Tuesday, January 8, 2019

Another Well Making Mineral Owners Happy: "Coming Back" Just As WTI Is Trending Upward -- January 8, 2018

Link here to a BR Iron Horse well.

Notes to the Granddaughters

From a different blog -- for the granddaughters.

When asked, my wife, May, said her moveable feast would have been when she was with her family as a child in Japan. Her dad, US Army enlisted, was assigned to Japan when my wife was eight years old; they were there for two years at a small Army camp. My wife remembers that as the happiest time in her mother's life. Her mother, Japanese, was a war bride after WWII, during the Korean War, when she married my wife's Hispanic father. She was Buddhist; he was Catholic.

She was 18 when they got married, move to the United States, but a few years later were reassigned to Japan, her home country.

While in Japan, they lived in the nicest house they had ever lived in (one needs to remember my father-in-law's enlisted rank in the US Army at that time) -- a two-story duplex. May's mother would take the both of them to get their hair and nails done at the local beauty shop. They had a maid, Todosan who always burned the pancakes which my mother loved: crispy, "burned" pancakes. My wife remembers taking walks along the "water" which she thinks was the ocean (or more accurately the harbor), because of the cliffs, and not a river.

The general area of Kure, southeast of Hiroshima:

My wife remembers Camp Kure being in the Japanese town of Nijimura but yet one cannot find it on the map. In addition, there are very few google hits regarding the city of Nijimura, but it does exist.  It appears to have been swallowed up by Kure.

At wiki: Kure was the home base of the largest battleship ever built, the Yamato. One of the bases of the Japan Maritime Self-Defense Force (JMSDF) is still located there, its former center became the JMSDF Regional Kure District. In addition to a hospital for the Marine Self Defense Force, there was also the Escort Flotilla (destroyers), Submarine Flotilla and the Training Squadron in the Kure District. A museum with a 1:10 scale model of the Yamato is located in the city.

Seven DUCs Reported As Completed; WTI Almost Closes At $50 -- January 8, 2019

Finally! The API reports a huge weekly draw. Inventories drop 6.27 million bbls, but it means nothing if the EIA does not corroborate tomorrow.

Active rigs:

Active Rigs63543958165

Seven producing wells (DUCs) reported as completed:
  • 32856, 2,941, Rimrock Oil & Gas, MC MHA 14-11-2TFH, Moccasin Creek, t918; cum 104K 11/18;
    PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
  • 33034, 1,605, Rimrock Oil & Gas, MC MHA 14-11-2H, Moccasin Creek, t9/18; cum 78K 11/18;
    PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
  • 33035, 690, Rimrock Oil & Gas, MC MHA 14-11-3TFH, Mocassin Creek, t9/18; cum 18K 11/18;
  • 32855, 533, Rimrock Oil & Gas, MC MHA 14-11H, Moccasin Creek, t9/18; cum 33K 11/18;
  • 32854, 1,633, Rimrock Oil & Gas, MC MHA 14-11TFH, Moccasin Creek, t9/18; cum 64K 11/18;
  • 32843, 45 (no typo), BR, Remington 4B MBH, Blue Buttes, t11/18; cum --;
  • 32842, 566, BR, Remington 4A MTFH, Blue Buttes, t11/18; cum --;
Three permits renewed:
  • QEP (2): two Moberg permits in McKenzie County
  • BR: a Manchester permit in Dunn County

Peak Oil? What Peak Oil? BP Just Discovered One Billion Bbls Of Offshore Conventional Oil -- January 8, 2019

Link here.

BP is currently producing about 300,000 boepd from the GoM. BP is GoM's biggest producer.

It hopes to produce 400,000 boepd from the region b y 2025.

So, 1 billion bbls / 400,000 bbls = 2,500 days or about seven years of production.

Making The Gulf Coast Great Again

Wow, it just doesn't quit. Now this announcement -- link here.
South Louisiana Methanol LP and new joint-venture partner Saudi Arabian Basic Industries Corp. (SABIC) are planning a $2.2-billion capital investment to build a grassroots methanol complex in St. James Parish, LA.

Originally announced in 2013 as a project of Texas-based ZEEP Inc. and New Zealand-based Todd Corp. Ltd., SLM—which is now majority-owned by Todd—will pursue the JV methanol project with a Houston-based subsidiary of SABIC.

Preliminary work on the project began last year at a 1,500-acre site along the west bank of the Mississippi River, about 8 miles south of the Sunshine Bridge, with formal construction on the complex to possibly begin later this year subject to pending negotiations between SLM and SABIC.

The methanol plant would have a proposed production capacity of 2 million tonnes/year to support customers both in the US and internationally.

The methanol project would create 75 direct jobs with an average salary of $71,400/year, plus benefits. In addition, the project would result in an estimated 350 permanent indirect jobs while generating 800 construction jobs at peak building activity.

A Little Less Talk, A Lot More Action -- Global Warming Hits Lebanon -- January 8, 2019

Will atmospheric CO2 replace GDP as proxy for how well the economy is doing? Look at this:
US carbon dioxide emissions rose by 3.4 percent in 2018 even as coal plants shut: The increase, the biggest in eight years, was in part driven the strong economy, with emissions from factories, planes, and trucks soaring.
US cancer deaths fall for 25th year in a row: Lower smoking rates are translating into fewer deaths, and advances in early detection and treatment also are having a positive impact, according to the American Cancer Society. But obesity-related cancer deaths are rising, and prostate cancer deaths are no longer dropping.

The above from Chesto at The Boston Globe. 
Let It Snow, Let It Snow, Let It Snow
Something tells me these Syrian refugees would like a little less talk and a lot more action from:
  • Algore and his singeries
  • AGW "scientists"
  • the UN 
  • Germany
  • France
Global warming hits Lebanon.

I always wondered why the Lebanese felt so at home in northwestern North Dakota. Now I know. Thank you, twitter. Unfortunately, I don't see any smoke coming from any chimneys in the photo below.

A Little Talk and A Lot More Action, Toby Keith
FWIW -- absolutely nothing

Nice Jump In Production After Coming Back On Line -- Oasis' Crane Federal In Willow Creek -- January 8, 2019

Earlier today, I posted the results of the one well that came off the confidential list today. Quite a distance from that well, but running parallel to it was #21903 which showed a huge jump in production in September, 2018, time frame:
  • 33777, 998, Oasis, Kjorstad Federal 5300 14-27 11BX, 50 stages; 10 million lbs, Willow Creek; t7/18; cum 103K 11/18; see neighboring, parallel, older well, #21903, here;
  • #21903, 873, Oasis, Crane Federal 5300 41-26H, Willow Creek, t5/12; cum 300K 11/18:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

What did Hubbert say about oil wells .... bell shape curves or something to that effect?

And, then, of course, that dreaded Bakken decline rate.

This well went from less than 2,000 bbls/month (11/17) for more than 10,000 bbls/month in 11/18.

Sundry Forms For The Whiting Wold 41-5-2TFHR -- January 8, 2019

The Whiting Wold wells in Banks oil field are tracked here

More on this well, a DUC that was reported as completed yesterday:
  • 34470, 2,283, Whiting, Wold 41-5- 2TFHR, Banks, t11/18; cum 17K after 19 day
From the NDIC files:
  • April 5, 2018: spud date inked in -- 3/8/2018; date to TD reached; 3/19/2018; all other data (including frack data) left blank
  • Geologist's report by Neset
  • Wold 41-5-2TFHR
  • spud/TD dates as above
  • lateral: 17,826 feet
  • sidetrack: 21,880 feet
  • summary: the well is a single lateral in the Three Forks formation...drilled south to north ... the lateral sidetrack #1 had a bottom location....
  • background gas in the lower Bakken shale: 605 - 3,188 units indicating that the cool down that was encountered back at around 17,000’ MD was actually at the top of the target and not the 2 ft. set line. Lateral #1 was ended 
  • sidetrack #1: was successful ...
  • the bit then tracked just above the 2 ft. set line till around 18,000’ MD where the bit bounced up off of the hot streak just above the cool of the two foot set line...
  • once the bit moved above the 2 ft. set line the bit then ranged from the top of the target, to the 2 ft. set line, back up to the top of the target and back to the 2 ft. set line over the next 1500 ft. of the lateral to around 20,150’ MD
  • the wellbore tracked throughout the Three Forks formation for 100% of the lateral and went fairly smoothly after the sidetrack was completed.
  • an undated sundry form suggests that the original name of the well, Wold 41-5-2H, was changed after Whiting requested the setback be moved from 500' to 200'
  • the original permit: Wold 41-5-2H
Disclaimer: a reader's note suggested I needed to post a disclaimer. Only because my readers have shown me some mercy, I have never gotten a complaint that I post some YouTube videos too often. Thank you. So, this excuse, preempting any complaints, as I wrote a reader:
Yeah, I probably post some YouTube videos too often. But I sometimes need to play some music videos really, really loud (headphones) to drown out the demons that tell me to quit blogging and get a life. LOL.
Hunter S Thompson would know what I'm talking about.

From this site, one of my favorite quotes of all time:
“Music has always been a matter of Energy to me, a question of Fuel. Sentimental people call it Inspiration, but what they really mean is Fuel. I have always needed Fuel. I am a serious consumer. On some nights I still believe that a car with the gas needle on empty can run about fifty more miles if you have the right music very loud on the radio.”

Active Rigs In North Dakota Holding Steady At 64 -- January 8, 2019

Mexico: Pemex oil, natural gas production declines in November. Oil: 1.7 million bopd; lowest production level since 1980. 

Alberta: trying to find a solution. Is building a refinery the answer? -- Bloomberg

QEP: receives $2 billion takeover bid
QEP Resources has recently tried to develop itself into a pure-play Permian company by divesting its assets in the Williston and the Haynesville. Both deals are currently still pending closure.
... an approximate value of $21,000 per acre, but Stifel estimated the fair market value for QEP’s Permian assets to be between $30,000 and $40,000 per acre. Therefore, Stifel does not anticipate Elliott’s offer to be accepted.  
ISO New England: link here; winter storm on its way.

Back to the Bakken

Only one well comes off the confidential today -- Tuesday, January 8, 2018:
Active rigs:

Active Rigs64543958165

RBN Energy: gas pipeline-constrained New England keeps lifelines to fuel oil and LNG.
It’s so ironic. New England is only a stone’s throw from the burgeoning Marcellus natural gas production area, but pipeline constraints during high-demand periods in the wintertime leave power generators in the six-state region gasping for more gas. Now, with only minimal expansions to New England’s gas pipeline network on the horizon, the region is doubling down on a long-term plan to rely on a combination of gas liquefaction, LNG storage, LNG imports and gas-to-oil fuel switching at dual-fuel power plants to help keep the heat and lights on through those inevitable cold snaps. Today, we discuss recent developments on the gas-supply front in “Patriots Nation.”
Well, like it or not, the New England Patriots (11-5) are champions of the AFC East (again) and are in the playoffs for the 10th year in a row. Just as reliably, winter has come to Boston, Hartford, Providence and other big energy-consumption centers in the region. Nothing major yet in the way of snowstorms or frigid temperatures, but there’s been enough cold days and nights to serve as a reminder that while New England has sufficient gas pipeline capacity to meet the region’s needs for most of the year, its pipeline network can max out when the weather turns Siberian. When that happens, there typically isn’t enough pipeline gas available to power many of the gas-fired power-generation units.