Friday, June 1, 2012

Comments on the NDIC Hearing Dockets for June, 2012

I have completed my usual "summary" of the NDIC hearing dockets.

Some comments:
1. This seemed to be a particularly short docket. Generally, each day has 19 - 20 pages of cases. This time it was about 14 pages each day. It did not take long to summarize the report.

2. For the past several months now there has been a trend toward four to seven wells on each spacing unit. In this month's report, I was surprised to see that Hess is looking to put up to as many as nine wells in each of several 1280-spacing units in Robinson Lake, and as many as nine wells in one 640-acre spacing unit in Cedar Coulee. The Robinson Lake oil field is incredible; click here to see how a Hess 6-well pad is doing. Also, results of a very nice Hess 6-well pad in Robinson Lake here. If you can access the NDIC GIS map server, take a look at the multi-well pads in Robinson Lake. It's quite impressive.

3. I thought this case was interesting:
  • 18159: XTO, Corral Creek-Bakken, 8 wells on an existing 1280-acre unit; Dunn
I thought BR was given the responsibility for developing this field.

4. It seems this hearing will be dominated by BEXP, Hess, and Oasis. 
5. Resource Drilling, LLC: first time I saw this company. According to NDIC, Resource Drilling has one well:
  • 21171, Halvorson 14-13 1H, Clear Water,
6. Interesting space units:
  • 18111: Samson Resources, West Ambrose-Bakken Pool, create a 2080-acre unit, 14 wells; Divide
    18112: Samson Resources, Ambrose-Bakken Pool, create 5 2080-acre units; 14 wells on each unit; 70 wells; Divide;
7. Petro Uno Resources: first time I saw this company. According to NDIC, Petro Uno has one well:
  • 15167, Petro Uno,  Beta Race Federal 22-6, Ice Caves
8. 18021: Whiting, Chateau-Three Forks Pool, proper spacing for development of this field; Billings County. I don't understand this. The Bakken Pool incorporates the three Bakken formations (upper, middle, and lower) and the multiple formations of the Three Forks. I don't know why NDIC is calling this the "Three Forks Pool." In this same hearing docket there is another case in which NDIC refer to a "Sanish Pool."

On Track for Nearly 2,100 New Permits This Year in North Dakota

With 866 new permits issued through May 31 1, 2012, North Dakota is on track to issue 2,093 new permits this year.

My database showed the following number of permits (may or may not include salt water disposal wells):
  • 2012: 2,093 (estimate) -- based on 866 permits issued as of May 31, 2012
  • 2011: 1,940
  • 2010: 1,684 
  • 2009: 629
  • 2008: 956
  • 2007: 497
  • 2006: 422
Prior data. Numbers vary due to errors on my part. My numbers will be at slight variance with the NDIC because I occasionally miss a well, and salt water disposal wells may or may not be included. I don't know how the NDIC "counts" permits canceled shortly after they've been issued.
  • 2011: 1,940
  • 2010: 1,682
  • 2009: 628
  • 2008: 953
  • 2007: 497
  • 2006: 422

Seven (7) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, June 1, 2012
  • Operators: Hess (4), Denbury (2), Petro-Hunt
  • Fields: Little Knife (Dunn), Robinson Lake (Mountrail), Siverston (McKenzie), East Fork (Williams)
KOG has canceled this permit:
  • 20573, PNC, KOG, Tracey 5-29H, Divide County
Samson Resources has changed the name of a permit, suggesting a change in target formation:
  • 22483, loc, Samson Resources, Coronet 2413-4TFH (was coronet 24-13-163-99H), Divide
Seven well files released from confidential status:
  • 20749, 101, OXY USA, Marlene Steffan 1-5-8H-141-97; St Anthony; t12/11; cum 11K 4/12;
  • 20943, No data,  Newfield, Jarrett 156-99-35-26-2H, East Fork,
  • 20945, No data, Newfield, Sami 156-99-35-26-1H, East Fork,
  • 21269, 372, WPX Skunk Creek 23-14HC, Mandaree,
  • 21673, DRL, SM Energy, Bogner 13-20H, Wildcat,
  • 21763, DRL, Fram Operating, Zeltinger 1, a Madison well, South Greene,
  • 21784, DRL, Enerplus, Lion 149-93-31A-30-2H TF, Mandaree, 
Comment: when there is no data, and no statement that the permit has expired, I assume the wells have gone to DRL status. I assumed that on 20943/20945 and I was wrong. According to NDIC, they are both still on "LOC" status. There is a letter dated April 25 in the well file alerting Newfield that the permits would expire May 25. The GIS map now shows the permits as expired, but the NDIC production site shows the status of these two wells still as "LOC." Until I hear something else, I will assume the company got the re-filing paperwork in at the last minute; the permits have been renewed, and the GIS map will reflect that on a future update. (Interestingly, I just confirmed: the three other wells that had no data are now on "DRL" status.)
Comment: just the other day, officials said that operators were catching up with fracking, but I don't see that, unless wells are staying on DRL status for a shorter length of time. But, again, today, six Bakken wells came off the confidential list and only two (33 percent) reported an IP, suggesting they were completed/fracked.

Three of the Hess permits are for a 3-well pad in Robinson Lake. To see how aggressive Hess plans to drill Robinson Lake check out the NDIC hearing dockets for June, 2012, that were just published. Hess plans to drill 9 wells on each of several 1280-acre spacing units.

Finally, the South Greene oil field where Fram Operating is reporting the Zeltinger Madison well is an interesting field. It is about as small as a field can get: 1.5 sections (960 acres). It is located in the middle of Renville County, up north, near the Canadian border. In this small section, Fram has three other wells/permits:
  • 17739, 105, Fram Operating, Funke 1, t8/11; cum 15K 4/12;
  • 21720, DRL, Fram Operating, Laura Funke 4; no production reported yet;
  • 21762, DRL, Fram Operating, Donovan Funke 3, Madison, s11/11; cum 145 bbls;

For The Keystone XL: Now It's The Texas Wetlands

Episode 49 of "As The World Turns": In tonight's episode, TransCanada tweaks the southern pipeline plan to a avoid clash with the EPA.

Application for Keystone XL 2.01S will tweak Keystone XL 2.0S. The pipeline will now go under the wetlands rather than across the wetlands.
TransCanada submitted its new application in April, after the U.S. Environmental Protection Agency raised concerns about the effect the original plan would have on wetlands along the Texas Gulf Coast and called for a more rigorous review process. Under the new plan, the company will drill under the wetlands rather than run across them, eliminating the need for EPA involvement, said Vicki Dixon, regulatory program manager for the southwestern division of the Army Corps of Engineers.
Episode 48 of "As The World Turns" is here.

NDIC Hearing Dockets -- June, 2012

NDIC Hearing Dockets
June, 2012

Wednesday, June 27, 2012
17830, cont'd: QEP, Heart Butte-Bakken, see earlier docket; this is too long to re-type tonight
17831, cont'd: Liberty, temporary spacing for Fritz 150-101-32-29-1H, McKenzie
18019: Liberty, revoke a CLR permit, McKenzie
17588, cont'd: GADECO, allow Golden 24-13H to be completed within 190 feet of section line; Williams
18020: Whiting, Bell-Bakken, proper spacing for development of this field, Billings County
18021: Whiting, Chateau-Three Forks Pool, proper spacing for development of this field; Billings County
18022: Whiting, North Creek-Bakken Pool, proper spacing for this field, Stark County
18023: Whiting, Park-Bakken Pool, proper spacing for this field, Billings County
18024: Whiting, Zenith-Bakken Pool, proper spacing for this field, Stark County
18025: Whiting, Gaylord-Bakken, proper spacing for this field, Billings, Stark counties
18026, Whiting, Fidelity, Green River-Bakken, proper spacing for this field, Stark County
18027, Whiting, GMX Resources, New Hradec-Bakken Pool, proper spacing for this field, Stark County
18028: Whiting, temporary spacing for Quale 21-30, Golden Valley County
18029: Whiting, Camel Hump-Red River Pool; allow max production, Golden Valley County
18030: Newfield, KOG, Epping-Bakken Pool, proper spacing for this field, Williams County
18031: Petro-Hunt, temporary spacing for Wollan 152-96-27B-1-3, McKenzie
18032: BTA Oil, temporary spacing for Sharon 1, Stark County
18033: Cornerstone, Carter-Midale/Nesson Pool, appropriate spacing for Ormiston Unit 1, Burke County
18034: Cornerstone, Northeast Foothills-Bakken Pool, to establish 6 1280-acre units, Burke County
18035: Oasis, North Tioga-Bakken, up to 6 wells each on five new 1280-acre units; Burke County;
18036: Oasis, Gros Ventre-Bakken Pool, unrestricted production and flaring, Burke, Mountrail counties
18037: Oasis, Todd-Bakken-Pool, unrestricted production and flaring, Williams, McKenzie counties
18038: Oasis, Alkali Creek-Bakken Pool, unrestricted production and flaring, Williams, Mountrail, McKenzie
18039: Oasis, MonDak-Bakken, unrestricted production and flaring, McKenzie County
18040: Hess, Rainbow-Bakken Pool, add a 1280-acre spacing unit; 6 wells; Williams County
18041: True Oil, Little Tank-Bakken Pool, establish 4 1280-acre units; 4 wells each; McKenzie
18042: True Oil, Red Wing Creek-Madison; add a 520-acre unit; 1 hz well, McKenzie
18043: Sequel energy, Bull Moose-Duperow and Bull Moose-Red River Pools to be commingled, McKenzie
18044: BR, Bailey-Bakken, 7 wells on 4 1280-acre units; designate eight sections as two overlapping 2560-acre unit for one more hz wells between the existing 1280-acre units; Dunn County
18045: MRO, extend Twin Buttes and/or Werner by 20 sections; establish 2 1920-acre units, 2 2560-acre units, and 3 1280-acre units; 4 wells on each 1280-acre and 1920-acre unit; 6 wells on each 2560-acre unit; Dunn County
17776, cont'd: MRO, temporary spacing to develop Merlyn Olson 34-8, Williams County
17821, cont'd: MRO, Bailey, Killdeer, and Chimney Butte fields, commingling
18046, OXY USA, Hungry Man Butte-Bakken, establish 2 1280-acre units; 6 wells each; Billings Co
17779, cont'd: OXY USA, temporary spacing for Spring Creek 1-20-141-93, Dunn County
18047: SM Energy, Ambrose-Bakken, produce unrestricted, Divide County
18048: SM Energy, West Ambrose-Bakken, produce unrestricted, Divide County
18049: SM Energy, Colgan-Bakken, produce unrestricted, Divide
15676, cont'd: XTO, revoke a CLR permit
16125, cont'd: XTO, revoke a CLR permit
17829, cont'd: Mann Oil, SWD
18050, Yates Petroleum, Ross-Bakken, 3 wells on an existing 1280-acre unit; Mountrail County
17530, cont'd: Davis, risk penalty legalese, Kittleson Slough-Bakken, Mountrail County
17531, cont'd: Davis, risk penalty legalese, Van Hook-Bakken, Mountrail County
18051: Clean Fluid Solutions, portable treating plant
18052: SM Energy, Keene Central Tank Battery, commingling
18053: SM Energy, Anderson Central Tank Battery, commingling
18054: Sakakawea Ventures, SWD
18055: Sakakawea Ventures, SWD
18056: Petro Harvester, SWD
18057: Shadwell, SWD
18058: Prairie Disposal, SWD
18059: Marquis Alliance, SWD
18060: Leland Properties, SWD
18061: DRD, SWD
18062: Cornerstone Natural Resources, pooling, Burke
18063: Cornerstone Natural Resources, pooling, Burke
18064: Oasis, Gros Ventre-Bakken; 6 wells on each of 2 1280-acre unit, Williams County
18065: Oasis, Gros Ventre-Bakken, 6 wells on each of 12 1280-acre unit, Burke County
18066: Oasis, Cottonwood-Bakken, 6 wells on each of ~ 22 1280-acre units, Burke County
18067: Oasis, Tyrone-Bakken, 6 wells on each of 5 1280-acre units, Williams County
18068: Oasis, Squires-Bakken, 6 wells on each of 4 1280-acre units, Williams County
18069, Oasis, Missouri Ridge-Bakken, 6 wells on 1 1280-acre unit; Williams County
18070: Petro-Hunt, Otter-Bakken, pooling
18071: Petro-Hunt, Marmon-Bakken, pooling
18072: Hess, Robinson Lake-Bakken, 9 wells on 4 1280-acre units; Mountrail; 
18073: Hess, Alkali Creek-Bakken, 9 wells on 2 1280-acre units; Mountrail, McKenzie
18074: Hess, Big Gulch-Bakken, 8 wells on 2 1280-acre units; Dunn;
18075: Hess, Little Knife-Bakken, 6 wells on 3 1280-acre units; Dunn;
18076: Hess, Cedar Coulee-Bakken, 9 wells on a 640-acre unit; Dunn;
18077: Hess, Ranch Coulee-Bakken, 4 wells on a 1280-acre unit; McKenzie;
18078: Hess, Jim Creek-Bakken, 4 wells on a 1280-acre unit; Dunn
18079 - 18083: Hess, pooling
18084 - 18085: Murex, pooling
18086 - 18091: BR, pooling
18092: MRO, flaring
18093: MRO, flaring
18094: MRO, flaring
18095: MRO, McGregory Buttes-Bakken, max production
18096: MRO, Van Hook-Bakken, max production
18097: MRO, Lost Bridge-Bakken, max production
18098 - 18099: OXY USA, pooling
Thursday, June 28, 2012
18100: CLR, Sinclair, Mary-Bakken Pool, proper spacing; McKenzie, Dunn Counties
18101: CLR, Rattlesnake-Bakken Pool, create an overlapping 2560-acre unit, multiple wells; Dunn
18102: CLR, Jim Creek-Bakken Pool, creat two overlapping 2560-acre units; multiple wells; Dunn
17557, cont'd: CLR, Antelope-Sanish Pool, establish a 1280-acre unit; 1 hz well; McKenzie
17566, cont'd: CLR, Hebron-Bakken Pool, see earlier docket; too long to re-type here, Williams
18103: EOG, Round Prairie-Bakken Pool, proper spacing for the field, Williams
18104: Slawson, Denbury, Newfield, Tobacco Garden-Bakken Pool, proper spacing, McKenzie
17549, cont'd: Slawson, temporary spacing for Condor 1-36-25H, McKenzie
18105: Zenergy, Dublin-Bakken Pool, to establish a 1280-acre unit,  8 wells; Williams
18106: BEXP, to allow Lonnie 15-22 2 TFH to be completed despite "infraction," McKenzie
18107: Denbury, South Westhope-Spearfish/Charles Pool, establish an 80-acre spacing unit; 1 well, Bottineau
18108: Hunt, Parshall-Bakken Pool, create a 1280-acre unit, 2 wells; Mountrail County
17577, cont'd: Hunt, Buffalo Wallow-Bakken Pool, to establish 2 1280-acre units; 1 well each unit; McKenize
18109: Resource Drilling, Ross-Bakken Pool, create a 1280-acre unit, 8 wells; Mountrail County
18110: Resource Drilling, Stanley-Bakken Pool, create a 320-acre spacing unit; 2 wells; Mountrail
18111: Samson Resources, West Ambrose-Bakken Pool, create a 2080-acre unit, 14 wells; Divide
18112: Samson Resources, Ambrose-Bakken Pool, create 5 2080-acre units; 14 wells on each unit; 70 wells; Divide;
18113: GMX Resources, Four Eyes-Bakken Pool, alter stratigraphic limits, Billings
18114: GMX Resources, St Demetrius-Bakken Pool, alter stratigraphic limits, Billings
17551, cont'd: Petro Uno Resources, temporary spacing for Beta Race Federal 22-6, Billings
17848, cont'd: Baytex, Whiteaker-Bakken Pool, flaring violation, Divide County
17849, cont'd: Baytex, Whiteaker-Bakken Pool, flaring violation, Divide County
15737, cont'd: Legacy, temporary spacing for several wells; Bottineau County
17548, cont'd: Fidelity, temporary spacing for Wanner 44-23H, Stark County
18115 - 18134: CLR, pooling
18135: CLR, East Fork-Bakken, 7 wells on an existing 1280-acre unit; Williams
17220, cont'd: CLR, risk penalty legalese
18136: BEXP, Brair Creek-Bakken, 4 wells each existing 640-acre unit Zone I; 8 wells on each existing 960- and 1280-acre unit in Zones II, IV, V, and VI, McKenzie, Williams
18137: BEXP, Elk-Bakken, 4 wells on each 640-acre unit in Zone I; 8 wells on each existing 1280-acre unit; McKenzie
18138: BEXP, Elk-Bakken, flaring
18139: BEXP, Stony Creek-Bakken, 8 wells on each existing 1280-acre unit in Zone III, Williams
18140: BEXP, Sugar Beet-Bakken, 8 wells on each 1280-acre unit, Williams County
18141: BEXP, Buford-Bakken, 8 wells on each 1280-acre unit; Williams, McKenzie
18142 - 18146: Fidelity, pooling
18147: Fidelity, Stanley-Bakken; 2 wells on each existing 640-acre unit, Mountrail County
18148 - 18150: Fidelity, flaring
18151 - 18157: XTO, pooling
18158: XOT, Haystack Butte-Bakken, 8 wells on each of 11 1280-acre units; McKenzie, Dunn
18159: XTO, Corral Creek-Bakken, 8 wells on an existing 1280-acre unit; Dunn
18160: XTO, Bear Den-Bakken; 8 wells on each of 5 existing 1280-acre units; McKenzie
18161: XTO, Hofflund-Bakken; 8 wells on each of 6 existing 1280-acre units; Mckenzie, Wms
18162 - 18166: EOG, pooling
18167: EOG, Round Prairie-Bakken, 2 wells on an existing 1280-acre unit; 2 wells on each of 5 existing 960-acre units, Williams
18168: WPX, Mandaree-Bakken, 7 wells on an existing 1280-acre unit; Dunn
18169: WPX, Reunion Bay-Bakken, flaring
18170 - 18171: Zenergy, pooling
18172: Zenergy, Dublin-Bakken, 8 wells on an existing 1280-acre unit; Williams County
18173: Zenergy, Cow Creek-Bakken, flaring
18174: Slawson, Van Hook, 6 wells on each of 3 existing 1280-acre units; 6 wells on an existing 1600-acre unit; Mountrail;
18175 - 18177: G3 Operating, pooling
18178 - 18179: G3 Operating, risk penalty legalese
18180 - 18189, Baytex, pooling
18190 - 18191: Denbury, pooling
18192 - 19199: Samson Resources, pooling
18200 - 18206: Samson Resources, flaring
18207: Sinclair, Sanish-Bakken, 4 wells on 3 existing 640-acre units; Mountrail
18208: Ballantyne, water injection, unitized formation of Kanu-Madison Unit, Bottineau
18209, Landtech, SWD
18210: Baytex, Crescent Point, Samson Resources, West Ambrose-Bakken, flaring
17036, cont'd: Newfield, risk penalty legalese

Update on OXY's Kannegieter Well -- An IP That Was Not Hyped

20032, 9 (no typo), OXY USA, Kannegieter 160-90-17 P-1H, Dimond oil field; t8/11; F; cum 43K 4/12;

Friday Morning Ramblings -- Absolutely Nothing To Do With The Bakken -- Much Of It Political

1. For Spur fans, last night's game was an embarrassment.

2. I can't find any silver lining in Drudge's Friday morning headline: Obama tells donors: second term to re-do health care.  If the president is re-elected, "we" may start out all over again debating socialized health care / national health care. One wonders if an insider on the court has told the president who is writing the majority opinion for this landmark case.

3. 766,000 more women now unemployed than when he took office almost four years ago. Hope and change.

4. Perhaps the most interesting political news today: the report that former President Bill Clinton put out a statement in support of Mitt Romney on a specific topic, suggesting to his own party that they are wrong on this issue.  Speaking out on an economic issue at this particular moment speaks volumes.

5. CNBC talking head: the president would benefit by approving the Keystone XL before the election.

6. CNBC John Harwood starting to shift stance on Obama-Romney race.

Update on Refinery Proposed for the Reservation

Link to Minot Daily Press here.

Data points:
  • Three Affiliated Tribes project; to be located near Makoti, southwest Ward County
  • Corval Group, St Paul, MN: business plan and finances; has an office in Beulah, ND
  • ASRC Energy Services, Alaska: expertise in engineering and operations;  
  • 15,000 bopd --> diesel, propane, and naphtha products
  • naphtha is a pipeline diluent for Canadian oil sands oil
  • estimated: $370 million
Two interesting quotes from the linked article:
ASRC Energy Services, based in Anchorage, Alaska, is a subsidiary of Arctic Slope Regional Corp., a private, for-profit Alaska Native owned corporation representing the interests of 11,000 Inupiant Eskimos, and considered one of the most successful corporations in Alaska. Mayer said ASRC, the parent company of ASRC Energy Services, has two refineries in Alaska one at North Pole and the other at Valdez. Both are located along the Trans-Alaska Pipeline. Mayer said the refinery at Valdez, built in the early 1990s, was the last refinery built in the U.S.
The Three Affiliated Tribes' refinery will be the first refinery built in the contiguous United States in many years. The last one was built in Garyville, La., and began operating in 1976.
Unless something has changed, the 20,000 bopd refinery near Trenton, ND, was farthest along in the process; MDU is also planning to open a 20,000 bopd refinery near Dickinson, ND; it will be interesting to see which of the three is "first.


And for folks who wonder why I harp on the Feds slow-rolling the industry and why I do not look upon the EPA as "in touch with reality" -- not my words, those of the API:
Since early 2000, the Three Affiliated Tribes have been working on the refinery project, a project initiated by Tex Hall, tribal chairman, and approved by the tribal business council. The initial feed study was conducted in 2002-2003. However, it has taken a number of years for the tribes to obtain the environmental clearances.

In August 2011, the Environmental Protection Agency issued the final permit for the refinery, the National Pollutant Discharge Elimination System permit, to the tribes. Late last year the EPA reissued portions of the permit.
The initial study was conducted in 2003 and the EPA only just issued the final permit last year, eight years later. I wonder if there was any value added to the EPA review?

But is it really the final permit?
Mayer said the commentary on the NPDES operating permit has closed and they are waiting for the final EPA review and issuance.
If the EPA has issued the permit, why is there still talk of a "final EPA review and issuance"? How exactly is the EPA delivering this permit to the company? Or does TAT have the permit but have not yet sent a copy to the company?



June 7, 2012: I originally posted this some days/weeks ago, but then pulled it because I felt I had underestimated the significance of this spill. Be that as it may, the background to the source of the story remains important in light of another story in the Dickinson Press this date. The more recent story regards the Keystone XL, the EPA, and south Texas. That story is attributed to InsideClimate News but the name of the author is not provided. At InsideClimate News, the story is attributed to Lisa Song.

I can't put my finger on it, but something bothers me about the relationship between the Dickinson Press and InsideClimate News if subscribers are not aware of the relationship. Maybe they are, but something about this whole thing bothers me. Dickinson Press subscribers should explore InsideClimate News and decide for themselves.

Original Post

I honestly don't know what to make of this. But I think it speaks volumes about The Dickinson Press on many levels.

I think the linked article is an important story for those who are intimately involved with the oil and gas industry. I think this is an important article for a trade journal. I appreciated being able to read it. I learned a bit -- how difficult it is to sort out, in real time, "anomalous" data as it is coming in. I am impressed with engineers able to trouble-shoot a problem and respond.

I can't imagine the average Dickinson Press reader reading beyond the headline -- a story about a spill that occurred two years ago; a spill that had no lasting environmental impact; a spill that was controlled fairly quickly; and, in the big scheme of things, a non-story.

It should be noted that Enbridge has a huge presence in North Dakota, but this spill, as far as I know, had nothing to do with operations in North Dakota. Enbridge is a Canadian company and the spill took place a thousand miles to the east of Dickinson, give or take a few hundred miles.

In the linked article above, David Sassoon, The Dickinson Press, is listed as the reporter.

In this article, David Sassoon, InsideClimate News, is listed as the reporter.

According to their website, the mission of InsideClimate News is:
Our mission is to produce clear, objective stories that give the public and decision-makers the information they need to navigate the heat and emotion of climate and energy debates. 
David Sassoon, is the Founder & Publisher of InsideClimate News.

I assume this is the same David Sassoon, but do not know for sure.  If so, he resides in Brooklyn. But it appears that David Sassoon is now on the staff of The Dickinson Press if the byline in the Press is correct. The AP can pick up the article and attribute it to The Dickinson Press, I would assume.

Jobs Report -- Without Comments

April jobs: up 69,000
Job growth in May was the weakest in a year and employers added far fewer jobs in the prior two months than previously reported, suggesting the economic recovery was faltering.
Employers created a paltry 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year. Economists polled by Reuters had expected nonfarm payrolls to increase 150,000.
In addition, employers added 49,000 fewer jobs than previously estimated in March and April. The unemployment rate rose to 8.2 percent from 8.1 percent as people flocked into the labor market.

Unemployment Goes Up -- "Suggesting the Economic Recovery Was Faltering" -- With Comments -- Labor Secretary: "Totally Supportive of Increasing Jobs" -- CNBC: Stunning

Remember: the magic number is 200,000
Labor Secretary, direct quote: "I am totally in favor of increasing jobs."

April jobs: up 69,000
Job growth in May was the weakest in a year and employers added far fewer jobs in the prior two months than previously reported, suggesting the economic recovery was faltering.
Employers created a paltry 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year. Economists polled by Reuters had expected nonfarm payrolls to increase 150,000.
In addition, employers added 49,000 fewer jobs than previously estimated in March and April. The unemployment rate rose to 8.2 percent from 8.1 percent as people flocked into the labor market.
Let's see: how many months now have we seen this phrase: ".... suggesting the economic recovery was faltering..."? I think I've seen that phrase used monthly for the past year.

Another phrase: "... revised downward ..."

What other adjectives or phrases that caught my eye in today's report? paltry, faltering, fewest, expected, unemployment rate rose...

But again, look at the real story: analysts had expected nonfarm payrolls to increase by 150,000 -- instead, less than 70,000. And it could be revised downward next month.

This is spring. Hiring should be increasing for all those shovel-ready jobs.

The only good news: the unemployment rate was predicted to rise by some a few months ago when analysts expected "people flocking back into the labor market."

Two dots to connect:
CNBC: "the numbers were less than expected." Wow, that was an understatement.

A third dot to connect: local and state governments shedding jobs. This was predicted. Much of the stimulus money simply allowed states to delay downsizing.  Now that the stimulus money has run out, state governments are shedding jobs. 

A talking head on CNBC: "in 2008, the market lost 38%, but if folks stayed in the market, they "earned back" 90% of their money."  So, in other words, if you stayed invested since 2008, you still haven't gotten back to even; at least that's what I thought I heard him say. It's been four years. Hope and change.

Oh, one last thought. What's the biggest problem with this phrase, "... suggesting the economic recovery was faltering." The phrase suggests there was an economic recovery underway.

CNBC, 9:00 a.m.: a "stunner" of a jobs report. "There was practically nothing positive in this report." "Not one good thing in this report." "Stunning construction numbers." "Massive government layoffs." "Stunning."

The administration's spin on this at 9:30 a.m. on CNBC: this is similar to May in all the past years. Wow! Am I missing something? "We" all share responsibility; most of the blame on Congress; need more cooperation "from the other side of the aisle"; emphasized green energy jobs and training at the beginning, until Jim Cramer asked about fossil fuels; her immediate reply --- "totally supportive of increasing jobs" -- never once mentioned the phrase "fossil fuels" -- went back to "renewable energy."  Her first reaction when she heard the news: "silence." She says we were here last year, so she's not worried. She says the US will be able to keep adding jobs. She is very, very optimistic that the US will keep adding jobs, but needs more cooperation from other side of aisle. I guess the buck does not stop in the Oval Office for this administration. Jim Cramer told her straight out that "renewable energy" was a job destroyer. She did not have chance to reply. But the administration is clearly stuck on "renewable energy" as source for job creation. [Quote attributed to Albert Einstein: the definition of insanity is doing the same thing over and over again and expecting different results.] What I found most remarkable: the labor secretary was absolutely unable to say "oil" or "coal."

Her comment that she was "totally supportive of increasing jobs" was not taken out of context. That was her answer when asked about the energy revolution going on in Texas, North Dakota, and Kansas (I believe those states were listed in that order in the question).


CNBC's leading economic analyst, after having some time to digest the numbers: it could not have been a more depressing analysis. The real rate of unemployment jumped to 14.4% after several months of dropping. See first comment below, also, which was posted before CNBC reported the real rate of unemployment.

Political impact, John Harwood (and we know his leanings): There is no sugar coating this. This is a real bad number for the Obama White House... grim news for them (Obama White House)....very worrisome for the White House. Grim numbers even worse among minority voters, especially Hispanic voters.

From the NYTimes:
The payroll growth, which came in at less than half of what analysts had expected and was the lowest number of net jobs created in a year, was potentially devastating for President Obama as he faces re-election.

Several Energy Links at Independent Stock Analysis

Link here to ISA.