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Thursday, June 27, 2019

Number Of Active Rigs In North Dakota Drops Below 60 -- June 27, 2019

Active rigs;

$59.286/27/201906/27/201806/27/201706/27/201606/27/2015
Active Rigs5965593075

Three new permits:
  • Operator: Kraken Operating
  • Field: Lone Tree Lake (Williams)
  • Comments: Kraken has permits for a 3-well Redfield South pad in lot 2 / section 4-156-99
Three permits renewed:
  • Enerplus: an Aldabra, a Lodggerhead, and a Ridley permit, all three in McKenzie County
Four producing wells (DUCs) reported as completed:
  • 35297, 3,224, WPX, Minot Grady 26-35HZ, Squaw Creek, t6/19; cum --;
  • 35301, 2,864, WPX, Minot Grady 26-35HY, Squaw Creek, t6/19; cum --;
  • 35457, 2,461, WPX, Minot Grady 26-35HWL, Squaw Creek, t6/19; cum --;
  • 35296, 4,304, WPX, Minot Grady 26-35HF, Squaw Creek, t6/19; cum --;

Sophia In A Kayak -- June 27, 2019


On-shore training: thirty seconds.


Beach training -- thirty seconds. 


 Shallow water training -- thirty seconds.


On her own.

NDIC Hearing Dockets -- July, 2019

Link here.

Wednesday, July 24, 2019 -- Eight pages -- Highlights
  • Mostly pooling cases
  • 27700, MRO, Reunion Bay-Bakken, 1600-acre unit, E/2 of section 12-151-94 and sections 7/8-151-93; 8 wells; McKenzie, Mountrail counties
  • 27701, MRO, Chimney Butte-Bakken, 1280-acre unit; sections 15/22-146-95, 9 wells; Dunn County
  • 27704, Nine Point Energy, Eightmile-Bakken, 1600-acre unit; sections 10/11, and E/2 of section 9-152-103; 7 wells; McKenzie, Williams counties
Thursday, July 25, 2019 -- Eleven pages -- Highlights
  • 27708, WPX, Moccasin Creek and/or Wolf Bay-Bakken, i) create a 2560-acre unit, sections 29/30/31/32-147-92, 17 wells; ii) created two overlapping 2560-acre units section 25/36-147-93; and, section 30/31-147-92; one well; Dunn County
  • 27713, Kraken, Sanish-Bakken, i) create an overlapping 640-acre unit, one well; ii)  create an overlappng 1280-acre unit; 9 wells;  Mountrail County
  • 27721, CLR, Elm Tree-Bakken, i) 18 wells on an existing 2560-acre unit, sections 4/9/16/21-153-94; ii) two wells on near the section line; McKenzie County
  • 27728, Nine Point Energy, Williston-Bakken, 16 wells on an existing 2560-acre unit, sections 6/7-154-100; and, section 1/12-154-101; Williams County
  • 27729, Kraken, Sanish-Bakken, i) 12 wells on an existing 640-acre unit, section 36-153-92; ii) 6 wells on an existing 1280-acre unit, sections 13/24-154-91; iii) twelve wells on an existing 1280-acre unit, sections 15/22-154-92; Mountrail County
Supplement to Thursday, July 25, 2019 -- seven cases -- Full Summary
  • all seven cases, risk penalty legalese; PetroShale, 
    • Bear Chase pad; Spotted Horn-Bakken (McKenzie County)
    • Thunder Cloud; McGregory Buttes-Bakken (Dunn County)
*********************************
Full Summary

Wednesday, July 24, 2019 -- Eight pages
  • 27663, Oasis, Banks and/or Twin Valley-Bakken, establish an overlapping 2560-acre unit; one well; McKenzie County
  • 27664, Whiting, Dore and/or Nohly Lake-Bakken, establish three overlapping 2560-acre units; one well each; McKenzie
  • 27665, Whiting, Glass Bluff-Bakken, establish an overlapping 2560-acre unit; one well; McKenzie
  • 27666, Kraken Operating, pooling
  • 27667, Kraken, pooling
  • 27668, Kraken, pooling
  • 27669, Kraken, pooling
  • 27670, Kraken, pooling
  • 27671, Kraken, pooling
  • 27672, Oasis, pooling
  • 27673, Oasis, pooling
  • 27674, Whiting, pooling
  • 27675, Whiting, pooling
  • 27676, Whiting, pooling
  • 27677, Whiting, pooling
  • 27678, Whiting, pooling
  • 27679, Whiting, pooling
  • 27680, Whiting, pooling
  • 27681, Whiting, pooling
  • 27682, Whiting, pooling
  • 27683, Whiting, pooling
  • 27684, Whiting, pooling
  • 27685, Whiting, pooling
  • 27686, Whiting, pooling
  • 27687, Whiting, pooling
  • 27688, Whiting, pooling
  • 27689, Whiting, pooling
  • 27690, Whiting, pooling
  • 27691, Whiting, pooling
  • 27692, Whiting, pooling
  • 27693, Whiting, pooling
  • 27694, Whiting, pooling
  • 27695, Whiting, pooling
  • 27696, Whiting, pooling
  • 27697, Whiting, pooling
  • 27698, BR, commingling
  • 27699, Petro-Hunt, pooling
  • 27700, MRO, Reunion Bay-Bakken, 8 wells on a 1600-acre unit, E/2 of section 12-151-94 and sections 7/8-151-93, McKenzie, Mountrail
  • 27701, MRO, Chimney Butte-Bakken, 9 wells on a 1280-acre unit, section 15/22-146-95, Dunn County
  • 27702, MRO, commingling
  • 27703, Hess, Cherry Creek-Bakken, 2 wells on an overlapping 2560-acre unit, McKenzie
  • 27704, Nine Point Energy, Eightmile-Bakken, 7 wells on an existing 1600-acre unit; section 10/11and E/2 of section 9-152-103; McKenzie, Williams

Thursday, July 25, 2019 -- Eleven pages
  • 27705, Slawson, temporary spacing for Condor well, #19742, SWSE 36-149-103; McKenzie
  • 27706, Enerplus, Heart Butte-Bakken; establish an overlapping 2560-acre unit, one well; Dunn
  • 27707, Wave Petroleum Operating, LLC, completing the Hudson 1-32 well, near section of section 32-138-100, Billings County
  • 27708, WPX, Moccasin Creek and/or Wolf Bay-Bakken, i) create a 2560-acre unit, sections 29/30/31/32-147-92, 17 wells; ii) created two overlapping 2560-acre units section 25/36-147-93; and, section 30/31-147-92; one well; Dunn County
  • 27709, Nine Point Energy, Squires-Bakken, establish an overlapping 2560-acre unit; one well; Williams County
  • 27710. SHD Oil & Gas, Van Hook-Bakken; establish an overlapping 1920-acre unit; seven wells, McLean County;  
  • 27711, SHD Oil & Gas, Van Hook-Bakken, establish i) an overlapping 640-acre unit; 3 wells; ii) an overlapping 960-acre unit, 3 wells; iii) an overlapping 1280-acre unit; one well; iv) an overlapping 1920-acre unit, one well; McLean and Dunn counties
  • 27712, SHD Oil & Gas, Deep Water Creek Bay-Bakken, i) establish two 960-acre units, 5 ells on each; ii) one well between the two units; iii) establish two overlapping 1920-acre units; 3 wells on each; McLean and Dunn Counties
  • 27713, Kraken, Sanish-Bakken, i) create an overlapping 640-acre unit, one well; ii)  create an overlappng 1280-acre unit; 9 wells;  Mountrail County
  • 27714, CLR, Bounty School-Bakken, establish i) two overlapping 1920-acre units; 6 wells on each; ii) an overlapping 3840-acre unit, one well; Divide County
  • 27715, CLR, Elm Tree-Bakken, establish a 640-acre unit, one well; McKenzie County
  • 27716, CLR, Big Gulch-Bakken, establish an overlapping 2560-acre unit; two wells, Dunn County 
  • 27717, CLR, Cedar Coulee-Bakken, establish an overlapping 2560-acre unit; two wells; Dunn
  • 27718, Enerplus, revoke a RimRock permit; Dunn County
  • 27719, CLR, amend order 19094 regarding pooling
  • 27720, CLR, pooling
  • 27721, CLR, Elm Tree-Bakken, i) 18 wells on an existing 2560-acre unit, sections 4/9/16/21-153-94; ii) two wells on near the section line; McKenzie County
  • 27722, CLR, pooling, 
  • 27723, CLR, pooling, 
  • 27724, CLR, pooling, 
  • 27725, CLR, pooling, 
  • 27726, CLR, pooling, 
  • 27727, CLR, St Demetrius-Bakken; 8 wells on an existing 1280-acre unit, Billings County
  • 27728, Nine Point Energy, Williston-Bakken, 16 wells on an existing 2560-acre unit, sections 6/7-154-100; and, section 1/12-154-101; Williams County
  • 27729, Kraken, Sanish-Bakken, i) 12 wells on an existing 640-acre unit, section 36-153-92; ii) 6 wells on an existing 1280-acre unit, sections 13/24-154-91; iii) twelve wells on an existing 1280-acre unit, sections 15/22-154-92; Mountrail County
  • 27730, Ballantyne Oil, commingling
  • 27731, EOG, commigling
  • 27732, SWD
  • 27733, SWD
  • 27734, SWD
  • 27735, SWD
  • 27736, PetroShale, pooling
  • 27737, PetroShale, risk penalty legalese
  • 27738, PetroShale, pooling
  • 27739, PetroShale, risk penalty legalese
  • 27740, PetroShale, commingling

Notes From All Over -- Part 4 -- June 27, 2019

Jobless claims (link here):
  • prior: 216K
  • prior revised: 217K
  • forecast: 218K
  • actual: 227K
GDP (link here), 1Q19:
  • real GDP
  • forecast: 3.1%
  • actual: 3.1%
Natural gas fill rate (link here):

Notes From All Over -- Part 3 -- June 27, 2019

From Bloomberg:
The U.S. will account for almost a quarter of global oil and gas production by the early 2030s as the shale boom keeps on booming, according to the head of Rystad Energy.
Output from shale including crude oil, condensate and natural gas liquids could climb to as high as 25 million barrels a day, Jarand Rystad, chief executive officer of the research and intelligence company, said in an interview in Kuala Lumpur. The U.S. will likely make up about 23% of global liquids production and pump 27% of the world’s gas by then, he said.
Part of the reason for the expected growth is that companies are getting better at hydraulic fracturing, the process of pumping a mixture of water and sand into a horizontal well to create millions of tiny cracks in the shale rock that allow oil and gas to flow to the surface. Frackers are using more sand, creating more cracks and boosting the productivity of each well, Rystad said.
And then this:
“It’s about sand, horsepower and water injection,” he said at the Asia Oil & Gas Conference. “Those three parameters are what’s driving activity levels, and those are three times higher today than they were back in 2014.”
Perhaps.

But I think there's more to it than sand, horsepower, and water injection.

Wow, wow, wow -- look at this, the parent-child interference issue or as I call it, the "halo effect."
Looking ahead, Rystad’s optimism is also based on a recent study he’s done on the so-called parent-child interference issue, a concern that drilling a new well too close to an older one will reduce pressure in the original and cut output. While the results were mixed, overall the study showed that companies can stack wells more densely, creating enough drilling locations to support 10 to 15 more years of output growth, he said.
So much more at the link.

Notes From All Over -- Part 2 -- June 27, 2019

From Rigone: offshore's future constrained by cash problems? Pretty funny. Tables turned. All that talk about shale oil constrained by cash problems. Now its offshore's problem.

WTI surges, from Rigzone. 24 hours later:
  • WTI up 12 cents.
  • Brent not even close to where Saudi needs it to be.

Faux environmentalists to open the champagne this weekend: largest US east coast refinery to close. Accounts for 3% of the local region's demand for gasoline. Whatever.

Notes From All Over -- Part 1 -- June 27, 2019

This is part 1. There may be no part 2. LOL.

I'm traveling and have not been paying attention to the news. I am now at my destination and have all kinds of time to blog but it's hard to get started.

I have not followed the news for the past three days. When I haven't followed the news, I can't put things into perspective. It's hard to start from scratch. So, I'm not sure what I will do.

I know I will be energized when I start listening to music, and there will be some breaking news that will get me excited but until that happens, I may not write much of consequence.

I might write a lot but I doubt it will be important. We'll see.

My biggest problem right now is keeping my coffee warm. It is cold where I am - really cold in the morning -- it will get down to 47 degrees overnight tonight; right now it's 57 degrees and it's about 8:07 a.m. local time.

So, coming from 105-degree weather in Texas, it's really, really cold here. I'm wearing my Carhartt jacket that I bought at Home Economy in Williston, ND, years ago -- really, really warm.

Break, break.

Ah, here we go. Makes my day. From Rigzone, "Why rapid shale production is a perk." Archived.
Since the early days of shale oil and gas production, some analysts have expressed alarm about the rapid decline that those wells experience, suggesting either that this will harm shale’s financial viability and/or lead to an early peak and decline in overall production.  But this attitude fails to acknowledge the benefits of producing a resource rapidly.
It is true that it seems inefficient to install capacity that will quickly be underutilized. No one builds a refinery that will see its utilization drop to 20 percent in a few years. But that is the nature of producing fluids; a field can be designed to produce at a constant rate, but only by offsetting the decline in individual well production, whether by enhanced recovery methods and/or additional drilling.
Incredible article. If you have time to read only one article today, this would be the article you need to read.

Break, break.

From Bloomberg: drillers using fuel to power fracking operations.
Thrifty drillers have found a new use for the glut of natural gas that’s sent prices for the fuel below zero in America’s biggest shale patch: Use it to power fracking operations.
For decades, explorers have used massive diesel engines mounted on tractor-trailers to shoot a mixture of water, sand and chemicals down wells and blast open layers of oil-soaked shale rock. That’s changing now that soaring output has crushed gas prices, especially in West Texas’ Permian Basin, where the fuel is a byproduct of crude oil extraction.
Explorers are switching to so-called e-fracking, using gas from their own wells to run turbines for electric motors that power drilling pumps. The move helps in two ways: It cuts about $1 million a month in fuel costs for a set of fracking equipment by 90%, according to Wells Fargo & Co., and it lessens the excess gas burned off at the well site, a practice environmental groups frown upon. Tudor Pickering Holt & Co. predicts electric pumps will represent about a third of the market in roughly the next five years, from about 3% now.
The e-frac movement is “probably going to have some legs," Jud Bailey, a senior equity analyst at Wells Fargo in Houston, said in a phone interview. “It’s clearly a movement by some major operators to experiment with it,” though it’s not clear how quickly a shift would happen, he said.
So much more at the link.

Active Rigs Slip To 61 -- June 27, 2019

Note the completion strategy of the one well coming off the confidential list today (see below).

One well coming off confidential list today -- Thursday, June 27, 2019: 77 for the month; 266 for the quarter;
  • 34090, 150, Oasis, Aagvik 5298 13-26 12T, 50 stages, 4 million lbs,  Banks, t1/19; cum 83K 4/19
Active rigs:

$59.106/27/201906/27/201806/27/201706/27/201606/27/2015
Active Rigs6165593075

RBN Energy: new western Canadian crude pipelines crawl toward completion.
For more than six months now, the provincial government of energy-rich Alberta has been trying to mitigate the sometimes painful effects of having too little pipeline capacity to move crude oil to market. They’ve mandated production cuts by larger producers, contracted for crude-by-rail (CBR) services — then moved to undo those deals — and pressed the Canadian government to help advance long-delayed pipeline projects.
Things appear to have reached a semi-happy medium for now: the price spread between Western Canadian Select (WCS) and West Texas Intermediate (WTI) has narrowed, but remains wide enough to justify sending crude out by train. Still, it’s clear that the big tranches of new pipeline capacity many had hoped would be built or at least under construction by now face more hurdles. How long will Alberta producers need to wait for unfettered pipeline access to the U.S. Midwest and Gulf Coast and to Canada’s West Coast? Today, we provide an update on WCS pricing, Alberta crude-by-rail, and the key pipeline projects that never seem to get finished.