Wednesday, June 18, 2014

The Bakken Spreads Out; Quantum Energy Looking To Build Five "21st Century Energy Centers"

Updates

November 3, 2014: Quantum Energy announces it has secured its first site. Stanley area.

August 21, 2014: whoa, whoa, whoa -- east of billings blog is reporting:
It didn’t take me long (maybe an hour or two) to find that Mr. Andrew J. Kacic, formerly of Arizona, has a fairly extensive history of shady business dealings. You don’t have to take it directly from me or from jilted business partners. You can take it directly from court documents I found from Arizona from his divorce proceedings. He has numerous other civil cases listed in which he was the defendant, mostly it seems for not paying his bills, but the divorce proceedings cover a complex web of business dealings that you can read about below. If you want to know the details of how I found out he was the same person, the information is at the end of this blog.
I think it is important to emphasize that the divorce is irrelevant. In fact, Andrew J. Kacic is irrelevant. What is relevant is the lack of due diligence by our Yellowstone County Commissioners John Ostlund,  Jim Reno, Bill Kennedy and Steve Arveschoug, executive director of Big Sky Economic Development. From my research, it seems as if Mr. Kacic starts businesses, tries to find investors and then uses the company and a private non-profit “foundation” for his own personal piggy bank while actively trying to avoid taxes and creditors. But don’t take it from me, you can read all about for yourself. It reads like a real life version of Arrested Development.
July 1, 2014: I think this is the same information, but I did not read entire article

June 19, 2014: my hunch was correct. It is unlikely that we will see any of these refineries in my investing lifetime. 
 
Original Post

The Dickinson Press is reporting more expansion in the Bakken area. Quantum Energy plans to build five oil refineries (mostly likely to produce diesel fuel) in the Bakken area, to include Baker, MT; Fairview, MT; and Minot, ND.

A typical refinery, such as the one proposed for Baker, MT:
The facility, which would be run by Quantum Energy, Inc., would refine 20,000 barrels of oil to produce 7,000 barrels of diesel a day. It would supply fuel to other energy companies and agricultural producers within a 100-mile radius, cutting back on diesel transported from out of state to meet oilfield-related demand.
Based on what I have seen covering the Bakken since 2007, we won't see any of these refineries in my investing lifetime.The importance of this article is to show the potential of the Bakken. Or at least what folks are thinking.

10 comments:

  1. Bruce, My understanding is this Baker Refinery could be one similar to the one near Dickinson being Built by Calumet and MDU. The Dickinson Refinery was announced in 2012 and Is supposed to be up and running by the end of 2014.. the announced pipeline today is supposed to supply some oil to it.
    This is excerpt From MDU. don




    MDU Resources Group, Inc. and Affiliates of Calumet Specialty Products Partners, L.P. Announce Plans to Study Diesel Refinery Joint Venture

    Feb 21, 2012


    02/21/2012
    Bismarck, ND

    MDU Resources Group, Inc. (NYSE: MDU) through its wholly owned subsidiary, WBI Holdings, Inc. (WBI) and Calumet Refining, LLC, an entity owned by the existing owners of the general partner of Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (“Calumet”) today announced they have signed a nonbinding letter of intent to explore the feasibility of jointly building and operating a 20,000 barrel per day diesel refinery in southwestern North Dakota. The facility would process Bakken crude and market the diesel within the Bakken region.

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    1. You could be correct. It will be interesting to watch this play out.

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  2. I'm curious why they would build several small refineries and not one big one somewhere in the middle of all these new refineries they are possibly going to build? I'm guessing they will be portable like the Dickinson one, so in case things do slow down or get overbuilt, they can dismantle and move it somewhere else in the United States?

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    Replies
    1. Yes, it is strange ... way above my pay grade. I have no idea, but I could certainly a lot of ideas, but that and $1.89 will get a cup of coffee at Starbucks.

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  3. That's a pretty cheap cup :-) I want to know which Starbucks you get your coffee at?

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    1. Dallas/Ft Worth area; but it's just a "tall" -- the smallest size they got -- I never buy any of the fancy drinks. And then free refills. Smile.

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  4. Admire your will power. Personally addicted to mocha's

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    Replies
    1. Not knowing where I would end up on any given day in the military, I never wanted to add sugar/cream to my coffee. I assume there would always be coffee available, but never sure if there would be cream/sugar, so never used it.

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  5. Re Quantum Energy

    http://www.eastofbillings.com/tax-fraud-unpaid-bills-and-false-claims-what-billings-needs-to-know-about-the-proposed-oil-refinery/

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    Replies
    1. Sounds like another company some years ago with huge plans to drill the Lodgepole Reefs. They actually drilled but all wells were dry.

      Great link; thank you, much appreciated.

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