Wednesday, April 10, 2013

Fracking Not Significant in Causing Earth Tremors; Energy Released Is Less Than Someone Jumping Off A Ladder Onto The Floor

Rigzone is reporting:
New research has found that hydraulic fracturing (fracking) is "not significant" in causing earth tremors. Released Wednesday by the UK's Durham University, the results of a study of hundreds of thousands of fracking operations showed that the process only caused earth tremors that could be felt on the surface in three cases.
The research, titled Induced Seismicity and the Hydraulic Fracturing of Low Permeability Sedimentary Rocks, found that almost all of the resultant seismic activity was on such a small scale that only geoscientists would be able to detect it. It also discovered that the size and number of tremors is low compared to other manmade triggers such as mining, geothermal activity or reservoir water storage.
And if you can't believe the Brits, who can you believe?

Can one quantify the amount of energy released?
"By comparison, most fracking-related events release a negligible amount of energy roughly equivalent to or even less than someone jumping off a ladder onto the floor. Of the three fracking-related quakes that could be felt, even the largest ever, in the Horn River Basin in Canada in 2011 had a magnitude of only 3.8. That is at the lower end of the range that could be felt by people. The widely-reported quake at Preese Hall near Blackpool in 2011 had a magnitude of 2.3."

Slow-Rolling The Oil and Gas Industry

ConocoPhillips will delay drilling in the Arctic. Rigzone is reporting:
ConocoPhillips will place on hold its 2014 drilling plans for Alaska's Chukchi Sea due to the uncertainties of evolving federal regulatory requirements and operational permitting standards.
While the company is confident in its expertise and ability to safely conduct offshore Arctic operations, ConocoPhillips believes it needs more time to ensure that all regulatory stakeholders are aligned, said ConocoPhillips Alaska President Trond-Erik Johansen in a statement.
"We welcome the opportunity to work with the federal government and other leaseholders to further define and clarify the requirements for drilling offshore Alaska," Johansen commented. "Once those requirements are understood, we will reevaluate our Chukchi Sea drilling plans. We believe this is a reasonable and responsible approach given the huge investments required to operate offshore in the Arctic."
I honestly don't know how an oil company could survive an off-shore mishap. BP has paid $23 billion to date and the trials are yet to begin. COP investors should be relieved that COP is not taking on an unnecessary risk.

For the Bakken, this frees up more CAPEX for BR. I'm sure it won't make a difference, but it can't hurt.

So much for all those folks who say the Obama administration is not slow-rolling the oil and industry; so much for "all of the above" as an Obama energy policy.

Rambling, Nostalgic Note --

My wife saved a clipping from the April 5, 2013, issue of the Wall Street Journal. I had not seen the hard copy and can't remember if I linked the electronic version. I'm sure you can find it if you google the headline, "In North Dakota, Oil Brings Housing Squeeze." It's another one of many stories about the impossible housing situation in the Bakken oil patch. I remember polling folks about a year or so ago, asking whether folks thought the housing situation would have improved by now. Apparently, housing is still a big issue. I have some thoughts about that but will leave them to myself. I am posting for other reasons right now.

The hard copy includes a huge photograph of a young mother, perhaps 28 years old with two children, one daughter about 2 years of age in her arms, and a male toddler, perhaps four or at most five years of age. They are standing in front of some austere trailer houses, and although it cannot be seen, the landscape behind them is probably just as austere.

To folks who have not experienced such austere living conditions on the prairie, this has to make them wince, and ask why anyone would put up with this.

For me it brings back sweet memories. When my mom and dad moved from Bismarck to Williston, I was two or three years old. This must have been in 1953 or 1954. I don't remember much then, but I do remember my dad rocking me to sleep, watching the airport beacon light go round and round. The house was very, very small, and was probably smaller than the typical single-wide trailer home, and certainly with less amenities than trailer homes have now.

A couple years later, we moved to a wonderful, large, "Larson and Stang" house, pretty much on the edge of town. I remember digging "forts" in an empty field only a block away from our home. At first the street was dirt and gravel, but within a few years it was paved.

There were no trees. It was prairie and it was austere. My dad planted trees and today they are overgrowing the original lot. Looking back, one really wonders how families remained in such a place. But we did. And over the years it got better. My siblings and I had an outstanding public school education, and because the school census was generally small throughout the years, we could participate in any activity. And we did.

We always said we did not live at the end of the world, but we could see the end of the world from where we lived.

But the experiences did not seem to hurt us. A lot of folks went on to bigger and better things.

Two examples:

Vice Admiral Donald F. Hagen, the thirty-first surgeon general of the US Navy, was a native of Williston, North Dakota.

Phil Jackson, NBA player and NBA coach, was a native of Williston, North Dakota, taking the Williston High School team to state. I think I was in middle school, or as we called it then, "junior high," when Phil Jackson was a high school senior. I know my dad was very impressed watching him play those years. I did not care much for crowds and did not attend many games.

I cannot imagine a more remote place, a more difficult place to grow up. The winters, we were told, were horrendous. We did not know anything different, so I don't recall them as being so bad.

But I look at the photograph in the Wall Street Journal. My heart goes out to the young mom. I can only assume she will have days that she will absolutely hate Williston. Maybe not. There is so much more in Williston now than there was when I was growing up. But she also knows there's a lot more in Minneapolis, Los Angeles, Denver, even Fargo or Bismarck. [The caption says she is a teacher, which suggests she sought this assignment/location.]

But, as my daughter says, life is a journey. I look at her two children in the photograph and wonder what the future holds for them.

When I was younger, I wanted a lot of material things. Now that I am older, money does not mean much, and material things mean even less. [I can say that; I have a comfortable retirement -- no minerals. I know others are not as fortunate, and thank God daily how things have turned out.] I am very much like Scobie in Graham Greene's book The Heart of the Matter. As I've grown older my possessions become less.

It does not take much to keep children happy. When I look at that photograph, I don't see the austere housing. I don't see the austere prairie. All I really see are the children. Their housing will not define them and their housing will not determine who or what they become. I hope it all works out for them. It will be very, very tough, but the rewards can be great.

Wells Coming Off The Confidential List Thursday; Of 15 Wells Coming Off The List, Nine Are Oasis; OXY With An IP of 23; Oasis With Several Great Wells

Undeserved commentary, I suppose: 
Note the OXY USA well that reported today (see below). The IP is just about as low as I've seen for a Bakken well, excluding dry holes. That well was tested in September, 2012. Now, almost 6 full months later, that well has produced less than 8,000 bbls of oil. It is my impression, and I could be wrong, that the average Bakken well tested in the last six months will produce more than 8,000 bbls the first full month of production. That's probably an exaggeration, but probably not far off. This well had two things going against it: a) it's in the Dimond oil field which is anything but a diamond among Bakken fields; and, b) it was drilled by OXY USA who seems to have a knack for reporting these results.
Wells coming off the confidential list, Thursday, April 11, 2013:
  • 21011, 1,263, Zenergy, Owan 23-26H, Painted Woods, t2/13; cum 18K 2/13;
  • 22177, 23, OXY USA, Split Ridge 1-2-1H-160-91, Dimond, t9/12; cum 8K 2/13;
  • 22389, 629, Hess, BW-Norgard 149-100-1102H-1, Ellsworth, t3/13; cum 2K 2/13;
  • 22425, 1,677, Whiting, Norgard 41-13H, Ellsworth, t10/12; cum 40K 2/13;
  • 22438, 955, Oasis, M Lee 5793 42-11H, Sorkness, t11/12; cum 18K 2/13;
  • 22676, 1,468, Oasis, Blanchet Federal 5693 41-28H, Alger, t11/12; cum 32K 2/13;
  • 22751, 905, Oasis, Jenna 5604 13-1H, Bull Butte, the Kalil field, t11/12; cum 11K 2/13;
  • 23046, 271, Oasis, Connie 6093 14-5H, Gros Ventre, t11/12; cum 12K 2/13;
  • 23204, 698, Oasis, Aubrey 5304 41-22H, Ft Buford, t11/12; cum 18K 2/13;
  • 23230, 2,734, Oasis, Ash Federal 5300 11-18T, Baker, t11/12; cum 44K 2/13;
  • 23274, 792, Oasis, J Cory 5602 41-10H, Bonetrail, t11/12; cum 25K 2/13;
  • 23392, 447 Oasis, Bull Moose 6093 13-4H, Gros Ventre, t11/12; cum 14K 2/13;
  • 23476, 2,513, Oasis, Whitten 5393 11-3B, Sanish, t12/12; cum 51K 2/13;
  • 23490, 38, Surge, Scandia 1S SENE 34 02 SENW 35H, Souris, a Spearfish/Madison, t12/12; cum 7K 2/13;
  • 23805, drl, CLR, Lystvedt 1-9H, Upland,

Huge Story For North Dakota; Bigger Story For Bismarck -- This Is Really A Great Story -- Bobcat Is Back in Bismarck -- Bigger Than Ever -- In a Sense, I Think It's the Biggest Bakken Story of the Week

KXNET is reporting:
It was a big blow to the city when Bobcat left Bismarck in 2009.
Company heads said it was to regroup, and focus on operations elsewhere.
This time, they say it's different. "Bobcat is here to stay. In particular, for Bismarck, it's great news. We've gone through this extensive renovation, where we've gone through the offices and the factory floor. We've, in addition to that, we've brought new product into this facility to be built here. I'm also looking out and looking forward to what other opportunities exist to further our footprint here in North Dakota and Bismarck, in particular," says Kuhn.
I can't recall, but I think I recall blogging a lot about Bobcat, its trials and tribulations back in 2009. A big "thank you" to Don for updating the status of Bobcat. I was unaware of this. This really is a big deal.

The history of the Bobcat is at wiki.