CEO announces he will step down; successor in line.
Shares spiked a bit today suggesting folks are excited about SLB's earnings, especially after hearing HAL saying oil services industry could not keep with demand.
Thursday, July 21, 2011
Airport Boardings At Williston Double -- Hit All-Time High -- Bakken, North Dakota, USA
Link here.
Entire state saw increase:
Airport boardings in Williston set an all-time record last month."94 percent increase" --> almost 100% which is doubling.
Statistics from the North Dakota Aeronautics Commission show that Sloulin Field International Airport recorded 2,549 boardings in June.
This was up from the 1,315 recorded in 2010, a 94 percent increase.
Entire state saw increase:
Airline boardings at North Dakota's eight major airports set a June record.For newbies, for various reasons, many folks traveling to and from Williston use Minot airport as their gateway.
The state Aeronautics Commission reports that 73,100 people boarded planes during the month, up 9 percent over the year.
Boardings at the Williston airport nearly doubled over the year. Minot saw the biggest increase in actual passengers, with 5,551 more boardings over the year.
XOM Interested In Acquiring More Shale (Natural Gas) -- Not a Bakken Story
ExxonMobil announced a long-term strategic move about a year ago to acquire more natural gas assets. XOM bought XTO this past year. XTO is in the Bakken which is primarily an oil play.
But XOM is interested in more natural gas reserves. The New York Times recently reported natural gas was a losing proposition, but it certainly seems to have been shoddy reporting, or market tinkering (manipulation?).
Note:
But XOM is interested in more natural gas reserves. The New York Times recently reported natural gas was a losing proposition, but it certainly seems to have been shoddy reporting, or market tinkering (manipulation?).
Note:
Three years after Exxon abandoned the Barnett shale in north Texas because of lagging returns, XTO-operated wells in the region are among the most profitable in the company’s portfolio, even after a 67 percent slide in U.S. gas prices since 2008, he said.And:
“The economic returns are very good,” Williams said during the interview in XTO’s offices in a 90-year-old bank building in Fort Worth, Texas. “We’re running economics on every individual well. We’re making sure each well makes economic sense before we drill it. We’re not drilling anything that’s losing money.”The Bakken is an oil play, not a natural gas play but something tells me when XOM is looking for more shale acquisitions, XOM, as well as others, are looking at the Bakken. Most agree the Bakken is in early innings in a 100-year play.
Exxon has purchased shale fields that hold more than 10 trillion cubic feet of gas since the XTO transaction, the company’s biggest purchase in more than a decade, Williams said. Ten trillion cubic feet of gas is enough to supply U.S. household demand for two years, based on Bloomberg calculations.
C&J Energy Services: Hydraulic Fracking Company Goes Public -- Bakken?
C&J opens at $30, three percent higher than its IPO last week.
Original Post
Link here.Contracts include EOG, but not sure if C&J in the Bakken.
C&J Energy Services owns four hydraulic fracturing fleets with 142,000 total horsepower. The company has four other fleets under construction, and estimates that total horsepower will reach 270,000 by the end of 2012. C&J Energy Services also owns 14 coiled tubing units and 25 pressure pumping units. The company earned 80% of its revenues in the first quarter of 2011 from providing hydraulic fracturing services to operators trying to enhance production from wells drilled into formations with low permeability. Its four operating fleets are under term contracts with EXCO Resources (NYSE:XCO), EOG Resources, Penn Virginia, and Anadarko Petroleum. The company's fifth fleet, which is under construction, will be available in August 2011, and is under contract with Plains Exploration and Production. The other three fleets are currently without contracts, and are set to be delivered before the end of 2012.
Carpe Diem Has Another Post on the North Dakota Oil Patch -- Bakken, North Dakota, USA
Link here.
This number has always surprised me: how few bbls the "average" well produces. There are so many ways to look at this. When I go through the NDIC database there are a lot of wells producing 300 bbls/month which is only 10 bbls/day, and yet the oil companies would not keep these wells on-line if they weren't profitable. In fact, these wells paid for themselves a long time ago, and it costs almost nothing to keep these wells going: a bit of electricity to keep the pumps running, a little routine maintenance, a bit of bookkeeping, and that's about it. If the old wells are hooked into a pipeline, the expense is even less. At $75/bbl, that's about $750/day for a well that is paid for. There aren't many jobs in North Dakota that pay you $750/day ($275,000/year). The price of oil continues to increase, by the way.
A lot of those old wells were drilled at time when dry holes were not unexpected. Now, a dry hole in North Dakota rates a headline, they are so rare. That has brought the cost per bbl produced way down; when you hit a couple of dry wells, that can really affect your bottom line.
But most important is this: these old wells producing 300 bbls/month are often targeting legacy formations like the Red River or the Madison. A lot of these fields will be rejuvenated when enhanced oil recovery (water flooding and CO2 injection). Even better: the leases for these wells are "held by production," allowing time for the operators to go back in and target other formations from these same wells or new wells. The new formations: Bakken, Three Forks, Three Forks Sanish, and the Tyler.
The new Bakken wells are paying for themselves "at the wellhead" in less than three years; the exceptional Bakken wells pay for themselves "at the wellhead" in less than six months. And these wells are likely to produce for 30 years; BEXP suggests they could produce for 39 years.
The most interesting statistic that comes out of this is the average number of bbls/well: 68.1. A new record for monthly production: 1,120,4576 barrels, a 21% increase from last May, and a 75% increase from two years ago (the link includes a chart).2. A new record for average daily production: 361,438 barrels.
3. A new record number of wells producing: 5,329.
4. A new record for oil-related jobs 15,200 (see chart), which is more than double the number of North Dakota oil jobs two years ago.
This number has always surprised me: how few bbls the "average" well produces. There are so many ways to look at this. When I go through the NDIC database there are a lot of wells producing 300 bbls/month which is only 10 bbls/day, and yet the oil companies would not keep these wells on-line if they weren't profitable. In fact, these wells paid for themselves a long time ago, and it costs almost nothing to keep these wells going: a bit of electricity to keep the pumps running, a little routine maintenance, a bit of bookkeeping, and that's about it. If the old wells are hooked into a pipeline, the expense is even less. At $75/bbl, that's about $750/day for a well that is paid for. There aren't many jobs in North Dakota that pay you $750/day ($275,000/year). The price of oil continues to increase, by the way.
A lot of those old wells were drilled at time when dry holes were not unexpected. Now, a dry hole in North Dakota rates a headline, they are so rare. That has brought the cost per bbl produced way down; when you hit a couple of dry wells, that can really affect your bottom line.
But most important is this: these old wells producing 300 bbls/month are often targeting legacy formations like the Red River or the Madison. A lot of these fields will be rejuvenated when enhanced oil recovery (water flooding and CO2 injection). Even better: the leases for these wells are "held by production," allowing time for the operators to go back in and target other formations from these same wells or new wells. The new formations: Bakken, Three Forks, Three Forks Sanish, and the Tyler.
The new Bakken wells are paying for themselves "at the wellhead" in less than three years; the exceptional Bakken wells pay for themselves "at the wellhead" in less than six months. And these wells are likely to produce for 30 years; BEXP suggests they could produce for 39 years.
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