Friday, December 6, 2013

Week 49: December 1, 2013 -- December 7, 2013 (National Pearl Harbor Remembrance Day)

I'm posting the subject line just to remind me to do this tomorrow.

Almost 900 men on one ship, the USS Arizona; sort of puts things into perspective
 
Summaries/Analyses
Update on status of 2011 NDIC oil and gas permits
Update of status of 2010 NDIC oil and gas permits
Update of status of 2009 NDIC oil and gas permits

Story of the month

Story of the week

Photography

Operations
Natural gas

Sand

Pipelines

CBR
Water
Refineries
 
Economy
 
Miscellaneous
For investors
Pricing

Hyperbole

For Investors Only -- Statoil On The Move

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

I don't invest or trade in Statoil (never have, probably never will) but Statoil really seems to be a company on the move. Today, two stories to show how big it is getting. Look who Statoil is partnering with.

Both stories come from Rigzone.

First, Statoil and Rosneft:
Russian energy firm Rosneft and Norway's Statoil agreed to set up a joint venture to assess the viability of shale oil production in Russia's Samara region, the firms said on Friday.
Second, Statoil and Exxon:
Statoil ASA and Exxon Mobil Corp. have announced a fifth gas discovery in Block 2 offshore Tanzania.
The discovery is of between 2 and 3 trillion cubic feet of gas in place in the Mronge-1 well. The firms said that the discovery brings total in-place volumes in Block 2 to between 17 and 20 Tcf. Mronge-1 was drilled by the Discoverer Americas (DW drillship). The site is located some 13 miles north of the Zafarani discovery and is at 8,200 feet.
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Idle chatter. I don't know a billion dollars in one-dollar bills would look like. Likewise, I don't know what a trillion cubic feet of natural gas means. I don't know what the recovery rate is and I don't know how much natural gas is used by the United States in any given year.

But just for grins, ONEOK will have natural gas processing capacity of about 800 million cubic feet per day in North Dakota with their recent announcement. Let's see what twenty trillion cubic feet means.

20,000,000,000,000 / 800,000,000 = 25,000 days = almost 70 years of activity for the ONEOK facilities in North Dakota.

Our National Emblem Gets Thrown Under The Bus. Thirty Years Should Just About Do It; Bringing These Beautiful Birds To Brink Of Extinction

Just when you thought the President couldn't do anything more stupid than he has done in his first five years, he manages to surprise you once again. Never sell this president short for selling out.

From an environmental point of view, I have trouble thinking of anything that could possibly be worse: the President of the United States bowing to General Electric, to allow unlimited numbers of bald eagles to be killed by wind turbines over the next thirty years. Easily, four generations of Americans will get to see this slaughter. This ends the Endangered Species Act, as we know it. It lasted forty years, and then President Obama was elected.

Updates

December 8, 2013: The Los Angeles Times simply calls dicing and slicing eagles a bit of "leeway" for General Electric and the wind industry. If The Los Angeles Times does not care, does anyone?  

Original Post

NBC is reporting:
Under pressure from the wind-power industry, the Obama administration said Friday it will allow companies to kill or injure eagles without the fear of prosecution for up to three decades. 
The new rule is designed to address environmental consequences that stand in the way of the nation's wind energy rush: the dozens of bald and golden eagles being killed each year by the giant, spinning blades of wind turbines. 
If the Sierra Club has no objection to the wind industry decimating bald and golden eagles, and probably bringing about the demise of the California condor and the whooping crane, I certainly won't prolong the discussion. [It should be noted that the president continues to dither on making a decision on the Keystone XL. My hunch is that this won't help the Keystone XL. You can't screw the environmentalists over and over and over and hope to keep the base.]

This is a watershed event. For the first time in this administration, technology and big-money corporations have won out over environmentalists. And it's not a small issue: these are bald eagles, golden eagles, condors, whopping cranes: birds that even people like me can relate to.

For the environmentalists this is very, very bad news. It will be hard for a jury / judge to find an oil company negligent for killing a single migratory duck that happens to fly into a waste pond.

Finally, projects that have been held up due to endangered crustaceans may now get the go-ahead. The administration's decision will probably be a one-off, but sympathetic judges to big projects will use it as precedent. After all, if it's okay to give full immunity to unlimited bird kills, it's hard to defend the snail darter.

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Take My Breath Away, Berlin

Limbic system: USAF flight surgeon meets Yorkshire, England

Update On The Delta Airlines Refinery, Trainer, Pennsylvania, Outside Philadelphia

CNBC is reporting:
Sky-high fuel costs have made cost-cutting, not growing market share, the mantra for many airlines. One of Delta's riskier cost-cutting moves, buying an oil refinery, looks like it's starting to pay off.

Delta bought the refinery, which is in Trainer, Pa., just outside of Philadelphia, in 2012 for $150 million as a way to hedge against its biggest expense, jet fuel costs.
But after losing a combined $136 million in the previous nine months, the Trainer refinery turned a profit for the first time in the third quarter, bringing in $3 million.
As a result, the price Delta paid for a gallon of jet fuel dropped 5.4 percent to $2.97 during the quarter. Though its overall fuel costs increased 3 percent, which Delta attributed to an increase in flying capacity.
Delta has said the oil refinery purchase could save the airline as much as $300 million a year in fuel costs, which accounted for 32 percent of operating expenses in the third quarter.

Ten New Permits -- The Williston Basin, North Dakota, USA; BR Reports Two Big Wells; Statoil Reports Two Big Wells (All Four Make "High IP" List; Hess And Oasis With Three Good Wells

Active rigs:


12/6/201312/06/201212/06/201112/06/201012/06/2009
Active Rigs19318220016566

Ten (10) new permits --
  • Operators: Petro-Hunt (4), XTO ( 3),  Whiting (2), HRC
  • Fields: Estes (McKenzie), Harding (McKenzie), Marmon (Williams), Stoneview (Divide), Siverston McKenzie)
  • Comments: XTO has a permit for a wildcat in Williams County; Petro-Hunt has permits for a 4-well pad, the Watterud pad in Stoneview oil field, 14-160-95, Divide County
Wells coming off the confidential list were posted earlier; see sidebar at the right.

Seven (7) producing wells were completed:
  • 23735, 2,974, BR, Bryce 11-5MBH,Westberg, t11/13; cum --
  • 23739, 2,895, BR, Bryce 34-8TFH, Westberg, t11/13; cum --
  • 24007, 3,315, Statoil, Jake 2-11 6H, Last Chance, t11/13; cum --
  • 24008, 2,420, Statoil, Jake 2-11 5TFH, Last Chance, t11/13; cum --
  • 25028, 1,061, Hess, EN-Sorenson A 154-94-0211H-6, Alkali Creek, t11/13; cum --
  • 25340, 896, Oasis, Andrea 5502 44-7T, Squires, t11/13; cum --
  • 26133, 1,060, Oasis, Burleson 5502 41-7B, Squires, t11/13; cum --