Peak Oil? What Peak Oil?

Remember the 30-second sound bite:

• Saudi Arabia: 10 million bopd
• Russia: 10 million bopd
• US: 9 million bopd (or 10 million bopd)
• Canada: 3 million bopd
• Bakken: 0.6 million bopd

Now this news: US could increase production by 3.5 million bopd for 40 years

• How: from CO2 EOR; CO2 from US coal
• Who says: Obama administration

The lede at Rigzone.com:

A new study found that CO2 capture and utilization at existing and new coal-fired power plants and coal-to-liquids facilities could boost U.S. oil production by more than 3.5 million barrels per day for more than 40 years.

The study, prepared for U.S. Energy Secretary Steven Chu by the National Coal Council, features input from 60 energy experts in coordination with the National Petroleum Council. The focus is enhanced oil recovery, or EOR, which has increased U.S. oil production for almost half a century, the NCC said.

 When the US is currently producing 9 million bopd, another 3.5 million bopd on top of that is pretty impressive.

The July Hearing Dockets Have Been Posted

The dockets follow the "quick glance."

A quick glance:

Moving to 2560-acre spacing.
One example:

Application of Samson Resources Co. for an order amending the field rules for the Ambrose-Bakken Pool to create and establish five overlapping 2560- acre spacing units comprised of Sections 13, 24, 25 and 36; Sections 14, 23, 26 and 35; and Sections 15, 22, 27 and 34, T.163N., R.99W.; Sections 18, 19, 30 and 31, T.163N., R.98W.; and Sections 6, 7, 18 and 19, T.162N., R.98W., Divide County, ND, authorizing the drilling of a total of not more than 14 wells on each overlapping 2560-acre spacing unit, eliminating any tool error requirements and such other relief as is appropriate.

The standard is now four wells on each 1280-acre spacing unit throughout the Bakken, but it will be eight wells in the better Bakken.
One example (XTO has several similar cases):

Application of XTO Energy Inc. for an order authorizing the drilling, completing and producing of a total of eight wells on an existing 1280-acre spacing unit described as Sections 16 and 21, T.153N., R.99W., Crazy Man Creek-Bakken Pool, Williams County, ND, eliminating any tool error requirements and such other relief as is appropriate.

Another example (BEXP has several similar cases):

Application of Brigham Oil & Gas, L.P. for an order authorizing the drilling, completing and producing of a total of eight wells on each existing 1280-acre spacing unit within the Last Chance-Bakken Pool, Williams and McKenzie Counties, ND, eliminating any tool error requirements and such other relief as is appropriate.

More wells on small spacing units.
One example:

Application of American Eagle Energy Corp. for an order authorizing up to four wells to be drilled on each existing 800-acre standup spacing unit described as Sections 26 and 35; Sections 27 and 34; and Sections 28 and 33, T.164N., R.101W., Divide County, ND, in the Colgan-Bakken Pool, eliminating any tool error requirements, and such other relief as is appropriate.

Another example:

Application of Hess Corp. for an order amending the applicable orders for  the Little Knife-Bakken Pool to authorize up to six horizontal wells to be drilled on a 640-acre spacing unit described as Section 28, T.147N., R.97W., Dunn County, ND, eliminating any tool error requirements, and such other relief as is appropriate.

Another example:

Hess Corp. for an order amending the applicable orders for the Bear Creek-Bakken Pool to authorize up to eight horizontal wells to be drilled on a 640-acre spacing unit described as Section 15, T.147N., R.96W., Dunn County, ND.

Some large spacing units.
One example (BR has at least four such cases):

Application of Burlington Resources Oil & Gas Co. LP for an order amending the applicable orders for the Clear Creek-Bakken, Blue Buttes- Bakken and Camel Butte-Bakken Pools to establish an overlapping 5120- acre spacing unit consisting of Sections 1, 2, 11, 12, 13, 14, 23 and 24, T.151N., R.96W., McKenzie County, ND, for the purpose of drilling up to two horizontal wells between four existing 1280-acre spacing units and granting such other relief as is appropriate.

Lotsa wells per case.
One example:

Application of Whiting Oil & Gas Corp., for an order amending the applicable orders for the Pleasant Hill-Bakken Pool, to authorize the drilling of up to 6 horizontal wells on eight spacing units described as Sections 4 and 9; Sections 5 and 8; Sections 16 and 21; Sections 17 and 20; Sections 18 and 19; Sections 28 and 33; Sections 29 and 32; and Sections 30 and 31, T.149N., R.99W., McKenzie County, ND, and such other relief as is appropriate.

Total of 21 pages, second day of hearings; only 10 pages, the first day.

Wednesday, July 25, 2012

18211, SM Energy, Colgan-Bakken, proper spacing, Divide
18212, Hess, Juniper-Bakken, proper spacing, McKenzie
18213, Hess, Big Butte-Bakken, siting exception for EN-Selby, Mountrail
18214, Hess, Bakken, establish 5 1280-acre units; 1 well each, Stark County
14935, cont'd, Hess, revoke a CLR permit, Wms and McK
16890, cont'd, Hess, revoke a CLR permit, Williams
18215, cornerstone, temporary spacing, Burke County
18034, cont'd, Cornerstone, Northeast Foothills-Bakken, establish 6 1280-acre units Burke
18216, Oasis, temporary spacing, McKenzie
18217, BR, Union Center-Bakken/Keene-Bakken, establish overlapping 2560-acre unit, one or more hz wells; McKenzie
18218, BR, Clear Creek-Bakken, Blue Buttes-Bakken, and Camel Butte-Bakken, establish an overlapping 5120-acre unit; drill up to 2 hz wells between four existing 1280-acre units, McKenzie,
18219, BR, Blue Buttes-Bakken, Camel Buttes-Bakken, up to 7 wells on 2 1280-acre units; McKenzie
18220, BR, Johnson Corner-Bakken and Camel Butte-Bakken; establish a 5120-acre unit; 2 hz wells between two existing 2560pacre units, McKenzie
18221, BR, Johnson Corner-Bakken and Pershing-Bakken, to establishe a 5120-acre unit; 2 hz wells between two existing 2560-acre units;
18222, BR, Croff-Bakken and Blue Buttes-Bakken, 7 wells on 1280-acre unit; establish an overlapping 2560-acre unit for one or more wells on or near the sections lines; establish a 2560-acre unit; authorize up to 12 wells on that spacing unit
18223, BR, North Fork-Bakken, establish an overlapping 5120-acre unit; drill 2 hz wells between two existing 2560-acre units
17778, cont'd, BR, temporary spacing, McKenzie
18044, cont'd, BR, Bailey-Bakken, 7 hz wells on four 1280-acre units; establish two overlapping 2560-acre units to drill one or more hz wells between the existing 1280-acre unit, Dunn
18224, KOG, amend Banks-Bakken and Poe-Bakken; create 3 overlapping 2560-acre units; 2 hz wells on each 2560-acre unit, McKenzie
18225, KOG, amend Heart River-Bakken, establish a 1280-acre unit, 5 hz wells on that spacing unit; authorize up to 6 wells on another 1280-acre unit; 2 hz wells on a 320-acre unit; Dunn
18226, KOG, amend Twin Buttes-Bakken, designate a 2560-acre unit for 2 hz wells, Dunn
18227, MRO, extend Twin Buttes and/or the Werner Field; establish 3 1280-acre units; 4 wells on each unit; Dunn
18228, MRO, amend Murphy Creek-Bakken, redefine the stratigraphic limits of the field; Dunn
17776, cont'd, MRO, temporary spacing, Williams
17821, cont'd, MRO, commingling
18229, OXY, establish a 1280-acre unit, 6 wells, Billings
18230, OXY, allow maximum production for specific wells
18231, Whiting, extend St Anthony field; amend St Anthony-Bakken, establish a 1280-acre unit, 4 hz wells; Dunn
15676, cont'd, XTO, revoke a CLR permit, McKenzie
16125, cont'd, XTO, revoke a CLR permit, McKenzie
17358, cont'd, Murex, temporary spacing, Divide
18031, cont'd, Petro-Hunt, temporary spacing, McKenzie
18043, cont'd, Sequel Energy, commingling, McKenzie
18232, Cornerstone, pooling, Flaxton-Bakken, Burke
18233, KOG, Mandaree-Bakken, 6 wells on two 1280-acre units; Dunn
18234, KOG, Moccasin Creek-Bakken, 6 hz wells on two units; Dunn
18235 - 18245, KOG, pooling,
18246 - 18427, Petro-Hunt, pooling,
18248, Petro-Hunt, SWD, McKenzie
18249, Hess, pooling
18250, Hess, Little Knife-Bakken, 8 hz wells on a 1280-acre unit; 6 hz wells on a 650-acre unit; Dunn, 
18251, Hess, Bear Creek-Bakken, 8 hz wells on a 640-acre unit; Dunn County
18252, Oasis, Squires-Bakken, 6 hz wells on a 1280-acre unit; Williams
18253, Oasis, Cow Creek-Bakken, 6 hz wells on 2 existing 1280-acre units; Williams
18254, Oasis, SWD, McKenzie
18255, Whiting, Sanish-Bakken, 6 hz wells on 2 640-acre units, Mountrail
18256, Whiting, Lonesome-Bakken, 6 hz wells on a 1280-acre unit, McKenzie
18257, Whiting, Sioux-Bakken, 6 hz wells on an existing 1280-acre unit, McKenzie
18258, Whiting, Timber Creek-Bakken, 6 hz wells on three 1280-acre units, McKenzie
18259, Whiting, Arnegard-Bakken, 6 hz wells on a 1280-acre unit, McKenzie
18260, Whiting, amend Ellsworth-Bakken, 6 hz wells on 3 1280-acre units, McKenzie
18261, Whiting, amend Pleasant Hill-Bakken, 6 hz wells on 8 1280-acre units; McKenzie (48 wells)
18262, Whiting, amend Juniper-Bakken, 6 hz wells in a 1280-acre unit; McKenzie
18263, Whiting, amend Bully-Bakken, 6 hz wells in 2 1280-acre units; McKenzie
18264, Whiting, amend New Hradec-Bakken, 4 hz wells on each 1280-acre unit, Stark
18265 - 18266, Whiting, pooling
18267, Whiting, SWD of the Nistler 21-25H well
18268, BR, amend Haystack Butte-Bakken, 4 hz wells on 6 1280-acre units; McKenzie
18269, BR, pooling,
18270, OXY, pooling

Thursday, July 26, 2012
18271, G3 Operating, Climax-Bakken, proper spacing, Williams
18272, G3 Operating, Grenora-Bakken, redefine field limits, Williams
18273, G3 Operating and others, Strandahl-Bakken, redefine field limits, Williams
18274, G3 Operating, Good Luck-Bakken, flaring, Williams
18275, MRO, Werner-Bakken, proper spacing, Dunn
18276, Crescent Point, Gooseneck-Bakken, redefine field limits, Divide
18277, XTO, Four Eyes-Bakken/St Demetrius-Bakken, establish a 1280-acre unit; 1 hz well, Billings
18278, XTO, Lost Bridge-Bakken, flaring, Dunn
18279, CLR, Last Chance-Bakken, redefine field limits, McKenzie, Williams
18280, CLR, amend Sauk-Bakken, Northwest McGregor-Bakken; create an overlapping 2560-acre unit; multiple wells from a single well pad, Williams
18281, CLR, Hebron and/or Squires-Bakken, create 2 overlapping 1920-acre units; 6 wells on that unit (12); establish an overlapping 1920-acre unit, 1 well in that unit (1) ; establish an overlapping 3840-acre unit, 4 wells on that unit (4); establish 2 overlapping 2560-acre units, 2 hz wells each (4); establish an overlapping 2560-acre unit, 6 wells on that unit (6); establish 2 overlapping 2560-acre units, 6 wells on each unit (12); and establish an overlapping 2240-acre unit, 6 wells on that unit (6); Williams -- 45 wells total
18282, CLR, Corinth-Bakken, establish a 1280-acre unit; 1 hz well; Williams
18283, CLR, amend Cabernet-Bakken, flaring, Dunn
15224, cont'd, CLR, suspend and revoke a Hess permit, McKenzie
17557, cont'd, CLR, amend Antelope-Sanish, establish a 1280-acre unit, 1 hz well, McKenzie
17566, cont'd, CLR, amend Hebron-Bakken, create an overlapping 1280-acre unit; create 2 overlapping 2560-are units; create an overlapping 2240-acre unit; multiple hz wells in each unit
18101, cont'd, CLR, amend Rattlesnake Point-Bakken, create an overlapping 2560-acre unit, multiple wells from one pad, Dunn
18102, cont'd, CLR, amend Jim Creek-Bakken, create 2 overlapping 2560-acre units, multiple wells; Dunn
18284, WPX, amend Reunion Bay-Bakken, create a 320-acre unit; 1 hz well; Dunn
18285, WPX, amend Van Hook-Bakken, flaring, Mountrail, Dunn
18286, WPX, amend Moccasin Creek-Bakken, flaring, Dunn
18287, GMX Resources, amend Tree Top-Bakken, alter stratigraphic limits, Billings
18288, GMX Resources, amend Bennett Creek-Bakken, establish a 1840-acre unit, 4 hz wells, McKenzie
18289, Newfield, recomplete Arkadios 1-18H into Tyler Formation, Dunn
18290, Newfield, amend Pembroke-Bakken, flaring, McKenzie
18291, Samson Resources, amend Blooming Prairie-Bakken, establish 2 overlapping 2560-acre units; 14 wells on each; Divide
18292, Samson Resources, amend Ambrose-Bakken, establish 5 2560-are units; 14 wells on each overlapping 2560-acre unit, Divide (70 wells)
18293, Samson Resources, amend Black Slough-Bakken,flaring, Burke
18294, Strike Oil, extend Elmore-Madison Pool or South Antler Creek-Madison Pool to create a 480-acre unit; multi-lateral hz well; Renville
18295, Strike Oil, extend Wheaton-Madison to create a 320-acre unit, multi-lateral hz well; Bottineau
18296, Slawson, complete a specific well with exception to rules; McKenzie
18297, Slawson, amend Trailside-Bakken, flaring, McKenzie
17549, cont'd, Slawson, temporary spacing, McKenzie
17856, cont'd, Slawson, amend Poker Jim-Bakken, create a 640-acre unit; 1 hz well; McKenzie
18109, cont'd, Resource Drilling, amend Ross-Bakken, establish a 1280-acre unit; 8 hz wells; Mountrail
18110, Resource Drilling, amend Stanley-Bakken, establish a 320-acre unit, 2 hz wells; Mountrail
17848, cont'd, Baytex penalty for flaring, Divide
17849, cont'd, Baytex penalty for flaring, Divide
18298, BEXP, amend Rosebud-Bakken, flaring, Williams, McKenzie
18299, BEXP, amend Ragged Butte-Bakken, flaring, McKenzie
18300, BEXP, amend Bull Butte-Bakken (the Kahlil field), flaring, Williams
18301, Enerplus, amend Four Bears-Bakken, flaring, McKenzie, Mountrail
18302, Enerplus, amend MonDak-Bakken, flaring, McKenzie
18303, Enerplus, amend McGregory Buttes-Bakken, flaring, Dunn
18304, Fidelity, amend Heart River-Bakken, flaring, Stark
18305, Liberty Resources, amend Tyrone-Bakken, flaring, Williams
18306, BEXP, others, Todd-Bakken, flaring, Williams, McKenzie
18307, BEXP, others, Kittleson Slough-Bakken, flaring, Burke, Mountrail
18308, CLR, others, Alkali Creek-Bakken, flaring, Mountrail, McKenzie, Williams
18309, Crescent Point, others, Little Muddy-Bakken, flaring, Williams
18310, Enerplus, others, Mandaree-Bakken, flaring, McKenzie, Dunn
18311, Enerplus, others, Heart Butte-Bakken, flaring, McLean, Dunn
18312, EOG, others, Clear Water-Bakken, flaring, Burke, Mountrail
18313, EOG, others, Spotted Horn-Bakken, flaring, McKenzie, Mountrail
18314, Woodside Processing, treating plant, Williams
17372, cont'd, CLR, revoke a Liberty Resources permit, Williams
17830, cont'd, QEP, long case; see earlier dockets
17588, cont'd, GADECO, exception to rule for specific well, Williams
18315 - 18320, Fidelity, pooling
18321, Fidelity, risk penalty legalese, Stark
18322, Fidelity, risk penalty legalese, Mountrail
18323, Fidelity, Heart River-Bakken, complete 4 wells on a 1280-acre unit, Stark
18324, Fidelity, New Hradec-Bakken, complete 4 wells on a 1280-acre unit; Stark
18325, Fidelity, Dutch Henry Butte-Bakken, complete 4 wells on a 1280-acre unit; Stark
18148, cont'd, Fidelity, flaring, Stark
18149, cont'd, Fidelity, flaring, Stark
18150, cont'd, Fideltiy, flaring, Stark
18326, G3 Operating, risk penalty legalese, Williams
18327 - 18329, Corinthian, pooling
18330 - 18336, CLR, pooling
18337, CLR, risk penalty legalese, Divide
17220, cont'd, CLR, risk penalty legalese, Divide
18338, XTO, pooling
18339, XTO, Corral Creek-Bakken, complete 8 wells on a 1280-acre unit, Dunn
18340, XTO, Blue Buttes-Bakken, complete 8 wells on a 1280-acre unit, McKenzie
18341, XTO, Crazy Man Creek-Bakken, complete 8 wells on a 1280-acre unit, Williams
18342, XTO, Beaver Lodge-Bakken, complete 8 wells on each existing 1280-acre unit, 2 units; Williams
18343, XTO, Dollar Joe-Bakken, complete 8 wells on each of 8 1280-acre units; 64 wells; Williams
18344, XTO, Alkali Creek-Bakken, complete 8 wells on each of 5 1280-acre units; 40 wells; Williams and Mountrail
18345, XTO, Capa-Bakken, complete 8 wells on each of  10 1280-acre units; 80 wells, Williams
18346 - 18347, EOG, pooling
 18348, EOG, SWD, Alger field, Mountrail
18349, GMX Resources, pooling
18350, GMX Resources, Tree Top-Bakken, complete 4 wells on a 1280-acre unit, Billings
18351 - 18357, Samson Resources, pooling
18358, Samson Resources, Blooming Prairie-Bakken, complete 7 wells on each of 2 1280-acre units; Divide
18359 - 18367, Zavanna, pooling
18368, Abraxas, pooling
18369, Abraxas, Pershing-Bakken, complete 8 wells on an existing 1280-acre unit, McKenzie
18370, BEXP, flaring, Mountrail
18371, BEXP, flaring, Williams
18372, BEXP, SWD, McKenzie
18373, BEXP, Glass Bluff-Bakken, complete 8 wells on each existing 1280-acre unit, Williams, McKenzie
18374, BEXP, Last Chance-Bakken, complete 8 wells on each existing 1280-acre unit, Williams, McKenzie
18375, BEXP, Catwalk-Bakken, complete 8 wells on each existing 1280-acre unit, Williams, McKenzie
18376, BEXP, Rosebud-Bakken, complete 8 wells on each 1280-acre unit, McKenzie, Williams
18377, BEXP, Squires-Bakken, complete 8 wells on each 1280-acre unit, Williams
18378, BEXP, Bull Butte-Bakken (Kalil field), complete 8 wells on each existing 1280-acre unit, Williams
18379, Hunt, risk penalty legalese, Dunn
18380, Newfield, South Tobacco Garden-Bakken, complete 7 wells on an existing 1280-acre unit, McKenzie
17036, cont'd, Newfield, risk penalty legalese, McKenzie
18381, Sinclair, Robinson Lake-Bakken, complete 3 wells on an existing 1280-acre unit, Mountrail
18382, Borejaks Energy, SWD, Mountrail
18383, American Eagle, Colgan-Bakken, complete 4 wells on each existing 800-acre standup spacing unit; 3 units, Divide
18384, Wisco, SWD, Williams
18385, Buckhorn, SWD, Williams
18386, Maverik Brothers Operating, SWD, Williams
17883, cont'd, Baytex, flaring, Ambrose-Bakken, Divide
17884, cont'd, Baytex, flaring, Ambrose-Bakken, Divide
17885, cont'd, Baytex, flaring, Ambrose-Bakken, Divide
17886, cont'd, Baytex, flaring,  Burg-Bakken, Divide
To Be Continued

For Apple Users Only -- Absolutely Nothing About the Bakken

Another one bites the dust: Adobe's Flash.

Adobe's announcement came roughly a year and a half after Steve Jobs penned his "Thoughts on Flash" open letter outlining why Apple had decided not to allow Flash to run on its iOS devices.

Now nearly eight months after Adobe's announcement, the company is officially pulling Flash from the Google Play marketplace for Android for new users. 

I remember all the hand-wringing and threats of lawsuits by Adobe. 

Steve is, no doubt, enjoying the view.

And then this little gem: Google's Chrome is crashing and freezing Apple's new notebooks: Lion.

On an unrelated note, Apple's new operating system, Mountain Lion, will be available in July, 2012.

Crude by Rail and Barge -- A Random Note From a Reader

From "anonymous," this nice note comes in:

Illinois contacts tell me that rail-to-barge crude oil loadings on the Illinois River have spiked from next to nothing to up to 180K bbl [very recently] (2 weeks ago). At least a portion of this was ND crude, with the balance Canadian sand crude.

Accurate? rumors? My hunch is that it is right on the mark.

For those who want to explore more, this link was sent to me by Don:

Kirby Corporation

Kirby Corporation is the premier tank barge operator in the United States, transporting bulk liquid products throughout the Mississippi River System, the Gulf Intracoastal Waterway and coastwise along all three U.S. Coasts, Alaska and Hawaii. Kirby's service includes the transporting of petrochemicals, pressurized products, black oil products, refined petroleum products and agricultural chemical products by tank barge. Kirby also owns and operates four ocean-going barge and tug units transporting dry-bulk commodities in United States coastwise trade.

Maybe it's just me, but one certainly gets the feeling that:

a) the Bakken is providing a lot of work for folks nationwide
b) killing the Keystone XL may have been a decision that was thought through very, very well ... or just lucky ...

Natural Gas Revolution -- US Impact -- CarpeDiem

Link here to CarpeDiem.com.

"Shale extraction... is pushing down energy prices and creating many new opportunities for jobs, investments and manufacturing.

And the new innovations are unique to the United Sates. Although other countries will exploit shale, none will come close to the low costs in the U.S. That's because the U.S. has a unique governmental structure in which many powers remain with the states, along with a very competitive market for the product, as opposed to the monopolies and oligopolies that control the market in almost every other country.

While it may sound like the latest energy fad, the shale boom is for real and a serious game changer because of its size and potential longevity. Based on equivalent amounts of energy, natural gas has been about half as expensive as oil for many years.

Second paragraph above: "And the new innovations are unique to the United Sates. Although other countries will exploit shale, none will come close to the low costs in the U.S." Remember the recent story about XOM pulling out of shale exploration and production in Poland? It turned out to be not because there is no shale natural gas there, it was because the bureaucracy was too hard to deal with.

Natural Gas, Coal: Equal Percentage Electrical Generation -- A Milestone -- CarpeDiem

Link here to CarpeDiem.com.

The Energy Information Administration reported this week that for the first time since it began keeping monthly records, "natural gas and coal had the same share of total net generation of electricity at 32% during April 2012 (see chart above)."

CO2 emissions way down; hundreds of thousands of new jobs; cheap energy for US consumers. 


A milestone.

Market Moving To Off-Shore Storage -- PennEnergy

Link to PennEnergy here.

Reuters reports that sea-based storage peaked in 2009 after the collapse of the energy market during the recession, with more than 100 million barrels of oil waiting in these supertankers.

RBN Energy -- Bakken Pricing, Part IV

Link to RBN Energy here.

Canadian Oil Sands Producers Receiving Less Than $40/Barrel

Link to Mining.com.

On Tuesday the price oil sands producers receive fell to $39.40 a barrel below the international benchmark after the spread to US crude widened 12% overnight.

Western Canada Select – a blend of heavy oil sands crude and conventional oil – now trades at a $26.50 discount to US benchmark West Texas Intermediate (WTI) which itself is $13 cheaper than the global reference futures contract ICE Brent Crude.

The deepening discount is a double blow to Alberta's producers which now receive an effective $52.25 a barrel for bitumen-derived oil.

That link provided by Independent Stock Analysis. Go to the link for several other energy articles.

The article at ISA regarding an Obama appointee is particularly interesting.

Earlier this month I posted a prediction regarding production.