MRO With Six New Permits -- October 14, 2019

Active rigs:

$53.43	10/14/2019	10/14/2018	10/14/2017	10/14/2016	10/14/2015
Active Rigs	58	67	59	31	66

Six new permits, #37084 - #37089, inclusive:

• Operator: MRO
• Field: Antelope-Sanish (McKenzie)
• Comments:
• MRO has permits for a six-well USA pad in section 35-152-94, Antelope oil field

One producing well (DUC) reported as completed:

• 32277, 1,454, Slawson, Goblin Federal 1 SLH, Big Bend, t9/19; cum --; see below

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File Report: 32277

 
32277 -- from the file report

• vertical
• drilled in 51.27 hours (slightly more than two full days); three runs
• started at 3:00 a.m. CDT, August 7, 2018
• reached KOP at 11:00 a.m. CDT, August 11, 2018
• curve: 13.3 hours in one run, started at 9:00 p.m. CDT, August 11, 2018
• horizontal: drilling time, 61.47 hrs; started at 6:30 a.m. CDT, August 14, 2018, single run
• TD: 20,528 feet reached at 2:20 a.m. August 18, 2018, 
• low gas units
• lateral 100% in the zone

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Flashback

From the blog, August 11, 2012:

Here's another article talking about the revolution in the oil and gas industry ... and again, the Bakken is the "gold standard." I think we've seen this story before.

The lede:

Global oil supply capacity is growing at an unprecedented level, and could result in an overproduction glut and steep dip in oil prices, according to a June 2012 study from Harvard University's Kennedy School of Government.

Contrary to the idea among some that global oil supply is running out, additional production of 17.6 million barrels of oil per day (bopd) could come online by 2020, boosting global production capacity to 110.6 million bopd, even with depletion rates for currently producing oilfields and reserve growth.

Then, note this:

The United States has more than 20 big shale oil formations, in particular the Eagle Ford shale, which has a hydrocarbon endowment on par with the Bakken. Most U.S shale and tight oil plays are also profitable at a West Texas Intermediate price ranging from $50 to $65 per barrel, making them "sufficiently resilient" to a significant downturn in oil prices.

Repeat: a hydrocarbon endowment on par with the Bakken.

"The Bakken" may not be a household word east of Berthold or west of Bainville, but anyone who knows anything about the oil industry, knows about the Bakken.

Also, note this:

[The author of the study] estimates spare global oil capacity – the difference between the world's total oil production capacity that can be reached within 30 days and sustained for 90 days and the actual production – at about 4 million bopd, which seems capable of absorbing a major disruption from a big oil producer such as Iran.

That explains why loss of Libya's oil had no appreciable effect on world markets, and current Iranian embargo: effects? Nada. Zip. Zilch. A Richmond, California, refinery fire that was put out in minutes will have a greater effect on price of gasoline in California than geopolitical events to date in the Mideast. 

There is so much more at this linked article; enjoy. Check out the break-even price of oil in these unconventional plays at the linked article. It might surprise you.