For Investors Only -- CLR Trading At A New High; Natural Gas Storage In The Bakken Formation

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.

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

By the way, this is why this is not an investment site. Based on news coming out only last week, I would have advised folks to sell CLR. Even UBS downgraded CLR on March 6, 2014, and I would assume those guys and gals are pretty smart.

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.