Two More DUCs In The Bakken; Quiet Daily Report -- May 24, 2016

Five (5) more permits --

• Operators: BR (3), EOG (2)
• Fields: Blue Buttes (McKenzie), Parshall (Mountrail)
• Comments:

Active rigs:

	5/24/2016	05/24/2015	05/24/2014	05/24/2013	05/24/2012
Active Rigs	28	82	191	185	214

Wells coming off confidential list today:

• 31223, SI/NC, XTO, Harley Federal 24X-15F, Sand Creek, no production data,
• 31837, SI/NC, XTO, Lund 21X-17AXD, Sand Creek, no production data,
• 32226, loc, Hess, EN-Ruud-LE-154-93-2734H-1, Robinson Lake,

No wells coming off confidential list Wednesday.

Slawson renewed fifteen (15) permits:

• ten of them were Torpedo Federal wells, in Mountrail County
• four of them were Serpent Federal wells, in Mountrail County
• one was a Rebel Federal well, also in Mountrail County

Resource Energy canceled one permit, an Angvick permit in Divide County.

Three (3) producing wells were completed:

• 30412, 2,684, Slawson, Lightning Federal 6-24-13TFH, Big Bend, t4/16; cum --
• 30413, 1,008, Slawson, Lightning Federal 2-24-13H, Big Bend, t4/16; cum --
• 30414, 1,622, Slawson, Lightning Federal 7-24-13TFH, Big Bend, t4/16; cum --

Flashback -- May 23, 2016

President Obama's trip to Hiroshima and Vietnam.

99 Luftballoons, Nena
Feel Like I'm Fixin' To Die, Country Joe McDonald

Wow! Fires Still Burning And Question Is Being Raised If More Takeaway Capacity Needed As OIl Workers Return To Canadian Oil Sands

Active rigs:

	5/24/2016	05/24/2015	05/24/2014	05/24/2013	05/24/2012
Active Rigs	28	82	191	185	214

RBN Energy: will the oil sands need more takeaway capacity?

Production in Alberta’s oil sands region is gradually rebounding after devastating wildfires that forced output scale-backs and temporary shutdowns of some production facilities, terminals and pipelines. It may be a while before life—and production—in the oil sands are back to normal, but Canada’s National Energy Board, producers and others expect the region’s output to continue to rise (if only gradually) the next few years, reflecting long-term oil sands expansion projects committed to when oil prices were more than double what they are today. There are very different views, though, about whether the oil sands will eventually need more takeaway capacity in the form of new or expanded pipelines. Today, we continue our look at the oil sands post-wildfires with a review of existing and proposed pipeline capacity.

Wildfires are notoriously unpredictable and, sure enough, as soon as the worst seemed to be over in the Fort McMurray, AB area, new flare-ups in mid-May threatened oil sands production areas north of the city. Thanks to heroic efforts by Alberta fire crews, no production area has experienced any significant damage (so far at least—fingers crossed), but a few work camps have been destroyed or damaged, and will need to be rebuilt. Good news is trickling in though, such as Imperial Oil’s May 19 announcement that it has restarted limited operations at its Kearl oil sands site. If, as everyone hopes, the wildfires are brought under control within the next few days, it seems likely that oil sands production will ramp up gradually over the next few weeks, and that by mid-summer Alberta’s output might be close to the 3.1 MMb/d that the province was producing before the fires were sparked.

This tells me two things:

• even at $45 oil, Canadian oil sands economical for some
• amazing ability of oil E & P to recover under most adverse conditions