Wednesday, January 22, 2014

Grinnell Oil Field, The Bakken, Williston Basin, North Dakota

The Grinnell oil field has not seen much action because most of it is "under" the Missouri River, in the southeast corner of Williams County/northeast corner of McKenzie County. Other than the fact it is "under" the River, it is very near, if not smack dab, in the middle of the sweet spot of the Bakken.

Grinnell oil field is a long, rectangular field, approximately 4 sections by 11 sections, and the major portion of it is under the river. Three important oil fields abut the Grinnell field: Charlson to the southeast, Banks to the southwest, and Truax to the northwest. It appears with rare exceptions all sections are held by one horizontal well. One can tell it is a "new" field for Bakken operators: there are no 640-acre drilling units in the Grinnell oil field; they are all 1280-acre drilling units in the field.

I think it's going to be a great field. The field is pretty much owned by the XOM subsidiary, XTO.

Permits

2014
  • 27662, conf, XTO, Star Federal 21X-14A,
  • 27661, conf, XTO, Star Federal 21X-14E2,
  • 27660, conf, XTO, Star Federal 21X-14E,
  • 27518, conf, XTO, Guy Federal 24X-35F2,
  • 27517, conf, XTO, Guy Federal 24X-35B,
  • 27516, conf, XTO, Guy Federal 24X-35F,
  • 27515, conf, XTO, Guy Federal 24X-35A,
  • 27514, conf, XTO, Guy Federal 24X-35E,
2013
  • 26864, drl, XTO, Ruby State Federal 34X-36E,
  • 26863, 442, XTO, Ruby State Federal 34X-36A, t9/14; cum --
  • 26862, drl, XTO, Ruby State Federal 34X-36B,
  • 26861, drl, XTO, Ruby State Federal 34X-36F,
  • 26315, 1,107, XTO, Kanyer 11X-15E, t5/14; cum 20K 8/14;
  • 26314, 1,423, XTO, Kanyer 11X-15A, t4/14; cum 34K 8/14;
  • 26313, 681, XTO, Kanyer Federal 11X-15F, t5/14; cum 17K 8/14;
  • 26312, 1,350, XTO, Kanyer Federal 11X-15B, t5/14; cum 36K 8/14;
  • 26066, conf, XTO, Arley 21X-18F,
  • 26065, conf, XTO, Arley 21X-18A,
  • 26064, conf, XTO, Arley 21X-18E,
  • 24858, 1,790, XTO, Star 21X-14F, t7/13; cum 72K 8/14;
2012
  • 24510, 1,597, XTO, Mendenhall 12X-18H, t5/13; cum 173K 8/14;
  • 24385, 1,818, XTO, Carter 14X-12D, t5/13; cum 149K 8/14;
  • 24384, 1,677, XTO, Carter 14X-12H, t5/13; cum 126K 8/14;
  • 23767, 1,405, XTO, Mendenhall 12X-18C, t5/13; cum 173K 8/14;
  • 22890, 1,340, KOG, Koala 154-97-15-34-27-1H3, t2/13; cum 73K 8/14;
  • 22698, 1,320, XTO, Star 21X-14B, t7/13; cum 82K 8/14;
2011
  • 21289, 1,682, XTO, Ruby State 34X-36G, t10/12; cum 107K 8/14;
  • 20906, 1,965, XTO, Arley 21X-18B, t4/12; cum 142K 8/14;
  • 20582, 1,645, XTO, Ames 31X-13C, t11/12; cum 152K 8/14;
2010
  • 20098, 2,315, XTO, John 33X-9, t3/12; cum 182K 8/14;
  • 19779, 1,353, KOG, Koala 154-97-15-34-27-2H, t2/13; cum 96K 8/14;
  • 19134, 1,171, XTO, Kelvie 11X-15, t10/10; cum 163K 8/14;
  • 19127, 1,319, XTO, Carter 14X-12, t11/10; cum 147K 8/14;
  • 19257, 1,027, XTO, Michael State 31X-16, t4/11; cum 182K 8/14;
2009
  • 18420, 664, XTO, Barstad 32X-13, t2/10; cum 101K 8/14;
  • 18480, 471, XTO, Christopher 21X-12; t8/10; cum 95K 8/14;
  • 18441, 1,067, XTO, White Federal 34X-34, t11/10; cum 125K 8/14;
  • 18333, 792, XTO, McPete Federa 34X-34, t11/10; cum 132K 8/14;
  • 18100, 776, XTO, Mendenhall 12X-18, t12/09; cum 184K 8/14;

Another List Of Best-Managed And Worse-Managed States

I always think these lists ranking the states are bogus and/or meaningless, unless, of course, North Dakota is at the top. LOL.

So, 24/7 Wall Street has a very good list of best managed states. North Dakota is ranked #1. Actually, I think it's more impressive that states like Iowa, South Dakota, Utah, and Vermont are in the top ten. Likewise, there is no excuse that Connecticut, Illinois, and Rhode Island are among the ten worse managed states.

Not Much Going On -- North Dakota Oil And Gas Lease Sale -- February 4, 2014; Maybe We Should Just Let EOG Drill The Rest Of The Bakken

Link here for next month's oil and gas lease sale in North Dakota. Not very interesting.

Wells coming off confidential list Thursday:
  • 24139, 580, Whiting, Talkington Federal 41-27PH, Park, t7/13; cum 22K 11/13;
  • 24140, 653, Whiting, Talkington Federal 21-27PH, Park, t7/13; cum 24K 11/13;
  • 24141, 509, Whiting, Talkington Federal 11-27PH, Park, t7/13; cum 15K 11/13;
  • 24849, 1,661, QEP, MHA 8-06-07H-147-92, Heart Butte, t11/13; cum 12K 11/13;
  • 25043, 296, EOG, Burke 42-3204H, Parshall, t8/13; cum 75K 11/13;
  • 25044, 332, EOG, Burke 41-3204H, Parshall, t8/13; cum 123K 11/13;
**************************

25043, see above, EOG, Burke 42-3204H, Parshall:

DateOil RunsMCF Sold
11-20133222611136
10-2013296777411
9-201382010
8-201335480


 25044, see below, EOG, Burke 41-3204H, Parshall:

DateOil RunsMCF Sold
11-20133258710679
10-20132926310435
9-201331391417
8-2013254620
7-201333840

Somehow Barnes And Noble Is Being Ignored

September 25, 2012, I started "my series" about the "demise of the big box store." That was about 15 months ago, I guess. Now, mainstream media is picking up on this.

CNBC is reporting:
Get ready for the next era in retail—one that will be characterized by far fewer shops and smaller stores.
On Tuesday, Sears said that it will shutter its flagship store in downtown Chicago in April. It's the latest of about 300 store closures in the U.S. that Sears has made since 2010. The news follows announcements earlier this month of multiple store closings from major department stores J.C. Penney and Macy's.
Further signs of cuts in the industry came Wednesday, when Target said that it will eliminate 475 jobs worldwide, including some at its Minnesota headquarters, and not fill 700 empty positions.
Experts said these headlines are only the tip of the iceberg for the industry, which is set to undergo a multiyear period of shuttering stores and trimming square footage.
The one chain that no one talks about with regard to the demise of big box stores is Barnes and Noble. I've posted my advice for B&N but so far no phone calls. LOL. 

Ten (10) New Permits; Twelve (12) Producing Wells Completed; Ten (10) "High IP" Wells

Active rigs: 187

Ten (10) new permits --
  • Operators: XTO (7), Newfield (2), Corinthian
  • Fields: Siverston (McKenzie), Grinnell (McKenzie), North Souris (Bottineau)
  • Comments: Five of seven XTO permits will be on one pad in Grinnell oil field
Wells coming off the confidential list were reported earlier; see sidebar at the right.

Twelve (12) producing wells completed:
  • 23694, 1,816, XTO, FBIR Beaks 24X-8A, Heart Butte, 2 sec; t12/13; cum --
  • 23933, 1,676, XTO, FBIR Beaks 24X-8E, Heart Butte, 2 sec; t1/14; cum --
  • 24143, 2,554, Statoil, Raymond 17-20 6H, Ragged Butte, 2 sec; t1/14; cum --
  • 24258, 2,966, BR, Glacier 14-9TFH, Clear Creek, 2 sec; t12/13; cum --
  • 24548, 2,126, Statoil, Greenstein 30-31 3TFH, 2 sec; t1/14; cum --
  • 25227, 1,963, XTO, Koeser 41X-15C, Siverston, t10/13; cum 22K 11/13;
  • 25228, 2,371, XTO, Koeser 41X-15G, Siverston, t10/13; cum 22K 11/13;
  • 25229, 2,302, XTO, Koeser 41X-15H, Siverston, t10/13; cum 20K 11/13;
  • 25244, 784, KOG, Nelson 150-100-17-20-12TFH, t10/13; cum 15K 11/13;
  • 25301, 2,080, XTO, Louise 31X-9C, North Tobacco Garden, t9/13; cum 48K 11/13;
  • 25684, 2,966, BR, Sunline 31-1TFH-6SH, Clear Creek, 4 sec, t1/14; cum 11
  • 25852, 553, EOG, Wayzetta 33-2829H, Parshall, t1/13; cum --

Netflix Surges $60 After Hours; PSXP Increases Quarterly Dividend; For Investors Only

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

Remember my "next big thing" post? Almost a 20% surge.

Bloomberg is reporting:
The video-subscription service added 2.3 million subscribers in the fourth quarter, including free trial subscriptions, giving the company a total of 33.4 million in the U.S. That was enough to top the 33.1 million average of 10 estimates compiled by Bloomberg.
Netflix said Wednesday that it expects to sign up another 2.25 million subscribers in the first quarter, with “years of member growth ahead of us,” the company told investors in a letter to shareholders. Netflix shares soared nearly 18 percent in trading after the market’s close, following a 1.5 percent gain to $333.73 in the regular session.
That growth could come alongside higher costs if Verizon Communications and other high-speed Internet companies decide to charge video streamers like Netflix, Amazon, and Hulu more because of their higher usage of the digital infrastructure. At peak times, Netflix viewers represent about a third of U.S. broadband Internet capacity, according to some estimates. In a case decided last week, Verizon successfully blocked federal rules on net neutrality that could allow the Internet providers to block streaming services or to charge higher fees for their heavy data loads.

*****************************

Phillips 66 Partners increases quarterly distribution by 5.8% to $0.2248 per limited partnership unit from minimum quarterly distribution of $0.2125 per unit. Note: this is not PSX; this is PSXP.

*****************************

This is why I cannot time the market. XLNX was down 4% yesterday after earnings announced. I actually thought the earnings report was pretty good and thought the pullback would be temporary. Who would have guessed it would have been that "temporary." Today XLNX traded at a new 52-week high. 

***********************

SRE also traded at a new 52-week high. So did Amazon, ISIS, DAL.

The pundits continue to talk about a "bad" market.

*****************************
A Note to the Granddaughters

A reader send this to me at my literature blog:
Have you ever run across the story of Robert Strassler, the editor of the Landmark series (Thucydides, Herodotus-etc)? Fascinating story of an ex-oilman who took the classics back from the professionals. http://www.forbes.com/forbes/2007/0129/111.html
I placed it here because comments are not google searchable. This is an incredible link if interested in this sort of stuff. 

The Williston Wire: Headlines, Short Blurbs Only

I guess the housing moratorium is over.

The Williams County Commission approved the first major residential development east of Williston.
Commissioners last week voted in favor of Shelter Construction's request for a preliminary plat and a comprehensive plan amendment regarding a 35-unit housing development in Stony Creek Township off Highway 1804.

The Ridge, a 160 acre development in Williston delivered by the highly respected development team of affiliates of Kohlberg Kravis Roberts & Co. and CP Realty, is pleased to announce the addition of the affordably priced ParkRidge Townhomes to the master planned community.  Funding was recently secured for the start of construction of the new townhomes, which will be developed by ParkRidge Townhomes, LLC, an affiliate of Mountain Plains Equity Group, a long-standing company from Billings, MT, with a significant background in the financing and development of multifamily projects (www.mpequity.com).

The Williston City Commission has approved an ordinance for a temporary emergency housing shelter that will probably be located at the New Armory on Main Street.

The Bakken Economy: Menards Mega Store Dickinson To Open Next Week; New Rail Facility Proposed For Beach, North Dakota

The Dickinson Press is reporting: Menards.
Dickinson’s new Menards will open Tuesday, the company announced Wednesday.
The “mega store” is in Roers’ West Ridge development off Interstate 94 Exit 59.
The Bismarck Tribune is reporting:  another Bakken freight terminal / CBR; this one west of Beach, North Dakota.
Beach residents were up bright and early Tuesday to hear a development company’s plans for an oil loading railport just west of town.
Public safety after the explosive fireball of a Bakken oil train derailment near Casselton last month was high on the list of concerns at the breakfast-hour meeting of the town’s zoning board. So were noise, lights and possible vapor pollution from a major oil facility and railroad site within a half-mile of town.
The Utah-based company is familiar in town for residential and industrial projects north of Interstate-94 and formed Beach Railport LLC to turn 275 crop acres west of town into a rail-supported industrial zone.

Koch Ends Plans For 250,000 BOPD Pipeline From The Bakken To Illinois; No Explanation Given; Keystone XL 2.0 South Should Be Flowing

Bloomberg is reporting that Koch kills the Dakota Express:
Koch Pipeline Co. called off plans to build a 250,000-barrel-a-day crude line to Illinois from North Dakota’s Bakken formation, where a shale boom has helped lift domestic production to the highest in a quarter-century.
The indirect subsidiary of Koch Industries Inc., one of the largest private companies in the U.S., is no longer developing the so-called Dakota Express pipeline, Jake Reint, a Koch spokesman, said by e-mail yesterday. He didn’t provide a reason for the decision. The Wichita, Kansas-based company was scheduled to begin a 45-day open season to gauge interest from potential shippers on the line in July.
The Dallas News is reporting that the Keystone XL South 2.0 should be flowing:
Last week, opponents of the pipeline conceded there was little they could do to stop TransCanada from flipping the switch. After a meeting with federal authorities earlier this month yielded nothing, environmentalists and landowners sent a letter to Attorney General Greg Abbott requesting that he intervene.
“Absent that, we’re running out of tricks,” said Tom “Smitty” Smith, who heads the advocacy group Public Citizen Texas.
And that about sums it up: tricks

For Investors Only; MDU; GE Is Fired Up About Worldwide Shale Revolution

A reader anonymously asked about MDU. As noted often, this is not an investment site, but I also stick with the spirit of the blog as noted in the "welcome/disclaimer."

I don't own any MDU. It was one of the first companies I ever invested in. I really learned a lot about investing through this company: regulated utilities; unregulated risks and opportunities; energy; dividends; capital gains. 

I sold all of my MDU some years ago after holding it for 20 years or so. I forget the specifics of when I sold it and why I sold it. Perhaps I had a dream suggesting I should sell; who knows?

If asked now about MDU this would be my 30-second reply: if I still held MDU, I would continue to hold it. It has been through the rockiest recession and has, despite self-inflicted errors in the Bakken, it should now profit from all the seed corn it has planted -- the infrastructure. In addition, it should continue to profit from all the activity that should continue in the Bakken. If I still held MDU, I would only sell it if I could find a better opportunity. I would certainly have to take capital gains taxes into consideration.

For those that don't have any MDU shares, like me, I would certainly consider MDU as part of a well-diversified portfolio. I think a company with regulated/non-regulated divisions like MDU makes a nice addition for a portfolio that needs some conservative anchoring. MDU is just one of many such choices.

Hopefully that's wishy-washy enough for readers to sort through. Smile.

Disclaimer: this is not an investment site. Do not make any decisions based on what you read here or what you think you may have read here. I posted the above note on MDU as a favor to a reader in the spirit of the "welcome/disclaimer" for this blog. This is not a buy, sell, hold, trade recommendation for MDU -- just idle rambling over lunch.

**************************

I mentioned in an earlier post that GE could talk about renewable energy all it wants, but it is making money the old-fashioned way on energy.

A few days ago, Don sent me this story; I had forgotten about it until now.  The Houston Business Journal is reporting:
On Jan. 20, GE Oil & Gas picked up Houston-based Cameron International Corp.’s reciprocating compression unit for $550 million.
However, at the time of the announcement, GE also revealed that it restructured its oil and gas division at the beginning of 2014 to individually focus on providing manufacturing and services to different segments of the oil and gas business, such as downstream, upstream and subsea. Within this new structure, GE plans to continue growing.
In an interview with the Houston Business Journal, GE’s Mike Hosford explained why GE Oil & Gas is investing in downstream and compressors in particular.
Basically, GE is fired up about the possibilities of a worldwide shale revolution, Hosford said.
In fact, GE Oil & Gas’ new downstream technology services unit — the Houston-based unit that acquired Cameron’s reciprocating compressor manufacturing business — is particularly excited about transporting and storing natural gas and natural gas liquids from shale plays. Hosford, who is general manager of GE’s distributed gas solutions segment, part of the downstream technology services unit, will oversee the integration of Cameron’s reciprocating compressor business into GE.
“The downstream and distribution sector often gets overshadowed by major pipelines, LNG projects, etc., but we have a dedicated team to serve this $11 billion market,” Hosford said.

That's It For Now: I've Been Kicked Off The Wi-Fi At This Starbucks A Gazillion Times This Morning; Time To Leave; See Ya All Later; Price Of Oil Continues To Melt Up; Apple To Set Record (Again)

The price of oil is up almost 2% today: a convergence of several "items." I can think of three things, maybe four driving the price of oil. SRE is trading at a new 52-week high.

The AP is reporting:
The price of oil rose above $95 a barrel on Wednesday amid expectations for solid demand and weaker supply, particularly in Asia and Europe. 
By early afternoon in Europe, benchmark U.S. crude for March delivery was up 53 cents at $95.50 a barrel in electronic trading on the New York Mercantile Exchange. On Tuesday, the Nymex March contract closed at $94.97 a barrel, up 38 cents.
The IMF said Tuesday it expects the world economy to grow 3.7 percent this year and the U.S. economy by 2.8 percent. Both are slightly higher than its previous projections.
MacRumors is reporting record sales for the Christmas/Kwanzaa/Eid al-Adha/Jewish/Festivus holidays:
Apple will announce its next quarterly earnings on Monday, January 27, and ahead of the announcement analysts are releasing their iPhone and iPad sales estimates for this holiday quarter. As we noted earlier this week, analysts predict record quarterly sales of 55 million iPhones, a 16% increase over the same quarter last year. A follow-up report today from Philip Elmer-Dewitt of Fortune suggests sales of the iPad will grow 10% year-over-year to also set a new record for Apple.

For Investors Only

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

Amazon beat Apple in customer satisfaction, according to MacRumors.
Amazon scored highest among the 17 consumer-electronics manufacturers operating in North America. It was the only manufacturer to garner an “excellent” rating of 91 for Kindle customers. 
I don't have a Kindle and the survey really surprised me. But then, again, perhaps it shouldn't. I have never had a bad experience with Amazon. Most recent example: I have no special shipping relationship with Amazon; I always request the least expensive way of shipping, generally "regular shipping." Yesterday morning, in this library, I ordered two books from retailers that go through Amazon -- heavily discounted books, some selling for as low as 1 penny (no typo) and $3.99 shipping. Last night I received an e-mail from Amazon that the first book I ordered was already shipped (that was less than 12 hours after placing the order) and just moments ago (11:17 a.m. CT) I got a note telling me the second book had just been shipped, about 24 hours after the order was placed. I doubt B&N could do any better.

****************************

Arch Coal misses 2013 sales forecast on rail delays. Bloomberg is reporting:
Arch Coal, the fourth-largest U.S. producer of the commodity, sold less thermal and metallurgical coal than forecast last year because of rail delays and “challenging geological conditions” at a mine in West Virginia.
Fourth-quarter shipments of coal used by power stations from the Powder River Basin coal region in Wyoming fell 15 percent compared with the preceding three months, the St. Louis-based company said today in a statement. Arch expected to make up most of the shortfall in 2014, Chief Executive Officer John Eaves said in the statement.
Output at the Mountain Laurel mine dropped 40 percent in the fourth quarter compared with the third quarter because of geological issues at its longwall panel, Arch said. A longwall machine is used by miners underground to shear coal from across an entire coal face.
Arch didn’t specify what were the geological issues. 
Perhaps it was the "anti-coal fault" stretching across the president's frontal lobe.

********************************

Richard Zeits, over at SeekingAlpha, provides an update on Halcon 
While the Bakken will remain Halcón's most important asset, alone it is not sufficient to "carry" the company's $4.6 billion current firm value (using $3.2 billion year-end debt estimate). In this context, a strong success at El Halcón - which is still in its infancy as a play (as a reminder, Halcón drilled its first operated well just a year ago) - is very much needed and becomes a pivotal element of the company's strategy. For the stock to exit its downward spiral, the company must demonstrate, among other things, that El Halcón will soon be able to shoulder a significant portion of the stock's valuation.
The El Halcón may not be easy to model or understand given the very early state of its evolution and lack of detailed information. This note provides well-by-well crude oil production history for the majority of the wells that Halcón has brought on production at El Halcón as of November of 2013. A total of 39 wells are presented (which I believe captures the vast majority of Halcón's wells as of November).
See also, Halcon.

Oil is up over 1.5%. The unreported story of the day, but I will write about it later this evening, if I remember.

It's Here! And No Protests Along The Way

The Bismarck Tribune is reporting:
Southwestern North Dakota residents may have looked twice at two trucks hauling a large tube down Interstate 94.
The equipment on the rig is the crude distillation tower for MDU Resources’ Dakota Prairie Refining, MDU spokesman Tim Rasmussen said.
The tower is the core piece of the refining process, used to separate the crude oil into different products. including diesel fuel.
It is 140 feet long, more than 14 feet in diameter and weighs more than 100 tons.
The vessel was fabricated in Asia and loaded on a ship in Taiwan on Nov. 6. It crossed the Pacific Ocean through November and early December.
Once reaching the U.S., it was loaded on a custom- designed trailer and departed the Port of Houston on Jan. 3. Then it traveled 1,723 miles to Dickinson.
The refinery should be in operation by the end of year, assuming the president doesn't sign an executive order halting construction.  I honestly don't know if all the environmental impact statements have been signed off by all federal agencies involved.

MDU-Calumet want this refinery on-line by the end of the year (2014).

The Dickinson Press provided a full run-down on the route.  And a photograph.

It's Official -- It Really Was That Big -- 225,000 Bbls In Less Than Five Months

50 stages. 7.8 million lbs sand frack. Bakken formation not otherwise specified.

NDIC File No: 24667    
Well Type: OG     Well Status: A     Status Date: 6/30/2013     Wellbore type: Horizontal
Location: NESE 25-152-91    
Current Operator: EOG RESOURCES, INC.
Current Well Name: VAN HOOK 19-2523H
Total Depth: 19812     Field: PARSHALL
Spud Date(s):  1/19/2013 
Completion Data
   Pool: BAKKEN     Perfs: 9766-19783     Comp: 6/30/2013     Status: F     Date: 7/17/2013     Spacing: ICO
Cumulative Production Data
   Pool: BAKKEN     Cum Oil: 226,595     Cum MCF Gas: 137815     Cum Water: 9668
Production Test Data
   IP Test Date: 7/17/2013     Pool: BAKKEN     IP Oil: 1,173     IP MCF: 768     IP Water: 473
Monthly Production Data
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN11-2013303922939230207332310296692501
BAKKEN10-2013315258653360035050309363961
BAKKEN9-201330572395689102962929328153
BAKKEN8-201329529815281502739227066186
BAKKEN7-2013162358423322759512602110071515
BAKKEN6-2013197639908320827

Likely "route" of this horizontal in red, the arrow:


Note the companion well, #24666 on the same pad.

Other wells of note in the screen shot:

17463, 825, EOG, Van Hook 3-25H, t7/09; cum 345K 11/13; sweet;
17613, 690, EOG, Van Hook 2-24H, t7/09; cum 447K 11/13; sweeter;
24855, 1,981, EOG, Van Hook 130-2526H, t7/13; cum 131K 11/13; 4.3 months production;
24856, 611, EOG, Van Hook 23-2526H, t7/13; cum 110K 11/13; about 3.5 months production;

Regular readers know whether EOG targets the middle Bakken or the Three Forks based on nomenclature (legal name of the well).

Tuesday -- January 22, 2014 -- Let's See If This Rollout Goes Better Than The ObamaCare Website; It Just Keeps Getting Worse For Target

Active rigs:


1/22/201401/22/201301/22/201201/22/201101/22/2010
Active Rigs19018820316587


RBN Energy: one of my favorite subjects, 'cause I blogged about it from the beginning. RBN Energy continues its series on Kinder Morgan and the Jones Act.
At the end of last year (2013) Kinder Morgan invested nearly $1 Billion to buy five existing Jones Act tankers and four new builds on the way. Two other companies, Crowley Maritime and Seabulk tankers (part of Seacor Holdings) placed orders in 2013 to build six more tankers in the next two years. In all there are twelve new build orders on the books and options for even more threaten to rock the boat for current record high charter rates (over $100,000/day) being enjoyed by the 42 vessel Jones Act fleet. Today we detail the tankers owned by Kinder Morgan, Crowley and Seabulk.
Target: coming out in dribs and drabs, the company continues to report bad news -- now, Target warns that the breach may have also affected Canadian customers. But again, Target downplays the seriousness:
“We believe a small number of Canadian guests were impacted,” Molly Snyder, a Target spokeswoman, said in an e-mail today. “We will be reaching out to all affected guests to the extent we have e-mail addresses for them, including Canadian guests.”
That "small" number in the US started with 40 million, then went to 70 million, and could be as high as 110 million. 

Hey, Ohio, how's that ObamaCare working out for you? The Weekly Standard is reporting that hundreds in Ohio lose their doctor due to ObamaCare, another swing state:
"With the passage of the Affordable Care Act, some area medical facilities saying, they're no longer able to use some insurance companies," says the anchor. 
The local reporter adds, "Hundreds of people in the Mahoning Valley can no longer go to their trusted doctors, and local officials say the Affordable Care Act is to blame. Doctors from the Mahoning county medical society sat down with U.S. representative Bill Johnson today, discussing their concerns with United Health Care's decision to drop local doctors, including the Eye Care Associates in Beaver Township, from their Medicare Advantage plans. That means patients either have to change doctors or pay out of their own pockets."
One doctor tells the reporters that people are "really scared" at the prospect of having to change doctors.
The Wall Street Journal

One of the headwinds for developing the Bakken: Obama's regulatory pressures are pushing many of the biggest banks to pass on financing lucrative deals, as the administration targets excessive borrowing. A North Dakota Republican legislator has asked oil companies to slow down in the development of the Bakken; doesn't sound like that is necessary at all; there are other forces at work that will slow the development of the Bakken.

You mean we are still in Afghanistan? I though that was a campaign promise back in 2008, the first term, that we would be out of Afghanistan by now. But now, I see the Pentagon has plans to have most troops out of Afghanistan by the end of 2017. Maybe. As the Afghans say: "Just wait it out. Presidents come, and presidents go." By the way, when I first started this blog I posted a photograph of the Afghan "freedom fighters" and suggested that the photo convinced me "we" would never win in Afghanistan.

Oh, good. Another crisis. Now it's polio in Pakistan. Of course, here in the US, any parent can remove their child from the "mandatory vaccination program" by claiming religious beliefs.

this is interesting. China is trimming dependence from some of its top oil suppliers, such as Saudi Arabia, as great availability of global oil helps Beijing diversify its sources of foreign crude.  I wonder if Jane Nielsen is still reading about the Bakken?

Target will stop providing health care insurance for its part-time workers.

The FCC will hold a major auction of wireless airwaves. The question is: where is all this wireless spectrum coming from? Back in 2000, when I was in the USAF, the military was complaining that the government was mandating cutbacks in military wireless to be sold to civilian sector.
This week, the FCC seeks to get at least $1.6 billion when it auctions off a slice of spectrum called the H block, which includes two high-frequency bands.
Dish is the only major company signed up to take part and is largely expected to win the largest share of the licenses after the carriers declined to participate. Dish declined to comment, citing auction rules.
More auctions with more attractive slices of spectrum will follow, bringing out many competitors and higher prices. Later this year, the government will sell rights to higher band frequencies called AWS-3, raising about $16 billion from the major companies alone, according to New Street. Those bands are particularly well-suited for wireless. The most coveted spectrum coming on the block is expected to be auctioned next year.
That spectrum is generally in the 600 megahertz band and would be the lowest and most valuable frequency sold yet. It is currently used by television stations and will be resold to carriers for wireless use.
Cadillac sales are up, but so are inventories. Send the excess to Williston, but put in block heaters first.

Delta profit soars on huge gain.
The big gain came from reversing its prior handling of accrued tax credits accumulated during years of losses. Now, that the Atlanta-based company looks to remain profitable, it is putting $8 billion in tax-loss credits on its balance sheet that can be used to reduce cash tax payments. 
Natural gas prices soar in New England

This is cool.
Beats, the company behind the very identifiable headphones, is offering music lovers an on-demand library of over 20 million songs with a unique recommendation system.
How many songs are in your music collection? A couple thousand, including some dusty CDs in the attic? I don't want to brag, but I've got over 20 million and I can listen to them on my phone at any time.
I have so many songs, I sometimes have a concierge pick them out for me.
ITunes may have crushed good old fashioned music stores, but Apple's digital music store now pales compared to the latest subscription services, which let you stream any song or album to any device for a monthly fee of $10. After years of spending that much (or more) for individual albums, I'm all for these services. If you haven't already stopped paying a la carte, this week's arrival of Beats Music means it's time to reconsider your music-shopping ways.
The Los Angeles Times

If it bleeds, it leads. This is the top story in The Los Angeles Times at the moment:
A fatal collision between a motorcyclist and another vehicle in West Los Angeles backed up morning commuter traffic up and down a long stretch of the 405 Freeway through the Sepulveda Pass.
The incident occurred at about 3:45 a.m. when authorities got a call that a motorcyclist and a vehicle were involved in a collision on the northbound 405 Freeway near Getty Center Drive, said California Highway Patrol Officer Jennifer Cassidy.
The female motorcyclist was pronounced dead at the scene, prompting officials to issue a Sigalert. The motorcyclist's identity was not immediately available.
Authorities initially closed all five lanes of the northbound roadway, and several hours later, just the far right lane had been reopened. It was unclear how long the lane closures would last but Cassidy said investigators needed time at the scene.
We were at the Getty Museum just a few weeks ago, driving this route at the time. It's always just a statistical thing when a motorcyclist ends up dead on the freeway. Speeds of 75+ mph, weaving in and out of traffic, and splitting the white line dividers between SUVs, also driving 75+.

********************************

California hospitals and physicians learning how to take advantage of ObamaCare. Predicted. But isn't this interesting, this quote from a newspaper more liberal than The New York Times:
There's no question that Obamacare can make things tougher for healthcare providers. Tens of millions of new patients are entering the system, many with Medicaid — Medi-Cal in California — coverage that limits reimbursement to doctors and hospitals.
How do you like ObamaCare now?

*********************************

She's right. I said the same thing. I posted the following on January 20, 2014:
President Obama uses the "race card" to account for his low popularity. To the best of my memory, I believe most presidents have had popularity ratings this low; certainly George W. had popularity ratings this low. I guess their ratings were low because they were white. It seems to be forgotten that President Obama's mother was ..., well not African-American.
For the record, I preferred Obama over McCain in the election.

*********************************
And that's about it for now. 

Natural Gas Prices Soar -- Oh, That's Right -- It's Winter In New England -- Region That Refuses Fossil Fuel

I can't make this stuff up.

New England winter -- it comes every year -- I guess it's worse now with all this global warming -- has resulting in soaring energy costs. Who wudda guessed?

The Wall Street Journal is reporting:
The price of natural gas delivered to New York City and the mid-Atlantic states soared to a record high on Tuesday, as a snowstorm brought freezing temperatures to the Northeast U.S., and traders worried about a potential drop in supplies of the heating fuel.
Natural gas for delivery Wednesday soared to $135 per million British thermal units at Transco Zone 6, a pipeline delivery point in New Jersey where New York City gas prices are set, according to IntercontinentalExchange Group Inc.
On Friday, prices traded between $10 and $25 per million BTUs.
Other pipelines, including the Iroquis Gas Transmission System that brings gas from eastern Canada to the New York City area, posted similar milestones by midday Tuesday.
The surge in prices for the second time this month underscores concerns about the infrastructure needed to transport natural gas from booming shale fields to densely populated areas when the heating fuel is needed. Traders expect greater demand for natural gas to heat homes and office buildings, as an Arctic blast brings snow to the East Coast.
The National Weather Service projects "moderate to heavy snow from the central Appalachians to New England" over the next two days. Prices typically spike to between $40/mmBtu and $50/mmBtu in periods of cold weather, analysts said. But Tuesday's sharp climb beat a previous record of $90/mmBTU for the hub set on January 6, 2014, when another Arctic blast stoked gas demand.
When I was growing up, we had a term for this: PPP. Piss-poor planning.

By the way, these Arctic blasts are now being referred to as Algore solar cortex events (ASCE).

Earlier reports suggest that New England will not have the needed pipeline in place until at least 2016.

Target Will Stop Providing Health Care Insurance To Its Part-Time Employees

I track ObamaCare cost shifting here.

Now that ObamaCare is available for everyone with an income, and assuming that its part-time employees will find a much better, subsidized healthcare plan promised by Mr Obama, Target will stop offering health coverage for part-time employees, citing insurance available through public exchanges. That's probably best anyway in light of the recent credit card security breach.