Link here. Minimal information, advertising site, but it's a start.
$5 million project; 46,000 square feet; three buildings, metal.
Key Energy Services has a market cap of $1.55 billion.
Folks, some folks feel we are well into this boom -- five years in the North Dakota Bakken boom -- and many folks, including me, thought we would start to see some leveling off of new building activity by now.
[Note: a definitional comment -- we are early in the boom with regard to drilling and production. We are in the first inning; drilling will go on for 20 years in the Bakken, and will produce through 2100. That's just the Bakken pool. However, as booms go, some would consider at five years into a boom we should start seeing signs of maturation with regard to building. That's the paradox of the Bakken at this point in time. I suppose another way of looking at this: the pace of drilling and/or production is currently at a steady, but almost predictable pace. Building activity, infrastructure CAPEX appears to be increasing suggesting several things.]
If the "old" estimates were accepted by the oil companies and the oil service companies I would expect that most building would have been completed by now. When I see companies like Key Energy now joining the others by building a $5 million complex, it supports my view that original estimates of OOIP were too low, and that original estimates of percent recovery, were also too low.
I bet Key will outgrow the building before it is finished!
ReplyDeleteJan Elliott
BTL Lining Inc
Prineville OR
At 46,000 square feet, I had the same thought, but didn't want to be the first to say it.
DeleteThank you for taking time to comment.
Bruce you do a great job on providing information on the Bakken. I am curious about the Bakken producing until 2100.
DeleteSee "Basic Analysis of the Bakken," linked at the sidebar at the right:
Deletehttp://milliondollarway.blogspot.com/2010/02/basic-analsis-of-bakken-boom.html
This is a fairly old, by "boom" standards, and written by UND experts who are conservative in their analysis.
Key has 2 other locations in Williston, so this new one is probably a different division of the KEY company. Kind of like how Weatherford and Halliburton have facilities scattered around Williston.
DeleteThis NEW facility might be the start of something bigger. I'm wondering if they are planning on building this facility and then grow from there in the same location.
When Schlumberger built their new huge facility west of Williston, they continued to operate their other large facility on the east end of Williston. It is so hard to guess and keep up with these companies building projects in Williston. lol
Wow, Schlumberger is keeping their complex east of Williston!
DeleteI was curious what Schlumberger would do with the east-side facility; I found it hard they would close it down, it is huge. But for Schlumberger to have two large industrial sites in Williston speaks volumes.
I bet you are correct about Key Energy.
Thank you for taking time to comment.