Sunday, February 12, 2012

I Apologize -- I Have a Dozen Comments To Post -- But My Granddaughters Want To Go Out

So, we're going to the Boston Aquarium.

When we get back this evening, I will get caught up.


Enjoy the data links and the archives.

A New Fracking Company in the Bakken -- Specifically for the Bakken


May 12, 2012: Update on RockPile in the Dickinson Press.
A Denver-based company will open its first hydraulic fracturing facility in July, and its goal is to hire 100 residents from southwestern North Dakota by the end of the year.

RockPile will be on Villard Street west of Dickinson.

The facility will hold 10 million pounds of fracking sand, Rough said. Though the equipment was brought up from Houston, trailers were made by Boespflug Trailers in Dickinson.

The company has enough equipment for two crews, Rough said, adding a full fleet costs about $25 million.
Original Post

I can't remember, but I think I blogged about this earlier.

Regardless, here's the full story: a new fracking company, RockPile Energy Services, LLC, is a new fracking company in the Bakken; Triangle Petroleum is its majority owner.
RockPile Energy Services LLC, a newly created entity focused on providing pressure pumping and ancillary services in the Williston Basin, was formed by Triangle Petroleum Corp.  Triangle also added Gus Halas to its board of directors.

Triangle will be the majority owner of RockPile Energy Services, which will be headquartered in Denver, CO, with field operations in both Dickinson and Williston, ND.

Proceeds from the offering will be used to purchase equipment for one pressure pumping spread, to build a rail-based proppant receiving terminal in Dickinson, and for general and corporate purposes.

RockPile has appointed Curt Dacar as its chief operating officer.  Originally from Dickinson, he spent nearly 32 years with Schlumberger, where he was involved in all aspects of the management of the pressure pumping value chain. Most recently, he worked with Occidental Petroleum in its Williston Basin completions program. RockPile is also currently interviewing candidates for additional key roles.

Enbridge, Crude-By-Rail, and "Price Collapse" -- The Bakken, North Dakota, USA


February 13, 2012: Bradaz has provided some nice data points for price of Bakken crude:
Month     EOG NET     NYMEX     DIFF
Jan 11     80.27             89.58           9.31
Feb 11     80.19            89.74           9.55
Mar 11     92.67          102.98        10.31
Apr 11    105.33          110.04         4.71
May 11    97.21           101.36        4.15
Jun 11     92.67             96.29         3.62
Jul 11      92.81             97.34         4.53
Aug 11    81.85             86.34         4.49
Sep 11    82.40              85.61         3.21
Oct 11     83.18             86.43         3.25
Nov 11    91.74             97.16         5.42
Dec 11    89.93              98.58        8.65
Original Post
Timing is everything.

It was about a month ago that I commented on why a pipeline company was initiating crude-by-rail.

Today, I see there is an interesting discussion thread talking about those very points.

As Hunter S Thompson would say, this is the nut of the argument:
The argument at the Clearwater MN price somehow represents all that  the oil drillers can get for their Bakken oil is lunacy. Unit trains  can go anywhere on the continent where the price is sufficient to  cover trhe transportation costs, and do. Some of the EOG trains have  been going all the way to the Louisiana coast, where oil can be  offloaded and shipped to Europe if necessary, to get the highest  price.  EOG (and the other companies too) employ. high-paid people to  decide where each bbl of Bakken oil hould go to net the highest price  to the operator (and mineral owner). THey are not somehow stuck selling it to Clearwater no matter what.
Maybe more to follow. 

Imagine: Gasoline at $5.00/gallon; oil at $125/bbl; and Bakken oil ending up in Europe.

Great companies are great because they realize what business they are in. The "aha" moment for Enbridge was when they realized they were not a "pipeline company."

US NG Update -- The Oil Drum

Greg sent me a great link discussing the current US natural gas "boom" in production and what it means.

Update on US Natural Gas Industry, February 8, 2012, The Oil Drum 

This link is posted at the natural as "Page Tab" at the top of the blog, also.

For newbies, be sure to scroll down; the February "Director's Cut" was released early and has been posted.