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Wednesday, August 22, 2012

What You Will Be Discussing Thursday Morning; Whiting Has Another Gusher -- 13 Days To Drill; Fifteen (15) New Permits; BR with Two Great Wells;

Jobless Claims
The Economy

"There's still a 100 percent chance the world heads into recession," according to Marc Faber ...

I don't know how one says there's "a 100 percent change that something is going to happen. That's not a "chance." That's a certainty. Oh, well. Semantics. He said this last autumn; apparently there is no "time frame." The prediction appears to be open-ended.

Oil futures

Approaching $100, 7:45 a.m. Pacific Daylight Time, August 23, 2012. By the end of the day, the price dropped over a dollar, and closed in the $97 range.

Bakken Daily Operations Report

Active rigs now down to 190 189, down from 191 yesterday, and 190 this morning; this is a new "low" as we start going down the curve. My hunch: we level off at 175 rigs in North Dakota.

Wells coming off confidential list today, Thursday:
  • 20840, 3,376, Whiting, Maki 41-33XH, Sanish, t2/12; cum 113K 6/12; middle Bakken; 30 stages; 2.6 million pounds; all sand; spudded November 28, vertical total depth on December 4 (6 days); total depth for the lateral reached December 12 (8 days later): 13 days from spud! Gas shows were reported as being very high at times.
  • 20934, drl, Petro-Hunt, Anderson 152-96-35C-26-3H, Clear Creek, s2/12;
  • 21361, 860, MRO, Kay Arnson USA 34-35H, Strandahl, t5/12; cum 13K 6/12;
  • 21669, 133, OXY USA, State Jablosky 1-1-12H-141-95, Simon Butte, t2/12; cum 7K 6/12;
  • 21781, 277, Baytex, Redfield 24-13-157-99H-1NC, Lone Tree, t2/12; cum 37K 6/12;
Wells released from the confidential list yesterday were reported earlier.

In addition, the following producing wells were completed:
  • 22050, 2,806, BR, Kummer 41-30MBH, Blue Buttes, t5/12; cum 15K 6/12;
  • 20447, 1,283, BR, Samuel 34-21H, Haystack, t11/11; cum 34K 6/12;
  • 20162, 906, Hess, EN-Johnson-155-94-2017H, Manitou, t7/12; cum --
Fifteen (15) new permits in the Williston Basin:
  • Operators: BEXP (4),  Samson Resources (4), CLR (2), G3 Operating/Halcon (2), Oasis, Crescent Point Energy, XTO
  • Fields: Dollar Joe (Williams), Gros Ventre (Burke), Temple (Williams), Ambrose (Divide), Cow Creek (Williams), Strandahl (Williams), Good Luck (Williams)
Crescent Point Energy has a permit for a wildcat well in Williams County.

Energy and other links
RBN energy: low prices, inadequate takeaway, hinder development of Canadian natural gas shale
The Minneapolis Federal Reserve President may not have a clue but the head of the US Energy Information Agency understands the Bakken -- CarpeDiem 
SRE adds more natural gas storage capacity; already largest US natural gas storage company
Oil move is under way -- Market Watch
KOG to rally this autumn -- optionMonster
Updates

I've just updated Blue Buttes oil field (again). Go to June, 2012, commentary first, and then to original Blue Buttes posting.

2 comments:

  1. I could be very wrong, however it seems the reduction in rigs is more an indicator of moving into the manufacturing phase rather than the development phase. Only time will tell and a complete study of where the rigs went. If they are idled and are not currently being used. Have the rigs been moved to Montana or out of the Williston Basin completely? It will probably take a good six month before there is a clear picture. It could simply a pause until after the election. Then the companies will have a better idea of what kind of business environment they will be working in. Will it be positive or negative for business in the country as a whole?

    I'm sure you know where I stand on when it comes to what side stands for positive growth and what side will destroy growth leading to a very bleak future for the country as a whole. Think Europe or worse.

    I think the country will make the right choice and not be fooled by the shysters who talk big but have preformed so badly. Even the national media won't be able to save his hind end this time around.

    ReplyDelete
    Replies
    1. 1. I hope you are correct about the political events. I agree with you but the alternative is too scary to think about.

      2. You are absolutely correct about this being the manufacturing stage. More than a handful of North Dakota rigs have moved into Montana, affecting the overall number. But, if operators meet their production forecasts, and North Dakota continues to produce record amount of crude oil, this will speak volumes about effectiveness of current drilling techniques. Personally, I'm looking forward to this; see how this plays out.

      Interestingly, this leaves room for new operators to move in, take advantage of oil service companies, truckers, and roughnecks looking for work. You may recall that a new operator, out of Turkey, recently entered the Bakken.

      Delete

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