Saturday, March 2, 2013

IHS Story on Pipeline Takeaway In The Bakken; Enbridge Won't Mix Bakken Oil With Heavy Sands Oil


March 3, 2013: Huge apology. This a.m. I noticed that the link below was incorrect (which happens periodically, but this one was particularly obnoxious, and a big apology is in order. I apologize). It was not done on purpose, though I doubt everyone believes me (smile). I just noticed it this a.m. It has been corrected. The link, before it was corrected, took one to a Gallup poll which I was linking elsewhere. Regardless, either no one saw the wrong link or no one cared; no one sent me a comment telling me the link was wrong. Or obnoxious.

Original Post

This IHS article was published a couple of months ago, December 20, 2012. Most, if not all, information has been posted across the site, but this story is a great look at pipeline takeaway in the Bakken with emphasis on Enbridge.

Recently there's been a lot of talk of Bakken light, sweet oil being added to heavy oil that will be transported in the Keystone XL 2.0 pipeline (at Baker, MT). Whether that will happen is anybody's guess, but I do know a lot of readers have questioned the veracity of that conjecture. Those readers will find this interesting (from the linked article):
The second part of the project involves Enbridge removing the existing North Dakota mainline interconnection with the Lakehead system at Clearbrook. In the FERC filing, Enbridge said that would better serve Bakken producers by ensuring that their sweet crude is not mixed during transport with diluted bitumen (dilbit) from the oil sands.
Light sweet crude oil from the Bakken is valuable to many refiners because it is relatively easy to process, while the heavy sour dilbit from the oil sands is more costly to refine. By routing the two grades of crude into different pipelines, Enbridge said it will help Bakken producers get more dollars per barrel.
In addition, Enbridge said removal of the interconnection would prevent shippers from having their oil stranded in Clearbrook due to capacity apportioning when the Lakehead system is oversubscribed.

NDIC Hearing Dockets -- March 27 - 28, 2013

All Hearing Dockets

Wednesday, March 27, 2013

19790, CLR, Willow Creek-Bakken, proper spacing, McKenzie, Williams
19791, Oasis, et al, Baker-Bakken, proper spacing, McKenzie, Williams
19792, SM Energy, Ambrose, West Ambrose, Colgan-Bakken, 1) allow up to 8 wells on 1280-acre units; 2) establish 22 overlapping 2560-acre units, 1 or more wells each; Divide County
19793, Murex, et al, Rawson-Bakken, proper spacing, McKenzie
19794, Murex, temporary spacing, Lori Ann, Divide County
19583, cont'd
19407, cont'd
19408, cont'd
14953, cont'd
19795, Hess, amend White Earth-Bakken, establish one 1280-acre unit; 6 wells; Mountrail
19796, Hess, amend Manitou-Bakken and Big Butte-Bakken; establish two overlapping 2560-acre units; 1 or more wells on each; Mountrail
19797, Hess, amend Truax-Bakken, establish 6 overlapping 2560-acre units; one or more wells; Willliams, McKenzie
19798, Hess, amend Westberg-Bakken, establish an overlapping 2560-acre unit, one or more wells; McKenzie
19799, Hess, amend Hawkeye-Bakken, establish an overlapping 2560-acre unit, one or more wells; McKenzie
19800, Hess, amend Hawkeye-Bakken, establish two overlapping 2560-acre units, one or more wells; McKenzie
19801, Hess, amend Blue Buttes-Bakken, establish an overlapping 2560-acre unit, one or more wells; McKenzie
19802, Hess, amend Timber Creek-Bakken and South Tobacco Garden-Bakken to establish n overlapping 2560-acre unit, one or more wells; McKenzie
19803, Hess, amend Cherry Creek-Bakken to establish two overlapping 2560-acre units; one or more wells; McKenzie
19804, Hess, amend Sather Lake-Bakken, unrestricted flaring, McKenzie
19805, OXY USA, amend Snow-Bakken, extend the field; establish a 1280-acre unit for 6 wells; Billings
19806, OXY USA, amend Murphy Creek-Bakken, stratigraphic limits, Dunn
19807, OXY USA, amend Cabernet-Bakken, flaring, Dunn
19808, OXY USA, amend Crooked Creek-Bakken, flaring, Dunn
19809, OXY USA, amend Hungry Man Butte-Bakken, flaring, Billings
19810, OXY USA, amend Little Knife-Bakken, flaring, Billings, Dunn, McKenzie
19811, OXY USA, amend Manning-Bakken, flring, Dunn
19812, OXY USA, amend Russian Creek-Bakken, flaring, Dunn
19813, OXY USA, amend Saddle Butte-Bakken, flaring, Billings
19814, OXY USA, amend Simon Butte-Bakken, flaring, Dunn
19815, OXY USA, amend St Anthony-Bakken, flaring, Dunn
19816, OXY USA, amend Willmen-Bakken, flaring, Dunn
19817, KOG, amend Poe-Bakken, designate a 2560-acre unit; 2 wells; McKenzie
19818, KOG, amend Moccasin Creek-Bakken; 1) authorize up to 3 wells on two separate 320-acre units; 2) establish two overlapping 640-acre units, for the purpose of two or more wells between the existing 320-acre spacing units; 3) authorize up to 8 wells on 3 separate 1280-acre units; 40 authorize up to 6 wells on a 1280-acre unit; Dunn County (total 40+ wells)
19819, MRO, amend Bailey-Bakken, establish two overlapping 2560-acre units for the purpose of drilling one or more wells between the existing 1280-acre unit; Dunn
19820, MRO, amend Bailey-Bakken, establish an overlapping 2560-acre unit for the purpose of drilling one or more wells between the existing 1280-acre units; Dunn
19603, cont'd
19418, cont'd
19596, cont'd
19821, BR, SWD, Sand Creek, McKenzie
19822, Hess, flaring, Burke
19823, Hess, flaring, Divide
19824, Hess, flaring, Burke
19825, Hess, flaring, Mountrail
19826, Hess, flaring, Mountrail
19827, Hess, pooling, White Earth-Bakken, Mountrail
19828 -- 19842, Hess, pooling
19843, Murex, amend West Bank-Bakken, 8 wells on each 1280-acre unit; Williams
19844 -- 19865, Murex, pooling
19866 -- 19871, KOG, pooling
19872, Petro-Hunt, amend Elm Tree-Bakken, 7 wells on each 1280-acre unit; McKenzie, Mountrail
19873, Petro-Hunt, amend Charlson-Bakken, 7 wells on each 640-acre and each 1280-acre unit, McKenzie, Mountrail, Williams
19874, Petro-Hunt, pooling
19875, Petro-Hunt, pooling
19876, Whiting, amend Sanish-Bakken, 10 wells on a 1280-acre unit, Mountrail
19877, OXY USA, pooling
19878, OXY USA, pooling
19879, Sequel, amend Hay Draw-Red River, Hay Draw-Birdbear, and Hay Draw-Duperow for commingling, McKenzie

Thursday, March 28, 2013

19880, Hunt, Bear Butte-Bakken, proper spacing, McKenzie
19881, Hunt, Little Tank-Bakken, proper spacing, McKenzie
19882, Hess, et al, Antelope Creek-Bakken, proper spacing, McKenzie
19883, Hunt, et al, Buffalo Wallow-Bakken, proper spacing, McKenzie
19884, BEXP, et al, Rosebud-Bakken, proper spacing, McKenzie, Williams
19885, Hunt, et al, Bully-Bakken, proper spacing, McKenzie
19886, CLR, et al, Indian Hill-Bakken, proper spacing, McKenzie, Williams
19887, Slawson, et al, Boxcar Butte-Bakken, proper spacing, McKenzie
19320, cont'd
19888, Hunt, amend Fertile Valley, Bar Butte, and/or Smoky Butte-Bakken; establish 12 1280-acre units; one well each, Williams
19889, CLR, complete Chicago 4-26RH open hole, McKenzie
19890, CLR, amend Dutch Henry Butte-Bakken, create an overlapping 1280-acre unit; 4 wells; Stark
19669, cont'd
15224, cont'd
19670, cont'd
19678, cont'd
19891, Slawson, amend Sanish-Bakken, create an overlapping 1280-acre unit, 4 wells; Mountrail
19892, XTO, amend Bear Den-Bakken, flaring, McKenzie
19893, Arsenal, amend Stanley-Bakken, create a 1280-acre unit; 3 wells; Mountrail
19894, Arsenal, amend Northeast Foothills-Bakken, create 6 1280-acre units; 4 wells on each; Burke
19895, Baytex, et al, amend Ambrose-Bakken, flaring, Divide
19896, Baytex, et al, amend West Ambrose-Bakken, flaring, Divide
19897, Crescent Point, amend Colgan-Bakken, flaring, Divide
19898, Enerplus, amend Spotted Horn-Bakken, create an overlapping 1920-acre unit, 7 wells, McKenzie
19899, GMX Resources, Ranch Creek-Bakken, increase density to 7 wells each 1280-acre unit,  McKenzie
19900, Newfield, Hanks-Bakken, flaring, Williams
19901, Peregrine Petroleum, extend Covered Bridge-Bakken or Pierre Creek-Bakken; create a 1280-acre unit; 2 wells; McKenzie
19902, WPX, amend Van Hook-Bakken, create a 1280-acre unit; 9 wells; Mountrail
19682, cont'd
18497, cont'd
19903, Statoil, amend field rules for the Hovde well, McKenzie
19686, cont'd
19325, cont'd
19342, cont'd
18836, cont'd
19720, cont'd
19904, QEP, revoke four WPX Blackhawk wells, Dunn
19905, QEP, amend Heart Butte-Bakken; 1) increase a 640-acre unit to 720-acre unit; 4 wells; 2) reduce a 1280-acre unit to 1200 acres, 7 wells; Dunn
19906, North Plains Energy, Smoky Butte-Bakken, waiving the 1220-foot setback rule, Divide
19907, American Eagle, amend Colgan-Bakken, flaring, Divide
19908, Environmental Driven Solutions, treatment plant, Dunn
19909 - 19961, EOG, pooling
19962, EOG, Squaw Creek-Bakken, 6 wells on each 320-acre unit; 6 wells on each 640-acre unit; and 5 wells on each 640-acre unit; McKenzie
19963 - 19964, Sinclair, pooling
19965 - 19967, Hunt, pooling
19968 -- 19972, Hunt, risk penalty legalese
19973, Fidelity, risk penalty legalese
19974, Fiedltiy, risk penalty legalese
19975, Fidelity, Alger-Bakken, 2 wells on a 640-acre unit; 3 wells on a 1280-acre unit; Mountrail
19976, Fidelity, Stanley-Bakken, 4 wells on a 640-acre unit; 4 wells on 5 1280-acre units; 5 wells on a 1280-acre unit; 6 wells on a 1280-acre unit; 3 wells on 2 2560-acre units; 2 wells on a 2560-acre unit; Mountrail
19977, Fidelity, Sanish-Bakken, 3 wells on each of 5 640-acre units; 4 wells on a 1920-acre unit; 8wells on a 2560-acre unit; 7 wells on a 2560-acre unit; 6 wells on a 1280-acre unit, Mountrail
19978, CLR, pooling
19979, CLR, pooling
19980 -- 19983, CLR, risk penalty legalese
19732, cont'd
19733, cont'd
19734, cont'd
19735, cont'd
19736, cont'd
19737, cont'd
19738, cont'd
19739, cont'd
19740, cont'd
19741, cont'd
19984, Baytex, risk penalty legalese
19985, Baytex, risk penalty legalese
19986, Newfield, risk penalty legalese
19987 -- 19992, Newfield, risk penalty legalese
19993, XTO, pooling
19994, XTO, Charlson-Bakken, 7 wells on each of 4 1280-acre units;  McKenzie, Williams
19995, XTO, Elk-Bakken 8 wells each of 2 1280-acre units; McKenzie
19996, XTO, Morgan Draw-Bakken, 4 wells on an existing 1280-acre unit, Billings
19997, Samson, risk penalty legalese
19998, Slawson, Parshall-Bakken, 6 wells on an existing 1280-acre unit; Mountrail
19369, cont'd
19999, WPX, Heart Butte-Bakken, 8 wells on an existing 1280-acre unit; Dunn
20000, Liberty Resources, Cow Creek-Bakken, 8 wells on an existing 1280-acre unit, Williams
20001, Flatland Resources, SWD
20002, Flatland Resources, SWD
20003, Uran SWD, SWD
20004, Dahl SWD, SWD
20005, Denbury, Fryburg, SWD, Billings
20006, GWN, SWD
20007, WaterWorks, SWD
20008 20010, American Eagle, pooling
19611, cont'd

Week 9: February 24, 2013 -- March 2, 2013

Mergers and deals
Chesapeake to sell Bakken acreage -- unconfirmed 
Chesapeake to sell 50% interest in its Oklahoma play -- confirmed

Bakken operations
Oasis with four huge wells
Bakken wells taken off-line due to flaring
Well density patterns; fan-shaped
Anticipating the gusher

Media attention
The Bakken is a beast

RBN series on Bakken crude-by-rail terminals: part II
RBN series on Bakken crude-by-rail terminals: part I

Economic development
Midwest Motor Express expands in Rapid City, SD
MDU-Calumet ready to start construction; received air quality permit
Six-million-dollar hotel almost complete in coal country, North Dakota

Obama promises to expedite oil production in Montana, North Dakota, and South Dakota if his idea to sequester is killed

Odds and Ends

While looking for something else -- which if I find, I will post -- I came across this November 16, 2011, post. In hindsight, it's a pretty interesting, if not an entertaining, note. At the time I did not know it would become the story it is has become. Unless the president enjoys this sort of thing, and a narcissist might, the president has really seemed to box himself into a corner.

A rational individual might look back on this story and conclude that the president failed to read his far-left, faux environmental base correctly, when he nixed the Keystone XL permit.  He failed to see that the Keystone XL would become the "line-in-the-sand" for that fringe element. We haven't seen the phrase "throwing 'someone' under the bus" lately, but the tea leaves suggest the president is about to throw the last group along the parade route under the bus when he approves the Keystone.

ObamaCare will be the legacy of the president's first term. Approving Keystone XL 2.0 will be the domestic legacy of his second term.

Recessions come and go, so even if "we" fall back into recession, it won't amount to much more than an historical footnote.

I am unaware of anything that would yet qualify for a foreign policy legacy in his first term, and, of course, the second term is not even two months old.

Speaking of which (recessions), if "we" do fall back into a recession due to $5 gasoline (and I'm not saying we will see $5 gasoline again; "been there, done that," as some predicted), one might be able to trace the dots back to killing the Keystone. Such irony. [Had the Keystone been approved back in late November, 2011, and had TransCanada stayed on schedule, the pipeline would now be on-line. Canadian oil sands oil is trading for about $60/bbl; Venezuelan/OPEC oil is trading for about $110. ]

Google Rank: "Bakken blogs"
Saturday morning, March 2, 2013; 9:48 am
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