What We Will Be Talking About Wednesday Morning

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Updates

September 12, 2012: wow, some folks are good at finding things and reading quickly. "Anon 1" found this bit of information regarding a new public-private project at the Port of Beaumont, paid for in part by Hurricane Ike funds, see comments. The description of the project is on page 5. As part of the project:

The Company anticipates that the Project will provide shippers, traders and refineries the opportunity to transport diesel fuel received by truck and barge for shipment by unit trains headed north, thereby creating a demand for emptied rail cars headed north. Diesel is used to provide power to drilling operations at the exporting oil fields. Likewise, crude oil from Canada is very heavy and does not flow through the pipeline without first being diluted. Diluents, which are essentially raw naphtha and comprise about 30% of the crude barrel assay, can be transloaded from truck or barge to the unit trains and delivered to the producers in the Canadian oil fields. Management does note that pipelines are one-directional, north to south, and do not present competition to rail for this part of the Business Plan. This comes from a pdf file, and this might be the link but if it doesn't work, google beaumont trainload; the pdf link will be near the top.

Original Post

This discussion began Tuesday afternoon; it's really quite an interesting development. It began with a single "throw-away" line in a press release and a similar "throw-away" line in a webcast. Another incredibly interesting development coming out of the crude-by-rail story. [Since the initial posting, this has received a fair number of comments.]

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From Yahoo! In-Play:

Halcon Resources announces underwritten secondary offering of 35 mln shares of its common stock by selling shareholder: Co announced the commencement of an underwritten secondary offering of 35 mln shares of its common stock offered by EnCap Energy Capital Fund VIII (the "Selling Shareholder"). On a fully diluted basis, the Selling Shareholder owns, as of the date hereof through its interest in HALRES LLC, 102,666,667 common shares representing in the aggregate approximately 32% of Halcon's diluted common shares. After giving effect to the offering on a fully diluted basis and assuming no exercise of the underwriter's option to purchase additional shares, the Selling Shareholder will own, through its interest in HALRES LLC, 67,666,667 shares of the Company's common stock, representing approximately 21% of Halcon's diluted share count.

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The following wells will be coming off the confidential list on Wednesday:

• 21690, 607, CLR, Wanner 1-15H, St Demetrius, t6/12; cum 23K 7/12; 
• 21969, 347, Whiting, Arndt 13-5TFX, Sanish, t3/12; cum 38K 7/12; 
• 22170, 551, Slawson, Athena 4-36TFH, Alger, t5/12; cum 16K 7/12; 
• 22257, 139, Corinthian, Corinthian Bowers 8-3-1H, North Souris, t4/12; cum 12K 7/12; a Spearfish well; 
• 22376, 1,423, SM Energy, Anderson 5X-14H, Croff, t7/12; cum 22K 7/12; 
• 21184, 1,738, KOG, SMokeky 16-20-32-16H3, Pembroke, t7/12; cum 23K 7/12; 

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Take the Bakken challenge! See if you can guess which companies are "A," "B," and "C" at the link.  One hint: the three companies are KOG, NOG, and OAS. I think it might surprise you. Steve Zachritz has done a very good job with this. Interestingly enough there are at least two observations that one could make from this data. Steve makes one. I have another.

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Wow! Carpe Diem has a nice long piece on "drilling pads." I'm sure a lot of operators will take credit for his development, but I remember the Eco-Pads being promoted by Harold Hamm a long, long time ago -- in the Bakken. 

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OPEC sees oil demand growing.

OPEC said oil demand should rise through next year, based on the outlook for global economic growth above 3 percent. The Organization of the Petroleum Exporting Countries said its member countries produced 31.4 million barrels of oil per day in August. That's 254,000 per day more than in July. OPEC said global demand will rise by 900,000 barrels per day this year and another 800,000 barrels per day in 2013.

The numbers are interesting: almost identical to an earlier post which said current oil demand is growing by a million bbls a day and will grow by another million bbls next year.

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Primer on West Coast NGLs -- RBN Energy.

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Many years ago when I was in the USAF, fish oil was all the rage for lowering cholesterol. I always thought it was bogus and a fad. It seems that may be true based on recent data.