Halo Effect -- Another MRO Well In Bailey Oil Field -- 22X -- Lorene Stohler -- July 7, 2022

Link sent by reader. I believe this has been previously posted; I forget. But it should be re-posted annually. 

Note: I could do many more of these if the NDIC GIS map server was up and running, but alas it is not, and thus I have more time to do other things.

See this post.

The well:

• 22342, 1,142, MRO, Lorene Stohler 11-3TFH, Bailey, t9/12; cum 154K 5/22; jump in production from 800 bop/month to 18,000 bop/month = 22x.

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	31	11304	11432	18561	14704	12304	1226
BAKKEN	4-2022	27	14631	14588	20007	15769	13618	753
BAKKEN	3-2022	31	18491	18387	31593	19058	13755	3526
BAKKEN	2-2022	17	7566	7564	19481	7865	6546	559
BAKKEN	1-2022	13	7090	6931	26939	7567	6197	729
BAKKEN	12-2021	0	0	0	0	0	0	0
BAKKEN	11-2021	0	0	0	0	0	0	0
BAKKEN	10-2021	0	0	0	0	0	0	0
BAKKEN	9-2021	0	0	120	0	0	0	0
BAKKEN	8-2021	23	525	559	434	656	539	24
BAKKEN	7-2021	26	767	842	446	777	663	11
BAKKEN	6-2021	30	230	173	692	905	764	57
BAKKEN	5-2021	31	868	796	848	1023	869	16
BAKKEN	4-2021	21	742	678	766	675	556	19
BAKKEN	3-2021	15	139	168	105	63	49	5
BAKKEN	2-2021	28	319	436	216	257	208	11
BAKKEN	1-2021	31	663	721	534	745	613	29
BAKKEN	12-2020	31	702	672	689	896	765	0
BAKKEN	11-2020	30	646	846	632	890	682	52

A Closer Look At Six MRO DUCs Reported As Completed -- July 7, 2022

For a well with evidence of the "halo effect" secondary to the wells below, see this post. 

Without the NDIC GIS map server, I can't expand on these except to say that:

• these have paid for themselves at the wellhead in less than four months (do not take that out of context); and,
• these are all daughter wells, by definition.

Six producing wells (DUCs) reported as completed:

• 37994, 2,907, MRO, Konstantin 11-3H, lot 4 section 3-146-94, Dunn County, first production, 2/22; t--; cum 115K 5/22;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	21	19074	19392	15240	25247	21932	1837
BAKKEN	4-2022	27	29515	29394	21640	36209	32053	2042
BAKKEN	3-2022	31	34990	35167	29775	35221	25983	6768
BAKKEN	2-2022	26	31816	31509	40824	28612	25569	706

• 37996, 3,532, MRO, Christoph 41-4H, lot 1 section 4-146-94, Dunn County, first production, 2/22; t--; cum 136K 5/22;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	31	37169	37131	21372	48984	47411	582
BAKKEN	4-2022	25	22839	22875	25641	26097	25101	381
BAKKEN	3-2022	31	38488	38484	37796	39494	36292	2173
BAKKEN	2-2022	26	37454	37620	42142	33985	32793	168

• 37997, 2,275, MRO, Phillip 41-4TFH, lot 1 section 4-146-94, Dunn County, first production, 2/22; t--; cum 119K 5/22;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	31	32724	32755	27792	38629	37347	428
BAKKEN	4-2022	25	26103	26059	24310	27577	26402	478
BAKKEN	3-2022	31	32424	32395	38853	34034	32125	1040
BAKKEN	2-2022	26	28055	28025	40365	24929	24032	139

• 38086, 4,011, MRO, Seidler USA 31-4H, lot 1 section 4-146-94, Dunn County, first production, 2/22; t--; cum 111K 5/22;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	31	33322	33396	19282	38454	37208	379
BAKKEN	4-2022	25	30557	30431	17885	31361	30210	345
BAKKEN	3-2022	24	27801	27741	19712	24249	22571	945
BAKKEN	2-2022	18	19291	19699	21345	21486	20807	134

• 38087, 4,036, MRO, Weidner USA 31-4TFH, lot 1 section 4-146-94, Dunn County, first production, 2/22; t--; cum 141K 5/22;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	31	26868	26999	21384	33524	32457	357
BAKKEN	4-2022	25	31242	31251	24802	33468	32103	530
BAKKEN	3-2022	31	47004	46928	41161	47004	43350	2405
BAKKEN	2-2022	26	36327	36330	40363	34266	33261	0

• 38233, 2,309, MRO, Sebastian 21-14TFH, NWNE 14-146-94, Dunn County, first production, 3/22; t--; cum 63K 5/22;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	27	26331	26095	28268	23761	21028	860
BAKKEN	4-2022	26	20771	20811	27995	18518	16082	961
BAKKEN	3-2022	13	16271	15937	25037	13755	8087	4555

Five New Permits; Twenty Permits Renewed; Six MRO DUCs Reported As Completed -- July 7, 2022

Gasoline demand, link here:

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

WTI: $102.40.

Active rigs: 43 or thereabouts.

Five new permits, #39071 - #39075, inclusive (note: NDIC has permits numbered wrong):

• Operators: Crescent Point Energy (4); Resonance Exploration
• Fields: Blue Ridge (Williams); West Roth (Bottineau)
• Comments:
• Crescent Point has permits for two CPEUSC Szarka wells and two CPEUSC Samples wells, 
• all in lot 1 section 2-158-100; to be sited 265 FNL and between 335 FEL and 435 FEL;
• Resonance Exploration has a permit for a Resonance Fylling well in Bottineau County, 
• to be sited in NENW 36-163-79, 808 FNL and 2346 FWL

Twenty permits renewed:

• CLR (5): one Elveida permit in Divide County; and four Putnam permits in Williams County
• Hess (5): three EN-Kiesel permits; one AN-Lone Tree permit; and one RS-State permit, all in Mountrail County;
• XTO (4): four Ruby State Federal permits in McKenzie County;
• Whiting (4): two Klose Federal permits; one USA Federal permit, all in McKenzie County; and a Lacey permit in Mountrail County
• EOG (2): a Liberty LR permit in Mountrail County; and one Clarks Creek permit in McKenzie County;

Six producing wells (DUCs) reported as completed:

• 37994, 2,907, MRO, Konstantin 11-3H, lot 4 section 3-146-94, Dunn County,
• 37996, 3,532, MRO, Christoph 41-4H, lot 1 section 4-146-94, Dunn County,
• 37997, 2,275, MRO, Phillip 41-4TFH, lot 1 section 4-146-94, Dunn County,
• 38086, 4,011, MRO, Seidler USA 31-4H, lot 1 section 4-146-94, Dunn County,
• 38087, 4,036, MRO, Weidner USA 31-4TFH, lot 1 section 4-146-94, Dunn County,
• 38233, 2,309, MRO, Sebastian 21-14TFH, NWNE 14-146-94, Dunn County,

Change of operator:

• in addition to the 50 +/- wells transferred from Enerplus to EMEP Operating, LLC, yesterday, another five were transferred today

EPD Increases Quarterly Dividend -- Not By Much -- July 7, 2022

Note: this is EPD's second 2022 distribution hike. "Fluff" article over at SeekingAlpha. But the writer did note:

• Midstream has sold off fiercely along with plunging energy prices amid fears of a recession.
• Meanwhile, EPD just announced its second distribution hike for 2022.

Link here, new, 47.50 cents; EPD now yielding 7.92%; record date, 7/29/22; pay date, 8/12/22.

History here:

Gasoline Drops Below $4.00 / Gallon Here In North Texas -- July 7, 2022

Also, mortgage rates: see largest drop since December, 2008, amid rising concerns over a recession. Link here.

Italy: Oil Imports From Russia -- July 7, 2022

Post-Brexit. Post-Boris. The end is just the beginning.

After Boris, it looks like Italy may be the next.

And, of course, there's always France, bailing out EDF.

And, then Germany. 

Link here.

With The Keystone XL Killed By The President, A Lot Of Oil Is Being Shipped By Rail -- Every -- Day -- July 7, 2022

From today's EIA weekly report:

Imports -- look at Canada -- with the Keystone XL killed by the president, that's a lot of oil being shipped by rail. Link here.



Graphic, link here:

Biggest trade surplus since 2008, link here:

Update On Harold Hamm's EOR Using Natural Gas -- Approved -- Buddy Domindgo Pad -- July 7, 2022

I assume this (see below) is related to this story, posted March 2, 2022:

CCS / Harold Hamm / Summit Carbon Solutions: The Williston Herald.

• CLR: $250 million buy-in over two years;
• help fund a project with Summit Carbon Solutions
• gather CO2 from ethanol plants in Midwest (Iowa, Nebraska, ND, SD)
• pipeline CO2 to ND for permanent storage
• comments: 
• if they were to do something with the CO2 (like EOR) it might make sense;
• to simply store it isvirtue signaling when China is building a new coal plant every week, or whatever they're doing
• and, of course, the pipeline is already being "fought" in Iowa

From The Bismarck Tribune today:

North Dakota's Public Service Commission has approved a pilot project for enhanced oil recovery in the Bakken. Enhanced oil recovery involves injecting a substance -- in this case natural gas -- down a well to try to boost oil production. Continental Resources plans to build a 3.1-mile pipeline to bring natural gas from a WBI Energy transmission line to Continental's Buddy Domingo (sic) oil well pad in Williams County. 

So, now we know the pad: the Buddy Domingo pad. I would post a screnshot of the map bu the NDIC GIS map is still not "up." 

From well search we can garner a bit of information.

Buddy Domingo pad is: NWNE 27-156-99

Wells with this location:

• 23180, 833, CLR, Buddy 1-27H, East Fork, t1/13; cum 299K 5/22; recent production --

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	20	403	277	757	908	643	0
BAKKEN	4-2022	20	662	824	695	1990	1765	0
BAKKEN	3-2022	31	1287	1454	1254	3669	3258	0
BAKKEN	2-2022	28	1222	1100	1149	3377	3008	0
BAKKEN	1-2022	31	1408	1468	1307	3834	3433	0
BAKKEN	12-2021	31	1481	1412	1450	4458	4047	0
BAKKEN	11-2021	30	1553	1693	1500	4376	3985	0
BAKKEN	10-2021	31	1849	1839	1742	4981	4570	0
BAKKEN	9-2021	30	1906	1819	1665	4155	3758	0
BAKKEN	8-2021	29	1964	2088	1650	3866	3496	0

• 23181, 318, CLR, Domindgo (note spelling) 1-22H, East Fork, t1/13; cum 202K 5/22; recent production --
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2022	27	873	1054	847	1672	1340	0
BAKKEN	4-2022	23	526	476	620	1392	1101	0
BAKKEN	3-2022	31	853	793	1011	2013	1602	0
BAKKEN	2-2022	28	813	799	899	1869	1498	0
BAKKEN	1-2022	31	944	1107	1034	1979	1568	0
BAKKEN	12-2021	31	967	787	1203	2028	1617	0
BAKKEN	11-2021	30	1102	1065	1168	2305	1907	0
BAKKEN	10-2021	31	1495	1570	1443	2516	2105	0
BAKKEN	9-2021	15	504	333	825	800	619	0

ERCOT -- July 7, 2022

ERCOT is tracked here. 

Looking good today, but ...

... link here:

Odds And Ends -- Nothing About Energy -- Actually, Not Much About Anything -- July 7, 2022

Great example of someone who doesn't get it, link here:

Most interesting: a lot of folks didn't understand, or passively-aggressively ignored, the directions. Much could be said. I had no problem with this.

Welcome to my world, link here:

Add Another Tesla Competitor -- July 7, 2022

Disruptive:

• EVs: link here. Scorecard.
• graphite
• not for me. "Energy transition is dead" is followed here.
  
• EVs charging. 

 Add Genesis EV70 -- 2023.

Genesis Motor, LLC, commonly referred to as Genesis is the luxury vehicle division of the South Korean vehicle manufacturer Hyundai Motor Company. 

Rivian:

• stock is 86% below peak;
• 25,000 EV target falls short;
• Forbes, July 7, 2022
• reported $95 million in revenue for the March 2022-ending quarter
• a whopping net let loss of $1.6 billion
• estimate: 25,000 EVs in 2022
• one quarter: 6,250 vehicles per quarter
• a net loss of $1.6 billion
• losing $256,000 per car -- yeah, that sounds about right
• which begs the question: how does one lose a quarter-of-a- million dollars per car?
• and, yes, I get it.

GM, link here.

Weekly EIA Petroleum Report -- July 7, 2022

WTI: up 5.92%; up $5.83; trading at $104.40.

Weekly EIA petroleum report, link here:

• US crude oil inventories increased by a whopping 8.2 million bbls;
• US crude oil inventories are still 10% below the five-year average, at 423.8 million bbls
• US imported 6.8 million bopd last week; an increase of 0.8 million bopd; the four-week average is 6.5 million bbls (yawn -- long term contracts playing out?)
• US refiners are operating at an incredible 94.5% of their operable capacity
• despite that, total mootor gasoline inventories decreased by 2.5 million bbls; 8% below the five-year average; and distillate fuel inventories decreased by 1.3 million bbls; 20% below the five-year average;
• jet fuel supplied was up 15.0%

Summary in one screenshot:

SPR release: one million bopd = 7.0 million bbls over the past week

Domestic production: hits an all-time record (needs to be fact-checked), going over 12 million bbls/day, way ahead of Saudi Arabia.

Total exports: 9.57 million bpd.

Implied gasoline demand: 9.41 million bpd. The magic number is 10 million bpd. 

Some might look at this and suggest the US needs to come up with upwards of one million bopd in extra production to maintain the status quo once the SPR release ends. And at some point it will need to end. As for re-filling the SPR. LOL. Not gonna happen anytime soon. 

Is this why WTI surged 5% after this report was released?

Imports -- look at Canada -- without that Keystone XL, a lot of oil is coming by rail! Link here.

EIA To Post Missing Data After Market Close Today — July 7, 2022

EIA:

• Link here: https://twitter.com/EIAgov/status/1545003075768881154.

• The release contains gasoline demand and price data for the three weeks leading up to the July 4th weekend.
• Something smells in Denmark.

Silver, gold: rare buying opportunity? 

• Grapevine, TX, coin show scheduled for July 15, 2022. Can hardly wait. 
• I have not bought any coins in the past twelve months or so due to incredibly high prices.
  

Covid, USA, link here:

• most recent "surge" was pretty much a non-story; has peaked; turning down
• it's very, very subtle but the numbers of active cases are decreasing in:
• Florida, California, and Illinois
• the number of active cases are still rising ever so slightly in Texas
• the number of active cases started to decrease in New York but are now starting to rise again

Golf: Genesis Scottish Open in full swing. 

• American Cameron Tringale -- say who -- 8 under; leads by three; five birdies in a row.
• FedEx championship: ranked 37th 
• everybody and his brother appears to be in the tournament except ..... Phil, Bryson, Sergio
• Rory not there either; in big scheme of things, "everybody and his brother" seems to exclude all the big names in the PGA
  

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

Far Side: link here.

WTI: $99.60.

Active rigs: 45 or thereabouts.

Thursday, July 7, 2022: 8 for the month, 8 for the quarter, 347 for the year

• 38631, conf, Lime Rock Resources, Jon R 16-22-3TFH, 
• 38244, conf, Ovintiv, Kramer 150-97-18-19-3H,   

RBN Energy: ongoing consolidation streamlines the Permian's midstream networks.

Increasing scale. Improving efficiency. Expanding into a fast-growing production area. These are only a few of the many reasons that midstream consolidation has remained an ongoing phenomenon in U.S. oil and gas basins — nowhere more so than in the Permian. The slew of acquisitions, mergers and joint ventures announced in the past couple of years is resulting not only in more concentrated ownership of midstream assets in West Texas and southeastern New Mexico, but in large, smooth-running systems for gathering, treating and processing hydrocarbons and transporting them to market. In other words, in magnificent molecule-moving machines. With today’s RBN blog, we begin a short series on the latest round of midstream M&A activity in the U.S.’s hottest production area.

France Bails Out EDF — July 7, 2022

 Previously posted, now we’re seeing the price the French will pay: $500 / MWh.

Boris Johnson Resigns — July 7, 2022