Showing posts with label NG_Plants_ND. Show all posts
Showing posts with label NG_Plants_ND. Show all posts

Thursday, November 18, 2021

Bakken Natural Gas Flaring Reaches Historical Low As Production Climbs -- Platts -- November 18, 2021

I mentioned this in passing when the North Dakota September, 2021, data, was released with the Director's Cut earlier in the week, but I did not headline it:

Comments:

  • an incredibly good report;
  • natural gas capture rate up from 92% to 94%
  • look at that crude oil price appreciation from August, 2021
  • two consecutive months with increased production m/m
  • rig count pretty much steady but up slightly
  • DUC count down slightly, but not worth a headline

But Platts did headline it: Bakken Shale natural gas flaring reaches historical low as production climbs --

  • North Dakota gross gas volumes surpassed 3 billion cubic feet / day
  • new midstream infrastructure promises upside

So many stories:

  • The impending completion of WBI Energy Transmission's North Bakken Expansion natural gas pipeline project is likely to increase the Bakken's ability push more gas to Northern Border Pipeline for ultimate delivery downstream in the Midwest.
  • ONEOK recently announced that it will build Demicks Lake III, announced sometime ago, before the project was "suspended."

Lots of information regarding MDU's subsidiary WBI at the linked Platts article. 

Monday, November 15, 2021

ONEOK To Complete Previously Announced Natural Gas Processing Facilities -- November 15, 2021

Natural gas processing plants in North Dakota are tracked here.

A reader, thank you, alerted me to this ONEOK story. 

The company's press release via Yahoo!Finance:

ONEOK, Inc. today announced plans to complete previously announced natural gas and natural gas liquids (NGL) infrastructure projects, including:

  • Demicks Lake III, a 200 million cubic feet per day (MMcf/d) natural gas processing facility in the Williston Basin.

  • MB-5, a 125,000-barrel per day (bpd) NGL fractionator in Mont Belvieu, Texas.

The Demicks Lake III plant:

  • the 200-MMcf/d Demicks Lake III natural gas processing plant in McKenzie County, North Dakota, is expected to cost approximately $140 million to complete.
  • the facility, which is supported by acreage dedications with primarily fee-based contracts, is expected to be completed in the first quarter of 2023. 
  • the new plant will increase ONEOK's Williston Basin natural gas processing capacity to approximately 1.9 billion cubic feet per day.

"People" keep telling me the end is near for the Bakken, and then we get another one of these stories. 

See also this post, as well as many others if one searches "Demicks Lake."

Thursday, January 14, 2021

Five Permits Renewed; Two New Permits -- January 14, 2021

Electric fracks: Halliburton

NGL processing plant ready to go on line, data points from The Bismarck Tribune:

  • west of Williston
  • Outrigger Energy II's Bill Sanderson Gas Processing Plant
  • completed just eight months after workers broke ground;
  • 250 million cubic feet of natural gas/day
  • a cryogenic plant: it can go further than some of the other processing plants in the state by cooling the gas enough to separate out ethane and propane from methane, the main ingredient of raw natural gas
  • pipeline connecting to that facility: an 80-mile pipeline starting in southeastern Williams County
  • anchor customer: XTO, a subsidiary of ExxonMobil
  • this plant brings capacity capacity statewide to 3.6 billion cubic feet per day
  • the state produced nearly 2.9 billion cubic feet of gas per day
  • also connected to two other pipelines:
    • Northern Border pipeline
    • Oneok 

Natural gas processing plants in North Dakota, tag: link here

Natural gas processing plants in North Dakota tracked here

Bismarck Tribune photo archived.

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Back to the Daily Report

Active rigs:

  • data again sequestered by NDIC
  • WTI: $53.76

Two new permits, #38080 - #38081, inclusive:

  • Operator: North Range Resources
  • Field: Grassy Butte (McKenzie); Rough Rider (McKenzie)
  • Comments:
    • North Range has a permit for an Eagle 2-1V well in NESE 2-145-100, 2207 FSL and 200' FEL:
    • North Range has a permit for an Eagle 10-1V well in SENW 10-145-100, 2376 FNL and 1903 FWL
  • see more at this post;

Five permits renewed:

  • Kraken (4): four Bigfoot permits in Mountrail County;
  • Liberty Resources: a Tucson permit in Mountrail County;

Saturday, July 4, 2020

Update On The Bill Sanderson Gas Plant West Of Williston -- July 4, 2020

Updates

January 14, 2012: Bill Sanderson completed; ready to go on line.

Original Post 

Link here: plans moving ahead for Bill Sanderson gas plant.

A company that’s building a gas plant to service XTO crude oil production is asking the state for an expedited process for two proposed pipelines that will provide takeaway for the Bill Sanderson Gas Plant in Williams County.
Denver-based OE2 North is proposing to lay two pipelines for the plant that is being built 15 miles west of Williston. One, an 8-inch steel pipeline 1.28 miles in length will carry up to 80,000 barrels per day of NGLs. The other, 4.67-mile, 20-inch steel pipeline will carry up to 250 million cubic feet per day of residue gas. The cost of the two pipelines is an estimated $6 million.
OE2 in its application materials said it will construct both pipelines on privately owned land, for which the company has already acquired rights of way.
The lines will also be co-located for approximately the first mile, at which point the 8-inch NGL line will tie into an existing, third-party pipeline. The second line, a 20-inch residue gas pipeline, will continue another 3.39 miles along existing infrastructure before tying into an existing third-party pipeline.
Above-ground facilities will include a 100- by 100-foot interconnect site at the end of the 8-inch NGL line and a 250- by 250-foot interconnect at the end of the 20-inch residue line, as well as pipeline markers and cathodic test stations along the way.
The lines will not require any compressor stations. Pressure from the associated Bill Sanderson Gas Plant will be adequate for the projected flow rates.
The pipes will be pre-coated with a fusion-bonded epoxy external coating for corrosion protection, and all welds will be nondestructively tested to ensure their structural integrity and compliance with applicable USDOT regulations. Each weld will be externally coated for corrosion resistance.
OE2 hoped to begin construction of the pipelines by July 2020, or after all necessary permits and approvals are in hand. Construction will take about 12 weeks, including backfilling and finish grading.
Much more at the link.

This is a different pipeline discussion than the one at this link.

Back to the Bill Sanderson Gas Processing Plant.
North Dakota natural gas processing plants are tracked here. It appears the Bill Sanderson plant will be the third largest in the Bakken. Hess still has the largest at "425" and Oasis has one at "320."

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Age Range Fact-Checked By The NY Times

 
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The Virus That Came Out At Night

Among all the other peculiarities of the corona virus, it appears we have discovered another one. The corona virus apparently is most active at night.

Is it possible the virus is carried by mosquitoes?

The following notice was sent out to all residents by our apartment complex manager this past week. Yes, we have "trash valet / front-door pick-up" service. What a great country.



Government-mandated curfews due to Corona virus -- great excuse to shut down protestors. LOL.

Thursday, July 25, 2019

ONEOK Announces Additional Infrastructure -- July 25, 2019

If I can find the post from sometime earlier this week suggesting that we were about to see some announcements along this line, I will post the link.

Until then, a huge "thank you" to a reader for sending me this article. I had not seen it.

From a press release, ONEOK announces plans to expand natural gas and NGL infrastructure. Data points:
  • North Dakota / Bakken / Bear Creek:
    • a 200 million cfpd expansion of the Bear Creek natural gas processing facility
    • Dunn County, ND
    • $405 million project
    • to be completed in 1Q21
  • Mid-Continent NGL fractionation expansions totaling approx 65,000 bpd and additional NGL infrastructure capacity between the Elk Creek and Arbuckle II
    • $150 million project
    • 15,000 bpd expansion to be completed in 3Q20
    • 50,000 bpd expansion to be completed 1Q21
    • why? In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.
More on the Bear Creek expansion:
ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.6 billion cubic feet per day following the completion of the Bear Creek expansion. The expansion is expected to produce approximately 25,000 bpd of NGLs in ethane rejection, resulting in 225,000 bpd of raw feed contracted since the announcement of the Elk Creek Pipeline.
More at the link including expansion plans for the Permian.

Natural gas processing plants in North Dakota are tracked here.

At that link, there is a "Bear Creek II," 200 million cfpd, 2021 -- that may, in fact, represent this newest announcement. ONEOK calls is an expansion; ND regulators list it as a new project, co-located at existing Bear Creek I, it appears.

Call me naive, but this would suggest to me that ONEOK does not agree that the North Dakota Bakken is reaching peak production. 

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Natural Gas Records

Wednesday, July 3, 2019

XTO To Build Gas Plant In Williams County -- July 3, 2019

Link here. Data points:
  • Williams County: approves permit, 4 - 1
  • XTO
  • "gas plant": 150 million cubic feet per day
  • neighbors had objected
  • Planning and Zoning Commission: a tie vote (generally means a "No" for the county)
  • 76 acres in Judson Township
  • permit includes an outline for an adjacent future plant if the company plans to expand
Judson Township: first township west of Williston Township, either side of US 2; west of Judson is Round Prairie whose western border is the Montana state line.

Natural gas processing plants in North Dakota are tracked here.

It appears this would be XTO's second gas plant in North Dakota. The XTO plant in Ray, ND, has a nameplate capacity of 25 million cubic feet per day.
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Fantasy Land

From moneyrates, a PDF will load on your desktop.


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More Fun On The Water


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A Musical Interlude

Most of you may just want to skip ahead to 5:58:



I Can't Help Falling In Love With You, Arlo Guthrie

Saturday, April 27, 2019

Hess Reclaims Bragging Rights To Largest Natural Gas Processing Plant In North Dakota -- April 27, 2019


April 27, 2019: see also this post on the Vantage Pipeline.

April 27, 2019: see second comment below --
Have often theorized the Hess and Targa want to deliver ethane to a cracker and convert the ethane pipeline to propane as Alberta has a propane cracker to be built. Targa owns half of the Little Missouri gas plant and is a supplier for Gulf Coast crackers.

There has been almost no word on a cracker for years- either dead or in the quiet phase.
April 27, 2019: see first comment below --
The Alliance pipeline, which only has conditioned Nat gas, ends in Illinois where that huge Nat gas is. Palermo, ND, has a lateral to that pipeline. Conditioned gas has all the sulfides, chlorides and non carbon gases removed.

It's a good way to deliver propane and butane etc to industrial parts. Nat gas delivered to users has an upper BTU limit, so they must be removed.
Original Post   

See tag, "NG_Plants_ND," although I have failed to tag a lot of posts that should have been tagged. My bad.

For gas plants in North Dakota, the "official site" of the North Dakota Pipeline Authority, link here.

I could be wrong, but when one thinks of natural gas processing in North Dakota, this is sort of the status in chronological order:
  • Hess is the oldest; has always been there; has made Tioga what it is -- the oil capital of ND (Williston is "Boom Town, USA"); if Hess was "ND Gas" it was somewhat local;
  • ONEOK was the big "outsider" to come into North Dakota at the very beginning of the boom; it probably did more than any other company to move the Bakken natural gas industry along; it deserves a lot of credit for having so much "faith" in North Dakota
  • Oasis: one of the independent, small operators who saw the potential for NG plants; may have the largest plant (at one time it did, apparently, but I've lost track of who has the biggest plant now); updated below;
  • CLR: does a lot of natural gas gathering but not known (at least in my mind) as a NG operator in the Bakken
All of that as background for newbies. If others have a different perspective on history of NG gathering and processing in the Bakken I would love to hear that, and post it (anonymously, of course, if so desired).

Disclaimer: I estimate that I understand 1% of all that is going on in the Bakken with regard to crude oil; I understand even less about the natural gas industry.

Hess to expand its natural gas processing capacity at its Tioga Gas Plant by 150 million cubic feet per day, creating a total of 400 million cfpd processing capacity north of the Missouri River. Link here.
  • cost: the expansion to cost approximately $150 million gross; or, 
  • $30 million net to Hess Midstream
  •  will add residue and y-grade liquids processing capacity to the existing full fractionation and ethane extraction capability of the current plant
  • I've forgotten but I believe Hess has a huge pipeline moving ethane from its Tioga plant to Canada (one pipeline not killed by the Obama administration)
Digression: this is really cool. For newbies, I have always divided the ND oil footprint into two geographic areas, the north and the south. The north would be the Bakken boom on both sides of the river; the south would be the legacy Red River wells and some Bakken in the southwestern part of the state. But looks like one can be a bit more specific, with four geographic areas:
  • north of the river, Bakken boom (CLR)
  • south of the river, excluding the reservation, Bakken boom (everyone)
  • the reservation, south of the river, Bakken boom (KOG, now Whiting, Senator Dorgan)
  • southwestern North Dakota: legacy Red River, and some Bakken boom (CLR)
Now back to Hess.

Again, repeating: for gas plants in North Dakota, the "official site" of the North Dakota Pipeline Authority, link here.

At that link, scroll down to see the spreadsheet. You can click on the spreadsheet to make it bigger. The spreadsheet now goes out to 2021. Oasis had bragging rights: it has the largest natural gas processing plant -- Wild Basin had a capacity of 320 million cfpd. The Oasis Wild Basin plant is in McKenzie County, south of the river.

But now Hess has reclaimed bragging rights. With its planned expansion, it will have a capacity of 400 million cfpd. 

How does 400 million cfpd compare with other natural gas processing plants across the US? I'm glad you asked.

See the EIA summary at this link. Wow, make my day. Making America great. Yeah, 400 million cfpd is huge, but there are plants out there with 1 billion and 2 billion cfpd capacity. The west has a few huge plants, but look at the number and size of the plants in Texas.

Okay, hold that image.

Now, move up to the northeast. Hard to make that out? Go to this link with this graphic:


Pretty impressive, huh?

Besides the "blue dots," there is something else of interest. Look at all the grey -- the shale plays. The graphic did not break out conventional plays and many (most?) of the shale plays overlap/extend the conventional plays.

Most surprising "data points" on that graph, at least for me, two:

  • the size of the Illinois blue dot; and, 
  • that huge shale play in Michigan; see this link; the narrative is very, very good
Well, that should keep enthusiasts busy all weekend. Go to the links, which will take you to more links, and before you know it, you will be in so deep in a rabbit hole, you will never get out. LOL. 

Saturday, October 13, 2018

Oasis' Newest Natural Gas Processing Plant On Line -- October 13, 2018

Link at Bismarck Tribune. Discussed many times on the blog.
  • Oasis Wild Basin II
  • 200 million cf/d
  • first major plant to be completed in recent years in the Bakken
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Twin Peaks
Oil Demand / Oil Supply Closing In On New Records

Link hereRigzone staff.
Both global oil demand and supply are now close to new, historically significant peaks at 100 mb/d, and neither show signs of ceasing to grow any time soon.
“Fifteen years ago, forecasts of peak supply were all the rage, with production from non-OPEC countries supposed to have started declining by now. In fact, production has surged, led by the US shale revolution, and supported by big increases in Brazil, Canada and elsewhere,” the IEA said in a statement published on its website Friday.
“In future, a lot of potential supply could come to the market from places like Iran, Iraq, Libya, Nigeria and Venezuela, if their various challenges can be overcome,” the IEA added.
“There is no peak in sight for demand either. The drivers of demand remain very powerful, with petrochemicals being a major factor,” the IEA continued.
The IEA said it is an “extraordinary achievement” for the global oil industry to meet the needs of a 100 (MMbpd) market but announced that twin peaks for demand and supply have been reached “by straining parts of the system to the limit”.
See STEO report that follows -- sent in my reader.

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From A Reader Regarding EIA's Latest STEO Report

New STEO is out today (October 10, 2018)
  • added 914 data for JUL (10.96 reported, higher than previous estimate of 10.78 from last month STEO) 
  • estimates for AUG and SEP revised up from high 10s to low 11s
  • 2018 average revised slightly up (from 10.66 to 10.74).
Comment from reader: Note that the peak oilers and shale haters, just a month and a half ago were crowing about how US production was stuck and how EIA was too optimistic (when we had a couple flat months). They were saying we would be lucky to average 10.5 for the year, that it was impossible to hit an average of 10.6-10.7, and that EIA would be forced to revise estimates down soon. Instead we are well on track to hitting 10.7, no problem, and the revisions are going up, not down. 

Comment from reader: Almost a replay of what happened last year with production catching up after a flat period...but the peak oilers never learn...every time we slow for a couple months, they come out of the cracks...

From STEO:
  • 2019 average estimate revised up very significantly: from 11.5 to 11.8 MM bopd.
Comments from the reader:
  • My personal guess: The EIA is still estimating a little low.
  • The oil companies in the Permian will "adapt and overcome" and get those Permian barrels out.
  • We will exit 2018 (DEC month) at 11.5 (very doable, less than 0.1 million growth per month for rest of year).
  • I think 2019 will be explosive, probably backweighted (as pipes start opening).
  • We could exit the year at 13 million bopd (little higher than 0.1 million bopd/month.)
  • "We" might just north of 12 million bopd for 2019 (given the big growth is towards second half of the year). 


With regard to getting those Permian bbls out: there are already reports the pipes are coming on-line faster than originally expected/forecast.

With regard to "peak oilers and shale haters," that would include Art Berman.

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A List Of President Trump's 289 Accomplishments

The big stories.

The Trump years. At 20 months, a list of Trump's 289 accomplishments.

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The End Of Smugness

I hope this article is never lost. Link here. Original article here. I may archive it. It's that good.

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Susan Collins

I haven't linked it yet; easy to find. "Statement" by Susan Collins why she voted to confirm Judge Brett Kavanaugh will go down as one of the best speeches ever given by any politician in the US.

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Embattled

It is interesting to compare "composure" of past presidents when under duress with the "composure" of President Donald Trump.

He may be the most honest president in US history, some say.

Marc Thiessen: Trump could be the most honest president in modern history. The blogger app won't link this article.

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Don't Get Mad, Get Even

I don't think folks realize how "angry" Chuck Grassley was after torpedoed by Diane Feinstein. He was angry, but he did not get "mad." There's a fine line between "angry" and "mad." But he did not get mad; he got even.

Chuck Grassley, the chairman of the Senate Judiciary Committee, wants the upper house to stay in session until all of the 49 currently pending judicial appointments are confirmed.
A tweet from Grassley, R- Iowa, on Thursday came just hours after the committee cleared eight more judicial nominees to the full Senate ,and puts Democrats in a bind over whether to stay in Washington to fight the confirmations or head out on the campaign trail to defend vulnerable seats ahead of the midterms.
Trump wants the three vacancies on the 9th Circuit to be filled by conservatives against the wishes of Kamala Harris and Diane Feinstein. 

The blogger app won't link this article.

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ICE Union Has Had Enough Of This Mayor

Link here
The union that represents Immigration and Customs Enforcement agents has asked the Oregon Department of Justice to conduct a criminal investigation into Portland Mayor Ted Wheeler. They want Wheeler, who is the city’s police commissioner, to relinquish his supervisory authority over the Portland Police Bureau.
“We believe that Mr. Wheeler has committed the crime of official misconduct,” stated an Oct. 3 letter sent by Sean Riddell, a Portland-based attorney representing the union. “Our attempts to compel Mr. Wheeler to take reasonable action correct and/or cease his criminal activity have been unsuccessful.”
During an extended protest outside of a south Portland ICE facility over the federal government’s family separation policy along the U.S.-Mexico border, Wheeler said he would not use city police resources to break up the protest.
The letter states that after June 20, when Wheeler declared he didn’t want the Portland Police Bureau “sucked into a conflict” with a federal agency he disagreed with, the crowd around the Portland ICE office grew.
Riddell claims that Wheeler didn’t enforce several city ordinances and state laws, including disorderly conduct, riot, harassment, and prohibited camping on public property and public rights of way.

Thursday, September 27, 2018

The Bakken -- It Simply Never Quits -- September 27, 2018

This was recently posted, but I missed a small but interesting point. When ONEOK announced it was going to build yet another natural gas processing plant, I was unaware that they had not yet completed the one they are currently building, Demicks Lake 1. From The Bismarck Tribune:
A company that’s constructing a new natural gas processing plant in the core of the Bakken announced plans this week for a second plant, doubling the size of the project.
Oneok plans to construct Demicks Lake II in McKenzie County, adding 200 million cubic feet per day of processing capacity.
Demicks Lake I, which also will have a capacity of 200 million cubic feet per day, is under construction but expected to reach capacity soon after it’s complete, Terry Spencer, Oneok president and CEO, said in a news release.
That increased the need for the Demicks Lake II plant, a $410 million project.
I think this simply incredible. It's a big story that yet another natural gas plant is being built, but to learn that it would be oversubscribed as soon as it was completed, and would necessitate expansion or another processing plant altogether.

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Manic Monday

Yeah, I know it's Thursday, but "manic Thursday" doesn't work. LOL.

Wow, I'm in a great mood.

I try to ride my bike every day, even during the winter. I remember riding during snow days in Boston. Slipping and sliding.

Every day I ride, I grade the riding conditions on a scale of 0 - 10, in half point increments, based on: wind; precipitation/humidity; and, temperature (seasonally adjusted).

Temperature is seasonally adjusted because one can "dress" for the weather. The other two are not seasonally adjusted --

Best riding weather is 8.0 - 10.0, obviously. I generally won't ride if the number is below 6.0. Vertical snow might drop a half point, but horizontal snow easily knocks off four or five points. Rain? Depends. But a light drizzle, only a half point or so. A sudden downpour, four or five points. I won't start out in a downpour, but I occasionally get caught in one (poor planning on my part and I deserve no sympathy).

I do not allow any day to get a grade greater than 10.0 but if I could, today's grade would have been 12 to 14. They used to call this weather "Indian summer" but to be politically correct, I guess we either call it "Native American summer" or ... whatever.

Wow, it was gorgeous today.

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What A Great Country

I biked to Starbucks this morning, about 6:00 a.m. Sunrise at 7:14 a.m. I had been there about 90 minutes. At 8:00 a.m. my wife telephoned to tell me the "GasCap" light lit up on the dashboard of our very old Chrysler minivan, closely followed by the "EngineLight."

I left my back pack; my computer; my cellphone -- everything -- on "my" chair at Starbucks, and promptly got up and walked up to the Firestone Service Center about a block away. I told my wife I would meet her there. She arrived shortly thereafter. Chris, at Firestone, said he would take care of it, but he said the $100 diagnostic test that was mandated by the company would not be worth it. He said to go down the street to Chrysler and buy a new gas cap ("do not buy an after-market gas cap") -- if that doesn't solve the problem, he would gladly see me and take care of the problem.

My wife arrived, we drove down to Chrysler, and got the gas cap. The problem was solved.

My wife brought me back to Starbucks -- my stuff was still there -- someone saw me leave earlier and wondered -- but with my bike still there, they knew I would be coming back ...

Later, my wife called to confirm that the"EngineLight" also disappeared. I bought a $20 Jimmy John's gift card and gave it to Chris at Firestone on my bike ride home.

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The Bakken

I'm not going to post any new data here, but suffice to say, the Bakken is staggering. Absolutely staggering. I hope folks reading the blog are getting that same feeling. If not, I'm obviously not doing my job.

Elenore, The Turtles

Saturday, September 8, 2018

ONEOK North Dakota Update -- September 8, 2018 -- Might ONEOK Have The Largest Natural Gas Processing Plant In North Dakota?

See this ONEOK post for background, back in February, 2018.

I can't recall if I posted this story, but it's starting to get some national attention. From The Williston Herald, March 2, 2018: suspended plant out of mothboalls -- ONEOK's Demicks Lake "large" gas processing plant is back on the table. Data points:
  • project suspended when oil prices collapsed -- that was back in 2015
  • since then, huge flaring problem in the Bakken
  • the "new" plant will be located in McKenzie County near Fort Berthold
  • this area has the highest amount of flaring in the state
    • as much as 30% of gas produced in Fort Berthold was flared in 2017; back to 20% now
  • statewide: 13 percent of production flared; 284 million cubic feet (50K boe) flared in December, 2017
  • the new plant raises total gas processing in the state to exceed that produced but due to regional differences, flaring won't end statewide
  • footprint: 160 acres; 13 miles northeast of Watford City
  • 400 million cubic feet/day; two separate cryogenic turboexpanders units ("trains")
  • original (2015) cost estimate: $321 million; now $400 million
  • in service by 4Q19
North Dakota natural gas processing plants are tracked here.

But note this: the link above still shows the Demicks Lake plant with a capacity of 200 mcfpd, whereas the linked story above says the plant is likely to go to 400 mcfpd.

Oasis has bragging rights with the largest natural gas processing plant (Wild Basin) at 345 mcfpd, but ONEOK could claim the title if it goes to 400 mcfpd.

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Meanwhile, Kinder Morgan ...

This story was posted earlier, but for those who missed it the first time, from August 8, 2018, The Bismarck Tribune:
  • to expand the Roosevelt Gas Plant in McKenzie County by 150 million cubic feet per day
  • increasing the capacity to process up to 200 million cubic feet per day
Besides the obvious -- more natural gas processing capacity -- but more importantly, it needs drillers can increased oil production.

For newbies, crude oil production in North Dakota is constrained by:
  • the price of oil; demand for light oil
  • takeaway capacity (not much of an issue now that the DAPL is flowing)
  • flaring (a big issue)
  • workforce: competition with the Permian
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Highway Change

When biking along a busy highway, I generally won't stop to pick up a single penny, but occasionally I hit the "mother lode."

The other day, on the frontage road along the highway this treasure trove.


The ratio was very unusual. Generally I don't find nickels. The ratio is usually about 25 pennies to every two dimes and to every one quarter. But seldom any nickels. But look at all those nickels on the left. No quarters.

Down the road a bit further, same day, same ride:


The mix was a bit more typical, although the two nickels were still surprising. Four quarters (on the right), two dimes, only five pennies; an unusual mix.

Tuesday, August 7, 2018

Oasis (OAS) Pops Almost 6% On Earnings -- August 7, 2018

Oasis.

Oasis earnings here.
  • EPS: ten cents versus seven cents forecast (that's a pretty good beat); compares to a loss of five cents a year ago; an earnings surprise of over 40%;
  • revenues: $501.34 million -- a 27% surprise; compared to revenues of about half that amount last year, $254 million
Press release here


Oasis orporate presentation:



Disclaimer: this is not an investment site.

Oasis Midstream Partners earnings, press release.

NG plants in North Dakota


Click on graphic to enlarge.
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Saudis and Tesla

Saudi Arabia takes $2 billion interest in Tesla. TSLA shares pop.

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The Book Page

From Darwin's Fossils, Adrian Lister, c. 2018

The voyage Charles Darwin was on lasted five years, most of it on and around South America.

It is amazing how "economic" his activities were and how incredibly "lucky" he was. Makes one wonder.

Economic: shortly after arriving in South America, his main hunting-ground at Punta Alta, on the Pampas coast of Argentina, just north of Patagonia, was only 500 feet by 500 feet.

500 feet x 500 feet.

He collected a relatively small number of fossils there but no fewer than seven demonstrated distinct types (genera) of mammal, while six more were collected from other sites (seven sites altogether). Of these 13 specimens, only two were known at the time, and six were names on the bsis of Darwin's specimens.

Many of the species discovered by Darwin are now celebrated elements of the South American fossil fauna of the last ice age, some 100,000 to 12,000 years ago.

On only his second day of fossil-hunting in South America, Darwin found the largest and heaviest single fossil of the entire voyage, belonging to the largest and heaviest land mammal ever to live in South America. While a party from the ship went fishing, Darwin went fossil hunting and found this specimen.

He correctly identified that first find, that first huge skull, as belonging to Megatherium, a great beast that had been named by French anatomist Georges Cuvier.

The earliest discovery of Megatherium had been a largely complete skeleton unearthed on the banks of the Lujan River, west of Buenos Aires, in 1788. Discovered by a Dominican friar, Manuel Torres, it was sent to Madrid, where it became the first fossil mammal skeleton ever to be assembled and mounted for public display.

From drawings only Cuvier identified it and named it Megatherium americanum in 1796. Cuvier place it within his 'edentate' order of mammals, along with living sloths, anteaters, armadillos and some others, and presciently suggested that it was a gigantic sloth.

Later:

Darwin's discovery of four genera of large ground sloths was remarkable, and also serendipitous in that the area in which he was collecting happened to be the only region where all four could have been found together. Mylodon is distributed in the southern half of the [South American] continent, Glossotherium in the northern half, and Scelidotherium in the middle. The genus Megatherium is widespread, M. americanum is known mainly from Argentina. Only in the Pampas region and La Plata basin do they overlap. The different forms of their skulls, and teeth and limbs, show how several species could have co-existed in the Late Pleistocene, using different food and habitat resources. [Did the writer interchange species and genera?]

Thursday, July 5, 2018

Brits Like Higher-CO2 Gasoline More Than Diesel, T+35 -- July 5, 2018

From The Financial Times, do as I say, not as I do:
UK sales of new diesel cars fell by 30 per cent in the first six months of this year, as buyers shunned the once-dominant fuel in favour of higher-CO2 petrol
Diesel sales fell to 428,612 between January and June, compared to 613,985 in the same period a year earlier. 
Petrol sales climbed 11 per cent to 812,535, taking the fuel’s market share to 61.8 per cent, compared to 52 per cent a year earlier
Total UK car sales over the six months fell 6.3 per cent to 1.3m, as the market declined following years of strong growth. Sales in June slipped by 3.5 per cent, despite sales of new cars across Europe rising in the same month.
Chevron-exit?  Chevron getting ready to exit all UK central North Sea assets? Link and data points:
Chevron's presence in the U.K. North Sea spans more than 50 years, according to the company’s website, which highlights that on December 26, 1964, Chevron's joint venture operator Amoseas (American Overseas Petroleum Ltd.) drilled its first North Sea well, 165 miles offshore the United Kingdom.
And now it's leaving. 
Enbridge-exit? Enbridge agrees to sell its Canadian natural gas gathering and processing business
19 natural gas processing plants and liquids handling facilities --
  • total capacity 3.3 billion cf/day
  • 3,550 km of natural gas gathering pipelines
Nineteen gas processing plants. Sounds like a lot. But the state of North Dakota, alone, has about 34 NG processing plants and by 2020 will have a total capacity of almostt 3 billion cf/day
The North Dakota Pipeline Authority tracks the natural gas plants in North Dakota. Link here: https://northdakotapipelines.com/gas-plants/.
California spot prices for electricity will spike today, link here:


NYC: that heat wave?


Wednesday, February 21, 2018

Wow, It Never Quits, Does It? -- February 21, 2018

After all the "noise" the past couple of days regarding NGL infrastructure and natural gas/flaring, there seems to have been quite a response.

Now, this, sent to me by a reader (another "huge thank you") -- from a press release: ONEOK will invest $2.3 billion by 2020 to construct:
  • a new 400,000-barrel per day (bpd) natural gas liquids (NGL) pipeline – the Arbuckle II Pipeline – that will create additional NGL transportation capacity between ONEOK's extensive Mid-Continent infrastructure in Oklahoma and the company's existing NGL facilities in Mont Belvieu, Texas;
  • a new 125,000 bpd NGL fractionator – MB-4 – in Mont Belvieu, Texas, and related infrastructure; and, 
  • a new 200-million cubic feet per day (MMcf/d) natural gas processing facility – the Demicks Lake plant and related infrastructure – in the Williston Basin
This is on top of more than $4 billion in announced capital-growth projects since 2017.

Note: Oasis is building the largest NG processing facility in North Dakota:
The Bismarck Tribune (http://bit.ly/2tFJeuB ) reports that Oasis Midstream wants to expand the Wild Basin Gas Plant in McKenzie County to make it the largest natural gas processing complex in the state.

The plant currently processes about 80 million cubic feet of natural gas per day. The expansion would add a new complex next to the existing plant, which would allow the plant to process an additional 265 million cubic feet per day.
So, if I read that correctly, a 345-million-cubic-feet natural gas processing plant. This is the plant that Andeavor will source with a new 44-mile pipeline to supply its Belfield logistics hub. 

Thursday, January 25, 2018

Unless Something Bigger Happens In The Next 48 Hours, This Is The Biggest Bakken Story Of The Week -- January 25, 2018

Link here to Rigzone.
Hess Midstream Partners LP and Targa Resources Corp. have formed a 50/50 joint venture to build a new 200 million standard cubic feet per day dry gas processing plant near Targa’s existing Little Missouri facility in McKenzie County, North Dakota, Hess Midstream announced Thursday.

“The Little Missouri Four Gas Processing Plant demonstrates our commitment to executing our strategy by providing additional Bakken basin processing capacity, which provides another layer of organic growth to meet our long-term targeted annual distribution per unit growth,” John Gatling, Hess Midstream’s chief operating officer, said in a company statement. “By executing infrastructure projects that provide more optionality to producers, Hess Midstream expects to continue to capture additional Hess and third-party volumes, reinforcing the competitive advantage we enjoy from our strategically located infrastructure in the core of the Bakken.”

According to Hess Midstream, Targa will manage construction of the approximately $150 million Little Missouri Four (LM4) plant and operate the facility. Hess TGP Operations L.P. – owned on a 20/80 basis by Hess Midstream and Hess Infrastructure Partners LP (HIP), respectively – will hold Hess Midstream’s 50-percent stake in the gas plant, the company added. In addition to contributing a total of $75 million to the plant’s construction, Hess Midstream said the two Hess units will invest approximately $100 million toward new pipeline infrastructure to gather volumes to LM4.
Earlier this was posted:
Link here at The Bismarck Tribune. Data points:
  • Hess Midstream Partners
  • $150 million natural gas processing plant
  • partner: Targa Resources Corp
  • name: Little Missouri Four plan
  • capacity: 200 million cf/d
  • location: near Targa's existing facility south of the Missouri River near Watford City
  • completion date: by the end of this year
  • natural gas production in ND set a record in November, 2017: 2.1 billion cubic feet/day
  • flaring: still at 14%
  • one of four natural gas processing plants in the planning or construction stages in North Dakota
  • the four projects would add an additional 615 million cubic feet per day of additional processing capacity
  • ONEOK: to expand it Bear Creek natural gas processing plant north of Killdeer; will expand from a capacity of 80 million to 175 million cubic feet per day
  • Crestwood Equity Partners: expand the Arrow Bear Den gas processing plant near Watford City, adding another 120 million cfpd
  • Oasis Wild Basin processing plant it expanding to process 345 million cfpd in McKenzie CountyN
Note: if that is not an error in reporting, it seems that the Oasis expansion to 345 million cfpd is a huge addition; prior it was 80 at Plant 1; and 150 at Plant 2.
Note: it looks like a race among Hess, ONEOK and, Oasis to see who will have bragging rights to most natural gas processing capacity in the state.
Note: for newbies, this is a huge, huge story. The Bakken is an "oily" story, an "oily" play; no one expected this much natural gas activity back in 2007.

Wednesday, March 29, 2017

Making America Great Again -- Nevada Tops The List; Texas #19; The Market And Energy Page, T+67, Part 2 -- March 29, 2017

Exiting Canadian oil sands: Cenovus Energy will acquire COP's 50% interest in Foster Creek Christina Lake partnership, the companies' jointly owned oil sand opererated by CVE, and the majority of COP's Deep Basin conventional assets in Alberta and British Columbia, for $14.1 billion in cash and stock.

********************************
The American Dream

From Axios:
First look ... Forbes launches The American Dream Index, using seven indicators of economic health "to track on a state-by-state monthly basis whether President Trump is Making America Great." The debut rankings:
Best off: Nevada, Tennessee, Florida, Arkansas and Georgia.
Worst off: Alaska, Hawaii, Connecticut, Illinois and Kansas.
The big states: Washington ranks 15th, Pennsylvania 16th, Texas 19th, California 26th, Michigan 27th, Wisconsin 29th, Virginia 30th, Maryland 31st, Ohio 32nd, New York 41st and New Jersey 45th.
Montana made the top ten, coming in at #9. North Dakota did not make the top ten.

The Forbes link here.

*******************************
This Should Move South Dakota Up The "American Dream Index" 
Later: A reader provided the rest of the story.

From Engineering News Record: Otter Tail Power to build 250-MW natural gas power plant in SD. Data points:
  • to be built in eastern South Dakota (near where the DAPL crosses SD); near Astoria, SD
  • along the SD/MN border, about 75 miles north of Sioux Falls, SD -- where the Big Stone "North Dakota lignite-fired" power plant should have been built 10 years ago but Minnesota enviro's killed it.
  • near the intersection of the Northern Border natural gas pipeline and the Big Stone South-to-Brookings 345 KV electric transmission line which I suppose has excess capacity probably pre-built to accomodate the cancelled Big Stone coal fired  plant....maybe to transport canadian hydro the REAL replacement for Hoot Lake?
  • $165 million / 250 MW ($660,000 / MW -- about what we have come to expect)
  • Otter Tail will retire its Hoot Lake coal-fired plant (Minnesota, same area) by 2021
  • Hoot Lake will also be replaced by 150 MW wind farm in southeast North Dakota actually 30 MW net capacity factor  which is just political posturing not a reliable power source....worth-less-than-nothing -- except the tax credits and the political PR
  • the wind farm: $250 million ($1.7 million /MW -- also about what we have come to expect) but the dispatchable power is 20% so the cost is really $8.5 million/MW
  • the wind project will be near the small town of Merricourt, approximately 15 miles south of Edgeley, North Dakota, in McIntosh and Dickey Counties because Minnesota doesn't want this ugly junk that will be left to rot onsite in about 15 years.