Thursday, January 24, 2013

Williston, #6, On Forbes' Fastest Growing "Small Towns"

Updates

January 25, 2013: I just noticed -- this is last year's list -- this list was posted back in January, 2012. 

Original Post

Link here to Forbes.

Someone noted this list is quite a bit different than an earlier list from another source earlier this month. The difference in the list has to do with the size of the towns. In the earlier list, Williston did not make the cut due to size of the city; Fargo and Bismarck both made the cut.

This newest list from Forbes appears to be of towns with smaller populations.
The West Texas community of Pecos comes in at No. 2 on our list with a 23.2% increase in population to 13,783. Some of those people aren’t there voluntarily: The MSA is home to the Reeves County Detention Complex, a privately run inmate facility with a capacity of 3,760. In 2007, the complex entered into a contract with the Federal Bureau of Prisons to house up to 2,407 criminal aliens for at least four years.
 
Another factor in Pecos’ expansion: a boom in oil and gas drilling enabled by fracking.
“We’ve had 39 drilling rigs running at a time in the county, with motels running at 100% occupancy—and four new hotels built in three years,” says Bill Ogelsby, head of the Pecos Economic Development Corporation. Temporary residents who come for work sometimes bunk at hotels for months at a time, he says, which may have contributed to higher population counts.

Expanded oil drilling is also driving the economy in North Dakota—especially in small towns like Williston, which comes in at No. 6 on our list, where the population jumped by 14.6% to 22,398. The area’s unemployment rate is a shockingly low 0.9%, with a median income of $55,396.

Seaway Update and Pricing; Chinese Manufacturing Expanding At Fastest Rate In Two Years

To the best of my knowledge, there has been no change in the cutback in Seaway's flow, back to 175,000 bopd just after expansion to 400,000 bopd had been completed. Within hours of that announcement, WTI fell about $1.50, but recovered quickly the next day (today), perhaps due to this from forex-tribe.com:
Yet, the downside movement seen today may be limited as crude is finding support from China’s upbeat manufacturing data that improve the outlook for global growth and fuel demand from the world’s second largest oil consumer.

Manufacturing in China is expanding at the fastest rate in two years, providing signs of further economic rebound. The preliminary reading of HSBC’s Purchasing Managers’ Index was 51.9 in January from 51.5 final reading in December.
More on the background/reason to decreasing flow on the Seaway can be found at Fox News (sent in by a reader). 
Enterprise Products Partners LP (EPD) cut its Seaway pipeline oil deliveries by more than half after a major refinery in Sweeny, Texas, reduced demand while it undergoes maintenance, an Enterprise spokesman said Thursday.
Enterprise reduced the flow of its newly expanded 400,000 barrel-a-day pipeline Wednesday to 175,000 barrels a day because its Jones Creek storage terminal was filled to capacity.
The reduction was not because of technical problems with Seaway, or with the terminal, but because customers were not taking enough oil out of the terminal, Enterprise spokesman Rick Rainey said.

Only One Well Coming Off Confidential List Friday -- The Bakken, North Dakota, USA

22757, drl, BR, Iron Horse 21-2MBH, Union Center,

Terrorist Attack in Algeria Could Increase Statoil (BEXP) Activity in the Bakken

Link here to The Dickinson Press.
Last week’s terrorist attack on an Algerian oil facility could divert Norwegian oil giant Statoil to increased oil production in safer regions, including North Dakota’s Bakken and Three Forks formations, where the two-thirds government owned Statoil already has made a heavy investment.
Five Statoil employees are among the missing after terrorists took hostages and Algerian forces stormed the facility. At least 23 hostages died.
Bloomberg News reported this week that security problems in Algeria and elsewhere in North Africa could prompt Statoil “to focus even more on shale oil and gas in the U.S. and deepwater fields off Brazil, where most of the company’s production growth is expected to occur in this decade.”
The news service quoted Trond Omdal, a securities analyst, as saying the Algeria attack will “reinforce a trend … away from high-risk areas.”
A common theme of the Million Dollar Way.

Ten (1) New Permits -- The Williston Basin, North Dakota, USA

Bakken Operations

Active rigs: 188 (steady, down 2)

Ten (1) New Permits --
  • Operators: XTO (3), BEXP (2), EOG (2), WHiting (2), Fidelity
  • Fields: Siverston (McKenzie), Alger (Mountrail), Parshall (Mountrail), Sanish (Mountrail), Grinnell (Williams), Bell (Stark)
  • Comments: None
Wells coming off confidential list were reported earlier; see sidebar at the right.

Producing wells completed:
  • 22436, 1,060, CLR, Gale 3-32H, Cedar Coulee, t1/13; cum --
  • 22922, 2,907, BEXP, Syverson 1-12 2TFH Stony Creek, t12/12; cum --
  • 21441, 182, Oasis, Orcas State 5601 13-16H, Tyrone, t12/12; cum 290 bbls 11/12;