Nine (9) New Permits -- The Williston Basin, North Dakota, USA

Active rigs:

	3/6/2014	03/06/2013	03/06/2012	03/06/2011	03/06/2010
Active Rigs	192	186	206	172	99

Nine (9) new permits --

• Operators: Oasis (3), Petro-Hunt (3), Statoil, QEP, BR
• Fields: Missouri Ridge (WIlliams), North Tioga (Burke), Banks (McKenzie), Grail (McKenzie)
• Comments:

The one well coming confidential list today was placed on DRL status.

One producing well completed:

• 24322, 834, CLR, Raymo 3-31H, Dolphin, t2/14; cum -- ,

Wells coming off confidential list Friday:

• 24221, 1,629, Newfield, Pittsburgh Federal 153-96-3-11H, Sand Creek, t11/13; cum 23K 1/14;
• 25334, drl, XTO, Martin Federal 21X-33F, Cedar Coulee, no production data,
• 25452, 1,171, Whiting, Obrigewitch 41-29PH, Bell, t9/13; cum 56K 1/14;
• 25453, 2,027, Whiting, Obrigewitch 21-29PH, Bell, t9/13; cum 64K 1/14;
• 25454, 1,614, Whiting, Obrigewitch 11-29PH, Bell, at9/13; cum 57K 1/13;
• 25499, drl, HRC, Moline 157-100-20D-17-2H, Marmon, no production data,
• 25540, drl, XTO, Clarence Federal34X-7C, Haystack Butte, no production data,
• 25804, drl, KOG, Koala Wold 153-97-1-5-29-1H3, Banks, no production data,
• 26011, drl, Hess, HA-Chapin 152-95-3229H-5, Hawkeye, no production data,
• 26055, 759, Hess, BW-Thelma 150-99-3031H-3, South Tobacco Garden, t1/14; cum 19K 1/14; 
• 26268, 469, Slawson, Walleye (Federal) 4-12-11TF2H, Sanish, t10/13; cum 23K 1/14;

Global Warming Results In Extraordinary Natural Gas Drawdown; War On Coal Claims Another Victim

The natural gas drawdown this winter is unprecedented. The EIA is reporting (Feb 28, 2014; this is a dynamic link and will change in one week, if not sooner):

Working gas in storage was 1,196 Bcf as of Friday, February 28, 2014, according to EIA estimates.

This represents a net decline of 152 Bcf from the previous week. Stocks were 908 Bcf less than last year at this time and 758 Bcf below the 5-year average of 1,954 Bcf.

In the East Region, stocks were 370 Bcf below the 5-year average following net withdrawals of 82 Bcf. Stocks in the Producing Region were 273 Bcf below the 5-year average of 754 Bcf after a net withdrawal of 43 Bcf. Stocks in the West Region were 114 Bcf below the 5-year average after a net drawdown of 27 Bcf.

At 1,196 Bcf, total working gas is below the 5-year historical range.

The graphic at the link is quite remarkable.

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Meanwhile, Fergus Falls, MN, will take a huge hit because of the war on coal, despite reassurances by the EPA that there is no war on coal. LOL.

PrairieBizMagazine is reporting:

The shutdown of the Hoot Lake plant will have a noticeable impact on Fergus Falls. The company, which is headquartered in Fergus Falls and employs about 400 people there, paid $1.5 million in property taxes in 2012, making it a major contributor to the city’s economy, says Mark Helland, vice president of customer service.

The Hoot Lake plant currently employs 45 people and is responsible for the bulk of property taxes the company pays to Fergus Falls, he says. He noted that even if the facility is replaced in Fergus Falls, the new plant will have a lessened impact on the economy because it will no longer require coal shipments by railroad and will likely pay less in property taxes.

I always like the way the press reports these stories. The lede:

Changing federal regulations regarding emissions outputs at the nation’s power plants will impact operations at northern Plains’ coal-fired power plants to varying degrees, depending on the age of the facility, the type of coal used and the types of technology installed at the plant to limit emissions.

Yes, the federal regulations just happened to change....the folks that forced the change are not mentioned...an inconvenient truth in an election year....

Williston Bypass Gets Environmental Okay

The Forum is reporting:

A 13-mile truck bypass around Williston would have no significant impact on the environment, according to a finding from the Federal Highway Administration.

The preferred route for the truck bypass begins at the west junction of U.S. Highway 2 and U.S. Highway 85, known as the four-mile corner, and general head north and east to connect with U.S. Highway 2 at its junction with Williams County Highway 6.

For Investors Only

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Updates

Later, 11:48 a.m. central:

• I see the two major western railways hit new highs today: Berkshire Hathaway and Union Pacific. 
• I see the Crimean Parliament voted to "join Russia." The Crimean will get cheap natural gas; the Ukraine will get another cheap Obama speech. And worse: more visits from Lurch. 
• Speaking of the president, with the final nail in the ObamaCare coffin, he has lost all his kredibility, from the Krimean to the Kremlin to the Keystone.

Original Post

I was wondering why XOM had a tough day yesterday. Here's the news: 2014 guidance -- production will be flat; spending down 6%.

Unemployment. First time unemployment claims: tumble 26,000 to 323,000. So much for the bad weather causing so many problems. Four-week average: slipped 2,000 to 336,500.

American Energy has updated their presentation, a PDF.  

Five companies announce increased dividends.

Oil futures: price of oil could drop below $100 today.

Dow futures up. Again.

Dizzying Pace Of North America Taxes Enbridge; Replacing Line No 3 With Bigger Lline; Regulators Approve Reversing Enbridge Pipeline

I track:

• Enbridge here
• pipelines here

It is absolutely incredibly how Enbridge has grown, how it has changed in the past two to three years. If Williston ever becomes a pricing hub for Bakken, Enbridge will get the credit.

The Bismarck Tribune is reporting:

Canada's National Energy Board approved Thursday a plan by Enbridge to reverse the flow of a pipeline that would allow for Western Canadian oil to be transported to Eastern Canada.

The board's decision allows Enbridge to move 300,000 barrels of crude oil per day from Sarnia, Ontario, to Montreal.

Line 9 originally shuttled oil from Sarnia to Montreal, but was reversed in the late '90s in response to market conditions to pump imported crude westward. Enbridge now wants to flow oil back eastward to service refineries in Ontario and Quebec.

The capacity of the line will also increase to 300,000 barrels a day from 240,000 barrels.

Duluth News Tribuine is reporting:

Enbridge Energy said Tuesday it plans to build yet another new oil pipeline into the Northland, on top of two expansion projects already in the works.

Enbridge said it would end service of its aged Line No. 3 from Alberta to Superior and replace it with a larger-capacity line to bring northwestern Canadian oil into the U.S.

The proposal is in addition to the proposed expansion of the Alberta Clipper line from Canada and the all-new Sandpiper line from North Dakota to Superior as Enbridge moves to build more pipeline capacity at a dizzying pace to keep up with the huge volume of oil coming out of western North America.

The company hopes to have the $7 billion, 1,031-mile new Line 3 Replacement project moving oil by late 2017, said Enbridge spokeswoman Lorraine Little.

The current Line 3 is 46 years old and has been undergoing almost constant maintenance. Its original capacity was 760,000 barrels per day but has been reduced to 410,000 barrels per day because of restrictions on the pressure in the pipe, Little said.

The new line would allow the full 760,000-barrel capacity, Little said, for an increase of 350,000 barrels per day of Canadian crude entering the U.S. — or about 14.7 million additional gallons per day.