Update on Diesel Refinery Southwest of Williston -- The Bakken, North Dakota, USA

Link here to Oil and Gas Journal.

This story seems to be a bit dated. I blogged about it quite some time ago.

Dakota Oil Processing LLC, Williston, ND, is seeking financing and permits to build a $200 million, 20,000 b/d topping refinery in Williams County 16 miles southwest of Williston to produce mainly diesel to support the Bakken oil play and other local markets. [Trenton, North Dakota]

A 2011 design study indicates that the project would involve a 20,000 b/d atmospheric tower distillation unit and associated boilers, desalters, and other equipment, an 8,000 b/d distillate hydrotreater and associated hydrogen generator for producing ultralow sulfur diesel, a naphtha stabilizer, 667,500-bbl of tankage, and related facilities.

Two middle distillate products, kerosene and diesel, are to be blended to maximize the production of diesel fuel, the primary product for which the plant is designed. At capacity the plant could produce as much as 8,000 b/d a day of ultralow-sulfur diesel.

I would have expected a story on ground-breaking by now.

Mike Filloon on KOG -- The Bakken, North Dakota, USA

Link here to SeekingAlpha.com.

I agree completely. KOG has the best acreage in the bull's eye of the Bakken. Infrastructure is in place.

This is not an investment site; be advised of disclaimer at the sidebar at the right. I accumulate shares of KOG on pullbacks, although I doubt KOG will pullback to the level at which I would buy more.

Something Tells Me We Will See the Sequel In the Not Too Distant Future

Link here to the New York Times: Libya's new government unable to curb militias as chaos grows.

TRIPOLI, Libya — As the militiamen saw it, they had the best of intentions. They assaulted another militia at a seaside base here this week to rescue a woman who had been abducted. When the guns fell silent, briefly, the scene that unfolded felt as chaotic as Libya’s revolution these days — a government whose authority extends no further than its offices, militias whose swagger comes from guns far too plentiful and residents whose patience fades with every volley of gunfire that cracks at night.

The country that witnessed the Arab world’s most sweeping revolution is foundering. So is its capital, where a semblance of normality has returned after the chaotic days of the fall of Tripoli last August. But no one would consider a city ordinary where militiamen tortured to death an urbane former diplomat two weeks ago, where hundreds of refugees deemed loyal to Col. Muammar el-Qaddafi waited hopelessly in a camp and where a government official acknowledged that “freedom is a problem.” Much about the scene on Wednesday was lamentable, perhaps because the discord was so commonplace.

Five (5) Oil and Gas Companies for the Long Haul -- For Investors Only -- SeekingAlpha

Link to SeekingAlpha.com here.

Companies mentioned: CVX, EOG, MRO, APA, DVN.

I hold and accumulate shares in two of the above. This is not an investment site; see disclaimer at sidebar at the right.

Eight (8) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, February 9, 2012 --

Operators: Whiting (3), Hess, BEXP, CLR, Crescent Point, Zargon

Fields: Truro, St Demetrius, Williston, Divide, Westberg, Ellsworth

Four wells were released from "tight status," and not one of them was completed/fracked.

One well on DRL status reported an IP;

• 20485, 762, SM Energy, Barnes 2-2H, McKenzie, Indian Hill, south of Williston, south of the river, a bit west of the Bakken bull's eye

I'm not real familiar with Zargon. Their last well was also a Truro field well, a Madison well, that is actually a pretty good well, producing a consistent 1,500 to 2,000 bbls of oil per month. The Truro field is about 25 miles north of Minot.  Zargon has about 100 permits in the Williston Basin going back back to to the late 1950's, including this one as just one example (this well is still listed as being active, but it hasn't produced since 2009, producing about 150 bbls/month at that time):

• 2330, 30, Zargon Oil (ND), Inc., Edwin Engstrom 1, North Haas, Madison, s5/59; t6/59; cum 135K 6/09; the North Haas field is about three miles south of the Canadian border, almost directly north of Minot

Wow -- The Dutch Pull the Plug on Off-Shore Wind Energy -- Spain Suspends All Renewable Energy -- London Array Way Over Budget -- A Candidate For Top Story of the Year

Updates

February 15, 2012: I don't know how many times I've been told that "wind is free." Wind advocates suggest that once the wind turbines are up, wind energy is dirt cheap because "wind is free."  Although the story below doesn't say it outright, the writer suggests the Dutch are getting out of offshore wind completely. One would assume that since "wind is free" they might as well keep using that "free electricity" and not mothball those offshore turbines. It appears that "wind is not free." Something tells me is is expensive to keep those turbines maintained. In addition, I assume, blades have to be replaced periodically. Very, very interesting. Something tells me all those school districts who invested in wind are going to find out their wind costs exceed current natural gas costs. Just saying. Especially if the president imposes tariffs on "cheap" windmill turbines coming out of China.

Later: with the story that the Netherlands is pulling the plug on off-shore wind, I was curious how the world's largest off-shore wind project, the London Array, was coming along. This is the update; it sounds like this project is way over budget and when it's completed, if it's completed, there will be some questions whether it is worth it, especially in light of the Netherlands' decision. This story is dated January 30, 2012.

Meanwhile, the European country that may have been the most aggressive with renewable energy, Spain, has called a "time-out" on all renewable energy. All renewable energy. This story is dated February 9, 2012.

Original Post

Here's the story:

Link here to "the Heartlander" via CarpeDiem.com (both links will get you to the story).

The nation known for its iconic windmills is throwing in the towel on offshore wind power, as Dutch officials have determined the Netherlands can no longer afford large-scale subsidies for expensive wind turbines that cannot produce electricity at economically competitive prices.

The decision is a powerful blow against renewable power advocates who have long asserted Holland proves renewable power can be practical and economical.

Offshore Wind ‘Very Uncompetitive’

“Offshore wind remains a very uncompetitive option,” Dutch Minister of Economic Affairs Maxime Verhagen told Wind Directions: The European Wind Industry Magazine.

“Offshore wind remains a very expensive option in the near future. The Dutch government is willing to invest in innovation to bring down the costs of offshore wind energy, but prices must come down considerably before large scale investments can again be supported,” Verhagen was quoted as saying.

Wow.

It's not just countries like the Netherlands learning this lesson. Massachusetts is now learning how much their wind-generated electricity is going to cost them: monthly utility rates will go up 15 to 30 percent if one signs up for wind-generated electricity in Massachusetts.

[The big question: will the Netherlands join Canada in pulling out of the Kyoto Protocol?

I assume the Netherlands was/were able to buy and sell a lot of credits with their wind program. The Netherlands was/were a relatively late signer to the protocol, being accepted as the 67th country; Canada was accepted as the 99th country. The first ten countries to be accepted as signatories: Fiji, Antigua and Barbuda, Tuvalu, Maldives, Turkmenistan, Trinidad and Tobago, Panama, Bahamas, Niue, and Georgia. You have to go down the list a bit to get to a country that has a significant energy profile. Just saying.]

Another Nice Stroh Well -- Previously on DRL Status -- Reports an IP -- The Bakken, North Dakota, USA

Look at the numbers, then look at the fracture: 5 stages and < 400,000 lbs of proppant (BEXP often uses 36 stages and 4 million lbs of proppants, as comparison)

• 18610, 877, Lime Rock Resources/OXY USA, Harry Stroh 1-8-5H-143-96, Fayette, Bakken; s1/11; t10/11; cum 574K 1/20; production of 33,000 bbls in 14 days in October, 2011; then down to 31,000 bbls in 30 days in November, 2011; middle Bakken target; 5 stimulation stages; 393,000 lbs of proppant;

With 33,000 bbls in 14 days, one wonders if this well would have set some kind of 30-day monthly record.

Early production in the early days of the boom:

BAKKEN	6-2012	30	16080	16151	2470	7776	7776	0
BAKKEN	5-2012	31	13677	14748	1630	5881	5881	0
BAKKEN	4-2012	30	13945	12712	1535	4587	4587	0
BAKKEN	3-2012	31	17557	18302	2094	4786	4786	0
BAKKEN	2-2012	29	19565	19383	2137	7613	0	7613
BAKKEN	1-2012	30	22302	22341	2345	7606	0	7606
BAKKEN	12-2011	31	25961	25986	3161	9140	0	9140
BAKKEN	11-2011	30	30588	30584	3853	9816	0	9816
BAKKEN	10-2011	14	33295	32577	13622	14282	0	14282
BAKKEN	9-2011	28	11659	12051	3802	0	0	0
BAKKEN	8-2011	14	9904	9322	25	4504	0	4504

Oil Hit $100.01 -- Saudis Probably Dialing "It" Down As We Speak

Update

February 9, 2012, 12:22 p.m. EST: $100.08.

Original Post

The Saudis, at least one of the princes, assured us "they" wouldn't let oil get over $100. Twice in three days since saying that the spot price of oil has gone over $100, albeit not by much. And then it gets dialed back to just under that magic number.

No link; the links are dynamic and will have changed by the time this is posted.

Oil was $100.01 about 9:46 a.m., February 9, 2012, EST.

That Talk of a Slow-Down in the Bakken? We're Back to 203 Active Rigs -- The Williston Basin, North Dakota, USA

All-time high remains 205.

Minor Note About Greece -- Absolutely Nothing About the Bakken

In addition to all its other problems, it turns out Greece is not able to get the natural gas it needs to fend off this cold winter. (Yes, global warming: don't get me started.)

Greece is currently the only European country without a connection to the European grid, leaving it isolated and vulnerable to situations of disruption of supply.

The fix: to reverse pipeline flow, to move natural gas from North Africa to Italy to Greece. Yeah, like that will happen any time soon. I assume the parties reversing and supplying the natural gas would like to be paid. 


And not part of the European grid? Exactly how long has Greece had to work on this issue? 150 years? Of if WWII interrupted their plans, it's been 60+ years. 


Actually, Greece probably never needed natural gas to heat their homes until global warming.

Nuclear Spill in Minnesota -- Has Anyone Else Seen This Story?

Updates

June 21, 2014: the link in the original post it broken; the source has removed the story. I think it refers to what turned out to be a chlorine leak and not a radiation leak but I could be wrong. Be that as it may: wouldn't it be nice when 2,000 gallons of radioactive water leaks into the Mississippi north of Minneapolis, the authorities simply blow it off and say it's no concern, and that's the end of the story. Microfiche of the Spokane Daily, July 30, 1981.
 

Original Post

Is it just me, or did I miss this story in the mainstream media?

There is a 4,000-gallon spill of radiation-contaminated water at a Minnesota nuclear plant and I don't see it at Drudge Report, LA Times, NY Times, or even the Dickinson Press.

But when six ducks flew into a waste pit in the oil patch last spring, wow, you could find that story everywhere.

The  nuclear leak story, in an obscure newspaper, at least obscure to me, was sent to me by Don yesterday.

Not only that, but this leak has been going on since November, 2011, last year. I think it's been going on longer than the the 2010 Gulf oil spill. And this is the first I've heard of it.

On top of that, it appears to have been a succession of failures. First, something happened that shouldn't have, and then the automatic thing-a-ma-jig that was supposed to prevent further spill failed to operate.

Wow.

Nearly 4,000 gallons of water containing “small amounts” of tritium and “trace amounts” of other chemicals have been released by Prairie Island nuclear plant since November, plant spokeswoman Mary Sandok said Wednesday.

The most recent leak, occurring when 27 gallons of water that had condensed from heating system steam overflowed a holding tank, happened Feb. 3.

A pump failed to regulate levels within the tank, Sandok said, and the water overflowed out a vent pipe and onto the ground. The heating system has been shut down while the cause of the pump failure is investigated and corrected.

"The most recent leak." Wow, how many leaks have there been since this all started? Why aren't we seeing photographs of this stricken nuclear plant in Minnesota. It should be noted that Minnesota refuses to take electricity generated by coal in neighboring state of North Dakota. I guess Minnesota still feels nuclear is cleaner and safer. Actually, it now looks more like Minnesota was protecting its home-grown nuclear industry.

I guess there is one difference between this nuclear leak in Minnesota and the migratory bird disaster in the oil patch last spring. There were several deaths associated with the oil patch fly-in. I believe six ducks died.

The nuclear-leak spokesman says, "hey, there's nothing to worry about. The leak is small. It happens all the time."

Well, maybe they didn't say exactly that. The Simpsons will be on tonight in syndication.

Canadian Producer Takes Production Off-Line -- Too Much Oil -- The Williston Basin, North Dakota, USA

Link here to an Investors.com story. 

This is an update to an Investors.com story yesterday and normally I would just update the original post, and not post a new stand-alone, but this is too interesting to get lost in the bowels of the blog.

Oil producers in the Bakken shale hit the wall this month as production outstripped pipeline capacity and prices toppled.

Bakken crude priced at Minnesota's Clearbrook terminal dropped 33% year to date to close near $71 a barrel Wednesday. Canadian heavy crude from tar sands staged a similar fall.

Both rebounded Tuesday, after Canadian Natural Resources halted its Horizon oil sands operation. The 110,000-barrel-a-day facility could be offline two to three weeks, offering mild relief to the region's supply glut.

The Bakken shale, centered mainly under North Dakota and Canada's tar sands, has helped curb a long-term decline in North American oil production. The Bakken has also fueled optimism that the deluge of natural gas production from shale plays, which has forced gas prices to decade lows, might translate to a similar surfeit in oil.

Several observations:

• analysts may extrapolate the price Canadian oil sands to remain "profitable enough" for their investors
• we now know why the Canadian government pushed for the Keystone XL so hard; this is devastating
• pipelines and crude-by-rail operations are able to get top dollar for their shipping (investors: take note)
• this could delay North Dakota's run-up in production to take the #2 production spot among the states
• peak oil? what peak oil?

By the way, CNBC was talking about the demand destruction of gasoline which I blogged about two days ago (though I can't take credit; the story was sent to me by Don).

I see oil is up almost a buck in pre-market futures. Go figure. Too much oil. Gasoline demand destruction. Strong US dollar in light of euro implosion. Mideast quiet (with regard to headlines; much simmering just below the surface).