The Dreaded Bakken Decline -- June 26, 2019

27,214 bbls back in August, 2018; drops over time to 14,884 bbls in November, 218. Now, in April, 2019, production best ever, at 28,636 bbls in one month.

Wow, I love the Bakken.

The well:

• 33222, 1,173, CLR, Miles 6-6H2, Dimmick Lake, 63 stages; 10.3 million lbs, t8/18; cum 112K 4/19;

Production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2019	30	28636	28301	45313	55978	30359	25612
BAKKEN	3-2019	5	3354	3264	7905	5903	2878	3024
BAKKEN	2-2019	0	0	0	0	0	0	0
BAKKEN	1-2019	0	0	23	0	0	0	0
BAKKEN	12-2018	4	2531	2581	3978	6041	3474	2567
BAKKEN	11-2018	24	14884	14895	19940	27736	24177	3556
BAKKEN	10-2018	22	9778	9787	21303	19041	12924	6115
BAKKEN	9-2018	24	19050	19044	35854	35498	31031	4464
BAKKEN	8-2018	30	27214	27290	41447	49866	41428	8435
BAKKEN	7-2018	7	5779	5616	8479	9276	8432	844
BAKKEN	6-2018	0	0	0	0	0	0	0
BAKKEN	5-2018	5	1001	1001	2605	2014	0	2014

I can't help falling in love with you.

I Can't Help Falling In Love With You, Arlo Guthrie

Ten New Permits; WTI Closes At $59.12 -- June 26, 2019

Active rigs:

$59.12	6/26/2019	06/26/2018	06/26/2017	06/26/2016	06/26/2015
Active Rigs	62	64	59	30	75

Ten new permits:

• Operators: Hess (6); WPX (4)
• Fields: Beaver Lodge (Williams); Heart Butte (Dunn County)
• Comments:
• Hess has permits for a six-well Ramberg pad in section 6-155-95; Beaver Lodge oil field
• WPX has permits for a four-well Nighthawk pad in section 34-149-92; Heart Butte oil field

Five permits renewed:

• XTO (4): four Ruby State Federal permits in McKenzie County
• Petro-Hunt: a USA permit in McKenzie County 

Three producing wells (DUCs) reported as completed:

• 35298, 4,634, WPX, Minot Grady 26-35HD, Squaw Creek, t6/19; cum --;
• 35300, 3,793, WPX, Minot Grady 26-35HC, Squaw Creek, t6/19; cum --;
• 19742, apparently still being discussed whether well worth "keeping"; reminder: NDIC sundry forms lag real world events;
• 19742, 189, Condor 1-36-25H, Winter Butte, Bakken, t1/12; cum 31K 4/19;
• 19742, 2, Condor 1-36-2H, Winter Butte, Madison t4/19; cum --;

Weekly EIA Crude Oil Inventories; Gasoline Demand; Re-Balancing -- June 26, 2019

Link here.

• EIA weekly US crude oil inventory: decreased by 12. 8 million bbls
• EIA weekly US crude inventories: 469.6 million bbls
• inventories at 5% above the five year average for this time of year
• refineries operating at 94.2% of capacity

WTI: closed at $59.27

Gasoline demand:

Re-balancing:

November 21, 2018	4.9	446.9
November 28, 2018	3.6	450.5
December 6, 2018	-7.3	443.2
December 12, 2018	-1.2	442.0
December 19, 2018	-0.5	441.5
December 28, 2018	0.0	441.4
January 4, 2019	0.0	441.4
January 9, 2019	-1.7	439.7
January 16, 2019	-2.7	437.1
January 24, 2019	8.0	445.0
January 31, 2019	0.9	445.9
February 6, 2019	1.3	447.2
February 13, 2019	3.6	450.8
February 21, 2019	3.7	454.5
February 27, 2019	-8.6	445.9
March 6, 2019	7.1	452.9
March 13, 2019	-3.9	449.1
March 20, 2019	-9.6	439.5
March 27, 2019	2.8	442.3
April 3, 2019	7.2	449.5
April 10, 2019	7.0	456.5
April 17, 2019	-1.4	455.2
April 24, 2019	5.5	460.1
May 1, 2019	9.9	470.6
May 8, 2019	-4.0	466.6
May 15, 2019	5.4	472.0
May 22, 2019	4.7	476.8
May 30, 2019	-0.3	476.5
June 5, 2019	6.8	483.3
June 12, 2019	2.2	485.5
June 19, 2019	-3.1	482.4
June 26, 2019	-12.8	469.6

CEO Clarifies: Bakken Midstream Is Not Proposing A Plastics Plant -- June 26, 2019

From The Williston Herald, an interview with the CEO of Bakken Midstream.

If unable to access that link, here's another, with the same information, from The Grand Forks Herald.

Hopkins, an entrepreneur who spent part of his career in Alberta, Canada, said he sees a lot of similarities between North Dakota and the circumstances in Alberta in the mid-1970s.

“All the same conditions. A big oil boom. Gas being produced in large volumes. A lack of gas infrastructure. Large flaring,” he said.

The province developed an industry to produce value-added natural gas products, including petrochemicals, instead of exporting raw commodities, Hopkins said. That allowed Alberta to dramatically reduce flaring, create jobs and a new tax base, he said.

“Alberta provides a good roadmap of what you could do with your natural gas,” Hopkins said. “Instead of being a captive exporter and flaring it, you could actually create a whole value-add industry.”

Hopkins declined to discuss any specific projects because the plans are still in development. Examples of projects Hopkins said are needed include gathering infrastructure, processing plants, storage facilities and transmission pipelines.

Bakken Midstream is not a petrochemical company and is not proposing a plastics plant, Hopkins said.

See this post from June 6, 2019, and this post  from May 22, 2019.

Global Warming -- Nothing About The Bakken -- June 26, 2019

From the Drudge Report:

Our tax dollars at work. I assume Rick Perry requested the study after he learned how solar energy and wind energy "work."

No Wells Coming Off The Confidential List Today -- June 26, 2019

No wells coming off the confidential list today.

Active rigs:

$58.97	6/26/2019	06/26/2018	06/26/2017	06/26/2016	06/26/2015
Active Rigs	62	64	59	30	75

RBN Energy: EnLink's crude gathering systems in the Midland and Delaware basins, part 10.

A key to success for midstream companies developing crude oil gathering systems in the Permian is establishing strong, trusting relationships with the producers driving the region’s growth. Hitch your wagon to one or more producers with top-notch rock and aggressive expansion plans, develop gathering systems that meet their needs for flow assurance and destination optionality, and life will be good. Many of the midstreamers whose Permian gathering systems we’ve been discussing in our ongoing series have done just that. Today, we review the existing and planned systems of EnLink Midstream, another company whose growth is founded in large part on the relationships it has developed with major Permian producers.I

n today’s blog, we’re focusing on EnLink’s Permian crude oil gathering assets. To establish a crude-gathering foothold in the region, the company in January 2015 acquired LPC Crude Oil Marketing. LPC owned small crude gathering systems totaling more than 60 miles in west-central Upton County, TX, and along the border of Martin and Dawson counties –– also in Texas) in the Midland Basin, as well as a fleet of 40-plus crude tanker trucks and more than a dozen pipeline and refinery injection stations (also in the Midland).

EnLink then incorporated the Upton County system into what became its much larger Greater Chickadee crude gathering system. Announced in June 2016, the 150-mile-plus Greater Chickadee system consists of mostly 4-, 6-, or 8-inch-diameter gathering pipes in Upton County and a 12-inch-diameter trunkline that runs north through Midland County. The trunkline ties into Enterprise Products Partners’ Midland terminal and Energy Transfer’s SunVit terminal (also in Midland), both of which interconnect with multiple takeaway pipelines. The Greater Chickadee project, which was supported by long-term, fee-based contracts with several Midland Basin producers, also included the construction of a number of tank batteries and pumping, truck-injection, and storage stations to provide more shipping and delivery options. Greater Chickadee was in service by the first quarter of 2017, with a capacity of about 100 Mb/d.

US Crude Oil Production Hits Record, Milestone; Whopping US Crude Oil Draw -- API; WTI Closes Near $59 -- June 26, 2019

US crude oil production: new all-time high -- 12.2 million bopd -- Rigzone/API. And note:

“These milestones were achieved despite less drilling activity, which is testament to productivity but also pipeline infrastructure expansions that helped enable drilled but uncompleted wells to come to market,” the API report stated.

WTI: closed up almost $1.00 / bbl today; closed at $58.82. This follows a whopping draw (see below).

API weekly crude oil inventories:

• forecast: a draw of 2.891 million bbls
• actual: a whopping draw of 7.5 million bbls (link here)
• EIA numbers come out Wednesday, June 26, 2019

Active rigs:

$58.82	6/26/2019	06/26/2018	06/26/2017	06/26/2016	06/26/2015
Active Rigs	62	64	59	30	75

Two new permits:

• Operators: Kraken Operating; Sinclair Oil & Gas
• Fields: Oliver (Williams); Lone Butte (McKenzie)
• Comments:
• Kraken has a permit for a single Stevenson-Garner well in lot 1/section 6-157-98; Oliver oil field
• Sinclair has a permit for a single Renae well in section 9-147-98, Lone Butte oil field

Four permits renewed:

• Whiting (2): two Lassey permits in McKenzie County
• MRO: a Jan permit in Mountrail County
• Resource Energy Can-Am: a Lincoln State permit in Divide County

Three permits canceled:

• BR: two Three Rivers permits and one Three Washers permit, all in McKenzie County