Sunday, October 19, 2014

Whiting, MRO Each With A "High-IP" Well; Newfield Will Report Two Nice Wells -- October 19, 2014

Garnet oil field has been updated

Wells coming off the confidential list this weekend, Monday:

Monday, October 20, 2014:
  • 27501, drl, Hess, BB-Budahn A-150-95-0403H-10, Blue Buttes, no production data,
  • 27733, 770, Newfield, Fleck 150-100-12-1-2H, Sandrocks, t8/14; cum 17K 8/14;
  • 27796, drl, Hess, AN-Evenson-152-95-1003H-8, Antelope, no production data,
Sunday, October 19, 2014:
  • 27151, 2,208, MRO, Glisar 14-32TFH, Reunion Bay, t8/14; cum 13K 8/14;
  • 27767, drl, SM Energy, Todd 13X-35H, Camp, no production data,
  • 27986, 171, Samson Resources, Matador 2734-7H, Ambrose, t7/14; cum 11K 8/14;
Saturday, October 18, 2014
  • 27018, drl, Whiting, Gajewski 31-18H, Lonesome, middle Bakken, gas averaged 2,000 units; max gas almost 3,000 units; 1280-acre, no production data,
  • 27019, 2,204, Whiting, Gajewski, 31-18-2H, Lonesome, middle Bakken, 1280-acre, t4/14; cum 42K 8/14;
  • 27502, drl, Hess, BB-Budahn A-150-95-0403H-9, Blue Buttes, no production data,
  • 27732, 854, Newfield, Fleck 150-100-12-1-3H, Sandrocks, t8/14; cum 16K 8/14;
  • 27795, drl, Hess, AN-Evenson-152-95-1003H-7, Antelope,  no production data,  
  • 27964, drl, XTO, Kathy 31X-15C,  Tioga, no production data,
Active rigs:

Active Rigs190184186198153

Iran And The Slumping Price In Oil

The Los Angeles Times is reporting:
Iranian officials are expressing new worry over the global oil price slump, which is threatening the country’s budget and could undermine its strategy in international nuclear negotiations.
As recently as Tuesday, Iran’s oil ministry was speaking confidently despite the 20% global price decline, insisting that it wouldn’t affect the budget. Deputy Oil Minister Rokneddin Javadi said the decrease would be “short lived,” an oil ministry information service said.
Last time:
But some analysts speculate that it could reflect a longer-term shift away from petroleum usage. The last long oil price slump lasted from the mid-1980s to about 2000, and strained the economies of oil-dependent states such as the Soviet Union and Iran.
 This time, it's different.

Why We Measure Oil In "Bbls"

This was posted on Facebook today according to a reader. I thought I had posted this some time ago but cannot find it, so I will post it now (I may have posted it in the original blog which was deleted back in 2009). From Facebook:

Why do We Measure Oil in Barrels?
Not every country measures oil in barrels, but that particular measurement is still popular in the United States, which means it remains in the public vernacular even if it has largely lost its significance in a mostly metric world economy.
At one point in history, oil producers did store oil in barrels, although the size and nature of those barrels were far from standard. When the first oil fields were tapped in Pennsylvania during the 1860s, there were no steel 55 gallon drums in which to store the oil. Instead, the oil was pumped into whatever containers could be found, including pickle barrels, cracker barrels and whiskey barrels.
There was no standard size oil barrel, but eventually the wooden whiskey barrel became the most popular storage container to hold crude oil until it could be shipped to be refined.
The standard whiskey barrel at the time held approximately 40 gallons of liquid. Early oil producers wanted to ensure their customers received every last drop they ordered, so they actually overfilled the barrels to 42 gallons.
This 42-US-gallon mark (which is about 35 Imperial gallons and about 160 liters) became the standard measurement of oil in barrels produced in American oil wells.
Eventually the wooden whiskey barrels gave way to steel drums which provided more protection against leakage and contamination. Although these steel drums were designed to hold 55 US gallons of oil, the standard 42 US gallon barrel is still considered to be the correct legal measurement of oil in barrels.
When oil producers or economists speak of the number of barrels of oil produced in Saudi Arabia per day, for example, they are applying an American measurement, not one the Saudis themselves might use. The reason other oil-producing countries rarely use the term "barrels" to measure their production rates is because they rarely store their products in actual barrels anymore. The oil pumped out of the ground is more commonly transported in large tanker trucks or through elaborate pipelines directly to the refineries, or massive cargo ships for overseas delivery. Individual companies may store oil in barrels, but the largest commercial oil producers rarely do unless the product is going to be shipped to a remote location, such as a military base or third world countries without storage facilities. It is far more likely to see a derivative of crude oil, such as gasoline or kerosene, actually stored in steel drums or barrels. Therefore, the reason we measure oil in barrels is mostly to provide a familiar reference for those who grew up with images of actual oil-filled barrels rolling down a conveyor belt.
In reality, only a percentage of a barrel of oil is converted to gasoline or petrol, so a number such as 1,000,000 barrels of crude oil does not necessarily translate to a surplus supply of gasoline. It only refers to the number of gallons of raw crude produced that day, not how much has been refined into various petroleum products.
This is now linked at the FAQ page

I-98: Season 1, Episdode 5

For those unfamiliar with the I-98 series, here are the relevant links:
Season 1, Episode 5: Memories

At the end of the last episode, Sam and Liam were "trapped" in Rugby, hoping the bullet train out of Chicago would make an unscheduled stop in Rugby to pick them up, taking them to Williston's Northstar Center where they could buy a new car.

Meanwhile, Thelma and Louise, released from an ObamaCare Small Unit Care Klinic (colloquially called OCSuCKS), were racing to catch the aforementioned bullet train to get them back to Rugby. They were unaware that the train was a non-stop between The Mall of American (Minneapolis area) and Northstar Center (Williston area). In fact, the two of them were unaware of a lot of things. But that was pretty much the norm for those growing up in North Dakota: unaware of a lot of things.

They arrived, by taxi, at the O'Hare Transcontinental Rail Terminal, purchasing their tickets to Williston en route using their ApplePay/Apple Watch, version 101.1. The bullet train had arrived about 30 minutes earlier and the train was about to depart. Thelma and Louise bolted, jumping inside just as the bullet train's sleek aluminum doors were closing.

After the obligatory hand sanitizer ritual, they took the elevator to upstairs seating and promptly fell asleep. Estimated time of arrival, Williston NSC: 6:14 p.m. One stop, Bloomington MOA.

[Camera fades out from Thelma's AppleWatch, and fades in on Liam's AppleWatch.]

Back in Rugby, at the little picnic table underneath the wind turbines frozen in time, Liam was checking his own AppleWatch. The bullet train should be racing through Rugby about 5:30 p.m. With any luck at all he might be able to reach the dispatcher in Omaha at Berkshire Hathaway Transcontinental Rail and Air.

"Siri, Omaha, Berkshire Hathaway Transcontinental Rail and Air."

"Did you say, 'Birkenstock Taupe Suede'?

"Omaha, Berkshire Hathaway Transcontinental Rail and Air."

"Got it, 'Birkenstock Taupe Suede.' Dialing now."

Siri, version 56.02.1 still had a few bugs to work out.

"What are you working on?" Sam asked.

"Trying to reach the Omaha dispatcher."


"Got it, thanks."

In no time, Liam was working with Darla, the Omaha dispatcher for the Bullet Train. It looked like something could be worked out.

Nothing much to do now, but wait.

"Hey, do you want to look at an old YouTube video of the the I-98 bridge when it was being built ... back during the Great Recession?"

"Brings back bad memories. The Affordable Highway Act."

"Yeah, it was a rough start. A number of stimulus bills had been passed but most of the money went to bailout banks, if I remember correctly. So I-98 was built with Bakken oil money. The president had introduced the Affordable Highway Act, but like the bridge in Alaska, it went nowhere. Harry Reid didn't even let that bill out of committee. Nancy Pelosi wanted to read the bill first, lessons learned, I guess. So, I-98 had to be built with private money. The only problem, if I recall, there was a huge shortage of heavy construction equipment and no workers. Everyone and everything was tied up in the Bakken. And it only got worse with the mega-pads. Caterpillar couldn't keep up. Even Mitsubishi  and workers from eastern Europe had to come in and build the bridge."

The First I-98 Bridge, Over The Red River, Looking East Into The Promised Land
"Yeah, it was a rough start, but that was then."

[Camera pulls back. Sam and Liam fade into the background. A light snow begins to fall. The voice over: "Will the BHTR&A BNSF Bullet Train make an unscheduled stop at Rugby. Will Thelma and Louise sleep through the stop. Does anyone care. Does anyone use question marks any more. What does it matter."]

Garnet Oil Field, Williston Basin, North Dakota

The Garnet oil field is on the northern edge of the Bakken play in North Dakota, an area where one would expect to find Three Forks wells. This is a very small rectangular field, only 8 sections (2 x 4). Six of the eight sections have a long lateral (3 wells); sections 1/12-161-99 do not yet have a well. It is located in the middle of Divide County.

In a long post like this, there will be typographical and factual errors. If this information is important to you, go to the source, generally the NDIC webpage. 
  • 25938, 377, SM Energy, Windfaldet 2-4H, Three Forks; 11-foot thick target zone which included an upper 6' of dolomite sandstone, 26 stages; 2.4 million lbs sand, middle Bakken 60-feet thick here; max gas units, 600; 1280-acre; t1/14; cum 44K 8/14;
  • 24192, 318, Baytex, Pulvermacher 3-10-161-99H 1XN, Three Forks, gas units max, 1,700; target, a 5-foot thick target zone directly above the Three Forks Shale, identified by a gamma marker known as the Three Forks 10 Mrk; Dolostone sandstone; 36 stages; 1.6 million lbs sand; 1280-acre; t5/13;cum 57K 8/14;
  • 21849, 28 (scout ticket), Baytex, Thompson 2-11-161-99H 1BP; 30 stages; 2.1 million lbs sand; 1280-acre; t3/12; cum 69K 8/14;
Formation tops, for #24192:

Blue: sample and gamma
Yellow: prognosis
First blue column: TVD
Last yellow column: Top v. Prog