first comment, regarding this link.
Dean Koch drove by the huge Magellan Midstream Partners fuel depot in Sioux Falls this week.

“There wasn’t a truck in the place,” said the energy division manager for Central Farmers Co-op. “No gas. No diesel.”

Indeed, no deliveries are expected before Monday.

Similar shortages at fuel terminals in Yankton, Mitchell, Watertown and Aberdeen and at terminals throughout much of North Dakota and Minnesota as well are squeezing farmers working to conclude an early harvest and launch into fall tillage.

“This is worse than 2007-08,” said Dawna Leitzke, director of the South Dakota Petroleum Marketers Association. “That was a supply nightmare. This is quickly escalating to a worse situation.”

On the heels of the last fuel crunch, in December 2007, Hyperion Refining sought permits for its proposed new refinery in Union County. Then Gov. Mike Rounds endorsed the new refinery, in large part, he said, because it would give South Dakota an additional fuel supply and prevent future shortages.
Lots of shovel-ready jobs if the government would just get out of the way, and let Americans get to work.

But this is just one more data point that tells me the administration is not serious about the job issue.