Pages

Tuesday, March 10, 2020

CLR Reports Two Spectacular Wells -- And Many, Many More On That Uhlman/Pittsubrgh Pad To Come -- March 10, 2020

Break-even costs: Hey, before we get started, can we clear up one myth regarding break-even prices for Saudi Arabia? One of my pet peeves is the meme/myth/worldview that Saudi has the cheapest oil in the world, that they can produce oil for $5 a barrel or some such thing. Not even close.
According to S&P Global Platts the break-even price for Saudi Arabia is $83 for the Saudis, $51/Brent bbl for the Russians.] But as I've said on the blog many, many times, if the Saudis want to give away their lifeblood at $30/bbl that's their choice. Americans are lovin' it. The Chinese will love it when they get back to normal.
Trump: by the way, do y'all remember those days when President Trump said oil prices were too high and he wanted to see oil prices to come down. Wow, love him or hate him, this guy gets things done. The previous president said multiple times, "it" couldn't be done. Of course, the previous president also said Bloomberg "didn't build that." Wow, what a digression. Sorry for the politics. Twitter link:


Speaking of which, how is that Saudi Aramco IPO working out? MBS: welcome to the world of geo-politics.

***********************************
Back to the Bakken

Active rigs:

$34.183/10/202003/10/201903/10/201803/10/201703/10/2016
Active Rigs5467594433

Two wells coming off the confidential list today: again, these are going to be spectacular wells.
Again, "who will show the most resilience, the Bakken or the Permian?" The one thing I did not consider/mention in that linked commentary: time frame. There has to be a time frame. The Permian will last decades longer than the Bakken, but that's not the question being asked. I'm asking about the current situation as it pertains to the "Market Meltdown - 2020." My time frame is the next six months, or if the price war goes on longer than this, then one year, max. And even a year out is way too long, but ...
No cherry picking, just reporting them as they come off the confidential list which I've been doing since 2009. Wow, that's a long time. 
Tuesday, March 10, 2020: 20 for the month; 191 for the quarter, 191 for the year:
  • 34857, see below, CLR, Uhlman Federal 8-7H, 
  • 34851, see below, CLR, Pittsburgh 8-18H,
RBN Energy: new Pembina LPG terminal to boost Canadian exports.
Canada has been facing a similar situation to the U.S. in recent years in which the production of natural gas liquids, such as propane, has been rising sharply thanks to a focus on liquids-rich gas wells in unconventional gas plays. In response to the rising bounty of propane, infrastructure development in Canada has focused on export projects, and in 2019, the completion of the new Ridley Island Propane Export Terminal in British Columbia enabled the first overseas exports of propane from Canada’s west coast, allowing Western Canadian producers to access destination markets beyond just the U.S. for the first time. Later this year, Pembina Pipelines, a developer of energy infrastructure projects across Western Canada, will complete a new propane export terminal just outside Prince Rupert, BC, further boosting propane exports to overseas markets. Today, we take a closer look at propane supply issues, Pembina’s new propane export terminal and recently announced plans to further expand the terminal’s export capacity.
The shift to more unconventional oil and natural gas plays in North America over the past decade has generated significant production increases in all forms of hydrocarbons. Crude oil, natural gas and natural gas liquids (NGLs), which includes propane, have all been hitting record or near-record levels in both the U.S. and Canada. This has forced markets in both countries to find more outlets for their growing output, both domestically and overseas.
Another important article for the archives.

*********************************
The Two Wells Coming Off Confidential List Today

The wells:
  • 34857, A, Uhlman Federal 8-7H, 33-053-08516, Banks, 73K in one month; fracked 7/9/19 - 7/22/19; 9 million gallons of water; 86.7% water by mass; friction reduction, 0.06;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN1-20203173759736193995894992930021841
BAKKEN12-201923635354418564349427016
BAKKEN11-20190000000
BAKKEN10-20190000000
BAKKEN9-201947047041773128301283

Can we get an "amen"? LOL.
  • 34851, SI/NC, CLR, Pittsburg 8-18H, 33-053-08510Banks, t--; cum --; fracked 6/3/19 - 6/21/19; 11.1 million gallons of water; 88.7% water by mass; friction reduction, 0.059;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN1-20203150978508614224668632671931331
BAKKEN12-20192171516721530230922669
BAKKEN11-20190000000
BAKKEN10-20190000000
BAKKEN9-201959649643617132801328

Another Bakken DUC produces more crude oil in one month than the average new Permian well. See the EIA dashboards. Can we get another "amen"?

5 comments:

  1. I think the Bakken and the Permian or more competitive than we think. Most of the prospective new layers, Tyler, Scallion lower Lodgepole, and etc have not been fracked with mega fracks and they will most likely produce well also.

    ReplyDelete
    Replies
    1. Agree completely. The timelines are different. Long term the Permian will be the clear-cut mega producer, but short term, and well-vs-well (mano a mano, as it were) the Bakken should look quite good.

      Delete
    2. Disclaimer: I am inappropriately exuberant about the Bakken. Take my comments with a grain of salt. As I've said often on the blog, I'm always looking through oily-stained glasses.

      Delete
  2. I looked up this well number on my premium NDIC account, curious as to what IP number was. Surprised to see no IP listed. But, 73,759 over 31 days amounts to 2,379+ per day. So, that's as good as some 24 hour IP numbers!!

    ReplyDelete
    Replies
    1. Yes, NDIC and/or CLR has not yet provided the sundry forms with the frac data and the IP. But it's another very nice well.

      Delete

Note: Only a member of this blog may post a comment.