The big story remains the slump in oil prices; active rigs in North Dakota are currently around 75. Some argue that the US is more resilient than most other non-OPEC countries. In my mind there is no question about that. As a country, the US will do best among the oil-producing countries because we have such a diversified and vibrant economy.
I don't think anyone else caught this: operators in North Dakota are cutting back; 925 wells are waiting to be fracked; stringent new rules are affecting North Dakota production -- all that and more and yet, North Dakota's oil production rose almost 3% month-over-month. Meanwhile, several years into its 5-year, $35 billion program to increase oil production has netted Saudi Arabia barely 1% increase in oil production, month-over month.
The US oil and gas industry is getting hammered, and it could get much worse before it gets better, but the US as a country is going to do very, very well with inexpensive energy. By the way, inexpensive oil is leading to new gasoline demand records. EIA is reporting that propane stocks rose to a new record and refinery runs hit a record this past week.
Along that line, the Utica is much, much bigger than originally assessed.
More evidence that if it takes 6 - 7 years to get off-short projects up and running, we are being set up for $200 oil. COP terminates contract for drilling in the Gulf of Mexico.
And it's official: natural gas has now replaced coal as the biggest US electric power generation source.
There is an interesting observation comparing number of active rigs and production in Texas with North Dakota. Note "top story of the week" below.
Top stories of the week
Bakken is #1 in US for increased productivity per rig
MRO reports great success in re-fracking a stripper well
All four top Bakken counties in the top ten oil producing counties in the US
Operations
Update on permitting in North Dakota
NDIC issues seventeen permits on one day
The Bakken is still the gold standard
Oasis reporting incredible wells
Fracking
Random note on Oasis completion techniques
CBR
Setting new records in the Rocky Mountain region (PADD 4)
CBB
Crude-by-barge continues to grow on the mid-continent rivers
Bakken economy
New clinic opens in Watford City
Jamestown $3 billion fertilizer plant on hold
Williston's new workforce training center has been completed
Miscellanous
Evidence of new floor for refinery runs?
Minor notes
Federal lease sales in North Dakota nets less than $40K
WPX buys into the Permian
Black Hills Corp looks to increase its customer base by more than half
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