Does This Suggest Alberta Bakken Not Yet Ready For Prime Time? -- Rosetta To Concentrate on Eagle Ford

Link here.

Rosetta Resources has been one of the more well-known players in the Alberta Bakken, northwestern Montana.

Rosetta says it will focus on Eagle Ford in Texas:

Rosetta Resources Inc. today announced its Board of Directors has approved a 2012 capital budget of $640 million. Approximately $590 million, or more than 90 percent, will be spent for activities in the liquids-rich window of the Eagle Ford shale in South Texas, the largest producing area in the Company's portfolio.

The 2012 budget allocates approximately five percent of funds for evaluation of the Southern Alberta Basin.

Rosetta continues to implement the previously announced seven-well horizontal drilling program to test the economic potential in the Banff, Bakken, and Three Forks reservoirs across its approximately 300,000 net acre position in northwestern Montana.

To date, Rosetta has successfully drilled four of the seven horizontal wells with the remaining three scheduled to be drilled in early 2012. Two of the four wells drilled to date have been completed in the Middle Bakken and have tested at stabilized rates of 154 barrels of oil equivalent per day and 104 boepd. Completion operations continue on the third well. The remaining four horizontal completions will be tested during the first half of 2012.

100 boepd is not impressive.

The southern Alberta Bakken does not appear ready for prime time, a bit like the Niobrara. The Bakken and the Eagle Ford appear to be the major focus right now.

Some Nice Hess Wells in T155N-R93W -- Alger, Robinson Lake Area -- The Bakken, North Dakota, USA

Updates

April 29, 2013: to the 6-well EN-Cvancara pad below, add three more wells:

• 24868, conf, Hess, EN-Fretheim A 155-93-3334H-9, Robinson Lake,
• 24869, conf, Hess, EN-Fretheim A 155-93-3334H-8, Robinson Lake,
• 24870, conf, Hess, EN-Fretheim A 155-93-3334H-7, Robinson Lake,

Original Post

Pretty much southeast of Tioga; west of the Sanish. Obviously a sweet spot.

3-well pad

• 18838, 424, Hess, EN-Abrahamson-155-93-3019H-1, s4/10; t7/10; cum 60K 10/11; Alger
• 18839, 424, Hess, EN-Abrahamson-155-93-3019H-2, s7/10; t10/10; cum 56K 10/11; Alger
• 18840, 684, Hess, EN-Abrahamson-155-93-3019H-3, s9/11; t12/10; cum 74K 10/11; Alger; 22 stages; 2 million lbs sand; 500K ceramics

6-well pad just a bit southeast, in Robinson Lake (2560-acre spacing)

• 19899, 603, Hess, EN-Fretheim A-155-93-3334H-3, Robinson Lake, t4/12; cum 82K 2/13;
• 19900, 1,037, Hess, EN-Cvancara A-155-93-3231H-3, Robinson Lake, t12/11; cum 129K 2/13;
• 19901, 668, Hess, EN-Fretheim A-155-93-3334H-2, Robinson Lake, t11/11; cum 112K 2/13;
• 19902, 1,132, Hess, EN-Cvancara A-155-93-3231H-2, Robinson Lake, t11/11; cum 151K 2/13;
• 19903, 795, Hess, EN-Fretheim A-155-93-3334H-1, Robinson Lake, t11/11; cum 133K 2/13;
• 19905, 1,341, Hess, EN-Cvancara A-155-93-3231H-1, Robinson Lake, t10/11; cum 199K 2/13;

Look at that well, 19905 again: 58K in less than 2 months; 37K in first 21 days; 21K in 25 days in October.

Hess is getting its mojo back. These wells are just a bit southeast of Tioga, the center of Hess activity since the 1950s. Ah, yes, the Bakken is huge.

These wells are just a bit southeast (about five miles) of the outstanding Jack Cvancara well:

• 18628: 4,357,  BEXP, Jack Cvancara 19-18 1-H; s3/10; t5/10; cum 238K 10/11; open cased hole stimulation; 1.6 million lbs sand; 2.3 million lbs ceramics

And that's what makes the Bakken exciting. The Jack Cvancara well has produced 240K bbls in less than 18 months. Incredible. 

Reader alerted me to these after today's daily activity report with several good Hess wells in this area.

New Operator in the Williston Basin; Took Over a Duperow Well; Now a Wildcat in Renville -- The Bakken, North Dakota, USA

There's a relatively new name on today's daily activity report: Ballard Petroleum Holdings, LLC.

This is only the second oil well this company has in North Dakota:

• 22051, LOC, Ballard Pet Holdings, LLC, Backes 23-4, Wildcat, Renville County

Ballard's last (and only other well was a good one:

• 15031, 102, Ballard Pet Holdings, LLC, Stilleto 21-16, Little Knife, Duperow Formation, s9/00, and, 1/04; t11/00; cum 167,972 bbls, 10/11; original operator Westport Oil & Gas Co., Inc. It's decline rate has been very low; and it has leveled off at about 1,000 bop month

One can find addresses for Ballard in Billings, MT, and in Wyoming

Has Hess Got Its Mojo Back -- Three Great East Nessen Wells -- The Bakken, North Dakota, USA

Three great fields for Hess; EN = East Nessen; near the Bakken Bull's Eye; just northeast of McKenzie County

• 19351, 1,529, Hess, EN-Vachal-155-93-0532H-1, Alger, Mountrail, Bakken,
• 19905, 1,341, Hess, EN-Cvancara A-155-93-3231H, Robinson Lake, just south of the Alger, Mountrail, Bakken,
• 19987, 1,521, Hess, EN-Ruland A-155-94-1201H-2, Alkali Creek, just west of Robinson Lake, Mountrail, Bakken

These three fields are very near the Bull's Eye of the Bakken.

QEP Annouces Four Great Wells in Heart Butte -- The Bakken, North Dakota, USA

Link here.

• 20487, 606, QEP, MHA 1-04-03H-149-91, Heart Butte, Dunn, Bakken,
• 20488, 1,571, QEP, MHA 3-04-03H-149-91, Heart Butte, Dunn, Bakken
• 20489, 933, QEP, MHA 3-32-29H-150-91, Heart Butte, Dunn, Bakken,
• 20490, 2,609, QEP, MHA 1-32-29H-150-91, Heart Butte, Dunn, Bakken

Heart Butte is gonna be a huge field. 

Ten (10) New Permits -- The Bakken, North Dakota, USA

Daily activity report, December 12, 2011 --

Operators: Cornerstone (2), Burlington Resources, Hess, Zavanna, Oasis, CLR, Fidelity, GMX Resources, Ballard

Fields: Woburn, Murphy Creek, Stockyard Creek, Cottonwood, St Demetrius, New Hradec, Customs, Blue Buttes

GMX Resources has a wildcat in Billings; Ballard has a wildcat in Renville

Whiting abandoned a fairly recent well (spudded in 2006); a Red River well
16273, IA, Whiting, Foss 12-11, Red River, Williams County

Nine wells were released from confidential status; reported elsewhere; only two (2) reported an IP. Fracking backlog still a significant problem.

However, this is huge: 18 wells on DRL status reported an IP today, including these very good wells:

• 19351, 1,529, Hess, EN-Vachal-155-93-0532H-1, Mountrail, Bakken,
• 19905, 1,341, Hess, EN-Cvancara A-155-93-3231H, Mountrail, Bakken,
• 19987, 1,521, Hess, EN-Ruland A-155-94-1201H-2, Mountrail, Bakken
• 20487, 606, QEP, MHA 1-04-03H-149-91, Dunn, Bakken,
• 20488, 1,571, QEP, MHA 3-04-03H-149-91, Dunn, Bakken
• 20489, 933, QEP, MHA 3-32-29H-150-91, Dunn, Bakken,
• 20490, 2,609, QEP, MHA 1-32-29H-150-91, Dunn, Bakken

The House of Cards Has Started to Fall -- Wow, Wow, Wow -- Canada Will Withdraw From the Kyoto Protocol -- Ignore This Posting If Arriving Here Looking for Data on the Bakken

Update

December 14, 2011: Datapoints from the 2011 UN Durban Conference

• global warming is not so urgent any more: conferees agreed to spend as long as four years drafting a new protocol
• the new protocol, "legal instrument or an agreed outcome with legal force" to take effect by 2020
• the phrase 'agreed outcome with legal force' is new; director of WWF's climate change program does not know what it means; "they just made it up"
• the biggest polluters, China and India, expect to be assigned looser limits in the final accord [how can it be any more loose; they are already exempt, aren't they?]
• apparently "legal outcome" was at the insistence of India, as an alternative to "protocol" or "legal instrument"

This very long, in-depth article did not mention that Canada has now withdrawn from the Kyoto Protocol

Original Post

The house of cards is starting to fall. This is the headline in the mainstream media: Canada will formally withdraw from the Kyoto Protocol -- Reuters

OTTAWA (Reuters) - Canada will formally withdraw from the Kyoto protocol on climate change, Environment Minister Peter Kent said on Monday.

"As we've said, Kyoto for Canada is in the past ... We are invoking our legal right to formally withdraw from Kyoto," he told reporters.

My hunch: the US decision to kill the Keystone XL was the last straw. This decision by Canada effectively kills any thought -- just the thought -- of the US signing the protocol. Ain't gonna happen.

There is no direct relationship, or very little, between the Keystone and the Kyoto Protocol, but the Canadians appear to have had it "up to here" with faux-environmentalists in the US. Good for them. Finally, someone makes a decision.

********************

The Twelve Days of Durban

Link here

The 12 days of the Durban climate bash proved to be the political damp squib widely predicted.

Pre-summit statements from major economies – the United States, India, China and Brazil – all dumping on the Kyoto agenda saw to that.

However, whilst it will take political elites time to realise it, the climate alarmist goose has been clearly stuffed and cooked.

Data points:

• global CO2 emissions have reached an all-time high
• global temperatures have not risen in almost 15 years
• BBC programmers were exposed for selling news slots to green campaigners
• formal UN IPCC report: "climate change signals are expected to be relatively small compared to natural climate variability"
• Britain's Prince Phillip: "wind forms are useless"; "fairy-style" green energy
• the promise of green jobs have failed miserably; about which Obama jokes (he can; he has a job)
• shale gas phenomenon is now supporting 600,000 new jobs; again, those are new jobs
• insurance giant Allianz warned that the 'volatile' nature of wind and solar as sources of power will create 'grid instabilities' that are likely to cause 'catastrophic blackouts'

And I love the adage at the end: "People don't change when they see the light; they change when they feel the heat."

Something tells me Canada has felt the heat.

*********************

Most incredible data points

• Canada will pull out of the Kyoto Protocol
• Allianz says solar and wind energy will wreak havoc with electric grids
• UN: climate changes signals are relatively small compared to natural climate variability
• The promise of green jobs has failed miserably

Keep your comments short; unless they add something positive to the discussion, they won't be posted

Marathon To Emphasize Eagle Ford Over the Bakken -- The Bakken, North Dakota, USA

Oil and Gas Journal story here. (some numbers rounded as is usual for this site)

Headline: Marathon Oil targets most of 2012 budget for Eagle Ford Shale.

Wow! That caught my attention. It's accurate, but not as "bad" as it appears:

• CAPEX: $5 billion
• 65% of CAPEX "is targeted to liquids-rich US assets including the South Texas Eagle Ford"
• Marathon oil will drill 250 - 300 net wells
• $3 billion allocated for Eagle Ford shale, the Bakken, the Anadarko Woodford, and the Niobrara
• Eagle Ford: ramp up to 17 rigs; 155 - 170 net wells; add 2 more fracking crews; total 4
• Bakken: 55 - 70 net wells
• Anadarko Woodford (Oklahoma): 25 - 35 net wells
• Niobrara (DJ basin, southeast WY and northern CO): 15 - 25 net wells

My hunch: this is a more a function of acreage owned than anything else.

*****************************
From wiki:

The Eagle Ford shale play area starts at the Texas-Mexico border in Webb and Maverick counties and extends 400 miles toward East Texas. The play is 50 miles wide and an average of 250 feet thick at a depth between 4000 and 12,000 feet. The shale contains a high amount of carbonate which makes it brittle and easier to use hydraulic fracturing to produce the oil or gas.[2] The oil reserves are estimated at 3 billion barrels with potential output of 420,000 barrels a day.

Everyone agrees the Bakken has 2 - 4 billion bbls of recoverable oil. It's current output is already 510,000 bbls a day and should easily get to 1 million bopd. Some opine there is much as 24 billion bbls of recoverable oil in the Bakken.

Another Analyst Discovers the Bakken, North Dakota, USA

SeekingAlpha link here.

We continue to see an exciting transformation within the US oil and gas business. Buoyed by high global oil prices, solid growth is being reported across the entire sector. Drilling down further into the data, into the shale patch specifically, the advent of horizontal drilling and hydraulic fracking has led to some exceptional growth. Consequently new investment stars have emerged in the names of Brigham, Northern, and Kodiak.

From 2010 to 2011 these logged sales growth of 150%, 230% and 450% and from 2011 to 2012 they are projected to bump sales by a further 90%, 100%, and 330%. These are enviable growth figures, especially considering the weak economic backdrop.

It looks like the analyst was a bit slow on BEXP; it is no longer listed. 

The analyst notes:
A broad rule of thumb is to construct full year 2013 EPS estimates by up to five times Q4’12 EPS for high growth companies, four times Q4’12 EPS (or occasionally less) for low growth companies and something in-between for others.
The analyst lists almost every independent shale oil and gas operator, but singles out these five:

• Hess
• Kodiak
• Whiting
• Carrizo Oil and Gas
• Plains Exploration

Of course, my two favorite are KOG and WLL.
This is not an investment site; see disclaimer on the right. When I say a particular company is a favorite of mine, it has nothing to do with investing. It has to do with the company's business model, niche, execution of business model, etc. When I say I like a particular company, I am talking about the company, not the share price. Generally speaking, it's been my experience that a company with a great business model, a great niche, a wide moat, great execution, etc., will also be a great company for a long-term investor.

Let's See: Which Way Is The Wind Blowing in Nebraska Today? I Don't Know But The Governor Sure Wishes He Had Keystone Money Coming Into The State -- Not a Bakken Story

November 14, 2011:

The Ogallal Aquifer is a modern day McGuffin. -- MDWB

November 22, 2011:

In a series of maneuvers, [Governor Dave] Heineman (R)  managed to delay construction of the 1,661-mile Keystone XL pipeline -- and prompt its owner, Calgary-based TransCanada Corp., to reroute the 15 percent that was to cross Nebraska and its environmentally sensitive Sandhills region. -- Bloomberg

December 12, 2011: 

Gov. Dave Heineman says he supports efforts to accelerate the federal approval process for a controversial crude oil pipeline through Nebraska. -- AP

November 30, 2012:

Pyrrhic victory. -- Wiki

*******************************

It looks like the governor is:

• tired of being asked, as a "Republican," why he supported Obama
• tired of all those Warren Buffett oil-carrying unit trains splitting towns and cities in half
• tired of not getting all that income from TransCanada
• tired of not putting his folks to work
• tired of getting phone calls from other rhinos congratulating him on sticking to his guns
• tired of getting phone calls from all those folks who would like jobs
• tired of seeing his state become the laughing stock of pro-growth Americans
• tired of explaining why he supports $100 oil 
• tired of explaining why he prefers Mideast oil to Canadian oil
• tired of explaining why he prefers old pipelines crossing the aquifer when he could have had a new pipeline replacing the old ones; paid for by someone else; and getting paid for laying it
• tired of explaining to Rotarians why he fell for this charade
• tired of being seen as a patsy 
• tired of having to spell "hypocrite," as in "I am not a crook hypocrite." 

I wonder

• how many families will remain on welfare because of this debacle?
• how many children will go to bed hungry tonight because their dad does not have a well-paying job?
• how much domestic violence will go unreported because of stress and arguments over no jobs, no money?
• how many out-of-staters who came into Nebraska to make a point have moved on, leaving Nebraskans to deal with a lost opportunity?
• how many want to bet that the same group will come in and block a new routed-Keystone on some new McGuffin?

Motley Fool on Some Oil and Gas Stocks -- The Bakken, North Dakota, USA

Motley Fool link here. (As is typical of this blog, some numbers are rounded.)

The Fool like Double Eagle and notes in passing that Double Eagle is "self-funded," something that is not true of KOG. In the Bakken, the Fool may be comparing apples and oranges. And in anyone's pantry, both apples and oranges are nice to have.

But one does have to chuckle a bit: Double Eagle has a market cap of $80 million according to the Fool; whereas KOG just raised $1 billion in cash for operations.

Tell Me Again: Humans Wiping out Species Due to AGW -- 200 New Species Discovered -- Earth Day 41 Years Ago -- Emissions As High As Ever

Reuters link here.

A wildly-colored gecko, a fish that looks like a gherkin, and a monkey with an Elvis-like hairstyle are among the more than 200 new species discovered in the Greater Mekong region last year, environmental group WWF said on Monday.

The area's diversity is so astonishing that a new species is found every two days, but regional cooperation and decision-making must take centre stage to preserve its richness, the group added.

The dangers posed to local wildlife were highlighted earlier this year, when WWF said that Vietnam's Javan rhinos have been poached into extinction.

"While the 2010 discoveries are new to science, many are already destined for the dinner table, struggling to survive in shrinking habitats and at risk of extinction," said Stuart Chapman, Conservation Director of WWF Greater Mekong, in a statement.

Anthropogenic global warming was not mentioned up to this point; I don't know if it was mentioned because that's as far as I've read.  The "dinner table" is more concerning than the climate. But, then, we all knew that. It wasn't global warming that decimated the buffalo; it was the repeating rifle. 

I wonder if the two new species a day is due to very, very slightly rising sea levels due to ice melt, or if it might be due to slightly nicer weather. As we all know now, rising sea levels increase genetic diversity. Hmmm. 

November, 2011: On Track for 510,000 BOPD -- The Bakken, North Dakota, USA

Link here.

My hunch: North Dakota is now producing more than 500,000 bopd. Wow. Isn't that about what Libya is producing as it gets back up to speed?

Director's Cut -- December 12, 2011 -- The Bakken, North Dakota, USA

Link here.

Production hits all-time high in North Dakota (again):
Oct, 2011, oil: 488,066 bopd (preliminary, all time high)
Sep, 2011, oil: 463,887

Oct producing wells: 6.202, (all-time high)
Sep producing wells: 6,071

Permitting
Oct, 2011: 169, (all time high: 245, 2 Nov 10)
Sep, 2011: 176

Pricing
Sept, 2011: sweet crude, $83.50
Oct, 2011: sweet crude, $79.83

Director's comments:

Rig count remained steady, but production increased 4 percent due to high levels of frack activity. [This looks like a cut and paste from last month; my calculations show this is a 5 percent increase in production.] Bowman County Red River production was stable at about 26,000 bbls with one well drilling. The idle well count increased again to 762 wells, approximately 300 above the normal 450, indicating that drilling continues to outpace fracturing services and a need to add approximately 10 crews. (That last sentence was identical to last month's -- cut and paste?)

EPA
The efforts to regulate hydraulic fracking under the safe drinking water act are increasing with EPA now looking at using the diesel fuel provision int eh 2005 energy policy act. [It looks like Mr Helms is getting tired of getting e-mails on this subject; he wrote this: Questions regarding the
Pavillion, WY draft study recently released by EPA should be directed to the Wyoming
Oil and Gas Conservation Commission at 307-234-7147.]

Rigs
20,000-foot capable rigs: over 95% utilization rates (last month >90%)
7,000 or less-capable rigs: less than 50% utilization rates

Leasing activityis focused on renewals and top leases in the Bakken-Three Forks with significant activity now south of Dickinson west of Belfield. Much of the leasing activity has shifted to northeast Montana. 

Seismic is very busy.

The number of wells drilling on federal surface in the Dakota Prairie Grasslands is up to 3.

With regard to flaring:
Daily natural gas production is up; processing plant and gathering system construction activity is very high. North Dakota shallow gas exploration is not economic at the current price. The oil to gas ratio is 26 to 1, but the BTU ratio is 6 to 1. He now says natural gas liquids make gathering and processing of Bakken gas economic. I may have missed that in the past, but that seems new. The result of allowing this evaluation time is a plan presented by industry to invest over $3 billion in natural gas gathering and processing infrastructure in 2011, 2012, and 2013.

Overheard at the Economart? -- The Bakken, North Dakota, USA

• Continental Resources, a million acres; 34,000 boepd
• Oasis, 300,000 acres; 17,000 boepd
• Kodiak: 100,000 acres: 12,000 boepd, and now they've picked up prime acreage in the Bull's Eye

This is not an investment site; see disclaimer at the right. I cannot vouch for the accuracy of those numbers; I just seem to recall those numbers are in the ballpark. Could be wrong.

For Investors Only -- Bakken Stocks -- Denbury Is Listed Again -- But Look At KOG Compared to CLR

Investopedia link here.

Eagle Ford: EOG and MRO.

Bakken: CLR and DNR.

There "they" go again: DNR.

Every Bakken list seems to include DNR.

Note this:

Continental is the largest player in this formation, with 34,505 BOE/d coming from the Bakken in the third quarter, or 52% of its overall 66,289 BOE/d production.

CLR has almost 1,000,000 net acres in the Bakken.

KOG says they may be producing as much as 30,000 boepd by the end of 2012.

Am I missing something, or misreading something? KOG has a market cap of $1.85 billion and about a tenth of CLR's net acreage; CLR has a market cap of almost $12 billion.

If I have my numbers right, and KOG predicts 30,000 boepd a year from now, one can only imagine what CLR will be producing. Like I say, I must be missing something.

This is not an investment site; see disclaimer at the right.

Phone It In -- Absolutely Nothing to Do With The Bakken -- If You Are At This Site Just for the Bakken, Please Skip This Post

This is kind of cool. Not only does the president plan to "slash" US presence at Mexican-US border, he's come up with another money-saving proposal: just phone it in.

Folks crossing the US-Mexican border will be allowed to stop at unmanned kiosks and phone in their information as they cross the border. Overhead drones will verify that folks crossing the border actually do that. Pretty clever.

I don't know why we don't do that at the North Dakota-Canadian border. We already have the drones at Fargo. The overhead costs are already fixed.

Oh, that's right. It's a safety issue, not a money issue. Canadians generally don't shoot at customs and immigration personnel.

Speaking of which: now that more Mexicans have fast and furious guns, it's become even more dangerous for our CIP to ask for identification. It usually leads to someone pulling out a lethal weapon.

Speaking of f&f, it turns out it was a stunt to promote gun control (thousands of links). This came from the same administration that mysteriously found the first case of fracking affecting well water (the EPA-Wyoming Shenanigans). After thousands and thousands of fracked wells, and no evidence of ground water/well water contamination ever, all of a sudden, the EPA drills and fracks a few wells, and voila, well water contamination with "frack fluids" right next to the EPA wells.

By the way, this was the same government that admitted to suppressing knowledge of the exploding batteries in the GM electric cars due to the "fragility of the Volt sales." A direct quote. I cannot make this stuff up. 

Some might say (certainly not me): "Lucy, you got some 'splainin' to do."

Unless you are the Attorney General, and then it is not lying as long as your mind was not in a lying frame of mind.

I wonder if the EPA drilled their own wells or if they outsourced? If so, memo to self: find out who drilled the EPA wells, and, never, never, never have them frack my well. They must have used Halliburton cement that was leftover from the Gulf well. 

As long as I'm off-topic, I might as well note that the president makes news when he goes to church. The photo that went viral around the world shows a president well-dressed to take on global warming -- long, heavy winter coat; wow, it looks chilly. His wife is not wearing as much outerwear, suggesting that in the case of the president, it may be a lack of body fat, which has been talked about for quite some time. Michelle's four strands of pearls make a nice fashion statement. I think her Jesus would be proud.

While assigned to England, I attended the Anglican church. I found the experience very comforting. Due to circumstances, I was only able to wear denim jeans to church, with my ever-present back pack. Except for royalty, I don't think English would be seen in church making a fashion statement. Of course, not many English go to church any more. I generally don't attend church when stateside. 

Keep your comments short. They won't get posted anyway.

I wonder if the pearls are real, fake, loaned, owned, or insured?

Surface Owners and Offers for Pipeline Easements

Updates

September 29, 2012: Elsewhere a reader says he is being offered $150/rod for a 100-foot easement. Not surprising, he's not getting much help. At least not yet.

Original Post

The following was sent in as a comment. I have no experience in the subject and since most folks may not read the comments, I am posting the query as a stand-alone post:

As a landowner from out of state, the pipeline is to go through our land. We have been offered $75/rod but this seems little as compared to my online research as to what people have received in other states. Are others being offered the same amount? 

Please feel free to let folks know what you've been offered. It may depend on location, diameter of pipe, what the pipe will be carrying, etc., so it might help to provide specific information.

Wow, Talk About A Miserable Day of Reports Coming Out of the Bakken

New wells reporting link here.

Of the nine new wells reporting today, only two reported IPs. Wow. Yes, Virginia, there still is a backlog regardless of what the corporate presentations say. You can't blame any of the backlog on fracking on the weather or the government; the weather has been wonderful and the government assures us it has no intention of shutting fracking down. Not directly, anyway.

Five of the nine were placed on DRL status.

Two Whiting wells were suspect: a) inactive and a very poor production summary; and, b) active, but production poor and not placed on DRL status as far as I could see; so either it will go inactive or it will be placed on DRL status, also.

I don't know what to make of the Rudman 11-12TFH (#19591) that Whiting put on inactive status.

The only good well (based on IP) was a Denbury Onshore well:

• 19594, 1,411, Denbury Onshore, Rolfson 21-16SEH, Siverston, Bakken, 

So, pretty depressing if one is as excited about the Bakken as I am. 

Commercial Interruption -- Christmas Gifts -- The Bakken, North Dakota, USA

Updates

December 23, 2013: Faces of the Bakken -- Chuck Wilder, Owner, Books on Broadway. 

Independent bookstore owner Chuck Wilder noticed a change in business four years ago when guys in Halliburton coveralls started coming into his shop.

Books on Broadway started getting new customers, including a more educated set of oilfield workers than previous oil booms had brought to Williston.

“These guys, they all have engineering degrees and they’re readers,” Wilder said.
The oil boom has been good for business in the downtown shop. Holiday sales are up this year, and the store can’t keep its top seller, “The Frackers” by Gregory Zuckerman, in stock. 

Original Post

For those living and working in the heart of the Bakken: remember Home of Economy, Williston, North Dakota, for all kinds of great Christmas ideas. Also, great Holiday gifts. They do have gift cards.

In Williston, your Carhartt product won't stand out, but it will keep you very, very warm. In Boston, where I am for the moment, the Carhartt is relatively unique, and it keeps me very, very warm. I was pleasantly surprised. Unlike many "winter" jackets, it feels very "substantial."

And for those living anywhere in the world where things are still mailed, remember Bakkenduds. In the Boston area there are 25 colleges or universities. The Bakken University hoodie fits right in. And they have a new product: the "Frack!" baseball cap.

And, either at Home of Economy, or on-line, I remain very, very impressed with Sorel. I love my autumn ankle-high boots; they are extremely warm and very, very comfortable. I think the sole is about an inch or so thick, so it makes me feel a bit taller and the rubber-like material puts a bit of spring in one's step, or it could just be "feelin' good about the Bakken."  As mentioned earlier about Sorel, I think I got my pair of Sorel autumn boots at a slightly lower price at Home of Economy than on-line, although the actual products might be slightly different. I don't know if Sorel on-line offers free shipping.

As long as I'm rambling, here's a very nice Christmas suggestion for Willistonites with parents still living in the area. With all the activity, it can be a real hassle shopping for tires. Dad needed new tires on his car while I was there. We stopped at four different locations in Williston, including Wal-Mart, to compare availability and prices. The prices were all about the same. You can shop on price, but you will be wasting a bit of time (at least that's my opinion, but I am fortunate enough to be able not to worry about an extra few bucks here and there; not all folks may be so fortunate; so look around just in case).

Anyway, I digress. I finally went with Home of Economy. This is most important: go in when they might not be so busy, say Tuesday or Thursday afternoon. Bring in a big white piece of paper with all your information (name, phone, tire size, etc) and then schedule a time to have the tires put on your car. So who cares if it takes a week? It's worth the wait if you can come in at an appointed time.  I would recommend an 8:00 a.m. appointment. Drop off the car and walk back home or walk to work. Unless your work place is outside city limits, I don't think it takes more than an hour to walk anywhere in Williston. Or have a friend take you.

Oh, why do I recommend a big white piece of paper with all your information when you go to Home of Economy? One can't see the writing on black paper. No, it bugs me when folks take your information down on a scrap of paper which you just know is going to get lost. Also, I think CSRs (customer service representatives) appreciate you taking the time to write things down; it suggests you put some thought into this buying experience. 

The reason I prefer Home of Economy over the other tire stores: while waiting, one can shop in the rest of the store. Not much to do at the other tire stores except wait in line, looking at tires. Wal-Mart offers that same in-store waiting/shoppig opportunity, but it seems to be a bit more nerve-wracking: noisier, groups of people congregating at the service desk, phones ringing and being answered; customers in line seem to take back seat to the phone. But that too is just an opinion. I also don't know how much experience the folks have with tires, although that has never seemed to be a problem.  It's a very long walk from the parking lot to the  front of the store, and then an even longer walk back to the tire department. Home of Economy still had a bit of that "home" feeling I was used to; Wal-Mart, not so much. And there is almost no walking when it comes to Home of Economy. But I have no complaints with Wal-Mart. It may be Wal-Mart but it's staffed by folks that live next to you in Williston (or in the general area).

At Home of Economy I spoke directly with the tire-putter-on (I forget his name, shame on me).  I made some suggestions and he pleasantly told me I was full of bunk, reading too many tree-hugger websites. He had lived and breathed tires since he was 8 years old, seen it all, and knew what he was doing. The front desk folks concurred. He was right in his suggestions. And lots of fun to chat with, but best not to start a conversation; he may not get to your tires before lunch if you engage in chit chat.

Note: no one has asked me to put these notes up; I receive nothing for putting these notes up; purely something I enjoy doing.

I would also recommend the coffee-internet shop on Main Street in Williston, though they can be a bit slow. If you go there, go there to relax.

The Scenic Sports Shop east of Williston on 1804 is interesting.

I visited a mom-and-pop bookstore in the very, very touristy town of Rockport, Massachusetts, north of Boston, and was sorely disappointed. You folks have no idea how good the Books On Broadway store is in Williston. Chuck's regional selection was so much better than what they had at Rockport; Rockport did not have one book on the Bakken. Chuck's contemporary / non-regional stuff is superb. Even if you buy books from Amazon, support your local bookseller for some of your items. Chuck can offer great advice; I've always felt part of the buying experience is the buying experience. And Books on Broadway is not just books; lots of great Christmas idea. Lots.

Okay, enough of this. I could go on. Maybe later I will.

Elsewhere, Folks Continue to See How Far They Can Push the Envelope

I have long lost interest in this story (Wyoming, fracking, contamination, EPA) because I have been told by Teegue that there is absolutely nothing to worry about, but it is fun to see how far folks will go before she pulls the plug on any further discussion of this issue at the Bakken Shale Discussion Group.

It could turn out to be a great betting game: everyone ante into the pot; folks place their bets when the plug is pulled on this thread, and the winner takes all when the referee steps in and stops all discussion.

I give it three more posts.

Big Bakken Piece in the Wall Street Journal Today -- The Bakken, North Dakota, USA

WSJ link here. These links are tricky; it may or may not be there, and/or you may been a subscription. Carpe Diem alerted me to the link.

The article is another great article, but nothing that regular readers of this blog don't already know. But there are other reasons to read it.

The Bakken is mentioned in the article as just one example of tight oil, but remember three things: a) as far as I'm concerned, the Bakken is where "this" (tight oil boom) started, and it was in the Elm Coulee, Montana; and then to Parshall, North Dakota, 2000 and 2004 (or was it 2007?), respectively; b) everything the rest of the world accomplishes in tight oil was worked out in the laboratories of the Bakken; and, c) the Bakken still has the highest TOC of them all (it's the best source rock in the world).

Some data points from the WSJ article today:

• U.S. petroleum imports, on a net basis, reached their peak—60%—of domestic consumption in 2005. Since then, they have been going in the other direction. They are now down to 46%. [And I think none of the US imports come from the Mideast; if so, negligible amount.]
• U.S. oil consumption reached what might be called "peak demand" in 2005 and has since declined. [But Asian demand has not peaked.]
• U.S. crude oil output has risen by 18% since 2008. Some of that has come from an increase in deep-water output, although after last year's Deepwater Horizon oil spill the pace of future growth is more uncertain. The big surprise is onshore, where the United States is experiencing an oil boom.
• Thanks to tight oil, North Dakota is now America's fourth largest oil-producing state after Texas, Alaska and California. It may well move up to third or even second place.
• North Dakota also has the lowest unemployment rate in the nation at 3.5%. The shale oil boom generates jobs in the oil fields, but it also has a long supply chain, fostering manufacturing jobs in states like Ohio and information technology jobs in California.

Those jobs in other states created by the Bakken cannot be underestimated. I would assume the railroad tanker manufacturers and truck manufacturers are staying open because of the Bakken. 

Yergin says the US is down to importing 46% of its oil. Based on this article, what I know about tight oil in the US, the Keystone debacle, the Gulf permitorium, off-shore drilling bans, etc., the US could either be self-sufficient, or require only imports from Canada in the future.

What a great country.

Balmy Day in Boston; I'd Rather Be In The Bakken

It's a beautiful day in Boston; it's 28 degrees, no wind. I thought it was close to 35 or even 40, it felt so warm without the wind. Clear skies.

They continue to tear up the street outside the house; the city or someone is replacing natural gas pipes that were put in place in 1925. It is interesting. It is more difficult to get around this neighborhood due to street/under-street repairs than it was in Williston, the heart of the Bakken. There were a couple of miserable left-hand turns in Williston, but one quickly learned to avoid them.

I see the price of oil is down this morning; struggling to stay above $98.

Talking heads last week on CNBC said there would be a pullback in the near term, actually some difficulty for oil, and then back to the upward trend. But, of course, one can hear almost anything from talking heads regarding the price of oil.

The one constant: the price of oil will trend up over the long term.

There really isn't much news to talk about in the Bakken. I have appreciated all the positive comments after "turning on" the comments section again. I was surprised how many wrote to say "thanks." There must have been a dozen such very nice comments.

Not one negative comment, until mid-day yesterday, maybe earlier. I forget. I don't post the comments that have any hint of obscenity or blasphemy, i.e.,  negativity about the great state of North Dakota. Lots of jealousy out there.

I posted for a few minutes a story the FT.com ran yesterday concerning unemployment and compared it to the experience a Minnesota manufacturing icon has had. I posted it for a few minutes to get it in the queue but then took it down temporarily. I try to keep Bakken stories at the top, especially for newbies. That story will be re-posted later today after I post some Bakken stories.

Okay, since I'm rambling, what do I have for newbies?

First, this. Someone took issue with a spokesman (not me) who said Minot's population could double from 50,000 to 100,000 over the next four to five years. I find it hard to believe that Minot could reach 100,000 ever, but if the local communities, and the state and federal governments remain supportive of the oil industry in the Williston Basin, there is a good chance Minot will become much bigger.

Regarding Minot: activity in the Spearfish formation does not even appear to be in the first inning yet; it's almost as if they are in training camp, waiting for the season to begin. There's no hurry. As oil trends higher, it makes the Spearfish that much more exciting.

Also, I have alluded to a story I have heard more than once: there are at least two streams of the Bakken running east of Minot. It's all speculative, but the amount of oil services support activity in Minot suggests something big is going on that oil companies are keeping very close hold. It's hard to believe that all that activity there is to support the Spearfish, and it's certainly not there to support the operations around Dickinson.

Second, a recap of the "sweet" spots in the Williston Basin Bakken:

• Parshall oil field: "owned" by EOG; big excitement back in 2007 - 2008; has waned; 640-acre
• Sanish oil field: "owned" by Whiting; turns out to be one of the most exciting stories in the Bakken; it will be interesting to see how long it takes Whiting to complete all drilling in this oil field; that will give us an idea what might happen in the rest of the Bakken; 1,280-acre
• Williams County, northwest, north, and northeast of Williston: surprisingly good; a big thanks to BEXP to de-risking this area; Oasis following fast and furiously
• McKenzie County: Indian Hill to Alexander to Watford City -- the bull's eye of the Bakken; this is where the activity is headed in 2012; pro-growth folks there; this is going to be very, very exciting to watch
• Dunn County, reservation: steady production, but less exciting only because we've seen so much of it; the melting pot of companies working the region is most interesting; every once in awhile I get nervous about the pro-faux-environmental stance of the native Americans there, and then remember the MHA; not to worry
• Southern ops: Whiting and Chesapeake will duke it out for bragging rights in the southwestern part of the state. Whiting has the unquestionable lead; we're all waiting for some great news from Chesapeake in North Dakota

Third, a recap of the formations:

• The Bakken Pool: without question, this is where the action is; nothing else comes close. Again, "no" dry wells in the Bakken; operators trying to control costs, so we will see a change in fracking; perhaps the same number of stages (24 - 36), but mostly sand, less ceramics; near-term sand vs ceramics doesn't make a difference in production; long term the jury is still out the most economical way to go
• The Bakken Pool, cont'd: there are so many pay zones in the Bakken pool, it is becoming difficult to manage: three sub-formations in the Bakken formation (upper, middle, lower; but it is the middle Bakken sub-formation that is the target); the Three Forks with several deeper "benches" -- maybe as many as four; CLR has targeted the upper bench which sits under the Three Forks; the Pronghorn (Sand[s]) sub-formation atop the Three Forks which may/may not be the same as the Sanish elsewhere. I think the Sanish is the Three Forks in a different geographic area, but may be wrong; perhaps the Sanish is a specific upper layer of the Three Forks, like the Pronghorn elsewhere; in both cases (Sanish and Pronghorn), they "belong" to Whiting; and, of course, there is the Lodgepose, of which, see below.
• The Madison: if these wells don't need to be fracked, my hunch is that "we" have a backup plan if permitting is slowed in the Bakken
• The Lodgepole: I haven't seen anyone talk about it, but it's probably there somewhere in the NDIC geology sites, this: I think there are two Lodgepoles: the huge pools that are very, very hard to find in the Dickinson area, and then the new Lodgepole wells north of Williston. No one is talking about these wells yet publicly -- at least I haven't seen anything, but if three new Lodgepole wells north of Williston are even mediocre wells, this formation could be a game changer
• The Red River: I believe Whiting devotes one rig to targeting the Red River in their southwest operations; minor in the whole scheme of things, but noteworthy

Fourth: a recap of the operators:

• Continental Resources' Harold Hamm remains the face of the Bakken; his wells are everywhere; I think someone once noted he operates or participates in 1 out of every 6 wells in the Williston Basin; I'm glad Harold Hamm had a face-to-face meeting with President Obama to learn firsthand the president's thoughts on oil
• Whiting: this is the company that excites me (as an operator; not from an investment point of view; this is not an investment site; see disclaimer); a well-defined strategy; seems to be hitting on all cylinders -- four cylinders in the north; four cylinders in the south
• KOG: Oasis or KOG could have been in the third spot; hard to say which is more exciting; KOG moved to a new level this past year; I think they started the year without 50,000 net acres; now they have 155,000 net acres, and their most recent acquisition was incredible. They added a significant amount of acreage to their contiguous plays and it puts them right in the bull's eye of the Bakken; I wasn't too impressed with the acreage north of Williston, but it may prove to be better than I realize in the hands of the right operator; if things have not changed, they have only one dedicated frack team; they will have 12 rigs by the end of 2012; they need more dedicated frack teams
• Oasis: great, great company; building new operations building west of Williston; they also seem to know how to complete a well

Fifth: DNR -- the sleeper. I don't follow it closely; but it has a unique business strategy and a unique tool in its toolbox; for investors, I keep seeing DNR on the list of Bakken stocks to own, but I don't consider it a "Bakken" player as such; it is huge elsewhere. I don't own any shares of DNR but based on what I read, I am missing a great opportunity.

Sixth: Others --

• XTO hitting some good wells; a subsidiary of XOM, and of course anything XTO does in the Bakken will be a line item, if that, in XOM's annual report
• Slawson: not in the news so much any more; history of great wells; privately held; great coup if a public-owned company could buy their Bakken assets
• Dakota-3: a subsidiary of Williams Cos; all, or most, of their operations in the reservations; again, won't move the needle for Williams
• GMXR: a very small piece of the action in the Bakken, but I mention them because they are much more active than I thought they would be
• I wonder if it won't be a year of buyouts and mergers in the Bakken in 2012; lots of pressure to do so

More later.

Turkey, Kurdistan, Iraq, and XOM

PennEnergy link here.

XOM steps in to fill the void as the US military leaves Iraq.

I don't expect those interested in the Bakken to be necessarily interested in this story, but I spent a fair amount of time in this region in a previous life. I find this development not unexpected.