From Bloomberg/Rigzone: Chesapeake Energy declares "Propageddon" with record frack. Data points:
- first it was the single stage frack; then the multi-stage frack; then, the mega-frack; now it's the monster frack
- the era of the monster frack has arrived in North America -- Chesapeake singing its praises
- 25,000 tons of sand down one Louisiana natural gas well -- "propageddon"
- Black 2 & 11-15-11 1H: 50.185 million lbs of sand in the Haynesville shale region of Louisiana; the well's lateral length = 9,764 feet (typical for a Bakken well)
In tomorrow's WSJ: Chesapeake Energy drills deeper for profit. Data points:
- Caddo Parish, LA
- Prop-a-geddon
- Haynesville Shale, near Shreveport, LA
- 2 miles deep, 2 miles horizontally (routine in the Bakken, not a big deal)
- 51 million pounds of sand -- Chesapeake thinks that's a world record
- the article is about Chesapeake's viability -- recently sold 78,000 acres in the Haynesville to an unnamed private company fro $450 million (about $6,000 / acre)
- plans to sell an additional 50,000 acres in the same field in the coming months
- Chesapeake would retain roughly 250,000 acres
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Cushing Filling Up
Bloomberg update on Cushing. Data points:
- creeping near an all-time high
- currently at 66.5 million; within "a whisker" of previous record, 68.3 million
- 1.22 million bbls added last week; 3.78 million bbls added the week before
- jump in inventories at end of year: oil companies looking to lower end of year taxes
- US refineries typically use less oil at beginning of year
- Saudi's cut will take time to be felt; Saudi won't start cuts until January, 2017; and, it takes 45 days for Saudi oil to reach the US
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