Part I: Update on the Permian -- Mike Filloon

I was going to simply link this article at the "Permian" page for the blog. But this is a great overview of / introduction to the Permian.

Again, a great, great article by Mike Filloon.

For Investors Only: EEP Misses by Seven Cents

From Yahoo!Finance:

Enbridge Energy [Management] misses by $0.07, beats on revs (EEP): Reports Q4 (Dec) earnings of $0.18 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.25; revenues fell 14.7% year/year to $1.77 bln vs the $1.65 bln consensus.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here.

Staggering Corn Production Possible -- Nothing About The Bakken

Check out this graph: looks like oil production in the Bakken.

Corn yields.

So, just after WWII: about 50 bushels/acre.

Then in the 80's: maybe 100 bushels/acre.

In 2000: 140 acres/acre.

Now this story, sent to me by Don: 12-inch rows, hybrids --> 300+ bushels/acre

Narrow-row corn just got narrower. Stine Seed Company planted and harvested 2,500 acres of 12-in.-row corn in central Iowa last year. A hybrid designed for high density production yielded 320 to 330 bu./acre on the cropland.

“(The fields) were up where we had a little extra rain and a little extra nitrogen on it,” reports Harry Stine, president, Stine Seed. “Most of our other yields were much lower with a farm average of 145 bu./acre (mostly 22½-in. rows).”

The trend to 20- and 15-in.-row corn has been around for years. But interest in even narrower rows such as 12 in. has increased as growers seek the elusive 300 bu./acre yield mark.

Absolutely incredible. So, now we have a third "hockey stick" graph to talk about: a) corn yield in the US; b) Bakken crude oil production; and, c) global warming.

Okay, two out of three ain't bad.

According to wiki:

As of 2007, corn became the state's largest crop produced, although only 2% of U.S. production. The Corn Belt extends to North Dakota, but is situated more on the edge of the region instead if in its center. Corn yields are high in the southeast part of the state and smaller in other parts of the state. Most of the cereal grains are grown for livestock feed.

Three Great Discussions Over At The Bakken Shale Discussion Group

For folks trying to learn more about the Bakken or get a better understanding of the Bakken, it just so happens there are three great threads over at the Bakken Shale Discussion Group. Scroll through the following links and pay attention to the more recent postings.

First: a very nice discussion of natural gas reservoirs in the Bakken;

Second: the number of permanent workers that will eventually be needed in the Bakken; when this question was first asked, I thought it would be quite difficult to answer; analysis seems to be very nice;

Third: increased density spacing in the Bakken; and, of course, this is very, very interesting; downspacing to 160-acre density spacing (if that's the right way to phrase it).

Three Great Discussions Over At The Bakken Shale Discussion Group