Monday, July 8, 2019

25 More Weather Stations To The West -- Williston Herald -- July 8, 2019

From The Williston Herald:
  • oil / agriculture sectors to bring at least 25 more weather stations to "the west," benefitting both industries
  • possibly as many as 50 if funding approved
  • project: Wise Roads, sponsored by Western Dakota Energy Association
  • phase 1 was completed last week
  • more at this post from June 28, 2019

Keeping America Great -- EPD To Expand Export Capacity In The Channel -- July 8, 2019

From S&P Global, Platts:
  • EPD will expand its ability to export crude, LPG, and polymer grade propylene
  • will expand the Enterprise Hydrocarbon Terminal, Houston Ship Channel
  • to build an eighth dock at that facility
  • will accommodate a Suezmax tanker, the largest ship able to navigate the Ship Channel
  • will add 840,000 bopd; will bring capacity to 2.75 million bopd
  • expansions to load an incremental 1.3 million b/d of LPG, propylene, and LPG
  • in service by 4Q20
  • EPD estimates US crude oil exports to hit 8 million bopd by 2025
  • April, 2019: the US Gulf Coast exported 2.6 million bopd (EIA)
  • EPD expects the US LPG export market to double from 1.4 million BPD to 2.8 million BPD by 2025
  • April, 2019: Gulf Coast exported 1.3 million BPD of LPG; total US LPG exports, 1.7 million b/d
Much more at the link.

By the way, the eight-year court case between EPD and Energy Transfer is going to the Texas Supreme Court, link at SeekingAlpha (this link may break over time). Archived here.

LNG Feedgas Demand Hits Record Highs

From twitter:

US NG Injections At Record Pace 
Injections: exceeding five-year average by 41%

Posted earlier today by the EIA, from twitter:

EOG -- 1Q19 -- Presentation

Note: this is an old presentation, for period covering the first calendar quarter of 2019. The 2Q19 presentation will be appearing shortly. 

According to EOG's 1Q19 corporate presentation, EOG was the nation's largest horizontal oil producer, in thousands of bbls/per day production (the chart said "oil," not boe);
  • EOG: 555
  • COP: 295
  • CXO: 265
  • MRO: 255
  • PXD: 250
  • APC: 230
  • XOM: 220
  • DVN: 210
  • CLR: 205
  • FANG: 155
  • CHK: 145
Free cash flow for EOG:
  • WTI, at $50: almost zero free cash flow but able to maintain dividend
  • at $60: good free cash flow
  • at $70: very, very good cash flow
2Q19 guidance:
  • crude oil volume: 447 - 455K bopd
Net completions planned for 2019:
  • Bakken: 20
  • Delaware Basin: 270
  • Woodford: 30
  • Eagle Ford: 300
Net undrilled premium locations:
  • Delaware Basin: 4,815
  • Eagle Ford: 2,300
  • Powder River Basin: 1,630
  • Bakken/Three Forks: 330
2019 average drilling rigs:
  • Delaware Basin: 20
  • Eagle Ford: 10
  • Powder River Basin: 2
  • Bakken/Three Forks: 1
Bakken plays -- complete wells and build facilities during warmer months
  • Bakken Core (core)
  • Antelope Extension (core) -- will be developed in 2019
  • Bakken Lite (non-core)
  • State Line (non-core)
  • Elm Coulee (non-core)

Around The Bakken -- Miscellaneous -- July 8, 2019

This EOG well came off line 4/19:
  • 28672, 335, EOG, Parshall 82-2827H, Parshall, t1/15; cum 82K 5/19; it was a lousy well; 
This EOG well, had been off line since 10/18, produced for the first time since then, 5/19, for 15 days; doesn't look particularly good; the well:
  • 28521, 562, EOG, Parshall 59-1608H, Parshall, ICO, t1/15; cum 126K 5/19;
Several great BR wells in limbo:
  • 30089, AB/2,577, BR, CCU Dakotan 5-8-17TFH, Corral Creek, t9/15; cum 147K 9/17; the most recent sundry form said the company was still determining best artificial lift system to use; it came off line 9/17; the company said it would be back on line by March, 2019;  still off line as of 5/19; it looks like this is true for all the CCU Dakotan wells (at least the several I checked)

The Werre Trust Wells Are Coming Back On Line -- July 8, 2019

As we began noting a couple of months ago, the Werre Trust wells are starting to come back on line -- I would assume all Werre Trust wells are now back on line. And some of these wells are monster wells.

Link here to see posts about the Werre Trust wells.

A Zavanna Well Is Off Line -- July 8, 2019

This Zavanna well is off line:
  • 26772, 2,058, Zavanna, Double Down 24-13 2H, East Fork, t1/16; cum 301K 5/19; off line 4/19;
Recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

A CLR well shows slight increase in production; steady decline delayed, the well:
  • 28801, 1,194, CLR, Alpha 4-14H1, Camp, t3/17; cum 182K 5/19;
Recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

Ten New Permits -- Juy 8, 2019

Active rigs:

Active Rigs59645630191

Ten new permits, #36686 - #36695, inclusive:
  • Operators: Whiting (4): Kraken Operating (3); Petro Harvester (2); Equinor
  • Fields: Sanish (Mountrail); Lone Tree Lake (Williams); Oliver (Williams); Foothills (Burke); Last Chance (Williams)
  • Comments:
    • Whiting has permits for a 4-well Iverson pad in section 14-154-92, Sanish oil field,
    • Petro Harvester has permits for a 2-well FTH1 pad in section 22-161-92, Foothills oil field,
    • Kraken has permits for a 3-well Mathewson/RedfieldSouth pad in lot 4/section 3-156-99, Oliver oil field/Lone Tree Lake
    • Equinor has a single permit for a Jake well in Last Chance oil field, section 2-153-100;
Eight producing wells (DUCs) reported as completed:
  • 34931, 1,735, Whiting, Peterson 41-15-5H, Epping, t6/19; cum --;
  • 32621, 1,593, Whiting, Gilfer 21-15-1TFHU, Epping, t6/19; cum --;
  • 32620, 2,492 Whiting, Gilfer 21-15-1H, Epping, t6/19; cum --;
  • 35542, 2,587, Bruin, Fort Berthold 152-94-14D-2-1-3H3,  Antelope-Sanish, t6/19; cum 7K over 7 days;
  • 35541, 2,539, Bruin, Fort Berthold 152-94-14D-2-1-5H3,  Antelope-Sanish, t5/19; cum 16K over 10 days;
  • 35540, 1,933, Bruin, Fort Berthold 152-94-14D-11-16H,  Antelope-Sanish, t6/19; cum 7K over 5 days;
  • 35539, 1,959, Bruin, Fort Berthold 152-94-14D-11-19H,  Antelope-Sanish, t6/19; cum 27K over 24 days;
  • 34357, 10 (no typo), XTO, Bobcat Federal 14X-35AXB, Bear Creek, t5/19; cum --;

XTO Reports A Werre Trust Well Producing At Nearly 20,000 BOPM After Coming Back On Line -- July 8, 2019

See this post. It's hard to believe this well has not been re-fracked.

The XTO Werre Trust Federal wells are tracked here 

The well:
  • 29871, 1,519, XTO, Werre Trust Federal 44X-34D, 40 stages; 3.7 million lbs, Bear Creek, t7/15; cum 311K 5/19; no data for a re-frack at FracFocus; no sundry form saying the well was re-fracked;
Recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

Notes From All Over -- Part 4 -- July 8 2019

The Book Page

One of my pet peeves: family members buying recipe books. There is no reason on God's green-internet-connected-earth to be buying recipe books any more. If you need a recipe, google it. Or cut out the recipe on the package and tape it to the back of one of your cabinet doors.

This weekend, at our favorite bookstore, Kinokuniya Bookstore, I stumbled across an incredibly good recipe book. After a week in Montana cooking over a wood fire, this book was perfect.

So I bought it.

At Amazon, link here.


Slow cooking in the kitchen now: brisket. That will be for later this week. Slow-cooked brisket and vegetables always seem better a few days out.

For tonight. Salmon.

Finishing sauce: Wasabi Ginger Finishing Sauce.

On the northeast side of Flathead Lake: Big Fork, MT.

On the west side of main street in Big Fork, MT: Roma's Gourmet Kitchen Store. Our favorite store -- well, at least for kitchen stuff -- in the whole world.

We bought a lot of stuff on our last visit there, a week ago. A lot of stuff. So much stuff, the owner-manager gave us a gift of Australian Flake Salt. I'll get the link later. She said to put the salt on buttered walnut-fennel bread. We got a loaf of walnut-fennel bread at an out-of-the-way farmer's market farther south on highway 35. And, wow, she was right -- walnut-fennel bread, butter and Australian flake salt. Incredible.

But I digress. Where was I?

Oh, yes, Wasabi Ginger Finishing Sauce. After a combine 85 years of shopping in kitchen stores, May and I have a pretty discerning eye for all things "kitchen." And there is was, this popped out at me. Wasabi Ginger ...

I grabbed a bottle and asked the manager whether she would recommend it. Get this: of the 14,910 line items she has in her little kitchen store, the #1 seller is this Wasabi Ginger Finishing Sauce. She has trouble keeping it in stock. It comes from a small mom-and-pop herb farm in fly-over country. Checking out the webpage, the farm has six finishing sauces, and yes, they do run out.

So, tonight: salmon and this sauce.

Mix a little of this sauce with mayonnaise for artichokes and another great taste sensation. Amazing.

So, I'm excited about Finding Fire.

Wow, what a digression.

If you came for the Bakken, scroll up scroll down, or go to the sidebar at the right.

Notes From All Over -- Part 3 -- Peak Oil? Not! -- Drain The Swamp --July 8, 2019

From Rick Perry today:

Global warming? I thought global warming was going to bring global drought. Apparently DC did not get the memo. From Drudge today but I doubt he took the photograph:

Dare I Say The Word? Spying

Hopefully this will start at 5:45:

Notes From All Over -- Part 2 -- July 8, 2019

Rare earth metals:
My worldview: the US didn't "turn to" mideast oil back in the 50's because "we" ran out of oil. Rather it was just so cheap to drill over there. Then OPEC, embargoes, wars, etc., and, all of a sudden, high-priced oil led guys like Harold Hamm to drill in the US. High-priced oil made US oil E&P possible. And then the Bakken shale revolution.

Hold that thought.

I've always thought it strange that only third-world countries had rare earth metals.

From North of 60: Mining News: Alaska rare earths project gets a nudge.

Something tells me that we might see something similar with rare earth metals that we saw with oil.

Time will tell.

By the way: what industry has a huge requirement for rare earth metals? Yup, you guessed it. Renewables.
Later: see first comment.
Later, a reader sent me this link suggesting there may be "rare earths" in Texas:
Politics (see first comment which arrived in response to the following):
Now that Kamala Harris is out polling Bernie Sanders and Biden is in free fall, this is the time for Harris to go "presidential." The Democrat-24 have been pulled to the far left by Occasional-Cortex and others. But polling numbers suggest most Dems are not as crazy as "crazy Bernie" and thus safe to move to the center. Everyone knew that Biden would come in "big" after he announced but most also knew that he had no "staying power."
Kamala has already started to back off on her "Medicare-For-All" rhetoric. She looked a bit more presidential by announcing a big spending program -- $100 billion for housing for disenfranchised. The banks and real estate industry will love it. A huge program for public education (increased pay for teachers) should be next. These are "positive" programs and make a lot more sense than "putting miners out of work."
NBA. Lots of talk about the trades in Los Angeles over the weekend. The one thing not talked about: coaching. Even the best players in the world need a great coach and great team dynamics. I'm thinking of the great Phil Jackson, a native of Williston, ND. See this story on Doc Rivers.

Movies: I watched three movies last night that I had never seen before, and would never think of watching but there they were on TCM and nothing else to have on in the background: Steel Magnolias; Imitatin of Life, and Back Street. I enjoyed all three. Imitation of Life was particularly good. It turns out to be #37 on BBC's list of great movies.

  • Boeing down 1.33%, down $4.61, trading at $351.25, over bad news this weekend: lost a huge sale to Airbus.
  • AAPL is down over 2% after an analyst suggested the new iPhone 11 would disappoint.
One wonders if the Dow would be "green" or at least flat if it weren't for these two. 

Have to go. More later. Good luck to all.

Notes From All Over -- Part 1 -- July 8, 2019

Disclaimer: personal comments included in "news." It is often difficult to separate opinion from facts. 

Jobs: US jobs in oil, gas extraction increased in June, 2019. The full "jobs" story was incredible (see here; and here). But oil services jobs decreased significantly. From Rigzone, the best line: fewer rigs producing more oil. Wow, where have we heard that before?

LNG: Asia LNG prices in freefall according to Rigzone

Trump blinks: apparently his EPA will "bump up" biofuel-blending targets rather than fight over refinery waivers. A Bloomberg story (why does that not surprise me.) That's fine (that the targets may be "bumped). What I would love to see is independent service stations marketing ethanol-free blends and refusing to carry ethanol/gasoline. We found a few of those stations along the way between Montana and Texas during our road trip these past couple of weeks. Even if I did not need gasoline I felt compelled to stop to get a snack for Sophia. Wow, she was a great traveler.

Doomsday clock: why don't we see the 12-year (Occasional-Cortex) clock or the 10-year (Beto) clock counting down the end of the world as we know it? I don't know if we have 12, 11, 10, or less years left. I know the farmers in the midwest would like a little less rain, a little more sun. Could be a big run on propane this autumn.

Will only get worse under Kamala's regime: magic wand fudging -- NASA adjusting temperature data to "show" global warming" where it didn't exit. Link here

Reality: Americans overwhelmingly want to stop global warming. But they won't pay even as little as a quarter (25 cents) a day to save the earth. That speaks volumes. Unfortunately Americans are already paying well more than that in hidden fees, regulations, policies, etc.

Fool me once ....: German refinery halts Russian oil imports again on poor crude oil quality.

Safe Trip Home

Our son-in-law works for the company that builds Western Star trucks -- the huge, specialty trucks used in mining and manufacturing industries. We are always on the outlook for such trucks. One seldom sees them on the US interstate system.

It was quite a surprise to see one on our way home from Montana a couple of days ago.

When driving, I always try to have a plan B or an emergency  escape route -- something the US Air Force taught us while serving overseas where terrorists were operating. That planning still comes in handy. Shoulders are generally the best escape route ... if they exist.

Letting go of the steering wheel also prevents fractured wrists. LOL.

Active Rigs In North Dakota Drop To 58 -- Waiting For Infrastructure To Catch Up -- Too Much Flaring -- July 8, 2019

Wells coming off the confidential list over the weekend, today --  
Monday, July 8, 2019: 6 for the month; 6 for the quarter;
  • None. 
Sunday, July 7, 2019: 6 for the month; 6 for the quarter;
  • 35543, SI/NC, WPX, Delores Sand 29-32HIL, Antelope, no production data,
  • 34094, 2,479, CLR, Colter 7-14H, 37 stages, 10.2 million lbs, Bear Creek, t3/19; cum 125K in three months, the Colter wells are tracked here:
    PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
Saturday, July 6, 2019: 4 for the month; 4 for the quarter;
  • None.
Active rigs:

Active Rigs58645630191

RBN Energy: why build an ethane steam cracker in a time of low ethylene margins?
The margin for producing ethylene by steam-cracking ethane has been less than a dime per pound since mid-March 2018, and less than a nickel for nearly nine of the past 15-and-a-half months. In fact, for two weeks last September, the ethylene-from-ethane margin fell below zero. And yet, a joint venture of two of the world’s savviest companies — energy giant ExxonMobil and petchem behemoth Saudi Basic Industries Corp., or SABIC — recently committed to building what will be the world’s largest ethane steam cracker: a 4-billion-pounds/year facility to be constructed near Corpus Christi by 2022. Is this a case of blind optimism? No, not when you factor in the cracker’s location, the JV’s concurrent plan to construct two polyethylene plants and a monoethylene glycol plant right next door, and the co-developers’ global market reach. Today, we discuss the thinking behind ExxonMobil and SABIC’s big investment in Texas’s San Patricio County.
The Shale Revolution and the resulting rise in U.S. production of crude oil, natural gas and natural gas liquids (NGLs) have been the catalyst for many things. Refinery retrofits to allow more light-sweet shale crude to be processed. Liquefaction plants and LNG export terminals — new crude and LPG export infrastructure too. A slew of new natural gas-fired power plants, accelerating the retirement of coal generators. And, as we’ve discussed at least a few times in the RBN blogosphere, a long list of new, mostly ethane-only steam crackers — almost all of them along the Gulf Coast — to take advantage of the humongous volumes of ethane and other NGLs emerging from wells in the Permian, Eagle Ford, SCOOP/STACK, Marcellus/Utica and other shale plays.