Increased refinery runs—based on increases in both capacity and utilization—have helped accommodate increases in U.S. crude oil production. The United States' capacity to refine crude oil into petroleum products—measured as operable atmospheric crude distillation unit (CDU) capacity—increased by 0.2% in 2014, reaching 18.0 million barrels per calendar day (b/d), according to EIA's recently released annual Refinery Capacity Report. --- EIAThe Calumet-MDU refinery west of Dickinson will raise that percentage next year.
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WPX Remains Bullish On The Bakken
From a press release:
WPX plans to increase its activity in the Williston Basin during the second half of 2015 by resuming completions and increasing its rig count from one to three before year-end.
The decision follows significant process improvements, structural changes to lower costs, successful discussions with key vendors, a technical analysis of WPX’s well performance that led to higher estimated ultimate recoveries (EURs) and favorable results from larger stimulations.
WPX has rapidly driven costs out of its Williston operations. The company’s estimated drilling and completion costs in the basin are approaching $8 million per well with 6 million pound completions, representing a decrease of more than 30 percent vs. its average in 2014.
The company is now recognizing a blended type curve of approximately 750 Mboe for its wells in the Middle Bakken and Three Forks formations, up 25 percent per well from previous estimates of 600 Mboe. This is based on historical well performance and the success of incremental completion changes WPX performed in late 2014.Comments:
- I wouldn't read too much into "resuming completions." I think most expected this. There is a short window of opportunity before winter sets it
- increasing rigs is very interesting, however; if they follow through with this, it will be a huge story
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WMB Will Get Bought This Year -- Nice Graphics Over At Seeking Alpha
Link here. One may want to archive the article at the link.
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