The Million Dollar Way (The Bakken Oil Blog): 06/30/13

Sunday, June 30, 2013

New $12 Million Water Treatment Plant For Parshall

Officials have dedicated a new water treatment plant for the community of Parshall.

The $12 million facility on the east shore of Lake Sakakawea will serve the city of about 1,000 people and also rural residents in the northeast part of the Fort Berthold Reservation.

Power Africa For $6.5 Billion And Fund The White House Tours For 100 Years With $500 Million

What's the quickest way to get electricity to Africa? Think about that for a bit. I have to get some coffee, do some administrative stuff. After that I will get back to the answer. It's a serious post, and something y'all should enjoy.

Original Post

Last week I posted this:

June 15, 2013: President O'Bama's African trip this month will cost $100 million. If they could cut $4 million from the African trip, they could fund one year of White House tours at $75,000/week.

It turns out that $100 million figure was hugely under-estimated.

The cost of the trip just went up another $7 billion to Power Africa. Ka-ching. And the president's trip is just beginning.

I've long given up worrying about the US deficit and spending. No matter how broke we are, we can always find money to give to Palestine and Africa.

On May 24, 2009, in an interview, President O'Bama said, very memorably, "the US is broke."

As noted above, funding White House tours cost about $75,000/week.

100 years x 50 weeks x $100,000/week = $500 million.
10^2 * 5*10^1 *10^5 = 5 * 10^8 = 5 00 000 000. Yeah, that looks like $500 million.

So, instead of a $7 billion Power Africa program, if we made it a $6.5 billion Power Africa program, we could fund White House tours for 100 years. I doubt anyone in Africa will even see the difference between $7 billion and $6.5 billion over several years.

I used $100,000/week (instead of the stated cost of $75,000/week) to provide free lunches and maybe even ObamaPhones for those who take the White House tours. As inflation increases the cost of the tours, we could cut back on ObamaPhones and then the box lunches.

**************************

Our six-year-old granddaughter's still life drawing (she will soon be seven):

Wells Coming Off Confidential Over The Weekend, Monday Are Posted; Newfield, XTO Will Each Have A Nice Well

Not very many wells coming off the confidential list, but you have to remember, six months ago it was the middle of a very ferocious winter in North Dakota.

Monday, July 1, 2013
23847, 296, Whiting, Stecker 32-9, Hoot Owl, Deadwood, t2/13; cum 11K 4/13;
23859, drl, Statoil, Wright 4-33 5H, Alger, no data,
24229, 2,900, BR, State Veeder 11-25TFH, Blue Buttes, t5/13; cum 14K 4/13;
24454, 1,382, Newfield, Rolla State 152-97-1-12-2H, Westberg, t4/13; cum 23K 4/13;
24514, 794, Slawson, Serpent Federal 2-36-31H, Van Hook, t4/13; cum 5K 4/13;

Sunday, June 30, 2013
24069, 455, American Eagle, Stanley 8-1E-163-102, Colgan, t3/13; cum 21K 4/13;
24651, WI, Enduro, MRPSU 19-32, River Park, a Madison well; no data

Saturday, June 29, 2013
22805, drl, Statoil, Wright 4-33 2TFH, Alger, no data,
23478, drl, CLR, Durham 3-2H, North Tobacco Garden

********************

23847, well file

started out as a Red River well
spud date: January 1, 2013
cease drilling: January 13, 2013
TD: 12,530 feet
Summary: ... drilled as a Big Island well with primary interest in the Red River "D" porosity zone, with secondary objectives being the Tyler Sands and the Winnipeg Sands...."
drilled to the Deadwood
awaiting completion

**************************************

23847, see above, Whiting, Stecker 32-9, Hoot Owl,

Date	Oil Runs	MCF Sold
4-2013	3051	0
3-2013	3979	0
2-2013	3276	0

24229, see above, BR, State Veeder 11-25TFH, Blue Buttes, t5/13; cum 14K 4/13:

Date	Oil Runs	MCF Sold
5-2013	14032	0

24454, see above, Newfield, Rolla State 152-97-1-12-2H, Westberg:

Date	Oil Runs	MCF Sold
5-2013	20439	0
4-2013	1635	0

24069, see above, American Eagle, Stanley 8-1E-163-102, Colgan:

Date	Oil Runs	MCF Sold
5-2013	7007	0
4-2013	8493	0
3-2013	4545	0
2-2013	483	0

War On Coal -- Great Britain

Looking for love in all the wrong places.

When I think "coal exports," I think Asia. See earlier post.

But this is very, very fascinating. Read the wiki entry for Energy in the United Kingdom.

Based on earlier MDW stories, I knew that the UK is in an energy crunch. It's a huge story; the UK has got to be very, very concerned. Worse, by law, they are committed to worsening their own situation. My hunch is that Great Britain will dial back on some of their goals, but even so, the UK is an interesting case study to consider.

Right or wrong, this is my worldview: Great Britain is already in a huge energy crunch. It is banking on new off-shore shale fields, but it will take a bit of time to get them developed -- let's say two to three years, about the time the Panama Canal widening project will be complete (if I remember, I will connect those dots later).

Oil is not used for generating electricity, and alternate sources are grossly inadequate to make a dent in the British energy crunch. Nuclear power? LOL.

Okay. So, the first question: after the Iron Lady killed the coal industry in Great Britain, does that country even use coal any more? According to the linked wiki article above, yes. To the tune of about one-third of British energy needs.

A third is not trivial; I don't see further eroding of coal use in the British Isles in their current energy crunch.

How bad is the energy crunch?

Energy in the United Kingdom
	Capita	Prim. energy	Production	Import	Electricity	CO₂-emission
	million	TWh	TWh	TWh	TWh	Mt
2004	59.8	2,718	2,619	135	371	537
2007	60.8	2,458	2,050	522	373	523
2008	61.4	2,424	1,939	672	372	511
2009	61.8	2,288	1,848	641	352	466
2010	62.2	2,355	1,730	705	357	484
Change 2004-10	3.9%	-13.3 %	-33.9 %	420%	-3.9 %	-10.0 %

Assuming I am reading the table correctly, look at the third and fourth columns.

In 2004, Great Britain imported 135 "units" of their energy.
In 2010, Great Britain imported 705 "units" of their energy.

In 2004, Great Britain produced 2,620 "units" in-country.
In 2010, Great Britain produced 1,730 "units" in-country.

Astounding.

And then look at how well conservation of energy is working in that country where natural gas is much more expensive than it is in the United States, and gasoline is two to three times more costly. One would think that the Brits would improve conservation of energy. But just the opposite (again, assuming I am reading the table correctly).

In 2004, per capita usage: 60 units
In 2010, per capita usage: 62 units

The increase is inconsequential except for the fact a) the push for conservation has been huge; and, b) the Brits are in a huge energy crunch.

Another graph from wiki:

Again, oil is not used (hopefully) to generate electricity. Natural gas use dropped off a cliff in 2011, dropping back to levels not seen since 1995. One can argue that the drop in oil use is due more to the "recession" than availability. I'm not going to look for the links now, but it was widely reported that Great Britain came without hours (repeat: hours) of running out of natural gas this past winter.

Oh, connecting those dots. The UK is banking on off-shore shale deposits of natural gas but it will take a couple of years to get those fields under development. In a couple of years, the Panama Canal widening project will be completed. The connecting dot? Coal exporters can ship coal to Great Britain while anticipating the use of larger coal ships once the canal project is completed, in 2015, to ship coal to Asia. Asia and Europe should snap up American coal at fire-sale prices with the war on coal here in the US. If the Germans are clear-cutting forests in North Carolina for the wood to produce electricity, one would think they would be thrilled to get cheap coal.

By the way, if per capita energy use is going up, but overall energy is going down, it is interesting to look at the population numbers for Great Britain. There is a great interactive graph at wiki (again).

*****************************

A Note To The Granddaughters

In an earlier post, I mentioned how excited I was to be reading The Log of The Sea of Cortez by John Steinbeck. More than once, he has talked about Sally Lightfoots. Finally, curiosity got the better of me, so I went to wiki to find out more about these creatures.

Incredible.

Wiki actually quotes at length from Steinbeck's log of the Sea of Cortez.

Many people have spoken at length of the Sally Lightfoots. In fact, everyone who has seen them has been delighted with them. The very name they are called by reflects the delight of the name. These little crabs, with brilliant cloisonné carapaces, walk on their tiptoes, They have remarkable eyes and an extremely fast reaction time. In spite of the fact that they swarm on the rocks at the Cape [San Lucas], and to a less degree inside the Gulf [of California], they are exceedingly hard to catch. They seem to be able to run in any of four directions; but more than this, perhaps because of their rapid reaction time, they appear to read the mind of their hunter. They escape the long-handled net, anticipating from what direction it is coming. If you walk slowly, they move slowly ahead of you in droves. If you hurry, they hurry. When you plunge at them, they seem to disappear in a puff of blue smoke—at any rate, they disappear. It is impossible to creep up on them. They are very beautiful, with clear brilliant colors, red and blues and warm browns.

And much more.

War On Coal

Updates

Later, 6:15 pm: shortly after posting the notes below, Don sent me a link to a story that validates what is written below. It's not a war on coal in this country, it's a war on coal-using power plants. The US coal industry, railroads, and ports will simply ship US coal at fire-sale prices to the rest of the world.

Original Post

This is a fascinating piece of work.

Motley Fool is reporting:

What's interesting is that with the push-back from several West Coast locales to not allow coal export facilities to be built, it's really consolidating the coal market around a few select cities. In fact, five customs districts accounted for 90% of March U.S. coal exports (coal exports in tons/year):

Norfolk, VA (6.1)
New Orleans (2.2)
Baltimore (2.1)
Mobile, AL (1.4)
Houston-Galveston, TX (0.5)

Norfolk:

The Norfolk area is home to coal-terminal operator Dominion Terminal Associates, among others. The facility is jointly owned by Peabody Energy, Arch Coal, and Alpha Natural Resources, which use it to ship coal around the world. It's a state-of-the-art facility that features many environmental safeguards to keep the 1.7 million net tons of coal storage capacity from causing any environmental damage.

Overall, coal exports provide significant economic benefits to Norfolk as well as the state of Virginia as a whole. It's estimated that coal exports contributed to more than 19,000 jobs to the state and added $2.5 billion in related economic value.

Read about the rest at the link.

Will the fact that the west coast is shutting down coal exports affect the US coal export business? Hardly.

From wiki:

The Panama Canal expansion project (also called the Third Set of Locks Project) will double the capacity of the Panama Canal by 2015 by creating a new lane of traffic and allowing more and larger ships to transit.
The project will:

Build two new locks, one each on the Atlantic and Pacific sides. Each will have three chambers with water-saving basins.

Excavate new channels to the new locks.

Widen and deepen existing channels.

Raise Gatun Lake's maximum operating level.

NPR also reports:

When the project to widen the canal is completed in 2015, longer and wider ships will be able to pass through its locks, giving them access to ports on the Gulf of Mexico and the East Coast. But at the moment, the Port of Baltimore is one of only two on the East Coast (the other is the Port of Virginia in Norfolk) that can handle the large cargo ships, known as post-Panamax ships. It recently completed a major expansion, which included building a 50-foot berth and dredging the channel.

Mark Montgomery, the president of Ports America Chesapeake, says much rides on the canal's expansion.

"It will allow a ship that is three times as big to come through the canal once the widening project is finished," he says. "It's a significant change in maritime economics."

Bigger ships mean more cargo containers, which can translate into an economic windfall for a port, says Adie Tomer, a transportation and infrastructure specialist at the Brookings Institution.

Even the NY Times seems to be excited to see all that American coal being shipped to countries where there will be less concern for all the "clean coal" technology:

The $5.25 billion project, scheduled for completion in 2014, is the first expansion in the history of the century-old shortcut between the Atlantic and Pacific. By allowing much bigger container ships and other cargo vessels to easily reach the Eastern United States, it will alter patterns of trade and put pressure on East and Gulf Coast ports like Savannah, Ga., and New Orleans to deepen harbors and expand cargo-handling facilities.

Right now, with its two lanes of locks that can handle ships up to 965 feet long and 106 feet wide — a size known as Panamax — the canal operates at or near its capacity of about 35 ships a day. During much of the year, that can mean dozens of ships are moored off each coast, waiting a day or longer to enter the canal.

The new third set of locks will help eliminate some of those backlogs, by adding perhaps 15 passages to the daily total. More important, the locks will be able to handle “New Panamax” ships — 25 percent longer, 50 percent wider and, with a deeper draft as well, able to carry two or three times the cargo.

No one can predict the full impact of the expansion. But for starters, it should mean faster and cheaper shipping of some goods between the United States and Asia.

With the US declaring "war on coal" our trading partners will be able to snap up coal at fire-sale prices.

For investors only: I don't invest in coal, and don't plan to, but there might be some opportunities here. One may want to look at Arch, Peabody, Alpha Natural Resources, and ask the question whether they may be oversold. Two of the companies pay a dividend.

The other big winners, possibly, will be the eastern US railroads. As the west coast shuts down coal exports, exporters will move coal to the east coast.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or think you might have read here.

Advisory: GoogleReader Shuts Down Monday (Tomorrow)

The Los Angeles Times is reporting:

Google has a popular RSS reader, aptly known as Reader. But it's shutting down Monday. That's caused dozens of other readers to pop up or improve their services, making this a golden moment to try out a new way of browsing. Many of the readers are free and making money will be a challenge for their owners. So as with any start-up, be cautious.

Options are listed at the linked article.

The NDIC July, 2013, Hearing Dockets Have Been Posted

July 30 - 31, 2013, dockets.

Dockets from the vaults are linked here.

Samson Resources To Request Some Large Spacing Units In Divide County For Overlapping Spacing Units

20661, Samson Resources, extend, amend, West Ambrose-Bakken and/or Ambrose-Bakken to establish 2 overlapping 4160-acre units, multiple wells on each, Divide County;

Slawson To Drill Multiple Lateral Wells With A Portion Of The Vertical Open To The Lodgepole

From the July, 2013, NDIC hearing dockets

Disclaimer: typographical errors may exist, and I may be interpreting the data incorrectly; refer to the source for accurate information. The source is at the NDIC website.

Slawson will be drilling some wells with multiple laterals, and with a portion of the vertical section open to the Lodgepole. I can't remember if they opened the vertical to the Lodgepole in their Montana wells, but Slawson is drilling some multiple-lateral wells in Montana (reported earlier). Multiple laterals from the same well in North Dakota has been done very, very rarely and it has not been done in quite some time. This is a new wrinkle, at least for me, with regard to developing the Bakken on the North Dakota side of the state line.

20648, Slawson, East Tioga-Bakken, multiple laterals from same wells; with a portion of the vertical section of the well open to the Lodgepole, Burke,

XTO To Drill Ten Wells On A Single 640-Acre Spacing Unit -- July, 2013

Updates

November 6, 2018: see production profiles and updated graphic.

Original Post

A look at the three wells in the graphic above:

17629, 1,164, XTO, Lundin Federal 31X-9, North Fork, t6/10; cum 118K 4/13;
18998, 2,208, XTO, Lundin 14-33NEH, Siverston, t12/10; cum 102K 4/13;
22206, 878, XTO, Lundin 11-4SH, Siverston, t7/12; cum 37K 4/13;

CLR To Drill An Additional 81 Wells Across The Bakken, NDIC July, 2013, Hearing Dockets

20657, CLR, Jim Creek-Bakken, 14 wells on an overlapping 2560-acre unit, Dunn (14)
20675, CLR, Pershing-Bakken, complete 14 wells on an existing overlapping 2560-acre unit, McKenzie (14)
20676, CLR, Cedar Coulee-Bakken, complete 14 wells on an existing overlapping 2560-acre unit, Dunn (14)
20677, CLR, North Tioga-Bakken, complete 15 wells on an existing 1280-acre unit, Williams (15)
20678, CLR, Chimney Butte-Bakken, complete 14 wells on an existing 1280-acre unit, Dunn (14)
20679, CLR, Edge-Bakken, complete 10 wells on an existing 1280-acre unit, McKenzie (10)

Baytex To Drill 126 Additional Wells In Divide County, NDIC July 2013, Hearing Dockets

From the July, 2013, NDIC hearing dockets

Disclaimer: typographical errors may exist, and I may be interpreting the data incorrectly; refer to the source for accurate information. The source is at the NDIC website.

20655, Baytex, amend Ambrose-Bakken, establish 1 overlapping 1280-acre unit; 7 wells; Divide (7)
20656, Baytex, amend Whiteaker-Bakken, establish 1 overlapping 1280-acre unit, 7 wells, Divide (7)
20693, Baytex, Plumer-Bakken, 7 wells on each existing 1280-acre unit; 4 units, Divide (28)
20694, Baytex, Musta-Bakken, 7 wells on an existing 1280-acre unit, Divide (7)
20695, Baytex, Bluffton-Bakken, 7 wells on each of 2 1280-acre units, Divide (14)
20696, Baytex, West Ambrose-Bakken, 7 wells on each of 6 1280-acre units; Divide (42)
20697, Baytex, Garnet-Bakken, 7 wells on each of 3 1280-acre units; Divide (21)

XTO To Drill 300 Wells In Siverston Oil Field, NDIC July, 2013, Hearing Dockets

From the July, 2013, NDIC hearing dockets

Disclaimer: typographical errors may exist, and I may be interpreting the data incorrectly; refer to the source for accurate information. The source is at the NDIC website.

Application of XTO Energy Inc. for an order authorizing the drilling, completing and producing of a total of ten wells on each existing 1280-acre spacing unit in the following sections in Siverston-Bakken, McKenzie County.

In T.151N., R.98W:

Sections 13 and 24;
Sections 14 and 23;
Sections 15 and 22;
Sections 25 and 36;
Sections 26 and 35; and,
Sections 27 and 34,

In T.150N., R.98W.:

Sections 1 and 12;
Sections 2 and 11;
Sections 3 and 10;
Sections 4 and 9;
Sections 13 and 24;
Sections 14 and 23;
Sections 15 and 22;
Sections 16 and 21;
Sections 25 and 36;
Sections 28 and 33;
Sections 29 and 32; and,
Sections 30 and 31,

In T.150N., R.97W.:

Sections 4 and 9;
Sections 5 and 8;
Sections 6 and 7;
Sections 15 and 22;
Sections 16 and 21;
Sections 18 and 19;
Sections 28 and 33;
Sections 29 and 32; and,
Sections 30 and 31,

In T.149N., R.98W:

Sections 1 and 12.

In T.149N., R.97W:

Sections 5 and 8; and,
Sections 6 and 7.

I count 30 1280-acre spacing units.

Ten wells x 30 units = 300 wells.

In addition:

20662, XTO, amend Siverston-Bakken, establish an overlapping 1280-acre unit, 10 wells; and establish an overlapping 2560-acre unit, 1 well; McKenzie;
20663, XTO, Siverston, complete 10 wells on a 640-acre unit, McKenzie

I count 139 permits issued for Siverston Field to date. Of those 139 permits, 10 have been permanently canceled and 2 wells are inactive) bringing the number of wells on active, drl, conf status to about 127.

For archival purposes, this is what the Siverston oil field looks like now. It will be interesting to see what it looks like in 10 years:

NDIC Hearing Dockets, July 2013

Tuesday, July 30, 2013

20586, Cornerstone, amend Little Butte-Bakken, establish a 1280-acre unit; one well; Burke County
20587, Cornerstone, amend Northeast Foothills-Bakken, establish 2 1280-acre units; wells, Burke
20588, Hess, amend Antelope-Sanish, establish an overlapping 2560-acre unit; 1+ wells, McKenzie
20589, Hess, amend Big Gulch-Bakken and Little Knife-Bakken, establish an overlapping 2560-acre unit; 1+ wells, Dunn
20419, cont'd
20439, cont'd
20590, Petro-Hunt, amend Charlson-Bakken, establish 2 1280-acre units; 7 wells, McKenzie
20591,Whiting, amend Twin Valley-Bakken and Westberg-Bakken, establish an overlapping 2560-acre unit, 1+ wells, McKenzie
20592, Whiting, amend Twin Valley-Bakken, establish an overlapping 2560-acre unit, 1+ wells, McKenzie
20593, G3 Operating, amend rules for a single well
20594, Marathon, amend Bailey-Bakken and Chimney Butte-Bakken, establish 4 overlapping 2560-acre units; 1+ wells, Dunn
20595, Marathon, amend Murphy Creek-Bakken, establish 3 overlapping 2560-acre units, 1+ wells, Dunn
20596, Oasis, amend Camp-Bakken, establish 1 overlapping 2560-acre unit, 1+ wells; McKenzie
20597, Oasis, amend Alkali Creek-Bakken, alter stratigraphic limits, McKenzie, Mountrail, Williams
20598, Oasis, amend Camp-Bakken, alter stratigraphic limits, McKenzie, Williams
20599, Oasis, amend Sanish-Bakken, alter stratigraphic limits, McKenzie, Mountrail
20600, Oasis, amend Cottonwood-Bakken, flaring Mountrail
20601, Oasis, amend Sanish-Bakken, flaring, Mountrail, McKenzie
20602, OXY USA, amend, Snow-Bakken, flaring, Billings
20603, OXY USA, amend Willmen-Bakken, water production, Dunn
20604, OXY USA, amend Little Knife-Bakken, water production, Billings
20605, OXY USA, amend Little Knife-Bakken, water production, Billings
20606, OXY USA, amend Fayette-Bakken, water production, Dunn
20421, cont'd
20422, cont'd
20423, cont'd
20424, cont'd
20426, cont'd
20417, cont'd
20607, QEP, amend Van Hook-Bakken, up to 16 wells on a 3200 acre spacing unit; Mountrail, Dunn
20608, Newalta, waste processing
20413, cont'd
20609, Zargon, commingling
20610, Oasis, 12 wells on some or all of the 1280-acre units currently existing in the Camp-Bakken pool, McKenzie, Williams
20611, Sequel, amend Temple-Bakken, 6 wells on a 1280-acre unit, Williams
20612, Murex, 4 wells on a 640-acre unit, West Tioga-Bakken, Williams
20613 - 20628, Hess, pooling,
20629, Hess, amend Parshall-Bakken, 5 wells on a 640-acre unit, Mountrail,
20630 - 20631, Hess, pooling
20632 - 20633, BR, pooling
20634, KOG, amend Eightmile-Bakken, 8 wells on a 1280-acre unit, McKenzie, Williams
20635, KOR, amend South Fork-Bakken, 8 wells on a 1280-acre unit, Dunn
20636, KOG, pooling
20637, Petro-Hunt, amend Lonesome-Bakken, 5 wells on a 1280-acre unit, McKenzie
20638, Marathon, amend Chimney Butte-Bakken, 7 wells on a 1280-acre unit, Dunn
20639, Marathon, pooling
20640 - 20643, QEP, pooling
20644, OXY USA, pooling

Wednesday, July 31, 2013

20645, Zenergy, legalese for fair share costs, Statoil
20307, cont'd
20646, Statoil, open receptacles for water storage, single pad
20647, Slawson, proper spacing for development of Trailside-Bakken, McKenzie
20648, Slawson, East Tioga-Bakken, multiple laterals from same wells; with a portion of the vertical section of the well open to the Lodgepole, Burke,
20649, EOG, proper spacing for the Boundary Creek-Spearfish, Bottineau
20490, cont'd
20493, cont'd
20494, cont'd
20495, cont'd
20650, Mountain Divide, temporary spacing for the Wigness well, Divide
20651, Mountain Divide, temporary spacing for the Olson well, Divide
20652, Hunt, amend Alexandria-Bakken, flaring, Divide
20653, WPX, amend Heart Butte-Bakken, alter stratigraphic limits, Dunn, McLean, Mountrail
20654, WPX, amend Reunion Bay-Bakken, establish 2 1280-acre units; 7 wells each; Mountrail, Dunn
20498, cont'd
20500, cont'd
20501, cont'd
20655, Baytex, amend Ambrose-Bakken, establish an overlapping 1280-acre unit; 7 wells; Divide
20656, Baytex, amend Whiteaker-Bakken, establish an overlapping 1280-acre unit, 7 wells, Divide
20503, cont'd
20504, cont'd
20505, cont'd
20657, CLR, Jim Creek-Bakken, 14 wells on an overlapping 2560-acre unit, Dunn
20457, cont'd
20461, cont'd
20462, cont'd
20463, cont'd
20467, cont'd
20468, cont'd
20469, cont'd
20470, cont'd
20471, cont'd
20472, cont'd
20473, cont'd
20658, Peregrine, amend Buckhorn-Bakken, establish a 1280-acre unit; 3 wells, Billings
19901, cont'd
20659, SHD, Deep Water Creek Bay-Bakken, establish a 1280-acre unit, 12 wells, McLean
20660, Samson Resources, amend Ambrose-Bakken, establish an overlapping 1280-acre unit, 1 wells, Divide
20661, Samson Resources, extend, amend, West Ambrose-Bakken and/or Ambrose-Bakken to establish 2 overlapping 4160-acre units, multiple wells on each, Divide;
20662, XTO, amend Siverston-Bakken, establish an overlapping 1280-acre unit, 10 wells; and establish an overlapping 2560-acre unit, 1 well; McKenzie;
20663, XTO, Siverston, complete 10 wells on a 640-acre unit, McKenzie
20515, cont'd
20516, cont'd
20516, cont'd
20517, cont'd
20456, cont'd
20483, cont'd
20484, cont'd
20485, cont'd
20512, cont'd
20207, cont'd
20664, Crescent Point, amend West Ambrose-Bakken, allow up to 9 wells within each of 2 1660-acre units, Divide
20665, Sinclair, pooling
20666, Sinclair, risk penalty legalese
20667, Sinclair, risk penalty legalese
20668, Sinclair, risk penalty legalese
20669 - 20674, CLR, pooling
20675, CLR, Pershing-Bakken, complete 14 wells on an existing overlapping 2560-acre unit, McKenzie
20676, CLR, Cedar Coulee-Bakken, complete 14 wells on an existing overlapping 2560-acre unit, Dunn
20677, CLR, North Tioga-Bakken, complete 15 wells on an existing 1280-acre unit, Williams
20678, CLR, Chimney Butte-Bakken, complete 14 wells on an existing 1280-acre unit, Dunn
20679, CLR, Edge-Bakken, complete 10 wells on an existing 1280-acre unit, McKenzie
20680, CLR, SWD, Squires Field, Williams
20561, cont'd
20681, CLR, pooling
20682, Fidelity, risk penalty legalese
20683, Fidelity, risk penalty legalese
20684, Fidelity, risk penalty legalese
20685, Fidelity, risk penalty legalese
20686, Fidelity, risk penalty legalese
20687 - 20691, Liberty Resources, pooling
20692, Samson Resources, pooling
20559, cont'd
20693, Baytex, Plumer-Bakken, 7 wells on each existing 1280-acre unit; 4 units, 28 wells, Divide
20694, Baytex, Musta-Bakken, 7 wells on an existing 1280-acre unit, Divide
20695, Baytex, Bluffton-Bakken, 7 wells on each of 2 1280-acre units, Divide
20696, Baytex, West Ambrose-Bakken, 7 wells on each of 6 1280-acre units; 42 wells, Divide
20697, Baytex, Garnet-Bakken, 7 wells on each of 3 1280-acre units; 21 wells; Divide
20698, GMXR, risk penalty legalese
20699, GMXR, risk penalty legalese
20700, GMXR, risk penalty legalese
20701, GMXR, risk penalty legalese
20702, Strike, pooling
20703, Emerald, commingling
20704, Statoil, SWD, Avoca field, Williams
20705, Triangle, Rawson-Bakken, 8 wells on each of 4 1280-acre units; 32 wells;
20706, Triangle, Rosebud-Bakken, 8 wells on an existing 1280-acre unit;
20707, XTO, Siverston-Bakken, 10 wells on each of 30 1280-acre units; 300 wells; McKenzie;
20708, XTO, Lindahl-Bakken, 8 wells on an existing 1280-acre well; Williams
20709, Zenergy, North Tobacco Garden-Bakken, 8 wells on each of 2 1280-acre units, McKenzie
20710, Dakota Disposals, SWD
20711, Secure Energy, SWD

Random Note: If One Needs A Nice Catch Phrase For A Bakken Blog ...

Frackin' and Trackin'

That about sums up crude-by-rail and the Bakken boom.

Don sent me this link from The Billings Gazette:

BNSF is spending $4.1 billion on capital improvements this year, many of them to serve the Bakken oilfield along the Montana border with North Dakota. Information about where those capital improvements will be made has been scarce. Stock reports for the railroad haven’t been available since 2009, when Warren Buffett’s Berkshire Hathaway Inc. paid $34 billion for all outstanding BNSF shares and took the nation’s largest railroad off the trading board.

But Edwards and others like what they’re seeing locally. Between Glasgow and Williston, BNSF is building several long track sidings this construction season. The sidings are desperately needed because they allow rail shuttles of 100-plus cars to pull over and let other loads by. The only thing better than sidings, Edwards said, would be two rail lines running side by side.

See the linked article for more.

Washington State: More Refineries Preparing For Bakken Crude; The Track Is Back

A huge "thank you" to Don for sending this story/link. It's an incredible story -- on so many levels. The Billings Gazette is reporting:

First story line, the refineries:

More Washington state oil refineries are preparing to accept crude oil shipments from North Dakota: BP's refinery at Cherry Point, and Phillips 66, in Ferndale. The Tesoro refinery is already taking Bakken crude, and the Shell refinery in Anacortes has announced plans to do so, also.

Second story line, the why:

The refineries need to diversify their supply, with oil production in Alaska falling from historic levels. Alaskan oil has been a mainstay for Washington refineries, but that production is falling. At its peak, Alaska produced about 2 million barrels a day, but that has declined to about 500,000 barrels a day.

Third story, the what, economic activity:

The BP refinery is building an almost 2-mile-long rail loop to handle the shipments, and Phillips 66 is planning its own rail terminal. Phillips reported to Whatcom County that it expects to handle one oil train every two days, on average, while BP expects one per day, at most.

The trains are made up of 100 or more tank cars, Phillips reports, with total train lengths of more than one mile. Those trains will travel to and from the refineries on the BNSF line.

Fourth story line, the impact, displacing natural gas plans:

BP once planned to build a large natural gas-fired generating plant on the same site, and obtained permits to build it. Corporate officials eventually decided not to proceed with that project, but some of the environmental groundwork done for the generating plant helped to clear the way for the rail loop.

Fifth story line, rail:

Once the rail terminal is done, Phillips could meet as much as 30 percent of its 100,000-barrel per day demand with rail shipments.

Sixth story line, the boom:

At the same time, the use of fracking technology has generated a boom in North Dakota's Bakken formation, with production there now estimated at 790,000 barrels a day.

Seventh story line, lack of pipelines:

There are no pipelines to move that oil west.

And, of course, the environmental boiler plate story line:

While trainloads of crude oil pose some spill hazards, Holmes observed that every form of oil transport proposes risks.

Eric de Place, policy director at environment-oriented Sightline Institute in Seattle, said that is true.

"I don't want to be alarmist, because oil spills happen on vessels and they happen on pipelines also," de Place said.

But de Place said environmentalists and public officials should pay more attention to the sudden boom in crude oil shipments by rail.

Okay. De Place could have summed it up by saying, "Sh*t happens." And life goes on.

Katie Ledecky Breaks One Of The Oldest National Championship Swimming Records; Beats Teammate By 20 Seconds In 1,500 Freestyle

Granddaughter of one of Williston's best known prairie physicians: Dr Hagan.

Craven-Hagan Clinic. Main Street. Second floor in an otherwise non-descript brick building north of JC Penney's, same side of street. That's where I was tested for "hay-fever" allergies and underwent several years of "allergy shots."

Dr Hagan's granddaughter (if I have the genealogy correct) is setting records. And this is absolutely incredible. From The Salt Lake Tribune and I'm sure you can find the story everywhere:

Katie Ledecky broke one of the oldest national championship records Saturday night in Indianapolis, finishing the 1,500-meter freestyle in 15 minutes, 47.15 seconds. She beat 2012 Olympic teammate Chloe Sutton by 20.6 seconds and broke Janet Evans’ 25-year-old long-course championship record by nearly 5 seconds. It also was the fastest time in the world this year.

By winning the three longest events this week and finishing second in the 200 free, Ledecky has a chance to become the first American woman to compete in the 200, 400, 800 and 1,500 free at the world championships.

Beating an Olympic swimmer by 20 seconds. By the time Chloe finished the race, Katie could have a) dried off; b) do a post-race interview; c) change in to street clothes; and, d) sign autographs.

Twenty seconds must seem like an eternity when coming in second. Wow.

For those of my generation who remember Dr Hagan, but not all the details, here is one part of his story, from The Bismarck Tribune:

In June 1942 Dr. Hagan received his doctor of medicine degree at Rush Medical College, an adjunct of the University of Chicago. He interned at Ancker Hospital, St. Paul, Minn., and on Dec. 22, 1942, was commissioned as a lieutenant, junior grade, in the U.S. Navy Reserve Medical Corps.

Dr. Hagan entered active duty with the U.S. Navy in April 1943 attached to the 1st Marine Division as a combat surgeon.His time in service to his country included four contested landings with the Marines which earned him a Purple Heart, Silver Star, two Bronze Stars and two Presidential Unit Citations, along with many other decorations.

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Flashback: I posted this back on June 18, 2012, which included a note about Katie.

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Sunday, June 30, 2013