Midday market notes:
- trading at new highs: CLR, BHI, CRR, EOG, HP, SLB,
- many others of interest trading near new highs
- oil holds unto its recent gains; solidly over $101
Carbo Ceramics is surging over 4% today, almost up $7. Mike Filloon suggested sand would go parabolic this year; was anyone listening? I hope so.
SLB is on its way to a $100-stock. BHI is up over 2%. This is just after oil companies said they were going to "crack the whip" on oil service companies.
It is not the Crimean that is driving the price of WTI oil. It's something else, and I posted that "something else" earlier today.
By the way, Brian just sent me an incredible link. Here is the link:
http://www.albertaoilmagazine.com/2014/03/horizontal-revolution-eor/... and here is his comment:
Article is about injecting natural gas back into the Bakken formation to recover more oil. Imagine a salt dome storage in North Dakota. Use the natural gas for EOR and reduce flaring. Rarely do you get a win-win (or a "twofer") like that. This should add value to the willingness to store more natural gas.When I get a chance, this is worthy of a stand-alone post.
There are many ways to skin a cat. I thought the only solution to natural gas was gathering and processing; it looks like one could inject it directly back into the "Bakken salt dome." I wouldn't think it would have to be processed; simply gathered and re-injected into the ground where it came from.
Hey, by the way, look at that first paragraph in that linked story. What do you recall was the percent of recovery in primary production from the Bakken? Yes, you are correct. Initially we were told about two (2) percent. Then even I, layperson, could see they were getting 3 to 5% and there were hints in corporate presentations that primary production might be as high as 8%. But did anyone ever see a 15% primary recovery rate bandied about? I don't think so.
This speaks volumes why operators have paid upwards of $20,000 and even more for mineral acreage in the Bakken. If you were doing your analysis based on 5% recovery, think what 8% means. Think what 15% means.
This is why I can never sleep in late in the morning; I am too excited to see what news is coming out of the Bakken.
Bruce, I don't mean to cause you problems there is no salt dome in North Dakota I was being figurative. What if kind of stuff. We do have salt layers and some are considered to be able to be be leeched whether they can subsquently become storage I just don't know. My point is if it could be stored than it has value as an EOR agent and future resell. The key would be were in North Dakota could it be stored in sizable volumes. I think more and more people are beginning the process of how do we get the most out of these fields and the mindset of the gas being unvaluable is just wrong. However, to send it back into a formation usually necessitates the drilling of an injection well and the unitization of the field. I apologize for my figurative use of salt dome. I believe that is what is used for most storage and they are in the south if my memory serves me well/
ReplyDeleteOh, I knew that -- that "Bakken salt dome" or "North Dakota salt dome" was figurative speech. That's why I put "Bakken salt dome" in quotes. I knew exactly what you meant. I may continue to use that metaphor; it paints the picture very, very well. I was blown away by the story; I think it's a great story. Thank you for clarifying, and allowing me an opportunity to clarify in case anyone is reading this "wrongly."
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