So, we're going to the Boston Aquarium.
When we get back this evening, I will get caught up.
Sorry.
Enjoy the data links and the archives.
Sunday, February 12, 2012
A New Fracking Company in the Bakken -- Specifically for the Bakken
Updates
May 12, 2012: Update on RockPile in the Dickinson Press.
A Denver-based company will open its first hydraulic fracturing facility in July, and its goal is to hire 100 residents from southwestern North Dakota by the end of the year.
RockPile will be on Villard Street west of Dickinson.
The facility will hold 10 million pounds of fracking sand, Rough said. Though the equipment was brought up from Houston, trailers were made by Boespflug Trailers in Dickinson.
The company has enough equipment for two crews, Rough said, adding a full fleet costs about $25 million.
Original Post
Regardless, here's the full story: a new fracking company, RockPile Energy Services, LLC, is a new fracking company in the Bakken; Triangle Petroleum is its majority owner.
RockPile Energy Services LLC, a newly created entity focused on providing pressure pumping and ancillary services in the Williston Basin, was formed by Triangle Petroleum Corp. Triangle also added Gus Halas to its board of directors.Huge.
Triangle will be the majority owner of RockPile Energy Services, which will be headquartered in Denver, CO, with field operations in both Dickinson and Williston, ND.
Proceeds from the offering will be used to purchase equipment for one pressure pumping spread, to build a rail-based proppant receiving terminal in Dickinson, and for general and corporate purposes.
RockPile has appointed Curt Dacar as its chief operating officer. Originally from Dickinson, he spent nearly 32 years with Schlumberger, where he was involved in all aspects of the management of the pressure pumping value chain. Most recently, he worked with Occidental Petroleum in its Williston Basin completions program. RockPile is also currently interviewing candidates for additional key roles.
Enbridge, Crude-By-Rail, and "Price Collapse" -- The Bakken, North Dakota, USA
Updates
February 13, 2012: Bradaz has provided some nice data points for price of Bakken crude:
Month EOG NET NYMEX DIFF
Jan 11 80.27 89.58 9.31
Feb 11 80.19 89.74 9.55
Mar 11 92.67 102.98 10.31
Apr 11 105.33 110.04 4.71
May 11 97.21 101.36 4.15
Jun 11 92.67 96.29 3.62
Jul 11 92.81 97.34 4.53
Aug 11 81.85 86.34 4.49
Sep 11 82.40 85.61 3.21
Oct 11 83.18 86.43 3.25
Nov 11 91.74 97.16 5.42
Dec 11 89.93 98.58 8.65
Original Post
Timing is everything.It was about a month ago that I commented on why a pipeline company was initiating crude-by-rail.
Today, I see there is an interesting discussion thread talking about those very points.
As Hunter S Thompson would say, this is the nut of the argument:
The argument at the Clearwater MN price somehow represents all that the oil drillers can get for their Bakken oil is lunacy. Unit trains can go anywhere on the continent where the price is sufficient to cover trhe transportation costs, and do. Some of the EOG trains have been going all the way to the Louisiana coast, where oil can be offloaded and shipped to Europe if necessary, to get the highest price. EOG (and the other companies too) employ. high-paid people to decide where each bbl of Bakken oil hould go to net the highest price to the operator (and mineral owner). THey are not somehow stuck selling it to Clearwater no matter what.Maybe more to follow.
Imagine: Gasoline at $5.00/gallon; oil at $125/bbl; and Bakken oil ending up in Europe.
Great companies are great because they realize what business they are in. The "aha" moment for Enbridge was when they realized they were not a "pipeline company."
US NG Update -- The Oil Drum
Greg sent me a great link discussing the current US natural gas "boom" in production and what it means.
Update on US Natural Gas Industry, February 8, 2012, The Oil Drum
This link is posted at the natural as "Page Tab" at the top of the blog, also.
For newbies, be sure to scroll down; the February "Director's Cut" was released early and has been posted.
Update on US Natural Gas Industry, February 8, 2012, The Oil Drum
This link is posted at the natural as "Page Tab" at the top of the blog, also.
For newbies, be sure to scroll down; the February "Director's Cut" was released early and has been posted.
Saturday, February 11, 2012
Director's Cut -- February 10, 2012
Link here.
Production hits all-time high in North Dakota (again):
Production hits all-time high in North Dakota (again):
- Dec, 2011, oil: 534,880 bopd (NEW all-time high) -- according to a Minot Press story, this ties us with California; if true, North Dakota is now tied for #3 among states for oil production, behind Alaska and Texas
- Nov, 2011, oil: 510,610
- Dec, 2011, producing wells: 6,471 (NEW all-time high)
- Nov, 2011, producing wells: 6,332
- Dec, 2011: 180 (all time high: 245, 2 Nov 10)
- Nov, 2011: 169
- Dec, 2011: sweet crude, $88.75
- Nov, 2011: sweet crude, $88.54
"The warm dry weather through the fourth quarter of 2011 increased hydraulic fracturing activity and rapidly increased production. As a result, even with rig count up very slightly, daily production increased another 5%.EPA
"Due to the delayed/non-approval of Keystone XL, the bottleneck at Cushing, OK, is now resulting in a North Dakota Sweet posted price to NYMEX-WTI discount of -18% and a NYMEX-WTI to Brent discount of -19%. This is driving an increasing amount of North Dakota crude oil onto rail transportation where it can reach destinations that pay Brent price."
"EPA regulation of hydraulic fracturing under the safe drinking water act through the diesel fuel provision in the 2005 energy policy act is moving slowly. The proposed guidance document(s) are not under review at OMB. When that review is finished, a 60-day public comment period is planned." [Unchanged from last report.]With regard to flaring:
The first of the new very large gas processing systems ame on line January 20, 2012, adding 14% to the processing capacity in the state. This should be reflected in a declining percentage of gas being flared in the coming months.
Subscribe to:
Posts (Atom)