Friday, June 7, 2013

For The Archives: Price Of Oil Holding Above $90 -- Surprising, Considering

Rigzone is reporting:
Crude-oil futures settled higher Friday as investors read into the better-than-expected May U.S. nonfarm payroll data as evidence of buoyant economic conditions.
Light, sweet crude for July delivery settled $1.27, or 1.34%, higher at $96.03 a barrel on the New York Mercantile Exchange.
Brent crude on the ICE Futures Europe was recently $1.02 higher at $104.63 a barrel.
The Labor Department said Friday that U.S. employers added 175,000 new jobs in May, slightly higher than the 169,000 jobs increase forecast by economists.
Personally, I have been quite surprised about how the price of oil has held above $90. I think it has more to do with the weakness of the dollar than with hints of an improving economy.

Increasing Interest In Using LNG In Canadian E&P Operations

A nice article with some applicability for the Bakken? Wow, it was a very, very long time when we last talked about using natural gas instead of diesel for fracking operations. This was posted about a year ago, but never seemed to be an issue.

Now today:

Rigzone is reporting:
Advances in hydraulic fracturing that unlocked potential shale gas resources in the United States are being successfully applied to Canadian shale gas resources. With seven shale plays in Alberta estimated to hold resources of 3,424 trillion cubic feet of natural gas – along with shale resources such as the Horn River Basin in British Columbia, Canada's shale gas potential has vaulted the country into a position as a potential LNG exporter. This shale gas play has also created opportunities for exploration and production (E&P) operators in Western Canada to switch from diesel to natural gas in their operations, a trend that is also occurring in the United States with operators such as Apache Corp., which has switched to using natural gas in its hydraulic fracturing operations.
Some data points from the article:
  • US oil and gas experience for both fracs and drilling rigs converting to natural gas are experiencing up to 55 to 60 percent substitution
  • Encana, Apache, EQT, and Noble are using natural gas to power drill rigs present day
  • All of the major diesel engine manufactures are introducing bi-fuel options, third-party bi-fuel systems continue to improve and be a viable option. Caterpillar and GE are also focused on improving their 100-percent Natural Gas engines that are very well suited to the Western Canadian drilling and fracking operations. 

Aerial Photograph Of The Pyramid Wells Northwest Of Williston -- Vern Whitten Photography

I believe these are Statoil's Pyramid wells northwest of Williston. At the link go to photograph #12 of 31. If correct, the clues:
a) 4-well pad
b) round-about in the upper left (northwest) corner

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Video update of Williston, North Dakota, posted May 25, 2013:

Update, Williston, ND
Would you ever guess this town is the center of the biggest oil play in the United States?

Six (6) New Permits -- The Williston Basin, North Dakota, USA

Active rigs: 189 (steady)

Six (6) new permits --
  • Operators: Marathon (2), Whiting (2), CLR, EOG
  • Fields: Parshall (Mountrail), Dutch Henry Butte (Stark), Murphy Creek (Dunn), Upland (CLR)
    Comments: Relatively quiet day.
Wells coming off the confidential list were posted/tweeted early; see sidebar at the right.

Three Fort Berthold wells in Dunn County were transferred from Petro-Hunt to G3 Operating.

Wow, BRK-B Blew Through To Another 52-Week High

Link here (this is a dynamic link and will change; it was accurate when it was posted).

New 52-week high: $115.55. Closed at new high: $115.31.

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