For newbies: this is going on across the Bakken, and over time it will become even more commonplace. No one is talking about it, but it's a big, big deal.
I've talked about the BR Dodge wells in Dimmick Lake previously; for example, here; and, here. It's possible I've posted this recent production data but I don't recall. FracFocus has not record that this well has been re-fracked; in addition, the last sundry form was received in 2015. In other words, this well has not been re-fracked. Recent production data:
Pool
Date
Days
BBLS Oil
Runs
BBLS Water
MCF Prod
MCF Sold
Vent/Flare
BAKKEN
7-2018
31
11743
11878
5333
24285
24208
0
BAKKEN
6-2018
30
13716
13746
5544
27016
26942
0
BAKKEN
5-2018
31
14893
14738
6737
28295
28218
0
BAKKEN
4-2018
30
12346
12401
6342
19578
19504
0
BAKKEN
3-2018
31
8900
8742
5631
15045
14933
35
BAKKEN
2-2018
5
1719
1872
1966
3874
3862
0
BAKKEN
1-2018
1
0
116
0
0
0
0
BAKKEN
12-2017
24
8425
8141
4236
12337
12277
0
BAKKEN
11-2017
12
1176
958
410
1709
1679
0
BAKKEN
10-2017
1
0
0
0
0
0
0
BAKKEN
9-2017
9
222
223
7
277
205
50
BAKKEN
8-2017
31
819
901
68
872
788
7
BAKKEN
7-2017
31
715
680
30
1012
896
39
The well:
17200, 829, BR, Dodge 1-17H, Dimmick Lake, t6/08; cum 288K 7/18;
Oneok plans to construct Demicks Lake II in McKenzie County, adding 200 million cubic feet per day of processing capacity.
Demicks
Lake I, which also will have a capacity of 200 million cubic feet per
day, is under construction but expected to reach capacity soon after
it’s complete, Terry Spencer, Oneok president and CEO, said in a news
release.
That increased the need for the Demicks Lake II plant, a $410 million project.
"Additional
natural gas gathering and processing capacity in the Williston Basin is
critical to supporting record-setting crude oil and natural gas
production in North Dakota and helping producers meet regional natural
gas capture targets," Spencer said.
Original Post
A reader just sent me the link to this press release; I would have missed it. A big "thank you" to the reader.
ONEOK announces additional NGL fractionation, pipeline capacity and natural gas porcessing: Texas, North Dakota, and mid-continent:
North Dakota:
a new 200-million cubic feet per day (MMcf/d) natural gas processing facility; the Demicks Lake II plant
$410 million project
to be completed by 1Q20
upon completion, ONEOK's Williston Basin natural gas processing capacity: more than 1.4 billion cubic feet per day (about 235,000 boepd)
a new 125,000-bbl per day factionator -- MB-5 -- in Mont Belvieu, TX
mid-continent:
an extension of ONEOK's Arbuckle II NGL pipeline further north; will increase capacity by approximately 100,000 bpd to increase total capacity up to 500,000 bpd by adding pup stations
Natural gas processing plants in North Dakota (link above; click on chart to make it bigger):
I attended the Bakken 2.0 opening session yesterday here in Fargo, ND; it was
open to the public.
It was mostly a Bakken 101 session meant for the general
public but as usual when people of that caliber speak there are always
some worthwhile takeaways.
The president of CLR talked a bit
about how important ESP's (electric submersable pumps) have become in
the Bakken. ESPs can be controlled
(speed/volume) from the surface. A problem with ESPs is they cannot
withstand non liquids (sand). One wonders if this is a factor in
the wild swings in well production. They may have to figure out how much
oil they can pump without bringing sand along by trial and error; and, do that with each individual well.
Governor
Burgum said we may be short of CO2 for future oil production. He did not
mention the Allam cycle but I know that North Dakota is doing
everything possible to get the first commercial plant located in our
state. Seems almost a no-brainer--send gas out of our state on
electrical power lines and keep the CO2 for enhanced oil
production---all with no air pollution.
Sometimes the details are not important. What is important is what is discussed. If there is limited time and one thing mentioned is the Allam cycle, it's obvious there is a lot of discussion going on being closed doors.
We've talked about the Allam cycle on the blog previously; here's one post and another.
A huge "thank you" to the reader for passing this along.
********************************
Schlumberger To Buy Russia's Leading Drilling Company
It's a headline story; whether it's consequential or not, I do not know. Nor do I much care.
From the linked article:
The past four years have been a 21st century low point for Western
foreign investment in Russia, with sanctions, unlawful trade practices
and ceaseless wars in the Greater Middle East antagonizing the sides
even further. Against such a difficult background when virtually no
Western major brave enough to enter the Russian market (and most
American firms rolling back projects) it is doubly notable what
Schlumberger is doing. In fact, Schlumberger seems to be, one might say
finally, on the brink of concluding a milestone Russia deal, which would
greatly fortify its standing as the world’s leading oil services
company. By buying into Russia’s largest onshore drilling firm Eurasia
Drilling Company (EDC), it could secure access to a massive market
irrespective of political tensions. Well, almost irrespective.
The
news that Schlumberger is allegedly keen on acquiring EDC first emerged
in early 2015. Even then, several months after the introduction of a
US-EU ban on any Western participation in Arctic, deep-water or shale
projects, it raised eyebrows as an excessively ambitious undertaking.
Schlumberger initially wanted to gain immediate and full control over
EDC’s equity, then agreed to a first-round buy-out of 51% and in the end
somewhat grudgingly acquiesced to offer $1.7 billion for 46% (because
Russian authorities were concerned about the potential loss of an
influential element of the nation’s oil sector) to be followed by a
second-round acquisition three years later of the remaining 54%.
Confronted with massive bureaucratic pushback, Schlumberger renounced on
the idea, pledging to look for M&A possibilities elsewhere… only to
come around with a new offer two years later.
The fact that it is
Schlumberger, not some other service major, that is buying Russia’s
leading oil services company is by no means accidental. The co-owner of
EDC, Alexander Dzhaparidze (neither he, nor the other owner Alexandr
Putilov are under sanctions) has sold his first oil services-related
company, the Iraq-focused Petroalliance, to Schlumberger in 2003.
Partially on the money generated by the sale, Dzhaparidze bought
drilling assets then-owned by the private major LUKOIL, thus
kick-starting the development of EDC. Since then, EDC and Schlumberger
have forged a sort of a strategic alliance in 2011, with several
cross-acquisition of each other’s Russian assets in the years leading up
to the acquisition negotiations.
Fed expected to raise rates tomorrow, Wednesday, September 26, 2018.
Crude oil inventories: weekly API numbers -- a build of 2.903 million bbls. I didn't see what analysts had forecast, so I'm not sure what this build means. Probably not much. There was concern that stocks at Cushing were dropping too far, too fast, but this would seem to allay that fear. A build of 3 million bbls is fairly significant but doesn't mean much until we see the EIA data tomorrow. [After hours, after the data was released, WTI fells 9 cents, trading just below $72.] [I now see that analysts expected to see a draw of 1.279 million bbls.]
*************************************
Back to the Bakken
Two producing wells (DUCs) reported as completed:
34055, 355, Rink 7-1-5UTFH, Pershing, a Three Forks toe down lateral, drilling unit -- 4 section stand-up; about 4 days to drill the lateral, center target was 38' into the Three Forks (TF silt target); depth severance was 72' below the top of the Three Forks; trip gas was higher than expected, peaking at 10,792 units; a 15' flare was maintained, t8/18; cum --;
34056, 320, Kermit 7-8-32UTFH, Pershing, drilling unit -- 4 section standup, t8/18; cum --;
One error on the daily activity report: the NDIC reports that Oasis renewed and canceled the same permit, #29919, an OM Erickson permit in Williams County
Active rigs:
$72.29😃
9/25/2018
09/25/2017
09/25/2016
09/25/2015
09/25/2014
Active Rigs
66
58
33
71
192
Six new permits:
Operator: Oasis
Field: Banks (McKenzie)
Comments: Oasis has permits for a 6-well Nikolai Federal pad in SESW 33-153-97; see graphic below
Other wells:
20266, 777, Oasis, Wold Federal 15-33H, Banks, t3/12; cum 128K 7/18; currently unremarkable; needs to be re-fracked; will neighboring wells make a difference?
Consumer confidence making America great again: this is really quite incredible. I find it amazing what "the power of positive thinking" can bring. Consumer confidence is at the highest it has been in 18 years -- two lost decades finally behind us. Link here. Forecast: 132. Actual number blows through the forecast; the official, actual, real, honest-to-goodness number is 138.4. That "point-four" gives the final number some gravitas, some credence. Had it come in at 138.3 the reading would not have meant as much.
China trade war: when it gets right down to it, this is what the Chinese trade war is all about -- the Chinese are placing higher tariffs on food and manufactured goods, i.e, stuff they need and value-added products; on the other hand, the US is putting tariffs on plastic toys sold mostly at Christmas. One would have expected toy stores, Walmart, Target, etc, to be howling -- complaining that they can't get their Christmas stuff in time for the holiday seasons. But we haven't heard anything from Walmart, Target, etc., suggesting they are doing quite well, having found other markets (probably those in the US).
WMT: up about 0.6% today;
TGT: flat (down one cent on an $87 stock that used to go for well less than $60
BBY: down 1.5% today but not far off it's 52-week high
BABA: up about 0.4% today
DE: well off it's 52-week high -- soybeans?
all four major indices up today, some just barely
Let's see, what else? Ah, there it is -- Trudeau can't close a deal. The US is prepared to move on with a "new" NAFTA without Canada. Just Mexico and the US, or as we call it down here, Tex-Mex.
The usual disclaimer applies. As usual this is done very quickly and using
shorthand for my benefit. There will be factual and typographical errors
on this page. Do not quote me on any of this. It's for my personal use
to help me better understand the Bakken. Do not read it. If you do
happen to read it, do not make any investment, financial, job,
relationship, or travel plans based on anything you read here or think
you may have read here. If this stuff is important to you, and I doubt
that it is, but if it is, go to the source.
Highlights in bold.
Tuesday, October 23, 2018: three continued cases. Thursday, October 18, 2018 -- 8 pages
26997, RimRock, McGregory Buttes and Moccasin Creek-Bakken, establish two overlapping 2560-acre units; 2 wells each; Dunn County
26998, RimRock, Mandaree-Bakken, establish an overlapping 1280-acre unit; 1 well; Dunn
26999, XTO, recompletion of the Burns Federal 41X-30 (#18173); MonDak-Madison; McKenzie
27000, XTO, Capa-Bakken; reduce the number of wells required on an existing overlapping 3840-acre unit; Williams
27001, CLR, Jim Creek-Bakken, establish an overlapping 2560-acre unit; 2 wells; Dunn
27003, CLR, Big Gulch-Bakken; establish an overlapping 2560-acre unit; 2 wells; DUN
27004, Southwestern Production, amend field rules for Tracy Mountain-Madison pool; establish a 320-acre unit; BIL
27005, Kaiser-Francis, Sanish-Bakken; i) establish an overlapping 1280-acre unit, 18/19-154-92; 14 wells; ii) establish an overlapping 1920-acre unit, 11/14/23-153-92, 14 wells; iii) establish an overlapping 2560-acre unit, 17/18/19/20-154-92, 1 well; iv) establish an overlapping 3840-acre unit, 10/11/14/15/22/23-153-92, 2 wells; Mountrail County
27006, Hess, designating Hess as operator of the Long 44-10HU (#33523) in the Whiting 2560-acre lease-line spacing unit; WMS
27008, NP Resources, DeMores-Bakken; establish one overlapping 2560-acre unit; 5 wells; BIL
27009, NP Resources, Chateau-Three Forks and Demores-Bakken; establish two overlapping 22560-acre units; 2 wells; BIL
27010, NP Resources, Beaver Creek-Bakken, establish two overlapping 2560-acre units; 2 wells; Golden Valley County
27011, NP Resources, Big Stick-Bakken; establish three overlapping 2560-acre units; 2 wells each; BIL
27012, NP Resources, Tree Top-Bakkekn; establish an overlapping 2560-acre unit; BIL
27013, Ambrose-Bakken, Resource Energy Can-Am; pooling, Divide County
CRL, pooling
27015, CLR, Big Gulch-Bakken, 11 wells on an existing 1280-acre unit, 19/30-147-96; Dunn County
27016, Crescent Point Energy, Blue Ridge-Bakken, 7 wells on each of two existing 1280-acre units (27/34; 28/33; and 29/32 -159-100; Williams County; 21 wells total
27017, RimRock, Moccasin Creek-Bakken, 2 wells on each of two existing 2560-acre units; DUN
27018, RimRock, Moccasin Creek-Bakken, i) 12 wells on each of two existing 1280-acre units (26/27 and 28/33-148-93; ii) 13 wells an existing 1280-acre unit, 2/11-147-93; iii) 7 wells on an existing 1920-acre unit, 34-148-93 and 3/10-147-93; Dunn County
27019, Slawson, risk penalty
27020, Slawson, commingling
27021, Tobacco Garden SWD
27022, Arrow Water, SWD
27023, PetroShale, Bear Den-Bakken, 11 wells on an existing 640-acre unit, 25-149-96; McKenzie
27024, PetroShale, Bear Den-Bakken, 11 wells on an existing 1280-acre unit, 30/31-149-95; McKenzie
27025, PetroShale, Croff-Bakken; 11 wells on an existing 1280-acre laydown unit, 13/14-149-96; McKenzie
27026, NP Resources, Cinnamon Creek-Bakken; 4 wells on an existing 120-acre unit; MCK
Wednesday, October 17, 2018 -- 8 pages -- mostly pooling and commingling
26954, NDIC; review the temporarily abandoned status of file #15172, BIL
26956, Lime Rock Resources, Cabernet-Bakken, establish two 2560-acre units; 1 well on each unit; DUN
26957, Petro Harvester, Flaxton and/or Lignite-Madison; establish a 640-acre unit; 2 horizontal wells; BRK
26958, Petro Harvester, Lignite-Madison, establish two 640-acre units; 2 horizontal wells on each; BRK
26959, Hess, East Fork and/or Wheelock-Bakken; establish an overlapping 2560-acre unit; 1 well; WMS
26960, Hess, Big Butte-Bakken; establish two overlapping 2560-acre unit; one well on each unit; MNT
26961, Hess, Truax-Bakken; establish an overlapping 2560-acre unit; one well; WMS
26962, BR, Little Knife and/or Lone Butte-Bakken; establish an overlapping 2560-acre unit; 1 well; DUN
26963, Freedom Energy Resources LLC, establish a 240-acre unit; parts of sections 16/21-139-96, Lodgepole vertical, Stark County
26964, Freedom Energy Resources LLC, establish a 320-acre unit, SW/4 of section 17 and the NW/4 of section 20-139-96; Lodgepole vertical, Stark County
26965, Freedom Energy Resources LLC, establish a 200-acre unit, NE/4 of section 20 and the W/2 W/2 NW/4 of section 21-139-96, Lodgepole vertical, Stark County
26966, Harvester Operating, commingling
26967, Hess, pooling
26968, Hess, pooling
26969, Hess, pooling
26970, Hess, pooling
26971, Hess, pooling
26972, Hess, pooling
26973, Hess, pooling
26974, Hess, pooling
26975, Whiting, commingling
26976, Whiting, commingling
26977, Whiting, commingling
26978, Whiting, commingling
26979, Whiting, commingling
26980, Whiting, commingling
26981, Whiting, commingling
26982, Whiting, commingling
26983, Whiting, commingling
26984, Whiting, Glass Bluff-Bakken; 2 wells on each of two 1280-acre units; WMS
26985, Whiting, pooling
26986, Whiting, pooling
26987, Whiting, pooling
26988, Whiting, pooling
26989, Whiting, pooling
26990, Whiting, pooling
26991, Oasis, pooling
26992, Oasis, pooling
26993, Oasis, pooling
26994, MRO, pooling
26995, Deep Creek Adventures Co, SWD
26996, Lime Rock Resources, SWD
Tuesday, October 16, 2018 -- 3 pages -- all continued cases
Generally, a group of deer is called a herd. However, certain species, like the members of the Odocoileus genus like the whitetail, blacktail and mule deer and the European Capreolus species,
they live in smaller groupings than say certain large bovines, but more
like familial groups.
Mostly, a group of whitetail deer, for example,
consist of an older doe, her younger offspring and maybe some cousins or
'friends' of hers, and any female who starts a ruckus or disobeys will
be dealt with by the lead doe. Boxing and foreleg-grabbing are examples
of dominance among these deer species.
******************************
The Book Page
I mentioned this book the other day. It arrived in the mail yesterday, from Dotcom Liquidators in Ft Worth, TX, ordered through Amazon.
Lessons From the Lobster: Eve Marder's Work in Neuroscience, Charlotte Nassim, c. 2018, MIT Press, a book with gravitas, and more expensive than most.
I paged through the book at Barnes and Noble, got the gist of the story, so I will begin with Chapter 3: Lobster Lore.
Researchers in the United States habitually work on stomatogastric ganglia from the Pacific spiny lobster Panulirus interruptus, the Maine lobster Homarus americanus, and two crab species, the Jonah crab, Cancer borealis, and the rock crab, C. irroratus.
Elsewhere, comparable work is done on related species found locally.
When Marder opened her own lab, she initially preferred to work on the Pacific spiny lobster she had started with in San Diego. Soon, she began to use crabs to train students because they were cheaper and because "they have nice muscles."
As the lab gained experience with them, crabs became increasingly a full alternative to the lobster. As her lab stacked up interesting results with crabs, other researchers started to adopt them too. Nowadays her lab uses mainly the Jonah crab; the rock crabs are no longer seen in Boston fish markets, possibly because the warming waters have driven them north. But in the 1980s, the lab was routinely carrying both of these crabs as well as the spiny lobster.
Eve Marder began
Forty years ago ‘Rock Lobster’ launched the career of the B-52s — and revived John Lennon’s -- from The Washington Post.
By 1978, with the Beatles eight years in his
rearview mirror, John Lennon had stopped making music — and found
himself vacationing apart from his wife and muse, Yoko Ono. That same
year, a group of eclectic misfits from Athens, Ga., who called
themselves the B-52s released their first single, “Rock Lobster.”
The
song was released 40 years ago this week on a small, now defunct label
called DB Records. It was later rerecorded and rereleased as part of the
band’s 1979 eponymous debut album on Warner Bros.
It’s
a bizarre tune containing nonsensical lyrics and circuslike surf music,
but it would prove deeply important to the B-52s (it launched them into
stardom) and Lennon (it inspired him to team up with Ono and record the
last songs of his life).
The B-52s were a new wave band before new wave was an official genre,
and “Rock Lobster” hit the masses like a ton of psychedelic bricks.
Delirious sounds pumping out of a Farfisa organ flutter and spin around a
droning backbeat. Vocalists Kate Pierson and Cindy Wilson sing “ohh”
and “ahh” in their best imitation of fish during the song’s nearly
seven-minute run. At the end, Wilson shrieks like a dolphin. There’s
more than a little cowbell.
The song launched the outlandish band into the
mainstream, becoming its first to hit the Billboard top 100. It didn’t
peak until 1980, however, after the B-52s played the song on “Saturday Night Live.”
“Rock
Lobster” also revived a career that had stalled. Lennon’s well of
post-Beatles inspiration had dried by 1975. Though he often cited Ono as
his muse, the two had never put out an entirely collaborative album.
That changed when he heard “Rock Lobster” for the first time while on a
vacation without Ono.
See the rest of the story at the link.
Again, a huge "thank you" to the muse that drives me to blog.
Futures: so the market had a huge downturn yesterday -- the Dow (irrelevant) was down 180 (?) points. I assume it was all gloom and doom on CNBC yesterday. I saw about ten minutes. Big story: China trade war. Today, three major indices green. Including the Dow (irrelevant) up 80 points in pre-market trading. The S&P 500 is up over 7 points and "trading" at 2,924.
WTI: in pre-market trading, up a half a percent, $72.38.
Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or what you think you may have read here.
Anything moving?
CVX: melting up. Up about a third of a percent, at $123.05. One year target: $146.11. If we see that, Sophia will get two new pair of shoes this Christmas. And a new Lincoln Logs set.
RDS-b: up almost 2% today; it had fallen quite a bit the last six months, so this is not a big deal
EW: jumped $11.79 yesterday; up almost 8% yesterday; holding gains today; not a big deal; EW was down quite a bit this past month or so; now back to what it was
the utilities: all struggling
T: melting up; but oh, so slow
XLNX: near it's 52-week high yesterday; not trading yet today
UNP: down yesterday; not trading yet today
AAPL: I completely missed this -- up $4 yesterday, back to $220.79, and it looks like it will hold those gains today, at least at the open
HES: will blow through its 52-week high
OAS: the sleeper stock in the Bakken?
DNR: huge day yesterday; will hold those gains today
Keystone XL: for what it's worth -- TransCanada says it is ready to start construction (again) next year now that the US State Department has given the environmental okay. I wouldn't hold my breath -- I don't think Nebraska has signed on yet. Mule deer have shown up early at the Gascoyne, ND, staging area, to start protesting the pipeline.
