Daily operations report
Active rigs in North Dakota: 199
Nine (9) new permits, Williston Basin, North Dakota
- Operators: Whiting (4), Crescent Point Energy (2), MRO (2), Zenergy
- Fields: Sandrocks (McKenzie), Little Muddy (Williams), Sanish (Mountrail), Big Bend (Mountrail), Alger (Mountrail).
These wells come off confidential list today (weekend plus Monday)
- 19796, drl, CLR, Magnuson 1-19H, Hanson oil field, Williams County, s2/12; cum --
- 21176, drl, Arsenal Energy, Anthony Robert 10-3H, Stanley, s2/12; cum 25K 6/12;
- 21965, drl, BR, Ole Boe 41-14MBH, Haystack Butte, McKenzie County,
- 22263, drl, Crescent Point Energy, CPEUSC McQuarters 14-23-158N-101W, Little Muddy, Williams,
- 18446, drl, Petro-Hunt, Fort Berthold 152-93-18B-19-1H, Four Bears, McKenzie, s2/12;
- 21739, drl, Zavanna, Kepner 9-4 1H, Glass Bluff, McKenzie, s2/12;
- 22005, 3,050, BEXP, Melissa 31-30 1H, East Fork, Williams, t5/12; cum 33K 6/12;
- 22142, 287, CLR, Kostelecky 1-1H, wildcat, Billings, t5/12; cum 15K 6/12;
- 22201, 996, Hess, LK-Dolezal-145-97-0805H-1, Little Knife, Dunn, t5/12; cum 46K 6/12;
- 19678, 2,186, Helis, Moberg 15-18H, Croff (just west of Grail), McKenzie, t5/12; cum 40K 6/12;
- 20041, 606, Whiting, Merilyn Smith 12-7TFH, Sanish, Mountrail, t2/12; cum 30K 6/12;
- 20762, 817, Zenergy, Arnstad 3-10H, Painted Woods, Williams, t5/12; cum 19K 6/12;
- 21075, 450, Whiting, BSMU 1807, Big Stick, Billings, a Madison well; cum 15K 6/12;
- 21092, 436, QEP Energy, MHA 6-05-06H-149-90, Deep Water Creek Bay, McLean, t7/12; cum --
- 21815, drl, BEXP, Richard 8-5 1H, Banks, McKenzie; in the heart of the Bakken; s2/12;
- 21890, 322, Whiting, Pam Locken 21-22TFH, Sanish, Mountrail, s4/12; cum 18K 6/12;
- 22148, drl, BEXP, Albert B. 27-34 1H, Nameless, McKenzie, just west of Alexander; s2/12; cum 32K 6/12;
- 22158, 996, CLR, Kuhn 2-12H, Camp, McKenzie; in the heart of the Bakken; t5/12; cum 49K 6/12;
- 20436, 1,277, BR, Scott 31-36MBH, Murphy Creek, t11/11; cum 23K 6/12;
- 22255, 255, Samson Resources, Longhorn 9-4-158-99H, t6/12; cum 5K 6/1;2
Another man who misses the point
From the Sacramento Bee, of all places.
The president of the Federal Reserve Bank of Minneapolis says the economic activity going on in North Dakota's booming oil patch is different than anywhere else in the country.
Narayana Kocherlakota's comment came following a tour last week of the area between Minot and Williston where various companies are drilling for oil.The soundbite he left North Dakotans with:
But Kockerlakota tells The Williston Herald ( http://bit.ly/P552DU) that because the population of western North Dakota is relatively small, the boom isn't affecting the nation's economy as much as some people think.Okay. I'm glad we got that cleared up.
From the Rapid City Journal, this observation from same individual:
Kockerlakota also noted that western North Dakota's boom will at some point become a bust. He said people should be prepared for that to happen at some point by investing what they have now.Wow, Debbie Downer. He needs to get out and about a bit more. No wonder the banks are afraid to lend money to developers in the Bakken. Maybe he should visit General Motors, Solyndra. I'm not sure what he means by "at some point" and "a bust." If it were only small mom-and-pop companies setting up shop in the Bakken, I would have concerns, but the complexes that Schlumberger, Baker Hughes, Sanjel, Halliburton, et al, have put in suggest they plan to stay for at least 30 years. The pipeline infrastructure and the railroad infrastructure isn't being put in place for a two-year boom. I will tag this to follow up in December, 2030. But yes, if the world quits using oil for transportation, natural gas for electricity production, and plastics, the Bakken will be a bust.
Investors Aren't Missing The Point
Earlier last week, one could have bought AAPL for less than $630/share. Today, I see it is up another $12 in a down market, and is now approaching $660/share. Quite incredible. See disclaimer. I own no shares in Apple. I own a lot of their products, however.
Chinese big four banks increase lending; Chines banks lend at behest of the government; a long, long time ago, it was pointed out that with all the single men in China, the country needs to keep them employed; just saying
Price of WTI oil flirting with $98 -- no link; dynamic; my simple thinking -- no difference between "$100 oil" and "$98 oil"
RBN Energy: future of crude and NGL
A personal note for archival purposes
Earlier today, about 1:40 p.m. local time, we (my wife, our two granddaughters, and I) were driving from San Pedro to Long Beach/Huntington Beach, California.
To get there we need to cross two huge bridges: one over the Port of Los Angeles, and one over the Port of Long Beach (both in San Pedro Harbor).
The
first bridge is the Vincent Thomas bridge. For unknown reasons, the
traffic was backed up. Then we noticed a helicopter flying over the
area, making numerous passes.
At the top of
the bridge was a fire truck; three of the men were standing around; the
fourth had binoculars and was looking at the water beneath the bridge.
The
helicopter continued to circle. The granddaughters and I discussed the
possibilities. It was not a police helicopter (not black and white) and
it was not a rescue helicopter (too small, and no hospital markings),
so most likely a news helicopter.
Of the many possibilities suggested, I made the last suggestion: someone jumped from the bridge. I was being less than serious.
After the top of the bridge, the traffic went back to two lanes and we were our way.
Tonight I see this story:
That hit me like a ton of bricks for any number of reasons. Truly, very, very sad.
I didn't care about the story (BP vs XOM) but I was surprised by this, particularly that in bold:
For investors only: see disclaimer
I didn't care about the story (BP vs XOM) but I was surprised by this, particularly that in bold:
BP, on the other hand, has been reeling ever since the 2010 rig explosion heard round the world. The company's ongoing court battles with Deepwater Horizon partners Transocean and Halliburton have not gone its way. BP paid nearly $1 billion to Transocean this past quarter to settle accident claims, and Transocean and Halliburton have long since been freed from any additional liability. Continued uncertainty over Deepwater Horizon's long-term impact has kept BP's valuation low, but investors may take solace from ExxonMobil's highly successful recovery from the Alaskan Valdez disaster.
By the way, I had bought shares in XOM just days or weeks before the Valdez incident. I have said many, many times, that turned out to be a very good story, from an investor's point of view. It was very, very interesting how that all turned out.
Apple: Most Valuable Company -- Ever
Exceeds Microsoft's value in 1999 when it was a bubble! 
Without a specific timeframe and quantity, I guess that means that if the Bakken output drops off substantially at any point before the end of the century, then the prediction is correct.
ReplyDeleteThis from someone who has a vote at the table whether to impose another round of quantitative easing. I hope this is a misquote.
You may be correct; the quote could have been paraphrased.
ReplyDeleteHe is correct: all booms come to an end. But as noted, SLB, BHI, Sanjel,HAl, all think this is a 30-year phenomenon. Harold Hamm, the same thing. Too much money is at stake to suggest these guys think that this boom is short-lived.
The biggest worry goes back to politics, and that goes to banning fracking. But again, I think we are well past that. Again, too much money at stake. And the canary in the coal mine is the price of natural gas: banning fracking and the price of natural gas would sky rocket.
I think you are correct; he was paraphrased.
>>>>But Kockerlakota tells The Williston Herald ( http://bit.ly/P552DU) that because the population of western North Dakota is relatively small, the boom isn't affecting the nation's economy as much as some people think. <<<
ReplyDeleteBruce, I have mentioned this before here(and at Carpe Diem) and I know we are on the same page on it. But I am jaw-droppingly stunned that the president of the Federal Reserve Bank of Minneapolis would limit the Bakken boom to the small population of North Dakota. I guess he doesn't count the thousands of workers from other states (including MN) who commute in for their 2 week shifts and then go home.
I guess he doesn't see the trainloads of steel and sand heading that way through MN-made in Ohio/Wisconsin/MINNESOTA or wherever. I guess he doesn't count the geology and petroleum engineering jobs at company headquarters in places like Denver, Oklahoma City and Houston.
I am of the opinion that the national economic footprint of ND oil is FAR!!!! larger than can be measured by the low unemployment rate in ND-which in my opinion is a largely meaningless stat unless you can figure out a way to include the out-of-state workers who commute. Thus ND oil lowers the unemployment rates in other states. To be fair to ND-if correctly measured it would have a negative unemployment rate.
I agree completely. He almost sounds like an apologist for wind, solar, and the President.
ReplyDeleteThe more I think about that attitude coming from "Kocherlakota" the more "crazy" I think his comments were, on so many levels. One wonders how much it has to do with being raised on the East Coast, and then living in Minneapolis. He certainly is not a visionary.
I also saw the article in the Williston Herald and thought I should give you a heads up but I knew you would see it.
ReplyDeleteWe should forgive this dunce. After all he resides in his own bubble with a swank office overlooking the Mississippi River in downtown Minneapolis at the Federal Reserve Bank. I'm sure he is connected to the proper social classes in the beautiful Twin Cities patting each other on the back and having a good laugh about the backwardness of the Dakotas. After all they are not like those hopeless country hicks.
He represents an all too common diease that has infected the state of Minnesota to its disadvantage. They still believe the state is the brain power state of the upper-mid-west. The propaganda and words of former Governor Ruddy Perpich lives on.
This all started with the war words between former Governor of South Dakota Bill Janklow and Perpich. South Dakota was having impressive success inciting business from the Twin Cities and elsewhere in the state to locate in South Dakota because of their great business friendly environment. Like no corporate tax, greatly lower workman compensation cost, plus for the individual no state income tax income and a trained and ready workforce. Old Purpich went ballistic, it was great entertainment to watch the to two Governors go at each other. In the end South Dakota won the war of words and today Minnesota still sulks.
Got to love it.
I almost didn't post the link. I saw the headline but did not read the story. I never imagined such an idiotic statement; someone alerted me to it and that's when I went to the story.
DeleteUrban eggheads don't goet oil and gas. Too rural and blue collar for them.
ReplyDeleteAnon 1
I've run out of things to say on this one.
DeleteSounds like some bankers that need a little educating on the real picture! Life is full of fools!
ReplyDeleteMy dad was very successful in business; worked very, very hard. But early on he told me how difficult it was to get bank loans, even when (he felt) the risks were low.
DeleteAnd then all the sub-prime lending that led to the housing bubble/debacle.
Snake eyes.
ReplyDeletehttp://stateimpact.npr.org/pennsylvania/2012/08/17/snakes-on-a-drilling-rig/
anon 1
Faux environmentalists never give up: looking for endangered species.
DeleteIn fact, snakes love the warmth provided by the oil operations.
Great link, thanks.
Welcome to Minneapolis Minnesota everyone. You can find much more of the same if you move here.
ReplyDeleteOne has to question why he even bothered to fly all the way out to the Bakken.
Delete