The Million Dollar Way (The Bakken Oil Blog): 01/30/15

Friday, January 30, 2015

Calling It A Night -- But A Nice Essay -- Rigzone -- Janaury 30, 2014

From Rigzone, the conversation begins:

The crude oil price erosion that began in the summer of 2014 is generating a variety of perspectives from analysts following the industry, including two Rice University analysts who talked to Rigzone about the dynamics behind the dizzying drop in prices, and what lies ahead.

The Saudi factor:

Rigzone: Is the downturn anyone’s “fault?”

Arnold: The way I see it is that the United States is the country that’s been increasing production dramatically. Saudi has been maintaining markets, which is not an unreasonable thing for a sophisticated player to do. But they haven’t been dumping on the market, nor have they decided to cut their own production, knowing that OPEC has a history of cheating by their partners. Another thing that’s been in the back of my mind is that there used to be a close relationship between the Saudis and Washington, and through different administrations. I think the Saudis were very mindful of the impact of their actions in the United States in the last couple of decades. And now, you just don’t get the feeling that there’s the sensitivity about that relationship that there had been historically.

Swing supplier.

Rigzone: The term “swing supplier” has come up more in recent weeks. What is that about?

Krane: Traditionally, the swing supplier in the market has been OPEC, and mainly Saudi Arabia. When there was too much supply or too much production, and the market became flooded with crude oil, prices would start to drop, and OPEC would take some of that production off the market. OPEC could add supply to the market or take supply off the market, as conditions warranted. But the advent of U.S. shale production has kind of interrupted that process. Historically, oil production from non-OPEC countries was not a problem for OPEC because it did not increase quickly enough to threaten Saudi Arabia’s market share. Total production has overwhelmed global demand with the sudden and significant increase in production from the United States amid the fracking boom. Not wishing to give up market share to the United States and North America, OPEC responded in a new way – by not decreasing production.

Caught off guard?

Rigzone: Some analysts have suggested that perhaps OPEC did not intend for prices to fall this much, or this quickly.

Krane: While OPEC acted to weaken crude oil prices, they probably overshot the mark on the way down. OPEC opened the taps, letting more crude oil into the market to lower prices. However, there could have been an overreaction, given how far prices have fallen. By the end of the year, prices might reasonably be expected to be back up in the $70s/barrel, barring a serious geopolitical event. The big change is on this side of the globe, and that’s where production is going to have to fall so markets are balanced again. It’s a rational and reasonable course of action – or inaction – for OPEC. They don’t want to see someone else take their market share. They will have some short-term pain because they won’t have the same revenue from oil, but that’s the price they’re going to have to pay to maintain their share of the market.

Update On North Dakota Plan To Press Ahead With Infrastructure Projects This Summer -- January 30, 2015

Bakken.com is reporting:

North Dakota’s Senate has approved $1.1 billion in special funding so that infrastructure projects can begin by this summer.

Senators voted 44-2 Thursday to approve the “surge funding” bill that would fast-track funding to cities, school districts and communities affected by North Dakota’s exploding growth.

Very, very timely. "Funny" how things work out.

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Not Lost In Translation

Reuters is reporting:

Greece's finance minister said the government would not cooperate with the European Union and International Monetary Fund mission.

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What Is This Telling Us?

Reuters is reporting:

Shares of Shake Shack Inc more than doubled on Friday, putting a nearly $2 billion price tag on the small cult hamburger chain, in a huge bet that its growth can match top performers in the crowded "fast-casual" dining space.

Shake Shack's debut is the latest in a string of blockbuster IPOs from trendy restaurant chains that cater to younger and more affluent diners willing to pay a bit more for fresher and higher quality food. Growth-hungry investors are hoping to replicate the red-hot run of industry darling Chipotle Mexican Grill.

But Shake Shack's own CEO Randy Garutti cast doubt on whether it will do so, calling the chain known for decadent milkshakes and hormone- and antibiotic-free burgers a "very measured growth company."

This was also a major story on ABC News, Friday evening, noting that Shake Shack hamburgers -- just the hamburgers -- cost $5.19. It was also noted that the fast food hamburger industry is now twice the size of the fast food pizza industry.

Some observations:

red meat; hamburgers; fast food; there has been a big push for the past seven years, and perhaps the last twenty years for healthier food, and red meat/hamburger is now bigger than ever
one can buy a value-meal hamburger for a buck at McDonalds (a company that is doing badly, sacks their CEO), and yet premium hamburgers at high prices are all the rage; there's a lot of folks out there willing to spend big money on premium hamburger; $5.19 is just the hamburger -- add in $2.50 fries, $2.50 drink and we're talking a $10 hamburger meal
makes Omaha Steak hamburgers a bargain; twenty years ago Omaha Steak offerings were seen as high end; and now I love Omaha Steak products (in fact, I have a Omaha Steak filet mignon on the grill now, while watching The Big Lebowski again)

Or, more succinctly:

home delivery: pizza; dining out: hamburger
healthy food fad is just that ... a fad
the economy is doing a lot better than folks think .... willing to spend $5.19/hamburger

When we were in Boston off and on for the past four years taking care of our granddaughters, I was amazed at all the hamburger restaurants, especially so many on Harvard Square, and they don't even have an In-N-Out there, nor a Whataburger.

Gutterballs, The Big Lebowski
Julianne Moore is ... well judge for yourself.

Biblical themes and tropes in The Big Lebowski.

A Very, Very Short Daily Activity Report Today -- January 30, 2015

Active rigs:

	1/30/2015	01/30/2014	01/30/2013	01/30/2012	01/30/2011
Active Rigs	146	190	186	204	163

Wells coming off the confidential list were posted earlier; see sidebar at the right.

Five (5) new permits:

Operators: Sinclair (2), Slawson, Hunt, XTO
Fields: Sanish (Mountrail), Robinson Lake (Mountrail), Big Bend (Mountrail), Parshall (Mountrail), Midway (Williams)
Comments:

One permit was canceled:

18813, PNC, KOG, Sorenson Federal 4-9H,

Random Look At US Crude Oil Imports Over Recent Six Months -- January 30, 2015

The data is a full two months old so it's not particularly helpful. We really won't know what the slump in oil price was all about and what the results were until late this summer, maybe not until the end of the year when we have the August "high-driving" data in.

Having said that, it's interesting to look at recent history.

October 1, 2014, was the beginning of the slump in oil prices.

With that date in mind, look at the numbers. These are the millions of bbls of oil imported into the US broken down by country.

Despite the increasing amount of oil produced INSIDE the United States, the amount of oil imported
into the US -- between June, 2014, and November, 2014, actually increased, from 264 million bbls to 269 million bbls/month. Interesting, huh?

Saudi Arabia worried about losing its fair share? For the US, no change: 30 million bbls/month.

Venezuela on the ropes? For the US, Venezuela actually shipped MORE oil into the US, from 22 million bbls/month to 24 million bbls/month.

So, who were the losers?

Iraq went from 16 million to 13 million bbls.
Kuwait went from 11 million to less than 4 million bbls.
Although they don't account for much American imports, Algeria and Nigeria took major hits.

Again, I don't think this snapshot tells us much. It's too brief a period; the data is two months old; and, the price slump had just begun.

I don't think we will have a better feeling for all this until late 2015. At the end of October we will have the results of the high-driving month of August. Should be interesting.

Source of screenshot above: EIA, a dynamic link.

Something Surprising From CNBC: Lousy Economic Recovery Under Current Administration -- January 30, 2015

From CNBC, something we would not have seen if the president were up for re-election:

After a deep recession, Ronald Reagan posted 4.7 percent annual growth over 22 quarters and employment jumped 13 percent, whereas President Obama's recovery has accomplished half that progress.

"Half that progress...." Has employment under this administration come anywhere close to jumping 13%. I don't know. The numbers don't make sense to me any more.

Even the vice president agrees: "the past six years have been really, really hard on this country."

And that's despite a gazillion dollars in various stimulus programs including Solyndra and wind energy tax credits. I guess killing the Keystone pretty much set the tone for the Obama administration's feeling about the blue collar set. Wall Street has done very, very well, and with the Yellen/Fed announcement yesterday, it looks like Wall Street will keep doing well -- at least for another year. The only fly in the ointment: the energy sector. Note to investors with long horizons: not to worry.

See disclaimer.

Speaking of politics, let's turn to another waste management issue.

I don't know if it's just me but there's something about a city like Phoenix hosting a "Waste Management" tournament. That seems better suited for Washington, DC. Be that as it may, for at least one golfer "Waste Management" probably lived up to its name. The leaderboard is too long for one screen shot, so the top nine and the bottom ten:

It's still possible for Tiger to score better than Michael Hopper but it's going to be close.

Saudi Arabia Crude Oil Imports -- US -- Monthly Update -- January 30, 2015

CVX Surprise -- January 30, 2015; Illegals Slamming DMV Offices In California

See disclaimer.

Reporting today:

Chevron (CVX): forecast, $1.64; beats; fourth-quarter net income of $3.47 billion, or $1.85 per share, compared with $4.93 billion, or $2.57 per share, a year earlier. Analysts on average had expected earnings of $1.63 per share the second-largest U.S. oil producer, reported a higher-than-expected quarterly profit on Friday as sales of chemicals, lubricants and other refined products helped offset plunging crude prices (CLc1).

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This Will Warm The Cockles Of Ms Lynch's Heart

CBSLocal is reporting:

The Department of Motor Vehicles is so overwhelmed with requests for new driver’s licenses and vehicle registrations that it can take up to three months to get an appointment or a half-day wait in the lobby.

The spokesman said the DMV is working to address the problems, but some people are having to take a day off of work to handle a 15-minute transaction. [It's worth the wait, believe me.]

At the Hollywood DMV office, Jose Quiroz’s DMV ordeal spanned two days of waiting patiently with his family to have his license renewed.

“Yesterday, I was here for four hours standing outside, and when I got to the front line they said that they were not taking us in no more,” Quiroz told Bryan. “And now I am back here again, because I am here to fix my license, and I have been here five or six hours.”

One driver received a letter from the DMV on Jan. 6 that advised he had to renew in person at a DMV office but had until March 8 — two months — before his current license expired. The driver went online to make an appointment, but discovered there were no appointments available within 50 miles of his home before March 8.

In fact, we found eight DMV offices, including Hollywood, Riverside, Costa Mesa, and Ventura that had nothing available before March 11, after his license would have expired.
The wait for an appointment was even longer eight other DMV offices, including Thousand Oaks, Van Nuys and Torrance. They had no appointments available until April, more than three months away.

Much more at the link.

NDIC Hearing Dockets Agenda For February Is Posted; Very, Very Short -- January 30, 2015

Link here.

Dockets are tracked here.

First run-through of the February, 2015, agenda; cases that caught my eye:

23714, SHD, Van Hook and/or Heart Butte-Bakken, establish an overlapping 3520-acre unit, 27 wells; Dunn, McLean
23715, SHD, Heart Butte-Bakken, establish a 1600-acre unit; 17 wells, Dunn
23716, SHD, Heart Butte and Deep Water Creek Bay-Bakken, establish an overlapping 7520-acre unit; 2 wells, Dunn, McLean
23717, SHD, Deep Water Creek Bay-Bakken, establish an overlapping 4000-acre unit, 3 wells; Dunn, McLean
23728, CLR, Catwalk-Bakken, establish 2 overlapping 1600-acre units, 14 wells on each; establish an overlapping 3200-acre unit, 1 well, Williams
23733, XTO, North Tobacco Garden-Bakken, establish a 1920-acre unit, 12 wells; McKenzie
23734, XTO, Haystack Butte-Bakken, establish a 2560-acre unit, 16 wells, McKenzie
23655, Whiting, Banks-Bakken, establish a 2560-acre unit, 28 wells, Williams, McKenzie
23656, Whiting, Sand Creek-Bakken, establish a 1280-acre unit, 14 wells on that new unit, plus 14 wells on an existing 1280-acre unit; McKenzie

Much of the rest had to do with:

overlapping 2560-acre units; 2 wells
flaring (three cases only)
pooling
continuation cases

Comment: two wells on a 7520-acre unit is unitization by another name.

Full Agenda

Wednesday, February 25, 2015

23641, CLR, revoke a Statoil permit, #30430, Jack 21-16 8TFH, Williams

23642, CLR, revoke a Statoil permit, #30432, Jack 21-16 2H, Williams

23643, CLR, revoke a Statoil permit, #30428, Jack 21-16 3TFH, Williams

22803, cont'd, CLR, revoke a Crescent Point Energy permit, #24719, Go-Riders 158099-1522H, Williams

23644, XTO, McGregor-Bakken, amend, establish an overlapping 1280-acre unit; 2 wells; Williams

23645, Missouri River Resources, Squaw Creek-Bakken, 4 wells in a 320-acre unit McKenzie

23646, Clearwater, treating plant, throughout the state

23647, Water Services, treating plant, throughout the state

23648, Horizon-Olson, LLC, treating plan, Dunn

23649, Resonance Exploration, temporary spacing, Bottineau

22597, cont'd

22640, cont'd

22641, cont'd

23650, Slawson, Pleasant Hill-Bakken, proper spacing, McKenzie

23651, Whiting, Fryburg-Bakken, proper spacing, Billings

23652, Whiting, Grinnell-Bakken, establish an overlapping 2560-acre unit; 2 wells, Williams, McKenzie

23653, Whiting, Sand Creek and/or Grinnell-Bakken, establish 3 overlapping 2560-acre units; 2 wells, Williams, McKenzie

23654, Whiting, Banks, Truax, Grinnell, and/or Sand Creek-Bakken, establish 7 overlapping 2560-acres units; 2 wells each, Williams, McKenzie

23655, Whiting, Banks-Bakken, establish a 2560-acre unit, 28 wells, Williams, McKenzie

23656, Whiting, Sand Creek-Bakken, establish a 1280-acre unit, 14 wells on that new unit, plus 14 wells on an existing 1280-acre unit; McKenzie

23657, Whiting, Poe, Banks and/or Camp-Bakken, establish 2 overlapping 2560-acre units, 2 wells each; McKenzie
23658, Whiting, Poe-Bakken, establish 3 overlapping 2560-acre units; 2 wells each, McKenzie
23659, Whiting, Bully-Bakken, establish 3 overlapping 2560-acre units; 2 wells each, McKenzie
23660, Whiting, Pembroke and/or Cherry Creek-Bakken, establish 2 overlapping 2560-acre units; 2 wells each, McKenzie
23661, Whiting, Pembroke and/or Juniper-Bakken, establish an overlapping 2560-acre unit; 2 wells; McKenzie
23530, cont'd
23662, Cornerstone, Bowbells-Bakken, proper spacing, Burke
23663, Cornerstone, Ward-Bakken, proper spacing, Burke
23367, cont'd
23664, MRO, temporary spacing, Powell well, Slope
23665, MRO, to confirm termination of a 2560-acre unit and establishing a 1280-acre unit was effective for purposes of allocating production from the Gary Bell (#24309) well, Dunn
23666, Williston Exploration, temporary spacing, Billings
23667, QEP, Grail-Bakken, establish one overlapping 2560-acre unit; 3 wells; McKenzie
23668, BR, Little Knife, Big Gulch, and/or Rattlesnake Point-Bakken, establish three 2560-acre units, 1+ wells; Dunn
23669, Hess Bakken, Beaver Lodge-Bakken, establish an overlapping 2560-acre unit; 1 well; Williams
23670, Hess Bakken, Capa-Bakken and the Beaver Lodge Devonian Pool to establish a 1280-acre unit fort he Capa-Bakken Pool, 7 wells in either the Bakken or the Three Forks, Williams
23671, Hess Bakken, Sandrocks-Bakken, exceptions to rule, McKenzie
23235, cont'd
23518, cont'd
23672, Gadeco, pooling, Epping-Bakken, Williams
23673, Gadeco, pooling,
23674, Petro Harvester, flaring, Burke
23126, cont'd
23675, SM Energy, pooling
23676, SM Energy, pooling
23677, SM Energy, pooling
23678, SM Energy, pooling
23679, SM Energy, pooling
23680, SM Energy, pooling
23681, SM Energy, pooling
23682, SM Energy, pooling
23683, SM Energy, pooling
23684, SM Energy, pooling
23685, SM Energy, pooling
23686, SM Energy, pooling
23687, SM Energy, pooling
23688, SM Energy, pooling
23689, SM Energy, pooling
23690, SM Energy, pooling
23691, SM Energy, pooling
23692, SM Energy, pooling
23693, SM Energy, pooling
23694, Petro-Hunt, pooling
23695, Whiting, East Fork-Bakken, amend, authorize 12 wells in a 1280-acre unit; Williams
23696, Whiting, Grinnell-Bakken, amend, authorize 14 wells in a 1280-acre unit; McKenzie, Williams
23697, Whiting, Truax-Bakken, amend, 12 wells on each of four 1280-acre units; 2 wells on a 2560-acre unit; Williams, McKenzie
23698, Whiting, Banks-Bakken, amend, 14 wells on five 1280-acre units; Williams, McKenzie
23699, Whiting, Bully-Bakken, amend, 14 wells on 3 1280-acre units, McKenzie
23700, Hess Bakken, Manitou-Bakken, amend, 2 wells on an overlapping 2560-acre unit; Mountrail
23701, Hess Bakken, pooling
23702, Hess, Antelope-Sanish, amend, 13 wells on a 1280-acre unit; McKenzie
23703, Hess Bakken, commingling
23704, BR, Clear Creek-Bakken, amend, 14 wells on a 1280-acre unit McKenzie
23705, BR, pooling
23706, BR, Little Knife-Bakken, amend, 7 wells on three 1280-acre units; Dunn
23707, MRO, Reunion Bay and/or Big Bend-Bakken, amend, 2 wells on two 2560-acre units; Mountrail
23708, Oasis, SWD, Mountrail

Thursday, February 26, 2015

23709, Cornerstone, South Coteau-Bakken, proper spacing, Burke County
22639, cont'd
22837, cont'd
22998, cont'd
22646, cont'd
23710, Enduro, Hay Draw well, temporary spacing, McKenzie,
23711, Armstrong, Hamisch well, temporary spacing, Divide,
23712, SHD, Canon well, exception to completing, McKenzie
23713, SHD, Antelope-Sanish, establish an overlapping 1280-acre unit, 1 well, McKenzie
23714, SHD, Van Hook and/or Heart Butte-Bakken, establish an overlapping 3520-acre unit; 27 wells, McLean, Dunn
23715, SHD, Heart Butte-Bakken, establish a 1600-acre unit, 17 wells, Dunn
23716, SHD, Heart Butte and Deep Water Creek Bay-Bakken, establish an overlapping 7520-acre unit; 2 wells, McLean, Dunn
23717, SHD, Deep Water Creek Bay-Bakken, establish an overlapping 4000-acre units 3 wells; Dunn, McLean
23718, WPX, Eagle Nest-Bakken, amend, establish two overlapping 2560-acre unit; 1 well, McKenzie
23719, WPX, Reunion Bay-Bakken, amend, establish an overlapping 2560-acre unit, 1 well, Mountrail, Dunn
23605, cont'd
23720, EOG, Parshall-Bakken, spacing boundaries, Mountrail
23721, Liberty Resources, Stoneview and/or North Tioga-Bakken, amend, establish four overlapping 2560-acre units; 3 wells each, Divide, Burke
23722, Liberty Resources, Temple-Bakken, amend, establish three overlapping 2560-acre units; 3 wells on each, Williams
23723, Newfield, Keene-Bakken/Three Forks, flaring, McKenzie
23724, Newfield, Sand Creek-Bakken, flaring, McKenzie
23725, Statoil, Briar Creek-Bakken, establish an overlapping 1280-acre unit; 1 well; McKenzie
23726, Statoil, Sugar Beet and/or Eightmile-Bakken, establish an overlapping 1280-acre unit; 1 well, Williams
23727, Slawson, Marathon, Reunion Bay and/or Big Bend-Bakken, create two overlapping 2560-acre units, 2 wells each; Mountrail (spells out which sections will be operated by Slawson and which will be operated by Marathon)
23590, cont'd
23728, CLR, Catwalk-Bakken, amend, establish two overlapping 1600-acre units; 14 wells on each; create an overlapping 3200-acre unit; 1 well, Williams
23729, CLR, voluntary unitized management of the proposed Cedar Hlls West North Dakota-Red River "B" Unit, a 680-acre unit, Bowman County
23425, cont'd
23426, cont'd
22553, cont'd
22847, cont'd
23730, XTO, Bear Den-Bakken, flaring, Dunn, McKenzie
23731, XTO, Cedar Coulee-Bakken, flaring, Dunn
23732, XTO, Lost Bridge-Bakken, flaring, Dunn
23733, XTO, North Tobacco Garden-Bakken, establish a 1920-acre unit, 12 wells, McKenzie
23734, XTO, Haystack Butte-Bakken, establish a 2560-acre unit; 16 wells; McKenzie
23735, XTO, Truax-Bakken, establish two overlapping 2560-acre units; 2 wells each; Williams, McKenzie
23736, XTO, Elk-Bakken, establish four overlapping 2560-acre units; 2 wells each, McKenzie
23737, XTO, Sand Creek-Bakken, estalbish two overlapping 2560-acre units; 2 wells each; McKenzie
23738, XTO, Hofflund-Bakken, establish two overlapping 2560-acre units; 2 wells each, Williams
23739, XTO, Glass Bluff-Bakken, establish four overlapping 2560-acre units; 2 wells each, McKenzie, Williams
23740, XTO, Alkali Creek-Bakken, establish four overlapping 2560-acre units, 2 wells each; Williams, Mountrail,
23741, XTO, Grinnel-Bakken, establish an overlapping 1280-acre unit; establish five overlapping 2560-acre units; 2 wells on each, Williams, McKenzie
23742, XTO, Charlson-Bakken, establish two overlapping 1280-acre units; establish two overlapping 2560-acre units; 2 wells each; McKenzie
23743, XTO, Bear Creek-Bakken, setback rules, Dunn
23432, cont'd
23013, cont'd
23446, cont'd
23277, cont'd
23744, XTO, Bear Creek-Bakken, pooling, Dunn
23745, XTO, Bear Creek-Bakken, pooling, Dunn
23746, XTO, Lost Bridge-Bakken, pooling, Dunn
23747, XTO, Morgan Draw-Bakken, pooling, Golden Valley and Billings
23748, EOG, Antelope-Sanish, pooling, McKenzie
23749, EOG, Parshall-Bakken, completing and producing a total on each of two existing 1280-acre spacing units, Mountrail
23750, EOG, Parshall-Bakken, pooling, Mountrail
23751, EOG, Parshall-Bakken, pooling, Mountrail
23752, EOG, Parshall-Bakken, pooling, Mountrail
23753, EOG, Parshall-Bakken, pooling, Mountrail
23754, EOG, Parshall-Bakken, pooling, Mountrail
23755, EOG, Parshall-Bakken, pooling, Mountrail
23756, EOG, Parshall-Bakken, pooling, Mountrail
23757, EOG, Parshall-Bakken, pooling, Mountrail
23758, CLR, Brooklyn-Bakken, pooling, Williams
23759, CLR, Catwalk-Bakken, pooling, Williams
23760, CLR, Catwalk-Bakken, pooling, Williams
23761, CLR, Catwalk-Bakken, pooling, Williams
23451, cont'd
23452, cont'd
23615, cont'd
23616, cont'd
23762, SHD, SWD, Clarks Creek Field, McKenzie
23012, cont'd
23508, cont'd
23507, cont'd

TGIF -- January 30, 2015

Active rigs:

	1/30/2015	01/30/2014	01/30/2013	01/30/2012	01/30/2011
Active Rigs	146	190	186	204	163

RBN Energy: Mexico -- imports now; production later.

In Part I of this blog we noted a dramatic increase in Mexican natural gas imports from the US over the past two years. Mexico’s imports increased because the country’s demand for natural gas rose significantly while domestic production declined. PEMEX is not able to develop local shale gas resources quickly enough to meet growing demand for electricity from the country’s booming industrial sector. The short-term solution has been to increase imports from the US while natural gas prices in the US are low. Further increases in import volumes ran into problems this year because of capacity constraints on the Mexican side.

To increase the flow of gas to meet demand inside Mexico and to ramp up import capacity across the border, the Mexican government has embarked on an ambitious program to build new pipelines costing as much as $8B. A mixture of public and private companies is involved in building and operating this pipeline infrastructure – much of it dedicated to supplying power plants. The expansion projects center on two “backbone” pipelines – one in the southeast and the other in the northeast of the country – both of which involve new infrastructure to deliver gas from the US side. PEMEX is using a Cayman Islands based subsidiary MGI to handle the US projects to avoid red tape and speed things up. In addition to the backbone projects there are a number of smaller connection projects inside Mexico that provide service to power plants. Inside Mexico the bidding for these projects is being handled by PEMEX as well as the state power company Comisión Federal de Electricidad (CFE). Contracts not yet awarded are currently tied up in political stalemate while the new Mexican President Enrique Pena Nieto (who took office on December 1, 2012) decides on energy policy priorities.

What follows is a description of the expansion plans and the latest completion estimates. The map below shows the major infrastructure projects as presented by PEMEX in September 2012. The red line is the US/Mexico border. The green lines are PEMEX sponsored pipeline projects that are underway. The green star shapes are where border capacity will be increased. The grey dotted lines are new pipeline projects not sponsored directly by PEMEX. The blue lines are the existing national pipeline system.

The Million Dollar Way (The Bakken Oil Blog)

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