Seven (7) new permits:
- Operators: Hess (3), OXY USA, CLR, Whiting, and one SWD permit
- Fields: Sanish (Mountrail), Medicine Pole Hills (Bowman), Murphy Creek (Dunn), Hawkeye (McKenzie)
- 17784, 434, MRO, Bernhardt, Lake Ilo, , t8/12; cum 238 bbls 7/12
- 20320, 375, WPX, Mandaree Warrior 14-11H, Squaw Creek, t5/12; cum 41K 7/12;
- 21480, 627, Whiting, Mary Elizabeth 13-13TFX, Sanish, t4/12; cum 37K 7/12;
- 21684, drl, Oasis, Mae 5603 43-19H, Bull Butte (Kalil Field);
- 22546, drl, CLR, Maruskie 2-22H, a Birdbear well; North Tioga
Producing wells completed:
- 20946, 159, CLR, Vandeberg 1-26H, East Fork, t9/12; cum 18K 7/12;
- 22639, 180, Murex, Lucas 36-25H, Stanley, t9/12; cum --
From an economic standpoint, the falling rig count is concerning. I have read that an active rig requires a staff of about 120. The drop of 30+ would represent nearly 4000 jobs, plus the multiplier affect to staffing in restaurants, grocery stores, motels, housing, etc. Even if the more efficient rigs drill the same number of wells, it means less people. To many, that is a relief. I wonder what a further decline would mean to some economic sectors in the oil patch, however. I know that there will be "production" jobs. But how many people does it take service a well rather than drill it? 10%, 5%, 1%?
ReplyDeleteBelieve me, folks in the Williston area would be thrilled if there was less demand on services. This is not even a concern yet, at least from what little I know.
DeleteAs it is now, restaurants like McDonalds cannot offer full hours of sit-down service; not enough staff. Lines of folks at all restaurants stretch out the doors 24/7.
Any reduction in rigs is being made up by pipeline that's being laid; railroad activity; trucking activity; etc., etc. Believe me, at least from what I saw when i was there for several months, and what I'm seeing now, the decrease in rigs is a welcome site. Maybe I will pose that in a poll to see what folks say. I could be wrong.
As just one data point, I assume you saw the recent article that they are still desperately short truck drivers.
Yes, I did see that. I appreciate your blog, there is so much great information. There was a story on KFYR-TV news a couple of nights ago about the level of hotel construction in Dickinson a couple of. My concern is that we built/are building for what was an apparent peak in activity last year or earlier this year, and the possibility that have overbuilt or are overbuilding. As you said, a slowdown is welcome by many, many people (me included), but there certainly could be ramifications for certain sectors that are building beyond the short-term need. Dickinson home sales are also slowing considerably. Prices got out of hand, and are now being reduced.
DeleteIf Dickinson home prices are coming down, I can only see this as good news. I hope that's true across the entire oil patch.
DeleteThe other day someone said a man-camp room is down to $70/night. If accurate, that's great news. Motel rooms, if available at all, were once up to $150/night.
When I see QEP-Helis deals (this past month) valuing Bakken acreage at $30,000/acre; and then the XOM entry into the Bakken (announced today; with average Bakken acreage valued at $15,000/acre), I'm not worried about any over-building.
Remember, before the boom, one could rent a room for $30/night in Williston. It will take a lot of over-building to get room rates down to that level.
About the only thing that will derail this boom is if the federal government is allowed to regulate tracking on state land.
For the record, the number of rigs is at a new post-boom low: 184.