Director's Cut -- January 17, 2012 -- The Bakken, North Dakota, USA

Link here.

Production hits all-time high in North Dakota (again):
Oct, 2011, oil: 487,724 bopd 
Nov, 2011, oil: 509,726 (NEW all-time high)

Oct, 2011, producing wells: 6,210
Nov, 2011, producing wells: 6,332 (NEW all-time high)

Permitting
Oct, 2011: 201
Nov, 2011: 169 (all time high: 245, 2 Nov 10)

Pricing
Oct, 2011: sweet crude, $83.50
Nov, 2011: sweet crude, $88.54

Director's comments:

"The idle well count is now holding constant at approx 300 above normal. This indicates that fracturing services are now keeping up with drilling activity, but the industry needs to add more crews to catch up."  [Comment: keeping up? Perhaps, but the backlog is staggering and costing companies significantly.]

Crude oil takeaway capacity is "adequate for the near term" but bottlenecks at Cushing has increased the NYMEX-WTI significantly to 14%."

EPA
"EPA regulation of hydraulic fracturing under the safe drinking water act through the diesel fuel provision in the 2005 energy policy act is moving slowly. The proposed guidance document(s) are not under review at OMB. When that review is finished, a 60-day public comment period is planned."

Rigs
20,000-foot capable rigs: over 95% utilization rates
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.

Seismic is very busy.

The number of wells drilling on federal surface in the Dakota Prairie Grasslands is up to 5 (last month = 3).

With regard to flaring:
Little change from previous remarks.