From the American Spectator: A Great Debate -- Yes, It's On The Bakken

This really is a very, very good article.

I don't care for Gingrich at all, certainly not as the GOP nominee, but one has to admit, he knows his stuff.

To Obama's boast that America is producing more oil today than any time in the last 8 years, Gingrich noted that the North Dakota boom was on private land. He reported in his earlier speech that "Under President Obama because he is so anti-American energy, we have actually had a 40% reduction in development of oil offshore, and we have had a 40% reduction in the development of oil on federal lands." In his San Francisco speech, Gingrich added: "So in the area he controls, production is down and the area that is hard at the free enterprise stuff where people get rich, production is up. So he is now claiming credit for the area he can't control in order to have us think he is actually for what he opposes."

The entire article is pretty much about the Bakken. I think you will enjoy it.

I have to thank a reader from Bismarck for sending me this article. It really is very, very good. If you don't like the players in the article (Obama vs Gingrich), replace the names with those of people you like.

Reflections of My Life, Marmalade, released late 1969 

A Bit Of Insight Into Those Derivative Losses -- CLR -- The Bakken, North Dakota, USA

Link here to Motley Fool.

Regarding CLR and its derivative losses:

In the latest earnings release, net losses stood at $112 million, thanks to a $402.5 million loss on derivative instruments. Digging deeper, I see that over $399 million of these losses are actually unrealized, which means it's just an accounting entry -- in other words, the company suffers no actual cash outflows. On a comparative basis, the fourth quarter of 2010 saw net loss clock in at $45 million, which includes a $188 million derivatives loss.

I'm not too concerned about these paper losses and agree with Motley Fool community member badbernanke's comments:

Derivative "losses" from hedging commodity production are better than derivative gains for companies with rapidly growing production profiles.

"Gains" normally means that prices for the commodity are dropping and that marginal, unhedged production is receiving prices lower than the hedge price.

"Losses" mean that the commodity prices are rising (actually, have risen) above the hedge price. So marginal, unhedged production will benefit from higher market prices.

Mike Filloon on KOG, NOG, GMXR, and Magnum Hunter Following 4Q11 Results

Link to SeekingAlpha here.

Regarding NOG:

The greatest impact on Northern's quarter was derivatives. It lost $2.7 million on settled derivatives and another $23.6 million on mark to market of derivative instruments. Derivative losses totaled half of Northern's fourth quarter revenue. It may have missed earnings but the effect of derivative losses pushed this stock back significantly, and could be a buying opportunity.

Regarding KOG:

Kodiak now has 137 gross or 60.2 net wells and over 157000 net leasehold acres. It now has six drilling rigs and six workover rigs. This growth has come at a price, as things have gotten much bigger and more complicated.

I would love to comment on KOG but I am not worthy. I was never an entrepreneur; I realized early on I don't have what it takes to be successful running a business.  So, I will not comment except to say that it will be interesting to watch, from the sidelines, how KOG does. KOG is only one of many companies in the Bakken about which this could be said: "This growth has come at a price, as things have gotten much bigger and more complicated."

$10/Hour --> $100,000/Year As a Diesel Mechanic in the Heart of the Bakken

Link here to CBSMinnesota .

Wingate went from a $10 an hour job back home, to a salary of more than $100,000 as an oil company mechanic.

When I was last in Williston, finding diesel mechanics was probably one of the most challenging aspects in the oil patch. Entrepreneurs were buying existing garages for future service garages. Trucking companies and oil service companies often simply bought a new truck when a truck needed maintenance. Time was money and they couldn't wait the several weeks to get maintenance on a truck; it was just quicker to buy a new truck.

The boom centers around Williston, North Dakota, and stretches about 150 miles in all directions. About 350 oil companies have moved into the city, helping to double the town’s size in five years.

Now: A 14-Screen Movie Theater Coming To Williston

Link here to the Williston Herald. 

The new movie complex will feature stadium seating with two or more large format screens, according to a press release issued by T&J Agnes Theatres, which runs the current movie theaters in downtown Williston.

The new movie theater will be called Sand Creek Cinema 14, and will replace T&J’s downtown and drive-in locations.

At the new complex, which will be built on the west side of Williston in the same shopping center a new Menards is slated to be built.