Thursday, August 22, 2019

How Much Propane Would A Propane Skimmer Skim If A Propane Skimmer Could Skim Propane? -- August 22, 2019

See this post for background: propane unit trains from Fryburg, ND, to Mexico.

A reader asked me a question I could not answer, so I am posting it to see if readers have the answer.

Two questions:
  • does anyone know how the propane is getting to Fryburg in the first place: rail, pipe, truck?
  • regardless of how it gets there, does anyone know from where the propane is coming (from throughout the Bakken; predominantly from wells in the local area)?
***********************************************
The Answer

Again, the question: how is propane getting to Fryburg for those 100-car unit trains?

The short answer: a 44-mile pipeline from a natural gas processing plant in central McKenzie County to to a fractionation complex near Belfield formerly known as the Andeavor Logistics Belfield Complex or something to that effect. 

Wow, I'm getting burned out, lazy, or senile -- or a combination of all three.

I posted the above note/question earlier this evening and then went to bed about 10:00 p.m. -- I was exhausted -- actually not exhausted but that's another story for another time ...

I woke up shortly after midnight and had my answer. A regular reader of the blog said the answer was here:

Andeavor to invest $150 million in Belfield, ND, NGL Logistics Hub -- February 19, 2018.

LOL. Are you kidding?  That's what the reader wrote me.

I had completely forgotten.

Several other links continue the story, all of which I knew at one time and all of which I probably blogged and all of which I have forgotten.

I'm too tired to put together the story, so just the links for now, but I think it pretty much paints the story to answer the reader's question above:
Okay, so that's a start. So much more, but let's move on to a note that I just received from a reader at 1:06 a.m. CT (it's now 1:11 a.m. CT):
Having some fun with a twist on the RBN Energy report of propane riding the rails from the Bakken to Mexico, after sending the following to a friend (see below), a further bit of potential irony occurred to me:
If unit trains are being loaded with Bakken crude in Fryburg, in all likelihood the facility would also include or be close to the required pre-treater to remove the offending volatiles such as propane, before the tankers give Bakken crude a ride down the rails.
Wouldn't putting that propane right into Mexico-bound tankers be the right thing to do, since crude not propane is the bad guy on the block?
How many tankers would a crude skimmer skim, to fill a tanker with the skimmed propane skimmings?
How much propane would a propane skimmer skim if a propane skimmer could skim propane?

The note this reader sent to his friend:
Just read that, in May, 2019, the first 100-car train of propane-filled tanker cars made its way from the Bakken in ND to its destination in Mexico. Since then, three more such unit trains have made it.
Pardon me, Sir, but it kinda, sorta strikes me that, after the media couldn't get enough replays of tankers with Bakken crude in flames and off their rails squeezed into their news cycles, it was revealed that ND's Bakken crude was more volatile than other crude.
Is it really out on a limb to say that oil that will burn has the desired quality?
But, no matter. The stoked fears, public and political reaction called for "North Dakota" crude to be pre-treated,---in effect, somewhat "denatured"---prior to shipment, as if the crude itself was the demon that had made itself burn and explode. Well, the time and cost of pre-treatment must have taught Bakken crude a lesson.
Can't remember when I saw the last tanker of ND Bakken crude in flames. So,---Thank goodness!---the fire from tankers being side-swiped, slipping off sagging rails undercut by a stream, or taking a trip to town without an engine or conductor wasn't the result of human error or mechanical failure.
Note, when crude rises or is brought to the surface from great depths, some of its components, no longer under other than atmospheric pressure to stay bound to the oil, separate and "bubble up" as natural gas, which also has liquid and gas components, one of which is propane. Like the crude oil, propane derives some market value from its inflammability. And, in an engine, also from its ability to explode with great force.
So, let's see if I have this straight. Propane is one of the components that must now be removed from ND crude by pre-treatment, in order to make crude safe to put in tanker trains for shipment. And such volatile component as has been removed from crude is now being put in enough tankers to make up at least 4 unit trains of 100 cars each, all making the trip from Fryburg, ND, to Mexico, without a fire or explosion.
Conclusion: Teaching ND crude oil a lesson has paid off. 
Wow,  I love the milliondollarway blog. I just wish I could remember what I've posted. LOL

But, again, the best thing from all this: feedback from the readers. 

This note and derivatives of this note will be posted and re-posted for awhile.

It is simply too rich (pun intended) to forget. 

The Astounding Bakken -- August 22, 2019

I count 52 drilling locations in the graphic below. No "PNC" (canceled permits) locations are shown.

Horizontal legs, where they exist, have been removed, to de-clutter the image.

These are oil wells, not natural gas wells.


Nine New Permits; Petroshale Getting Active Again -- August 22, 2019

Active rigs:

$55.358/22/201908/22/201808/22/201708/22/201608/22/2015
Active Rigs6462523276

Nine new permits, #36889 - #36897, inclusive:
  • Operators: Whiting (3); Petroshale (6)
  • Fields: Bear Den (McKenzie); Sanish (Mountrail)
  • Comments:
    • Petroshale has permits for a 6-well Frontiersmen pad in section 30-149-95, the prolific and scenic Bear Den oil field; see graphic below;
    • Whiting has permits for another 3-well Satterthwaite pad in section 7-153-92, the prolific Sanish oil field; see graphic below;
One permit canceled:
  • CLR: a Jersey Federal permit in Mountrail County
One producing well (a DUC) reported as completed:
  • 34175, 1,286, CLR, Ravin 7-1H,  Dimmick Lake, t8/19; cum --; see graphic below;
Bear Den:



Sanish:




Dimmick Lake:



Another US Crude Oil Production Record Set This Past Week -- August 22, 2019

The background to this note involves a lot of history about how the US government comes up with their statistics. If you've been following the blog for awhile you are probably aware of the "inside" story. If not, the story will become clear(er) over time.

From a reader:
The lower 48 set a production record this week, but I doubt that anyone mentioned it.

The output from wells in the lower 48 states rose by 100,000 barrels per day to a rounded record high of 12,000,000 barrels per day, while there was a 94,000 barrels per day decrease to 339,000 barrels per day in Alaska's oil production, and hence the final rounded national production total that everyone cites was unchanged at 12,300,000 barrels per day.
Most of this year, Alaska was adding 500k to the national total. I have no idea what happened in there this week, unless they had a hurricane we didn't hear about.
My hunch: polar bears are turning off the oil pumps to do their part to prevent global warming. 

This information will be repeated in greater detail and explanation this next Sunday, at "Focus On Fracking," linked at the sidebar at the right.

See EIA data at this link. And, yes, 12,300,000 million bopd for the week ending 8/16/2019. I believe those are "estimates."

This EIA data is apparently "actual" production data but such data lags a couple of months.

There Is Tier 1 ... And Then There is TIER ONE! -- August 22, 2019

This page will not be updated. These wells are tracked here.

There are sweet spots in the Bakken ... and then there are SWEET SPOTS!

One of those sweet spots? The Antelope Sanish.

Look at these CLR wells -- they just sort of sneaked up on me --

The wells, section 27-152-94; Antelope oil field, Sanish pool:
  • 28334, 1,297, CLR, Salers Federal 7-27H, 30 stages, 3.8 million lbs, Antelope, t11/15; cum 739K 7/19;
  • 28335, 1,197, CLR, Salers Federal 6-27H1, 31 (no typo) stages, 5.9 million lbs, Antelope, t11/15; cum 651K 7/19;
  • 28331, 1,576, CLR, Salers Federal 5-27H, 30 stages, 4 million lbs, Antelope, t10/15; cum 529K 7/19;
  • 28332, 1,373, CLR, Salers Federal 4-27H1, 30 stages, 6.1 million lbs, Antelope, t10/15; cum 552K 7/19;
  • 25814, 1,256, CLR, Salers 1-27, Antelope, 30 stages, 5.9 million lbs, t5/14; cum 402K 7/19;
  • 25815, 1,351, CLR, Salers 2-27H, Antelope, 30 stages, 6.1 million lbs, t6/14; cum 616K 7/19;
  • 28330, 1,716, CLR, Salers Federal 3-27H, Antelope, 50 stages, 19.23 million lbs, t10/14; cum 753K 7/19;
Comments:
  • #28330: completed in late 2014; trending toward a million bbls of oil only five years later. No bump in production; no huge production in the early years; simply a steady Eddy Bakken well.
See another small part of the Antelope oil field at this post.

The graphic:


Random Look At A Staggering MRO Kermit Well -- August 22, 2019

I am not aware of posting this well before.

The well:
  • 32525, 4,984, MRO, Kermit USA 14-9H, Antelope-Sanish, t8/17; cum393K 6/19; that's almost 400K in less than two years; early production:
SANISH2-20182814197141676235487533202714840
SANISH1-20183119846199858822685842253643703
SANISH12-20173128662288271136173219654363257
SANISH11-20172536650364951193149152145026
SANISH10-20173142710427571342061535341553367
SANISH9-20173064701650811991962632155464
SANISH8-201730791087817828054105287096532
SANISH7-20172140013640160701452

And look at all that flaring! Time to shut down this well!

And it's gotten worse. Look at most recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH6-20193087128738398717839216843
SANISH5-201931926090485597141301513023
SANISH4-2019710359917312495272034
SANISH3-201915142816218303148272622

Kermit?




Now I know where carpool karaoke began. LOL.

Sacred Souls -- August 22, 2019

From a Seattle, WA, dispatch dated August 22, 2019:
In all, the city spends $1 billion a year fighting homelessness.
That's $100,000 for every homeless man, woman and child in King County and yet the needle has mostly been moving in the wrong direction. Residents say there is a deep disconnect between them and those in charge and say elected officials are tone-deaf and offer up simple solutions to a complex problem.
I thought that was a new story but it turns out that it was first reported in the Puget Sound BizJournal, November 16, 2017.

So this has been going on at least since 2017 -- $100,000 / year / homeless man, woman, and child.

At least Seattle can afford it. Good for them.

Sacred Rocks (Roches Sacrées) -- Sixty Years Old -- August 22, 2019

I debated how to post this, but then, in the end, decided to simply post it with minimal editing. This is from a reader who has followed the DAPL legalese story very, very closely from the very beginning:
I was prowling around for any tea leaves to read - Judge Boasberg's decision on DAPL items is due this month ...
... the US Army Corps of Engineers had to consider hunting and fishing and a few other things that seemed to me to be easily remedied...
I found this motion for summary judgement - filed last week.
https://earthjustice.org/sites/default/files/files/SRST-Remand-brief.pdf
The tribe wants the DAPL permit revoked and a full EIS ordered.
I just skimmed through it ... 
On page 13, the Corps said they'd meet with the tribe only after the tribe produced requested documents.
On page 43, while listing cultural items that might be destroyed by the black snake, the suit mentions that on the shoreline there are rocks used to heat sweat lodges.
Later: a reader noted that the "original" sacred rocks are now hundreds of feet deeper because of the Oahe Dam downstream. The "current" sacred rocks are not more than 60 years old, unless, of course, sacred rocks rise to the surface. From wiki:
In September and October 1804, the Lewis and Clark Expedition passed through what is now Lake Oahe while exploring the Missouri River.
Oahe Dam was authorized by the Flood Control Act of 1944, and construction by the United States Army Corps of Engineers began in 1948.
The world’s first rock tunnel boring machine (TBM) was invented in 1952 by Elon Musk James S. Robbins for the Oahe Dam project, which marked the beginning of machines replacing human tunnelers.
The earth main dam reached its full height in October 1959. It was officially dedicated by President John F. Kennedy on August 17, 1962, the year in which it began generating power. The original project cost was $340 million.
Roches sacrées: if anything, French was probably the language that connected Lewis and Clark's Jeffersonian English to Ms Sakakwea's Hidatsu (a Siouan dialect). Think: Mr. Charbonneau.
  
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Lump Charcoal Grilling

Speaking of sacred rocks, my next step in grilling -- "grilling" steak directly on coal.

From Barbecue Outfitters: Rockwood Lump Charcoal.

Video.



Note: do not use "regular" charcoal. Poisonous. Must use natural lump charcoal.

Seismic Crews Moving Into Southwestern North Dakota -- August 22, 2019

The other day, with tongue-in-cheek, I mentioned that whereas President Trump was looking into buying Greenland, Northern Energy Corp was looking into buying Bowman County, ND -- or at least the entire county's minerals.

From a reader who lives in Bowman County, ND:
Something I have not seen in many years is happening right here in our area and that is a very advanced Seismic Crew is moving in our area
[It is my understanding that they will be here until] September 4, 2019,  and [it's also my understanding their technology is] so good the oil company can tell within a foot of where they will be drilling to
Marmarth is one area ...
I remember seeing seismic crews in/around Williston when I was growing up there, 1951 - 1969.

Some of the biggest wells in North Dakota are in the Bowman / Marmarth area. At the link, scroll to the Red River wells.

The big problem with Red River wells: water. Life history of a Red River well, oil:water ratio:
  • first three years of production: 5 parts oil:1 part water
  • next two years: 1:1
  • next year: 1:3  
  • then huge jumps eventually reaching: 1:15 and even as high as 1 part oil : 44 parts water
  • I assume to some extent this is water-flooding EOR (Denbury)
  • my hunch: the "water issue" becomes the deciding factor when to take a producing well off line
  • supports my thesis that the water issue and fracking was another bogus story to scare folks; oil companies have had immense experience dealing with water
  • to what extent CO2 injection plays a role in EOR, I do not know. I don't follow Denbury very closely; corporate presentations might help but that's a story for another day
But until water becomes a big issue, these are huge wells.

From the "monster well" list as a small example of some of the huge wells in this area.

Red River
(includes Red River, North Red River, South Red River)
  • 5269, 380, Abraxas, Miller 7X-27, Coyote Creek, s5/73; t7/73; cum 952K 9/17; still producing; 2 bbls/month; 40 years old in 2013; INACTIVE 5/16; back on status 6/16; producing only one or two days recently; IA again, as of 11/18; remains inactive, 6/19;
  • 5930, 300/PA, Petroleum, Inc., Arithson C 1, t9/76; cum 1.0246 million bbls; last produced July, 1997; about 21 years of production
  • 15659, 301, Denbury/BR, CHSU 11D-33SH 15, t2/05; Cedar Hills field, cum 933K 6/19 still producing 2,000 bbls/month; South Red River B well; 
  • 15786, TA/1,119, Denbury Onshore, CHUSE 24A-18SH 15, Cedar Hills, a South Red River well, t9/05; cum 658K 11/13;
  • 15828, 673, Denbury Onshore, CHSU 13C-11SH 16, Cedar Hills, t12/05; cum 945K 6/19;
  • 15829, 374, Denbury Onshore, CHSU 13C-11NH 16, Cedar Hills field, t10/05; cum 802K 11/18;  South Red River B well;
  • 15837, 634, Denbury Onshore, CHSU 13C-14NH 16, Cedar Hills, t12/05; cum 685K 11/18;
  • 15847, 342, Denbury Onshore, CHSU 24C-14NH 16, South Red River B, t9/05; cum 872K 11/18;
  • 15849, 188, Denbury Onshore, CHSU 31B-3NH 26, South Red River B, t8/05; cum 718K 11/18;
  • 15850, 190, Denbury Onshore, CHSU 33B-33NH 26, South Red River B, t8/05; cum 477K 11/18;
  • 15907, 752, Denbury Onshore, CHSU 33C-10SH 16, Cedar Hills, South Red River B, t2/06; cum 1.27 million 11/18; still producing 1,700 bbls/month;
  • 15939, 773, Denbury Onshore, CHSU 13C-10SH 16, Cedar Hills, t3/06; cum 901K 4/19;
  • 15940, 483, Denbury Onshore, CHSU 13C-10NH 16, Cedar Hills t4/06; cum 645K 11/18;
  • 16008, 329, Denbury Onshore, CHSU 42C034NH 26, s2/06; Cedar Hills field, cum 978K 6/19;
  • 16120, 383, Denbury Onshore, CHSU 13C-29SH 26, Cedar Hills, South Red River B, t6/06; cum 647K 11/18;
  • 16122, 155, Denbury Onshore, CHUS 22C-5SH 16, Cedar Hills,  South Red River B, t6/06; cum 749K 11/18;
  • 16123, 349, Denbury Onshore/BR, CHSU 22D-5NH 16, t6/06; Cedar Hills, cum 1.024508 million K 6/19; see this note;
  • 16126, 605, Denbury Onshore, CHUS 33C-5SH 15, Cedar Hills, South Red River B, t8/06; cum 839K 4/19;
  • 16127, 362, Denbury Onshore, CHSU 33C-5NH 15, Cedar Hills, South Red River B, t8/06; cum 770K 11/18;
  • 16149, 410, Denbury Onshore, CHUS 44D-29NH 26, Cedar Hills, South Red River B, t5/06; cum 620K 11/18
  • 16150, 316, Denbury Onshore, CHUS 44C-29SH 26, Cedar Hills, South Red River B, t5/06; cum 789K 11/18;
  • 16151, 551, Denbury Onshore, CHUS 24C-29NH 26, Cedar Hills, South Red River B, t8/06; cum 653K 11/18;
  • 16152, 37, Denbury Onshore, CHUS 24C-29SH 26, Cedar Hills, South Red River B, t8/06; cum 613K 11/18;
  • 16155, 120, Denbury Onshore, CHUS 41D-32NH 26, Cedar Hills, South Red River B, t7/06; cum 667K 11/18;
  • 16156, 231, Denbury Onshore, CHUS 41D-32SH 26, Cedar Hills, South Red River B, t5/06; cum 539K 11/18;
  • 16242, 405, Denbury Onshore/BR, CHSU 11C-5NH 05, t8/06; Cedar Hills, cum 1.000539 million bbls 6/19;
  • 16916, 385, CLR, JWT 11-34SH, Cedar Hills, North Red River B, t4/08; cum  539K 11/18; still producing 5,000 bbls of oil per month; no decline whatsoever;
  • 16699, 277, CLR, Jones 11-33NH, Cedar Hills, North Red River B, t11/07; cum 525K 11/18;
  • 16820, 382, CLR, Evelyn 31-25NH, Cedar Hills, North Red River B, t5/08; cum 452K 11/18;
  • 16821, 283, CLR, Sharon 44-28SH, Cedar Hills, t2/08; cum 532K 11/18; 
  • Several incredible CLR Red River wells in Medicine Pole Hills, southwest corner of the state;
The area of interest:


Note: no parks, no BLM land, no state land.

Welcome To The "One-Million-Bbl" Club -- CHSU 11C-5NH 05 -- Put That On The Celebratory Cake! -- August 22, 2019

Happy, happy birthday --- the IP test date for this well was August 22, 2006 -- exactly thirteen years to the day. 

The well:
  • 16242, 405, Denbury Onshore/BR, CHSU 11C-5NH 05, t8/06; Cedar Hills, cum 1.000539 million bbls 6/19;
So, several data points:
  • not a Bakken well
  • drilled back in 2006
  • still a huge producer
  • still flaring a little bit
  • look at all that water -- OMG! 
  • ratio of water to oil: 44:1 
  • remember: it's not fracking that is associated with earthquakes; it's water disposal into deep saltwater disposal wells
Recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SOUTH RED RIVER B6-2019301702169175986407239168
SOUTH RED RIVER B5-2019312006200983844578292286
SOUTH RED RIVER B4-2019302033202681674000
SOUTH RED RIVER B3-20193119891999862264624620
SOUTH RED RIVER B2-2019281768177979202000
SOUTH RED RIVER B1-201931166316298463745644412
SOUTH RED RIVER B12-2018311367137889619000
SOUTH RED RIVER B11-2018301357137082372000
SOUTH RED RIVER B10-2018311455144379713434108326
SOUTH RED RIVER B9-20183014431434687104730473
SOUTH RED RIVER B8-20183116221635715494930493
SOUTH RED RIVER B7-20183116621663750485090509
SOUTH RED RIVER B6-20183018001807721596010601
SOUTH RED RIVER B5-20183119071906759076390639
SOUTH RED RIVER B4-2018301783177072061579057

Federal Lands And Indian Reservations -- GOV -- New Mexico -- August 22, 2019

Link here.

Update On Electric Fracking -- Bizjournals -- August 22, 2019

Updates

August 26, 2019: a minor update over at Rigzone. Doesn't say much except in the Permian more talk of e-fracking to save money.

Original Post 

Linked here. Archived. Tagged.
... a pioneer among Marcellus Shale wells in the use of a new, more cost-efficient and environmentally friendly way to frac gas.

Canonsburg-based CNX has signed a three-year contract to use Evolution Well Services’ all-electric frac fleet, which is used in the hydraulic fracturing process and includes a natural gas-fired engine to run the machinery and a turbine that pumps sand and water to bring gas up out of the ground.

CNX is the first producer in the Appalachian basin to use an all-electric frac fleet, and the Richhill well is one of the first to use the new equipment.
Traditionally, hydraulic fracturing is a complicated, energy and labor-intensive process, one that requires engines that have lots of horsepower, a multitude of pipes and constant attention by workers to make sure it’s going right.

But walk around Richhill 13, or any of CNX’s other all-electric frac operations, and you’ll notice how quiet it is. That’s because instead of using diesel fuel and diesel engines to run the equipment, Evolution uses natural gas produced on site to fuel the jet engine-like turbines that power the fracking operation. Natural gas not only is plentifully available at the site, but it also removes from the roads the constant flow of diesel trucks to keep the 24/7 operation running.
Remember: electricity demand will surge in the Bakken over the next 20 years. 

Jobless Claims; Recession Right Around The Corner -- August 22, 2019

Wow, that Drudge Report banner yesterday -- revision in number of jobs created over the past two years ... something is rotten in .... and it's not in Denmark ....

Today, jobless claims:
  • prior: 220K
  • prior revised: 221K
  • consensus: 216K
  • actual: 209K
  • new claims: down 12,000
"Recession right around the corner."

Another Look At 2020 - 2029 Global Crude Oil Output -- August 22, 2019

Before getting started (by the way, if you ever want to find this clip quickly, search "doofus"):

Doofus-in-Chief

We just can't drill our way to lower prices -- we also have to build pipelines. Gasoline is twice as expensive in California as it is in Texas (or so I'm told by my brother-in-law) -- 

See these posts:
Now, back to the Global Witness story. By the way, this story has now gone viral: Nick Cunningham took credit for contributing this story to zerohedge.

Link here.
Peak oil? What peak oil? oilprice rewrites Global Witness article with headline that "US will drown the world in oil." Global Witness is an international NGO established in 1993 that works to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide -- according to wiki. Wiki states the organization does not have any political affiliation. I'm resisting posting links, etc. but I've given up. Good, bad, or indifferent, it's an interesting article -- I'll re-post as a stand-alone.
Talk about cognitive dissonance for Nick Cunningham. My hunch is that many "peak oilers" who make their living off newsletters, consulting, etc., which will gradually morph into "global warming" experts. It's hard to stop a train.

The first graph that caught my attention, the graph below based on data from Rystad Energy. Note which countries are not on the list. This is very, very accurate based on previous reports, and explains why oil is an existential issue for some (most) Mideast countries. There is a great interactive graphic at the linked site, but the graphic below really catches one's attention. Note Pennsylvania and then remember that New York bans fracking.

See first comment at this post. The graphic has to do with NEW oil and gas production, not total production.

New Mexico ranks above North Dakota.

Russia will barely produce more NEW oil and gas than Ohio.

Neither California nor Alaska are in the graphic.

Wyoming, Utah did not make the list but Colorado did, again for NEW gas and oil.

Pennsylvania, at 7%, is more than twice that of Russia -- that's huge, but when Ohio will produce almost as much NEW gas and oil as Russia ...


For new oil and gas production, seven out of the top 10 biggest oil and gas producers would be US states, with only Canada, Brazil and Russia making it onto the list. Pennsylvania is set to be the third, producing more than double new gas and oil that that of Russia.

I don't know how many ways one can show it, but here's another graphic. It's not so much that the US will contribute 60% of the new global production, but rather:
  • it's how puny Russia's new production is in comparison
  • it's that Saudi Arabia becomes a net importer (other sources) by 2029
  • it's that no Mideast country is significant enough with regard to new oil and gas to get on the chart
  • it's that Norway is not significant enough to get on chart either

The big question is when did the movers and shakers in the oil industry know this? When did Saudi Arabia know this?

2029: only ten years from now. Even most seniors reading the blog will still be alive in 2029.

Economics Of Bakken-To-Mexico Propane Unit Trains -- RBN Energy -- August 22, 2019

RBN Energy: the economics of Bakken-to-Mexico propane unit trains, part 2. Archived. Part 1 was here.
In May 2019, the first-ever propane unit train from the Bakken to Mexico reached its destination, and since then, three more of these 100-car, single-commodity “bulk” trains have made the same trip. Facilitating these shipments by Twin Eagle Liquids Marketing is Marathon Petroleum Corp.’s (MPC) unit train-loading terminal in Fryburg, ND, which was initially set up to load crude oil but was recently expanded to handle propane too. And soon, the terminal in Torreón, Mexico, that has been receiving these unit trains will have a new loop track too, enabling producers and marketers to take full advantage of the bulk transport option. Today, we look at the economics and challenges of this relatively new propane export route.
As we discussed earlier, Mexico’s need for propane — widely used for cooking and heating water — is on the rise, even as local supply has been dwindling. That’s boosted propane imports to the country, including from the U.S. and Canada in recent years. While most of those imports come to Mexico via ship (~52% or 83 Mb/d in 2018) or are trucked across the U.S.-Mexico border (33 Mb/d or 21%), a good portion (29 Mb/d or 18%) of it is railed in. [Only 14 Mb/d, or less than 10%, of it was transported via pipeline last year, owing to the limited pipeline capacity and routes available to reach key markets in interior Mexico.]

Economics Of Bakken-To-Mexico Propane Unit Trains -- RBN Energy -- August 22, 2019

Peak oil? What peak oil? oilprice rewrites Global Witness article with headline that "US will drown the world in oil." Global Witness is an international NGO established in 1993 that works to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide -- according to wiki. Wiki states the organization does not have any political affiliation. I'm resisting posting links, etc. but I've given up. Good, bad, or indifferent, it's an interesting article -- I'll re-post as a stand-alone.


Headline at Rigzone today, no links:
  • GoM leases
    • BHP, largest bid; $42 million; 20 tracts
    • Anadarko: $23 million; 14 tracts
    • Chevron: $23 million; 17 tracts
    • Equinor: $17 million; 23 tracts
    • BP: $15 million; 21 tracts
  • Pipe: Pembina to buy Kinder Morgan's Canadian unit and the US portion of the Cohin Pipeline system; $3.3 billion
  • Alberta: extends oil output cuts to end of 2020
Fracking sector disappoints: 2Q19 -- Rigzone staff --

A review of 29 fracking-focused oil and gas companies revealed “meager” cash returns in the second quarter of 2019.
The report, which was carried out by Sightline Institute and the Institute for Energy Economics and Financial Analysis (IEEFA), noted that only 11 of the 29 companies under review registered positive free cash flows and that the 29 companies combined generated $26 million in aggregate free cash flows.
These aggregate free cash flows were said to be “far too modest to make a significant dent in the more than $100 billion in long-term debt owed by these companies, let alone reward equity investors who have been waiting for a decade for robust and sustainable results”.
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Back to the Bakken

Only one well coming off the confidential list today -- Thursday, August 22, 2019: 60 for the month; 107 for the quarter:
35935, conf, XTO, Badlands Federal 21X-13H, North Fork,
Active rigs:

$56.138/22/201908/22/201808/22/201708/22/201608/22/2015
Active Rigs6462523276

RBN Energy: the economics of Bakken-to-Mexico propane unit trains, part 2. Archived. Part 1 was here.
In May 2019, the first-ever propane unit train from the Bakken to Mexico reached its destination, and since then, three more of these 100-car, single-commodity “bulk” trains have made the same trip. Facilitating these shipments by Twin Eagle Liquids Marketing is Marathon Petroleum Corp.’s (MPC) unit train-loading terminal in Fryburg, ND, which was initially set up to load crude oil but was recently expanded to handle propane too. And soon, the terminal in Torreón, Mexico, that has been receiving these unit trains will have a new loop track too, enabling producers and marketers to take full advantage of the bulk transport option. Today, we look at the economics and challenges of this relatively new propane export route.
As we discussed earlier, Mexico’s need for propane — widely used for cooking and heating water — is on the rise, even as local supply has been dwindling. That’s boosted propane imports to the country, including from the U.S. and Canada in recent years. While most of those imports come to Mexico via ship (~52% or 83 Mb/d in 2018) or are trucked across the U.S.-Mexico border (33 Mb/d or 21%), a good portion (29 Mb/d or 18%) of it is railed in. [Only 14 Mb/d, or less than 10%, of it was transported via pipeline last year, owing to the limited pipeline capacity and routes available to reach key markets in interior Mexico.]