Before I get to the main post, just a bit of trivia. At the moment, a headline story over at
Yahoo!Finance is the story that
ONEOK will be building a new natural gas processing plant in western North Dakota. It's about the 7th story down, between the Lance Armstrong story and the Russian plane crash story.
An Oklahoma energy company said it will build its biggest factory yet
in western North Dakota to help capture and bring to market more of the
natural gas that currently is being burned off as a byproduct of
soaring oil production.
Oneok Partners LP, a subsidiary of
Tulsa-based Oneok Inc., and Gov. Jack Dalrymple announced Tuesday that
the company intends to invest up to $780 million on projects that
include infrastructure upgrades, an expansion of a pipeline and a new
factory capable of processing about 200 million cubic feet of natural
gas daily, or double the amount of any of its existing plants in the
state.
Oneok officials made the announcement at the state Capitol
in Bismarck with Dalrymple, who thanked the company and called its
plans a needed and "remarkable capital investment."
Oneok already
operates four natural gas processing factories in North Dakota, and has
two more under construction that are slated for completion late next
year and early 2015. The seventh, called the Lonesome Creek plant, will
be located 12 miles west of Watford City, in McKenzie County.
Now, for the original reason for this post: on
the Permian, over at SeekingAlpha.
Recently, Permian producers have highlighted their activities in the
Cline Shale play, recognizing more of the varied options of production
offered by the prolific Permian Basin. The Cline Shale, located in the
eastern part of the Permian Basin, extends 140 miles long and 70 miles
wide. The depth of the Cline ranges from 5,000 feet at the Eastern Shelf
to 9,500 in the Midland Basin. Initially the Cline was expected to have
the reserve capacity of the Eagle Ford, but the jury is still out on
reserves. The Cline play was expected to hold between 30 - 35 billion
boe, but the issue is what portion is economically recoverable. The
eastern bits of the Cline have higher clay content, and toward the
western parts, less clay. Halliburton and other services companies are working to find ways to deal with complications arising from clay.
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