Friday, August 23, 2013

Could New York State Move To Approve Fracking?

It's very possible, according to Motley Fool.

Nine (9) New Permits -- The Williston Basin, North Dakota, USA -- Several Nice Wells Being Reported

Active rigs: 183 (steady)

Nine (9) new permits --
  • Operators: Petro-Hunt (3), Emerald Oil (3), Hunt (2), Oasis,
  • Fields: Charlson (McKenzie), Tyrone (Williams), Boxcar Butte (McKenzie), Musta (Divide), Alexandria (Divide)
  • Comments:
Wells coming off confidential list were posted earlier; see sidebar at the right.

A great example of the "manufacturing" phase in the Bakken: ten (10) producing wells completed:
  • 24481, 1,824, BR, CCU Meriwether 24-19TFH, Corral Creek, t7/13; cum --; unitized spacing, 
  • 24482, 2,963, BR, CCU Meriwether 24-19MBH, Corral Creek, t7/13; cum -- ; unitized spacing,
  • 24357, 724, Hess, EN-Hermanson 154-93-0235H-3, Robinson Lake, t7/13; cum --
  • 24505, 659, Hess, BB-State 151-96-3625H-4, Blue Buttes, t8/13; cum --
  • 24370, 770, Hess, EN-Weyrauch A-154-93-1720H-5, Robinson Lake, t8/13; cum --
  • 22803, 746, Hess, LK-Obrigewitch 146-97-3427H-4, Little Knife, t7/13; cum --
  • 24506, 1,065, Hess, BB-State 151-96-3625H-5, Blue Buttes, t7/13; cum --
  • 22802, 412, Hess, LK-Dukart 145-97-0310H-3, Little Knife, t7/13; cum --
  • 24607, 1,622, KOG, P Wood 154-98-4-27-34-14H3, Truax, t7/13; cum --
  • 23888, 2,984, Statoil, Gyda 31-6 1H, Briar Creek, t7/13; cum --
Temporarily abandoned:
  • 16177, 128/TA, Whiting, Mork 24-8SESW 8-149N-99W, Pleasant Hill, a Red River/Duperow well, t1/07; cum 66K (Red River); last produced 10/11;
From the well files:
  • Statoil's Gyda: spud December 2, 2012; TD, December 30, 2012; middle Bakken; target zone ten feet thick; Kinderhook Lime mentioned (just above the Bakken); in the target zone (middle Bakken) gas units as high as 5,054 units
  • Hess' Dukart well: spud July 19, 2012; TD, March 21, 2013; Three Forks; targeting a 10-foot target zone. In the target zone, gas averaged around 120 units, but trip gas peaked to 9,800 units.
  • KOG's P Wood well: part of the Polar Pilot Project (Williams County) or the Smokey Pilot Project (McKenzie County); all wells in these two projects will have a 28-stage fracture; 4 million lbs ceramic proppant; for a graphic of these wells, click here;
  • Hess' State well: middle Bakken; 
  • Hess' Weyrauch well: middle Bakken;
  • Hess' Obrigewitch well: middle Bakken;
  • Hess' Hermanson well: third lateral well on a scheduled five-well pad; middle Bakken;
  • BR's Meriwether wells: one middle Bakken; the other Three Forks

Random Update On BR's Copper Draw Wells


Copper Draw Wells
28348, conf, BR, Copper Draw 41-27TFH, Johnson Corner, 
28345, conf, BR, Copper Draw 41-27MBH-ULW, Croff,
28273, conf, BR, Copper Draw 11-27MBH, Johnson Corner, 28272, conf, BR, Copper Draw 11-27TFH ULW, Pershing,
27309, drl, BR, Copper Draw 11-27TFH, Johnson Corner, 
27307, conf, BR, Copper Draw 21-27MBH, Johnson Corner,
23648, 2,725, BR, Copper Draw 24-22MBH 3SH 4 sections, Johnson Corner, t7/13; cum 158K 7/14;   
23646, 2,325, BR, Copper Draw 24-22TFH 2SH, 4 sections, Johnson Corner, t7/13; cum160K 7/14;
17271, IA/312, BR, Copper Draw 34-34H, Blue Buttes, t6/08; cum 124K 6/14; 
Original Post

Note: this page needs to be updated. In addition to the Copper Draw wells, there are Lillibridge wells on the same pad (May 1, 2014).
  • 28273, loc, BR, Copper Draw 11-27MBH, Johnson Corner,
  • 28272, loc, BR, Copper Draw 11-27TFH ULW, Johnson Corner,
  • 23646, 2,325, BR, Copper Draw 24-22TFH 2SH, Johnson Corner, t7/13; cum126K 3/14;
  • 23648, 2,725, BR, Copper Draw 24-22MBH 3SH, Johnson Corner, t7/13; cum 114K 3/14;
23648: The well file on the middle Bakken Copper Draw well: 30 stages; 3.23 million lbs; middle Bakken; spud November 13, 2012; total depth of 20,027 feet on December 15, 2012. Geologist's note: "just want to mention that I don't normally see this type of trip gas at the curve kick-off point: a maximum value of 3,145 gas units with a 10' flare." Gas units during the lateral itself were below 900 units, it appears; although trip gases as high as 3,367 units with a 30' flare were noted.

23646: The well file on the UPPER Three Forks Copper Draw well: 30 stages; 3.32 million lbs; sand and ceramics; spud February 11, 2013; reached total depth on March 21, 2013; a fairly deep/long well at 21,236 feet; the flare ranged form 1 - 7 feet high; connection flares reached as high as 10 feet; at 1 - 7 feet, the background gas averaged 1,700 units.

There are four wells on this pad; these two horizontals run south; a third runs north, and the fourth, still confidential, will also probably run north.

There are three horizontals in this 1280-acre spacing unit (27/34-150-96): the two above and:
  • 17271, 312, BR, Copper Draw 34-34H, t6/08; cum 89K 6/13; a small amount of natural gas continues to be flared; most is being sold; the NDIC scout ticket says this well is in Blue Buttes, but the GIS map server clearly shows this well in the current Pershing oil field. In fact, the two wells above, running south, are clearly in the Pershing field, also; the horizontals from the 4-well pad running north will be in Johnson Corner. The wells are sited in Johnson Corner [#17271 is sited in Pershing oil field]. This well, #17271, is still producing about 1,000 bbls of oil/month, though in June, 2013, it produced only 132 bbls over three days.

The Williston Wire

Headlines only; no links. It is easy to subscribe to The Williston Wire.

Phil Jackson visits Williston, Babe Ruth World Championship Series.

US Postmaster General pledges improvement in mail delivery in the oil patch [I remember blogging the very same story almost two year ago].

Continental Resources reiterates conviction that LOWER Three Forks has multiple pay zones.

From the Winnipeg Free Press: the evolution of Boomtown, USA; the fastest-growing US with a population between 10,000 and 50,000.

Acme Tools opens in Williston.

Dakota Landing Hotel to open September 3, 2013.

Neset Consulting builds new office space, community gathering area in Tioga. The Consulting group now has two divisions and more than two dozen employees. Ms Kathy Neset started the company in 1980. [Just between you and me and the bedpost, I "love it" when I see a Neset Geology report at the well file.]

Dickinson development director says the city is near capacity on apartment units.

Allegiant will provide air travel, Bismarck/Orlando starting November 23, 2013; twice weekly flights.

Oil Up Nicely Today

The Yahoo! Finance link to the oil price is still broken.

But Bloomberg never fails. Near the end of the trading day, WTI is up $1.40 to $106.43 and Brent is up $1.11 to $111.11.

I don't have access to CNBC and I don't see anything on Yahoo! Finance so I don't the back story, but it probably doesn't matter in the big scheme of things.

Platts is reporting:
NYMEX October crude settles $1.39 higher at $106.42/b with Middle East/North Africa strife and short covering.
Don't you just love when those two words are next to each other: "short covering"?

I see KOG is over $10.

Disclaimer: This is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here. 

SandRidge had a nice day, up 2%, but over at SeekingAlpha, someone is saying this $5 stock is headed to $10

Chesapeake also had a huge day, continuing its recent run. Forbes is suggesting greater gains.

Please, Please Me: You Have To Read RBN Energy Today; Friday Links, News, And Views; Canadians Look To Export Crude Oil Via The US; Statoil With Another Huge IP

The Yahoo!Finance link to NYMEX oil is still broken. Brent is at $110; WTI is down slightly to just below $105.

It looks like the board has finally had enough: Steve Ballmer to retire within 12 months. MSFT shares "jump."


Throughout 2012, I talked incessantly about the "great recession" of 2013. I guess it's all in the eye(s) of the beholder(s). Today, the lede from Bloomberg:
The next chairman of the Federal Reserve faces an alarming possibility: the new normal for the economy is even worse than advertised.
The long-run potential growth rate for gross domestic product has slid to around 1 3/4 percent per year, from an average rise in GDP of 2 1/2 percent since 1990, according to economists at JPMorgan Chase & Co., the largest U.S. bank by assets. That would be the lowest level since World War II and below the 2 percent mark that Pacific Investment Management Co. pegged as the new normal for the economy.
Normally that news would depress me but I'm in such a great mood, nothing is likely to upset me today. I need to get back on my meds. The cycle is generally three weeks of mania, followed by two to three days of depression. The mania never results in any psycho-social trouble, but the depression can be pretty bad. Fastest way out of depression for me: music. 


Wells coming off the confidential list have been posted; Statoil has another huge IP

Lots of "good stuff" in the Journal today.

First, active rigs: 182.
A reader noted that BEXP has but six active rigs, and one of the rigs was drilling a salt water disposal (SWD) well. He found that depressing for the Bakken. I wrote back, saying the number of BEXP permits this year is even more depressing (the following data is corrected; see first/second comment):
In 2011: BEXP with 131 permits
In 2012: BEXP with 234 permits
In 2013: BEXP with 35 permits; Statoil with 31 permits at this pace, on track for 104  permits for CY 2013

I believe BEXP had a high of 16 rigs at one time (in 2012 Statoil talked of16 rigs; whether they got there or not, I don't know). 
If you scroll down at this post, you will see that BEXP had 16 active rigs on August 22, 2011. I have not looked at number of rigs by operator in a long, long time. I guess I lost interest somewhere along the way. I suppose, for archival purposes, I should that do that sometime.

RBN Energy: an exceptionally good article on the economics of the "unconventional oil and gas" revolution. Late last night I commented on the fact that elsewhere folks who should know better seem to have no clue with regard to the economics of the Bakken. Perhaps this RBN Energy analysis will help (but I doubt it -- one can lead a horse to water but you can't make it drink).

Please, Please Me, The Beatles



Delta Airlines: health insurance costs will increase by $100 million next year, some due to ObamaCare.

WSJ Links

Several good articles today:
  • Canada will look to export its oil to Europe, Asia via the US Gulf of Mexico ports
  • Sears in big trouble; lousy, lousy appliance sales
  • H-P also in big trouble: I give Meg Whitman one more year (this is her fourth year of "turnaround); the company will either break up, or go private
  • Greenland quietly becoming a satellite of China (as are other far-flung outposts around the world)
  • Syria is finally back in the news
  • NASDAQ trading system crashes (again)
  • California's health exchange might face delay
The Greenland story:
Fortune hunters taste opportunity. Prospectors from various countries, encouraged by Greenland's investment-friendly policies, have spent over $1.7 billion developing potential projects. A British company is going for iron ore. Scots are testing for undersea oil. Australians are pursuing rare earths. Canadians are digging for rubies, while giant Chinese mining and engineering concerns are jockeying for position.
In Greenland, the Arctic is in play.
The big story: the US won't play in the Arctic. Too pristine. They will let the Chinese and Russians and Canadians and Scots and Australians and Hungarians play.  2016 can't come soon enough.

Following the Greenland story, this is by far the most interesting story in The Journal today -- Canada looks to sell its oil beyond the US. If you have the time, grab a Mayor Bloomberg-sized cup of coffee and a hard copy of this article and enjoy the full article:
Canada's landlocked oil-sands producers have sought to access markets beyond North America in recent years, a quest that has taken on greater urgency as U.S. crude output booms. But with few direct outlets overseas, some have started considering Canadian crude exports from the U.S. Gulf Coast.
For decades, a combination of high demand and declining domestic supply in the U.S. made the idea of outbound shipments a nonstarter.
Exporting American oil remains all but taboo for producers in the U.S., which have been effectively prohibited from exporting since 1975 amid the Arab oil embargo.
The Canadian government imposes no such restrictions, and it's technically legal to re-export crude from the U.S.—if it has been kept completely separate from domestically produced oil. The U.S. Commerce Department has approved eight licenses to re-export crude oil since last October.
But the risk of routing high volumes of Canadian crude through the U.S. is more political than legal. Any plan to re-export significant volumes of Canadian crude is certain to face strong opposition from U.S. lawmakers who view that as end-run around U.S. law. It could also inflame debate about the proposed Keystone XL pipeline, which would provide a new direct route from Canada's oil sands to Gulf refineries. 
There are so many story lines here. One word: fungible. Okay, a second word: commodity.

 The California health exchange story:
California's new health-insurance exchange, the biggest of the state marketplaces emerging under the federal health overhaul law, has started telling insurers that there's a possibility it won't be ready to sign up consumers for coverage online when it launches on Oct. 1.
A spokesman for Covered California, the state agency creating the exchange, said the technology for its enrollment process is still being tested, and "we are fully planning on being fully functional on Oct. 1." But, he said, "we've communicated to the health plans that there's a possibility, depending on the success of the tests, that we would have an aided enrollment and work toward a self-enrollment shortly thereafter."
If a tree falls in a forest and no one is there to hear it, does the falling tree make a sound?

H-P's separation anxiety story
More worrisome is that Ms. Whitman's strategy seems misguided. Faced with relentless price pressure, H-P often chooses not to compete for lower-margin sales opportunities, aiming to maximize profitability. But in the long run the outcome may well be the opposite. Because many of H-P's products are commodities, its only sustainable advantage is its size. That helps save on purchases of components such as Intel processors for PCs. When H-P cedes market share to rivals, it also erodes that negotiating leverage.
The best news for PFC Bradley Manning who was just handed a 35-year-prison term for leaking classified information: free health care for gender-change medical and surgical therapy. And he will probably serve less than a third of his sentence, meaning he can start dating again in his mid-30's. Who says America isn't the best country in the world where we can all pursue happiness?

The Sears story:
Sears Holdings Corp. built its Kenmore brand into the dominant force in U.S. major appliances over the better part of a century. It only took a few years of tinkering by hedge fund manager Eddie Lampert to take it apart.
The breakdown was evident on Thursday, when Sears said weakness in home appliance sales caused a key measure of sales at existing U.S. stores to shrink. That contributed to a poor showing for the three months ended Aug. 3, when Sears' net loss deepened to $194 million as overall sales fell 6.3%.
The article goes on to say that it has to do with switching to a different manufacturer. Perhaps. But 30+ years ago, I learned that good sales people could sell anything to anybody.

Natural gas futures rose 2.5% yesterday.
Natural-gas prices climbed to a four-week high after government data showed a smaller-than-expected increase in the amount of gas in storage, implying a pickup in demand.
Analysts said the modest inventory rise suggested greater usage of natural gas, rather than coal, to generate electricity. A sharp selloff in natural gas earlier this month made the fuel more economical. 
I'll cut this article out and sent it to my wife. We visited the Louvre a dozen times while serving overseas: I can't count the number of times I walked up those huge stairways, passing the "Winged Victory of Samothrace." Great article. I actually read the entire article.

And for The Journal today, I will finish with this link: five famously delayed movie productions. I still think "The Big Sleep" is highly overrated. It is an extremely important film for various reasons, but it would not make my top-ten list by any stretch. I probably need to see "The Outlaw" with Jane Russell -- her debut film.


The StarTribune provides an update on the Enbridge Sandpiper pipeline project
Enbridge Energy is finalizing plans to build a 600-mile pipeline to transport North Dakota crude oil to Superior, Wis., and soon will begin contacting Minnesota property owners along two proposed paths across the state.
Although two proposed pathways across 11 northern counties are under review for the $2.5 billion Sandpiper Pipeline, an Enbridge official said Thursday that the company is leaning toward a route that runs through Clearbrook, Minn., sweeps around Park Rapids and then turns east.
The $2.5 billion project would employ as many as 3,000 workers in Minnesota and North Dakota during construction that could start in late 2014, said Christine Davis, a community relations consultant for Calgary-based Enbridge.

The Fukushima radiation leak is out of control. And our domestic activist environmentalists are worried about CO2 and a two-degree rise in global temperature over the next century (currently paused, for the past 15 years).

From the linked article:
The result was a rush order for steel tanks supplied by Taisei Corp, Shimizu Corp and Hazama Ando that were relatively cheap and could be put together quickly, according to the utility and three people involved in the project.
The tanks, which stand as tall as a three-storey building, were shipped in pieces and bolted together as makeshift repository for the cascade of water being pumped through the reactors of Fukushima every day to keep fuel in the melted cores from overheating.
One wonders if Canada or the US had a similar nuclear meltdown whether activist environmentalists would physically and legally block megaloads from going over US Highway 12 in Idaho? The hypocrisy is boundless.