First time I've seen this comment in the Director's Cut: "The high liquids content makes gathering and processing of Bakken gas economic."
Production hits all-time high in North Dakota (again):
- Apr, 2012, oil: 609,371 bopd (NEW all-time high)
- Mar, 2012, oil: 577,478 (revised upward)
- Apr, 2012, producing wells: 7,025 (NEW all-time high)
- Mar, 2012, producing wells: 6,932 (revised upward)
- Apr, 2012: 167 drilling
- Mar, 2012: 181
- Apr, 2012: sweet crude, $78.17
- Mar, 2012: sweet crude, $76.29
- Feb, 2012: sweet crude, $83.26
- Jan, 2012: sweet crude, $88.09
- Dec, 2011: sweet crude, $88.75
- Nov, 2011: sweet crude, $88.54
Crude oil take away via pipeline is almost 30% below production, but rail and truck transportation are adequate to keep up with near term production projections. Drilling permit activity is high, but well below record levels. The number of wells drilling on the reservation rose to 32. North Dakota leasing activity is mostly renewals and top leases in the Bakken. This statement noted for the first time last month, was repeated: the high liquids content makes gathering and processing of Bakken gas economic ($2.03/MCF).EPA
Comments on BLM regulation of fracking. See linked document.
Comments on fracking using diesel fuel. See linked document.
In the june OAS ( oasis petroleum ) enercom presentation. oas indicated because of the high liquid content that they were receiving approx $ 8.00 per mcf for there NG.. you can access the presentation here
ReplyDeletehttp://www.oasispetroleum.com/
Just one more reason why I enjoy the blog. People like me only knew the CNBC headline: $2.00 natural gas. People like me never thought to ask derivative questions.
DeleteIn this case, it appears that some smart engineer/CPA/MBA -- someone -- asked the right question at ONEOK about exactly how much value is there in all that gas that is being flared?
Interesting how things work out. I wonder how many times I skipped over that little data point in the Oasis presentations?
Derivatives are hedges. Futures contracts.
ReplyDeleteLiquids are NGLs - propane etc. in the gas.
"Liquid rich" is the new buzz word.
The liquids can be most of the money, at $2/ dry mcf.
Gas measured in BTU - 1200 BTU/MCF is rich - Bakken 1500 BTU +/-), but sometimes liquids stated in barrels per MMCF.
25 +/- barrels is good.
But, Utica ...
http://files.shareholder.com/downloads/EVEP/1861885577x0x571305/792299d3-6ef4-40da-a577-1e5bf476f5ef/NAPTP%202012.pdf
p. 14
▶ Wet Gas Window ◊ Condensate averages from 25 to 175
bbls/MMCF
◊ NGL yield averages from 120 to 160 bbls/MMCF
See page 16 for Utica processing plants. Much more just East of there for the Marcellus. Prepare for the liquid flood.
CHK: "CHK’s best Utica well, the Buell 8H in Harrison County, OH had an IP rate of >3,000 boe/d in Sept. 2011, with roughly half the production from liquids. The Buell well is currently producing 1,040 boe/d, and CHK believes the well will have an EUR of at least 575,000 bbls of liquids and 13 bcf of natural gas"
and
"On a post-processing basis, peak rates from wet gas window have averaged ~415 bbls/d of oil, 260 bbls/d of NGLs and 3.9 mmcf/d of natural gas, or ~1,325 boe/d"
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