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Thursday, July 7, 2022

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.
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-20223111304114321856114704123041226
BAKKEN4-2022271463114588200071576913618753
BAKKEN3-20223118491183873159319058137553526
BAKKEN2-202217756675641948178656546559
BAKKEN1-202213709069312693975676197729
BAKKEN12-20210000000
BAKKEN11-20210000000
BAKKEN10-20210000000
BAKKEN9-2021001200000
BAKKEN8-20212352555943465653924
BAKKEN7-20212676784244677766311
BAKKEN6-20213023017369290576457
BAKKEN5-202131868796848102386916
BAKKEN4-20212174267876667555619
BAKKEN3-20211513916810563495
BAKKEN2-20212831943621625720811
BAKKEN1-20213166372153474561329
BAKKEN12-2020317026726898967650
BAKKEN11-20203064684663289068252

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;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-20222119074193921524025247219321837
BAKKEN4-20222729515293942164036209320532042
BAKKEN3-20223134990351672977535221259836768
BAKKEN2-2022263181631509408242861225569706
  • 37996, 3,532, MRO, Christoph 41-4H, lot 1 section 4-146-94, Dunn County, first production, 2/22; t--; cum 136K 5/22;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-2022313716937131213724898447411582
BAKKEN4-2022252283922875256412609725101381
BAKKEN3-20223138488384843779639494362922173
BAKKEN2-2022263745437620421423398532793168
  • 37997, 2,275, MRO, Phillip 41-4TFH, lot 1 section 4-146-94, Dunn County, first production, 2/22; t--; cum 119K 5/22;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-2022313272432755277923862937347428
BAKKEN4-2022252610326059243102757726402478
BAKKEN3-20223132424323953885334034321251040
BAKKEN2-2022262805528025403652492924032139
  • 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;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-2022313332233396192823845437208379
BAKKEN4-2022253055730431178853136130210345
BAKKEN3-2022242780127741197122424922571945
BAKKEN2-2022181929119699213452148620807134

  • 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;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-2022312686826999213843352432457357
BAKKEN4-2022253124231251248023346832103530
BAKKEN3-20223147004469284116147004433502405
BAKKEN2-20222636327363304036334266332610
  • 38233, 2,309, MRO, Sebastian 21-14TFH, NWNE 14-146-94, Dunn County, first production, 3/22; t--; cum 63K 5/22;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-2022272633126095282682376121028860
BAKKEN4-2022262077120811279951851816082961
BAKKEN3-2022131627115937250371375580874555

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 --
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-2022204032777579086430
BAKKEN4-202220662824695199017650
BAKKEN3-202231128714541254366932580
BAKKEN2-202228122211001149337730080
BAKKEN1-202231140814681307383434330
BAKKEN12-202131148114121450445840470
BAKKEN11-202130155316931500437639850
BAKKEN10-202131184918391742498145700
BAKKEN9-202130190618191665415537580
BAKKEN8-202129196420881650386634960
  • 23181, 318, CLR, Domindgo (note spelling) 1-22H, East Fork, t1/13; cum 202K 5/22; recent production --
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-2022278731054847167213400
BAKKEN4-202223526476620139211010
BAKKEN3-2022318537931011201316020
BAKKEN2-202228813799899186914980
BAKKEN1-20223194411071034197915680
BAKKEN12-2021319677871203202816170
BAKKEN11-202130110210651168230519070
BAKKEN10-202131149515701443251621050
BAKKEN9-2021155043338258006190

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:

 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:

  • 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

  • 38631conf, Lime Rock Resources, Jon R 16-22-3TFH
  • 38244conf, 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.