Tuesday, May 22, 2012

The Word Used to Describe the Activity in Divide County: Explosive

A huge "thank you" to a reader for sending me this link. I would have missed it. The link is likely to break soon so look at it now.
By year’s end the number of rigs drilling in Divide County is expected to more than double and 2,000 more workers will be needed.

“Divide County is just starting an explosion of drilling and jobs,” said Lynn Helms, director of the state Department of Mineral Resources.

Helms’ projects that the number of rigs working in Divide County could hit 24 sometime this year and stay at that level until 2016.

That’s more than double the 11 working rigs the county averaged in 2011, and the number of oil field workers will hit 4,000, double the number working in the county’s oil patch today.
Pretty incredible. Who wudda thought. Look for some crew camp applications. And be pro-active. Support the workers and their families.

I was recently surprised by some good TFS wells in Divide County. This could be quite exciting.

3-D Architect's View of Williston -- Heart of the Bakken, North Dakota, USA

This was sent to me by a reader. It really is quite incredible.

When you get to the site, move the browser arrow down to "Williston Village" and click.

I particularly like the footbridge over the bypass!

My hunch is you will enjoy the other videos at this site, also.


Six (6) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, May 22, 2012 --

Operators: Petro-Hunt (4), XTO, Hess
Fields: Midway (Williams), Eagle Nest (Dunn), Hawkeye (McKenzie)

Ten (10) permits renewed.

Five (5) producing wells completed; none particularly remarkable. Hess had four; Zavanna one:
  • 18075, 764, Zavanna, Jaguar 1-22H,
Eleven (11) wells released from confidential status (again, 2nd day in a row, NDIC returned to "confidential")
  • 19942, 754, EOG, Lostwood 1-1201H,
  • 19943, 677, EOG, Lostwood 18-1224H,
  • 19944, 212, EOG, Lostwood 2-1301H,
  • 20411, 212 (no typo), OXY USA, State Jaeger 1-21-16H-142-94
  • 20659, 74, OXY USA, Kudrna 1-17, a Madison well, 
  • 20856, 1,349, KOG, King 3-8H, middle Bakken; 16 stages; 2.2 million lbs;
  • 20975, 241, Petro-Hunt, Jorgenson 158-94-12C-1-1H,
  • 21450, 1,600, MRO, Jessica USA 21-6TFH,
  • 21675, 845, Hess, GO-Jarland-156-98-1102H-1,
  • 21719, DRL, G3 Operating, Hought 1-1-12H,
  • 21779, 314, CLR, Ingebret 1-8H, 
NOTE: it should be noted that the three EOG Lostwood wells are part of the eight wells on a 2560-acre spacing unit in Kittleson Slough north of Sanish/Parshall oil fields.

Back to 213 Active Rigs in North Dakota -- Ties Record -- The Bakken, North Dakota, USA

Back to 213 -- sort of snuck up on me. Ties previous record.

For newbies: the number of active rigs is only one data point reflecting activity in the Bakken.

If the number of active rigs increases, it speaks volumes about activity in the Bakken. All things being equal, we should start seeing a decrease in the number of rigs in the Williston Basin:
  • more operators are going to multiple well pads, decreasing the need for rigs
  • when this all started, it was not unusual for an operator to take 45 days to reach total depth; now, if it takes longer than 25 days, there's a problem (this is for a Bakken horizontal well; non-Bakken vertical wells will reach total depth in a matter of a few days)
  • when this all started, operators were predominantly drilling short laterals, thus two wells for every two sections; now routinely, they are drilling long laterals (one well for every two sections)
  • several major operators have announced they will reduce the number of rigs in the Bakken
  • some operators are moving their rigs across the state line to Montana (not counted in my total)
  • some operators have to get their rigs to other plays, such as the Eagle Ford in Texas, to save their leases; most (?) of the leases in North Dakota are now held by production and drilling in some areas would not be needed to hold leases
At the end of the day, it's not the number of rigs that is important, it is the number of bbls produced.

However, each rig is said to represent about $10 million in drilling and completing, much of which goes toward personnel costs, and much of which stays within the state.

Jobs in the Bakken

My site was not set up for advertising and is not well suited for advertising.

Occasionally I get requests from folks to post something on this site that probably fall under the definition of "advertising." If it fits the blog and provides information readers might be interested in, I would look favorably upon posting it. I just don't know where to post it.

So, what I've done in the past for these items is post it initially as a stand-alone post. Then I tag/label it as "classified_ads" at the bottom of the blog, although there is nothing classified about it. But folks know what "classified_ads" are.

I might link it at the side bar at the right, and I also might link it at one of the tabs at the top of the page depending upon the content.

Yesterday, I was sent a note about a site on the net that might interest readers: Midwest Oil Jobs.

Going through the list of ways people find this site, a number are google searches looking for jobs in the Bakken. This obviously is a website that would be useful.

Some of my blog material relates to material that is non-Bakken related and has a political slant. If I ever put up a link to site whose web master doesn't want the website to be linked as a "classified ad," let me know and I will remove that tag/label.

Yes, Let's Duplicate Fracking Regulations!

White House aide says outreach to domestic oil and gas industry is not a "head fake." If so:
One of the biggest is whether federal fracing regulations, such as the ones the US Department of the Interior and Bureau of Land Management proposed on May 4, are even necessary when many producing states already regulate operations aggressively, Gerard told reporters after the meeting.

“The first thing the president’s interagency taskforce should have done, once it was formed, was to sit down and review all of the agency and departmental proposals to regulate fracing and toss out the ones which are unnecessary and irrelevant,” he suggested.

Zichal maintained that the administration recognizes that states are the most effective fracing regulators, and is trying only to produce federal regulations which complement what they’re already doing. “There’s a lot of terrific work happening at the state level, and we’re willing to provide technical support where it’s needed,” she said.
MAD Magazine used to have a section called, "when they say, they really mean." What the administrator really means, "Yes, we know the states are doing a lot of terrific work. In fact, their work is so good, there is a real risk that it will derail the administration's efforts to kill the fossil fuel industry. By duplicating regulations at the federal level, we can double the time needed to get anything done."

North Dakota does not need any technical support, thank you.

Whiting's Pronghorn Sand Could Be Best Payzone in the Bakken -- The Williston Basin, North Dakota, USA

Link here to Mike Filloon.
In February of this year [2012], Whiting started identifying the Pronghorn Sands in its Lewis and Clark and Pronghorn prospects. Initially I had wondered why Whiting had changed the name of the pay zone. The reason is clear now, as the Pronghorn has a much different geology. Whiting's Lewis and Clark Prospect was once thought of as a lesser portion of the play as the middle Bakken thins and is not economic. Whiting, Continental, Occidental, Fidelity, and Chesapeake all have rigs in this area, and believe the Pronghorn could deliver very good returns.
For those who have been following this blog on a regular basis, you are very, very aware of the excitement surrounding Whiting's Lewis & Clark prospect and Whiting's Pronghorn prospect in southwestern North Dakota.

This is a huge story.

I am thrilled to see Mike post an article on the Pronghorn Sand. I do believe I was the first to start blogging on this formation and Whiting's activity on a regular basis. See links at sidebar at the right and labels/tags at the bottom of the blog.

For newbies, this is my world view of the progression of the Bakken boom in North Dakota:
  • EOG in Parshall oil field
  • Whiting in Sanish oil field, just to the west of the Parshall oil field
  • KOG in the reservation; Senator Dorgan instrumental in removing some federal red tape
  • BEXP northwest of Williston
  • Whiting "testing the waters" in southwest North Dakota with Lewis & Clark prospect
  • Oasis, multiple others to northeast McKenzie (current)
  • Pronghorn Sand noted by Whiting; and Pronghorn prospect around Belfield (current) 
Some of the highest bonuses ever paid for Williston Basin acreage was paid in the Belfield area about a year ago. At that time, there was no mention of the Pronghorn Sand that I am aware of, though there was talk of the Tyler/Heath formation. It would be interesting to know when Whiting realized what they had in the Belfield area.

Tuesday Morning Ramblings -- Mostly Very Convservative Politics -- Read At Your Own Risk -- Absolutely Nothing To Do With The Bakken

1. From the Boston Globe:  I'm glad the judge finally threw the book at her. Facing 2nd drunk driving charge, her bail was set at $3,000; told to remain alcohol-free; and, forbidden to drive. Her driver's license was revoked indefinitely.

Allegedly under the influence she caused a 5-vehicle crash with multiple injuries in early morning hours this past Sunday.

In 2009, she was charged in drunken driving and driving to endanger.

Oh, and this little gem buried at the end of the story: "Three years earlier, then 17, she was charged in the hit-and-run death of ..." a 48-year-old male walking on a public road in early evening hours.  Hit-and-run. Death. No jail time, apparently. We are a very forgiving people.

2. From USA Today: Obama economy eliminating gridlock, solving highway/street congestion problems.
Traffic congestion dropped 30% last year from 2010 in the USA's 100 largest metropolitan areas, driven largely by higher gas prices and a spotty economic recovery, according to a new study by a Washington-state firm that tracks traffic flows.

That was the largest drop since the nation plunged into recession in December 2007.
Largest drop since December, 2007 -- I believe that was under President Bush. Almost five years later and another indicator that despite a trillion dollars in stimulus, not much to show for it.  Largest drop since December, 2007.

3. Nice editorial in WSJ on "market-driven energy revolution." Link through CarpeDiem.com.
In 2008, natural gas sold for about $12-$14 per thousand cubic feet. Now it sells for about $2 per thousand cubic feet. Instead of supplies lasting only 12 years, there is now sufficient natural gas for at least 100 years.

Four years ago, oil prices climbed to about $145 a barrel world-wide. The impact on the U.S. economy was devastating. Consumers who paid between $2.50 and $3 for a gallon of gas in 2007 paid as much as $5 a gallon in 2008. 
Complementing that editorial is a piece by Daily Ticker: XOM more consistent with energy policy than the US government

4. It's hard to believe this is a story. It was predictable. The tariff on Chinese solar panels could destroy the nascent solar panel installation business in the United States.
A move designed to punish Chinese solar panel makers that charge unfairly low prices in the United States could, ironically, end up hurting American-based solar panel installers, a fast-growing sector of the green economy. [Nothing ironic about this; predictable. Read on.]

Last week, the Department of Commerce announced it would impose punitive tariffs as high as 250% on panels imported from China after finding that Chinese companies have been "dumping" them at prices below production costs.

But many installation firms in the United States rely on lower-priced Chinese-made solar panels, and say the tariffs will hit their businesses hard -- potentially increasing their costs, hurting demand for their services, and stalling their hiring plans.
Cheap solar panels was driving the green revolution. Nipped. The administration picking winners and losers. In this case, I see no winners. [Note: talking head on CNBC did not get this memo: today he is still recommending solar. First Solar was at $132 last July, 2011; now $13.62 and falling.]

5. Last night I mentioned I had not seen any political advertisements yet. Just after posting that, a television ad for "Harvard's first woman of color" running for Massachusetts senator aired. It is impossible for me to look at her now and not think of her Cherokee history. Another minority female has done very, very well. Good for her.

6. Apparently not every Democrat agrees with the President that private equity is bad. First it was the Newark, New Jersey, mayor; now it's former Pennsylvania governor Rendell and Senator Mark Warner of Virginia.

7. I guess the LA Times is researching Ms Romney's expensive horse-riding hobby. It will be interesting to compare those costs (paid for by private money) with the costs of Ms Obama's expensive vacations and taxpayer costs associated with those trips.

Oil Starting To Flow in the Seaway

Link here.

Apparently the oil has started to flow.

See this post for the WTI-Brent spread as it relates to the Seaway reversal. 

Snapshot of 1Q12 Production, Market Cap of 5 Bakken Producers

Link here.

Crude Oil Storage -- RBN Energy

Link here.