Saturday, April 20, 2013

Random Look at Two Recent Statoil Wells

Short note; I have slow wi-fi connection; downtown, coffee shop.

I did not see the completion report for the 22806, but details for the 22808 are below.

Note: 48 stages and less than 100,000 lbs/stage; mostly ceramic but still using sand.

As a side note, the geologic summary (narrative) was the shortest I have ever seen. I guess for Statoil these wells are sort of "routine," and not much to say, except: "we came, we saw, we drilled, we fracked. And then we had some egg coffee."

  • 22806, 3,464, BEXP, Cheryl 17-20 3H, Banks, t2/13; cum 12K 2/13:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
  • 22808, 4,439, BEXP, Cheryl 17-20 4H, Banks, middle Bakken, t2/13; cum 38K 2/13; 48 stages; 3.7 million lbs; 37% sand; 73% ceramics; shortest geologic summary I've seen (smile); note the 35,700 bbls of oil was in the first 26 days, not even a full 31-day month. Nice.

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

Saturday Morning Links


I didn't post my thoughts, and I'm glad I didn't. I was wrong. Here's an interesting story regarding the legal rights of "Marathon Bomber #2."

WSJ Links

Section D (Off Duty): later

Section C (Review): later

Section B (Business & Finance):
The Federal Aviation Administration's decision to let Boeing Co.'s BA +2.14% grounded 787 Dreamliners return to the air caps three months of sometimes dramatic strategy shifts by the company to demonstrate the plane's safety and salvage its flagship product.
Boeing's efforts to revamp the Dreamliner's lithium-ion battery system since a pair of the devices burned in January has marked one of the highest-profile, and riskiest, efforts in the industry's history to retool a jetliner already in production. 
In Friday's announcement approving the 787's redesigned battery system, FAA chief Michael Huerta said agency experts oversaw "rigorous tests" and "devoted weeks to reviewing detailed analysis" to ensure the new system's safety. The decision sets the stage for the FAA to issue detailed mandates next week for airlines to complete the modifications to the roughly 50 Dreamliners previously delivered. The changes include internal enhancements to the battery and a new containment box.
  • Here comes the next hot emerging market: the US. Huge story. President Obama will miss harvesting the fruit, but the next president will inherit a a bumper crop of great economic news. It was probably beyond any president to significantly hasten the economic turnaround due to the energy revolution that began in 2007, but it certainly seems President Obama, in hindsight, was the wrong man to lead America in 2008. His ideology might have worked in a different setting, but the energy revolution in America changed everything. Unfortunately, ideology got in the way, and success was delayed.  No one in 2008 saw it coming, but by 2010, it was becoming obvious; by 2012, it was obvious, and yet the president, in public speeches, failed to recognize it. To the best of my knowledge, he has not visited the Bakken, the Permian, or the Eagle Ford. He has not visited Alberta. His administration did fund a score of solar energy companies that have since gone bankrupt or, if still solvent, irrelevant.
Airline trade groups filed suit to prevent the FAA from furloughing air-traffic controllers, a step the FAA has warned could cause thousands of daily flight delays beginning this weekend.
Somehow I think one could tie "national security" to efficient FAA operations. 
Op-ed: Emily Loving Aaronson: On the Front-Lines of Battlefield Triage in Boston. The bombing victims came in waves, and then came the false rumors.

Week 16: April 14, 2013 -- April 20, 2013

This was the week of the Boston Marathon Bombing, Monday, April 15, 2013

Random update: pipelines of interest
Enbridge updates Eastern Access Crude Oil Project
CBR has doubled in the past two years
Pipeline update: RBN Energy, natural gas pipelines being converted to crude oil pipelines
US pipeline infrastructure to see 56% increase in spending in 2013
Update on the Manitou CBR terminal (west of Stanley)

ND passes incentives to minimize flaring

North Dakota daily crude oil production hits new all-time record (preliminary)
New operator in North Dakota: WellStar Energy
Two dry holes in the Bakken; probably due to unstable soil; only drilled to 1,600 feet
Seven well bores now drilling underneath the city of Williston
Random look at Hess' manufacturing operations in Robinson Lake oil field
Daily activity reports: "no more BEXP"; switch to Statoil
QEP with permits for 12 wells in one section in Heart Butte oil field
NDIC expects surge in crude oil production this summer
Reservoir well spacing pilot projects; 12+ Wells/Spacing Unit
Samson Oil & Gas acquires a net 1,225 acres in the Bakken
A nice EOG Round Prairie well
Happy birthday, Amber Renee: 750,000 bbls in three years
Production numbers for the Austin wells have been updated
Winter storm shuts down ND operations; could affect 2Q13 production data
Field of dreams: Todd field, west side of Williston updated

Economic activity
Williston's labor force second in size in North Dakota; only Fargo's bigger
Dan's SuperMarket expands in Bismarck; anchors new mall
New residential development planned in Dickinson
Three new natural gas electric utility plants planned for North Dakota (2) and Minnesota (1)

TPLM corporate presentation: the company is in its 2014 fiscal year
Hearing dockets for the past 18 months: looking at trends
State is losing $30 million/year not investing Legacy Fund cash

North Dakota House Passes Incentives to Minimize Flaring

I thought I had posted this earlier when the House passed the version of their bill. I must not have. Whatever.  [Oh, I just found it; here it is.] The bill was passed in both House and Senate after conference committee hammered out the differences, as I understand it. It's possible I did not post it earlier because I generally don't post updates of legislative action until it's all complete.

The Bismarck Tribune is reporting:
Tax incentives aimed at reducing flaring of gas in North Dakota’s oil patch were approved by the North Dakota House Friday.
Rep. David Drovdal, R-Arnegard, said House and Senate conferees reached agreement on amendments to the bill, and the full House approved them on a vote of 84-7 with three members absent.
The conference committee decided against a provision that would shorten the amount of time that flaring is allowed.
Several story lines:
  • of course I haven't seen the bill (and if sent to me, I won't read it; not enough time), but if it's a "clean" bill as written, it is impressive that it passed 84 - 7
  • no "new" penalties
  • incentives only
  • by "no new penalties," I am mostly thinking of an effort to shorten the amount of time that flaring is allowed
  • it tells me that the legislators know what they are doing; they understand the issue; this issue is a red herring, which I've said from the beginning; it looks like the Legislature agrees
  • I would add one more thought, but best to leave it here, but long time readers probably know where I'm headed

Two Dry Holes Probably Due to Unstable Soil

I missed this earlier in the week. A reader brought this to my attention. Thank you.

On the Wednesday, April 17, 203, the NDIC reported two DRY holes:
  • 23341, DRY, Samson Resources, Michael Joyce 14-23-161-92H, Foothills, total depth, 1,660 feet
  • 23342, DRY, Samson Resources, Los Gatos 11-2-161-92H, Black Slough, total depth, 1,620 feet
I'm not good at reading well files, but it appears that the soil was unstable. The company asked to temporarily abandon the wells to see the results of another well in the area. The request to temporarily abandon was denied; Samson Resources was asked to provide additional forms. At that point, I stopped reading. So, that's where it stands. 

The Los Gatos well targeted the middle Bakken; I assume the Michael Joyce did so, too, but I forgot to check.

There may be more to the story, but there have been other examples (rare) of unstable soil leading to an abandoned well:
  • 22130, TA, WPX/Dakota-3 E&P, Mason 2-11HW, Van Hook, temporarily abandoned while WPX decides what to do with it; probably convert it to a SWD well; the formation was unstable;