- September, 2014: 3.25 million bopd; not seen since at least 1981; fourth consecutive month over 3 million bopd
- state production has doubled in less than 3 years
- if Texas were a country, it would rank #7 in oil production
“Will this industry slow down? Certainly,” [CLR/CEO Harold] Hamm said today in a telephone interview. “Nobody’s going to go out there and drill areas, exploration areas and other areas, at a loss. They’ll pull back and won’t drill it until the price recovers. That’s the way it ought to be.”
CNBC has been in Williston over the weekend/today -- I don't know for how long. I won't be posting any links to any of their stories specific to the Bakken (if I do, it will be very few). I think there are too many unknowns at the moment to start pinging with all the various videos. We will know more six months to a year from now. I'm not a bit worried, though I could be whistling past the graveyard as they say. However, I do have a comment: if the Chinese were to flood the US or the EU with solar panels, selling them below US/EU/Siemens/GE cost, one can assume what the US and the EU would do. I'll come back to this later when I'm in the mood. I am surprised by my own conclusion. But too busy to get into this now.
Active rigs:
| 12/1/2014 | 12/01/2013 | 12/01/2012 | 12/01/2011 | 12/01/2010 | |
|---|---|---|---|---|---|
| Active Rigs | 189 | 191 | 182 | 196 | 161 |
Compare with last Friday, two or three days ago, depending how you count. This is incredible, considering how miserably cold and messy the weather has been in the Bakken. The good news: the 8 - 15 day forecast looks great for North Dakota.
For newbies, the "active rig count" is taken directly from the NDIC website. It is subject to .... if this information is important to you, scroll through the list on a daily basis.
Wells coming off the confidential list over the weekend and today were posted earlier; see sidebar at the right.
Wells coming off the confidential list Tuesday:
- 26844, drl, XTO, Roxy 21X-6A, West Capa, no production data,
- 27491, conf, Murex, Joey Danyale 27-34H, Writing Rock, producing, a very nice well; now off confidential on 12/9/14
- 27548, drl, CLR, Lansing 3-25AH, Banks, no production data,
- 27709, drl, BR, Haydon 44-22TFH-ULW, Elidah, no production data (wow, the Elidah is active)
- 27951, 793, CLR, Raleight 5-20H1, Dollar Joe, t10/14; cum 1K 9/14;
- 28216, drl, XTO, Rieckhoff 21X-3G, North Tobacco Garden, no production data,
- 28286, drl, XTO, Carus 24X-36C, Lost Bridge, no production data,
- Operators: Whiting -- all three
- Fields: Arnegard (McKenzie), Sanish (Mountrail)
- Comments:
- 23301, 3,042, Statoil, Timber Creek 13-24 2H, Alexander, t10/14; cum 7K 10/14;
- 25530, 1,383, Zavanna, Sylvester 32-29 2H, Springbrook, t11/14; cum --
- 27003, 3,182, Statoil, Brown 30-19 3H, Alger, t11/14; cum --
- 27307, 2,244, BR, Copper Draw 21-27MBH, Johnson Corner, 4 sections, t10/14; cum 5K 10/14;
- 27309, 2,004, BR, Copper Draw 21-27TFH, Johnson Corner, 4 sections, t10/14; cum 9K 10/14;
- 27696, 2,204, BR, Haymaker 41-15TFH-A, Elidah, t11/14; cum --
- 27749, 602, EOG, Wayzetta 51-33H, Parshall, one section, t11/14; cum --
- 27750, 467, EOG, Wayzetta 58-33H, Parshall, one section , t11/14; cum --
- 27751, 799, EOG, Wayzetta 59-3334H, Parshall, two sections, t11/14; cum --
- 27777, 359, Oasis, State 5792 31-15 7B, Cottonwood, t8/14; cum 17K 10/14;
- 27860, 2,351, KOG, P Wood 154-98-16-23-14-1H3, Truax, t10/14; cum 4K 10/14;
- 27861, 1,946, KOG, P Wood 154-98-16-23-15-1H, 4 sections, Truax, t11/14; cum --
- 27862, 2,205, KOG, P Wood 154-98-16-23-14-1H3A, Truax, t10/14; cum --
- 27863, 2,080, KOG, P Wood 154-98-16-23-14-2H3, Traux, t11/14; cum --
- 28235, 683, Statoil, Myron 9-4 7H, Squires, t11/14; cum --
- 19859, 1,102, KOG/Newfield, Chameleon State 153-97-16-21-1H, Banks, t7/12; cum 98K 10/14;
- 22621, 1,561, KOG/Newfield, Chameleon State 153-97-16-21-2H, Banks, t7/12; cum 79K 10/14;
It is disappointing to read some of the news articles predicting what will happen to the Shale Boom in the United States. One "false" report from Reuters on Nov. 21st "This week, drillers removed most oil rigs from the Niobara in Wyoming and Colorado, Granite Wash in Texas and Oklahoma, Permian in Texas and New Mexico, and Williston in North Dakota and Montana. They, however, added rigs in the Barnett in Texas and Cana Woodford in Oklahoma, according to the data."
ReplyDeleteThere were no oil rigs removed from the Bakken...in fact the number of rigs has risen.
I also read a story in the Bismarck Tribune a couple weeks back quoting Lynn Helms as saying some of the counties will see a significant reduction in rigs and permits like Divide and Williams counties. At the time there were 36 rigs drilling in Williams county, today there are 43? So I think there is a lot of false speculation and false quotes. Why would rigs cut back in Williams county which is in the top 4 counties...but not from any of the other counties on the fringe of the Bakken. I don't believe it and the past 2 weeks has proven these stories as false. These mis quotes and speculated and fabricated stories is what causes everyone to get all stirred up and panic about a potential bust. Helms maybe was mis quoted and probably said Divide, Burk, Stark, etc...
Yes, I agree completely, that's why I'm not posting/linking the CNBC videos. This is way too early. I am still quite optimistic, though I may be whistling past the graveyard, as they say.
DeleteBy the way, what could make this "hysteria" worse is this is happening just when winter sets in and historically things slow down anyway. The pundits will jump on any decrease in numbers as evidence of a "bust" when in fact it may have to do more with the weather than anything else.
Again, the current challenge in the Bakken is now about profitability, it's about liquidity.
Having said that, I did post/link one CBNC video the other day with regard to the overall picture.
There are so many stories, so many moving parts. But whenever there are challenges, there are also great opportunities. For me, we know what the Bakken is capable of; that's all I need to know.