Sunday, September 7, 2014

Japan's Economy Contracts More Than Initially Estimated -- The Same Old Spin -- September 7, 2014

Sometimes I wonder. I'm not an economist, but ...

Bloomberg is reporting:
Japan’s economy contracted more than the government initially estimated, highlighting the challenge for Prime Minister Shinzo Abe in steering the nation through the aftermath of a sales-tax increase.
Gross domestic product contracted an annualized 7.1 percent in the three months through June, more than a preliminary reading of a 6.8 percent fall, the Cabinet Office said today in Tokyo. The median forecast of 25 economists surveyed by Bloomberg News was for a 7 percent drop.
The blow from the sales-tax hike in April extended into this quarter, with retail sales and household spending falling in July. The government signaled last week that it is prepared to boost stimulus to help weather a further increase in the levy scheduled for October 2015.
“The negative impact on demand was bigger than people initially thought in the second quarter and it’s casting a shadow over the third quarter too,” Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. in Tokyo, said before the report.
“A recovery is underway this quarter but the momentum may be sluggish.” 
"A recovery is underway." Sounds like the same spin we get here in the states.

Back on June 28, 2014, I wrote:
As I've said many times, any news article on the economy that fails to mention the 800-pound gorilla in the room is less a news article and more an op-ed disguised as a news article. During a recession/recovery, the worst thing a government can do (see The Grand Pursuit, Sylvia Nassar) is increase taxes and ObamaCare was the biggest tax increase this country has seen in quite some time, and maybe the biggest tax increase if one took the time to add up the effects of national health care as it permeates through the entire economy. The three biggest business concerns with ObamaCare: a) uncertainty; b) 50-full-time-worker threshold; and, c) 29-hour work week.
Forget the part about ObamaCare. Reflect on the part about increased taxes and how that applies to Japan.

Oh, well. 

New Poll: Will The Scots Go Their Separate Way On September 18, 2014?

The new poll is pretty self-explanatory.

A link, if interested.

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Texas

Two things about Texas: they take eduction seriously; and, they take sports even more seriously.

Maybe I will come back to education and the "Curriculum Night" at the elementary school and the middle school the other night where our granddaughters attend. It was so incredible, I'm considering auditing the science class in the middle school.

But it's sports that is really incredible in Texas. Our younger granddaughter plays on three soccer teams. One is a "recreation league" team, and the other two are "academy/club" league teams. You know they take it seriously when one of her "academy/club" teams has a head coach, an offensive coordinator, a defensive coordinator, and a conditioning coach. The conditioning coach, a 25-ish tall blond, taut, female is a Smith College (Massachusetts) graduate, a top notch women's college. From there, experience in several other locations, before she ended up in Texas. After winning the game 3-1, the girls were told the score should have been 8-1. Sounds like it's going to be a tough practice week coming up.


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Poll

Perhaps a more interesting poll would be whether the Dallas Cowboy coach will still be the head coach a month from now. Not lookin' good.

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After admitting wrong to go golfing right after journalist's beheading, the president .... goes golfing

Politico.com is reporting:
“You know, I actually feel energized about the opportunities that we’ve got,” Obama told the “Meet the Press” moderator in a sit-down interview taped Saturday. And after finishing, the president quickly headed to Fort Belvoir, Virginia, for an afternoon of golf in 90-degree-plus heat.
Meanwhile ... http://news.yahoo.com/obama-regrets-golfing-foley-death-143638224.html;_ylt=AwrTWfyligxU51gASnzQtDMD

North Dakota Wells Coming Off Confidential List Over The Weekend, Monday -- Not Particularly Exciting -- September 7, 2014; 8 Of 11 Bakken Wells Go To DRL Status

I normally don't provide this list until later in the day, but not much is going on at the moment, so posting early.

Monday, September 8, 2014
  • 23750, drl, CLR, Rochester 4-24H, North Tobacco Garden, no production data,
  • 26236, drl, CLR, Madison 7-28H, Dollar Joe, no production data,
  • 27511, 112, Corinthian, Corinthian 2-Backman 12-34 1M, North Souris, a Madison well, t4/14; cum 7K 7/14;
Sunday, September 7, 2014
  • 19781, DRY, Fram Operating, Helmers 1, wildcat, no production data,  looks like SW corner of Renville County; completed 3/14; a Madison well,
  • 26406, drl, BR, CCU Four Aces 24-21MBH, Corral Creek, no production data,
  • 26583, 185, American Eagle, Shelly 3-2N-163-102, Skjermo, t6/14; cum 4K 7/14;
  • 27132, drl, BR, CCU Corral Creek 31-28MBH, Corral Creek, no production data,
  • 27346, 1,713, BR, Stafford 14-34TFH, Chimney Butte, t7/14; cum 17K 7/14;
  • 27512, 1,652, XTO, Serrahn 41X-6D, Siverston, t7/14; cum 5K 7/14; 
Saturday, September 6, 2014
  • 26237, drl, CLR, Madison 6-28H1, Dollar Joe, no production data,
  • 26407, drl, BR, CCU Four Aces 24-21TFH, Corral Creek, no production data,
  • 26530, drl, CLR, Jerry 5-8H, Poe, no production data,
  • 26819, drl, Hess, EN-Hermanson-LE-155-93-3501H-4, Robinson Lake, no production data,
  • 27201, drl, Petro-Hunt, Watterud 160-95-14A-23-1H, Stoneview, no production data,
  • 27537, 81, Legacy, Legacy Et Al Bernstein 4-17 2H, Red Rock, a Spearfish well, t5/14; cum 9K 7/14;
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Five Hundred Miles

I guess I should start playing this song when I get to Alliance, Nebraska, on my trips back to the Bakken.

Five Hundred Miles, Justin Timberlake, et al

Saturday, September 6, 2014

Snow Accumulation In Seven States, Seven Days -- Including The Bakken -- September 6, 2014; Northwest Passage Closed For Business -- First Time Ever This Has Happened (Except Perhaps Back In The Time Of The Vikings); USC 13 - Stanford 10

A feel-good article: Americans' addiction to oil is growing. Salon is reporting:
Considering all the talk about global warming, peak oil, carbon divestment, and renewable energy, you’d think that oil consumption in the United States would be on a downward path. By now, we should certainly be witnessing real progress toward a post-petroleum economy.
As it happens, the opposite is occurring. U.S. oil consumption is on an upward trajectory, climbing by400,000 barrels per day in 2013 alone — and, if current trends persist, it should rise again both this year and next. [The Bakken can handle this, producing a million bopd.]
In other words, oil is back.  Big time.  Signs of its resurgence abound.  Despite what you may think, Americans, on average, are driving more miles every day, not fewer, filling ever more fuel tanks with ever more gasoline, and evidently feeling ever less bad about it.  The stigma of buying new gas-guzzling SUVs, for instance, seems to have vanished; according to CNN Money, nearly one out of three vehicles sold today is an SUV.  As a result of all this, America’s demand for oil grew more than China’s in 2013, the first time that’s happened since 1999.
Oh, Mr Salon, don't sound so forlorn, China will come back. Another favorite:
Accompanying all this is a little noticed but crucial shift in White House rhetoric.  While President Obama once spoke of the necessity of eliminating our reliance on petroleum as a major source of energy, he [Mr Obama] now brags about rising U.S. oil output and touts his efforts to further boost production.
The article is pretty good. Some inconvenient truths overlooked. This is one of my favorite:
While emissions from domestic [repeat, domestic] [repeat, domestic] coal use are likely to decline in the years ahead, in part due to new rules being formulated by the Environmental Protection Agency, the expected rise in emissions from oil and natural gas use will wipe out these gains, and so total U.S. emissions are expected to be higher in 2040 than they are today, according to the EIA. As a result, we can expect little progress in international efforts to slow the advance of climate change and a steady increase in the frequency and intensity of storms, floods, fires, droughts, and heat waves.
Well, maybe that's all accurate, if one is shortsighted only to look at domestic coal. I doubt the rest of the world would follow the US lead on energy. Even Germany is returning to coal. The reality:
By 2018, world coal usage will increase by 584 Metric tonnes (2,200 lbs/metric ton) with new coal generation of 198 GW from power plants: Chinese 66 GW; India 71 GW; other SE asia 33 GW: Europe 12 GW; and, Africa 12 GW.
[Putting the 198 GW in perspective: the US produced 318 GW from coal in 2011; 415 GW from natural gas. The world, in the next three years or so, is going to add half-again-as-much coal generated power as the US currently uses. To cut global CO2 emissions significantly, the world has to stop all new electricity generation. LOL. ]

If you go to the link, you need to register (free); it's easy.

Gasoline demand / gasoline stocks data tracked here. 

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Maybe We Need To Move More Quickly
Maybe We're Not Using Enough Coal?
"Northwest Passage Closed For Business" -- First Time Ever

National Ice and Snow Data Center is reporting:
Several recent years have seen remarkably open conditions in the Northwest Passage by the end of August.
This year, however, much of the passage is clogged with ice, and even the circuitous Amundsen route is not entirely open. (Note that Amundsen required two summers to navigate this route in 1905; Amundsen wintered over in the hamlet of Gjoa Haven—now called Uqsuqtuuq).
The recent openings of the Northwest Passage in 2007, 2008, 2010, and 2011 were associated with high sea level pressure anomalies over the Beaufort Sea and Canadian Basin. This atmospheric pattern essentially displaces the polar pack away from the M’Clure Strait, resulting in minimal ice inflow from the Arctic Ocean.
In contrast, weather patterns this year have been more moderate, and as a result, more ice remains in the Northwest Passage. As of the end of August 2014, ice area in the passage was tracking above the 1981 to 2010 average. Ice area over the summer of 2013 tracked slightly below the 1981 to 2010 average, but was considerably higher than the years prior. The summer of 2011 saw the lowest ice area in the Northwest Passage since 1968.
Have you ever noticed that climatologists can speak in a quiet voice, reporting data, and not to have to yell to get your attention?

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Snow In The Bakken

I assume it happened all the time when I was growing up, but I do not recall snow accumulation in North Dakota in September, but here we go. Dr Roy Spencer is reporting:
Looks like September snows — not even mountain snows — over the northern tier of states spreading eastward from Montana and North Dakota starting Tuesday night.
The latest GFS model total snow accumulation by next Saturday shows snow for Montana, Wyoming (mountains only), the Dakotas, Minnesota, Wisconsin, and Michigan.
After his original post, the Dr Spencer provided an update:
UPDATE: Here’s a plot [at the linked site] of the average times of first snow…as you can see, the predicted snow is about a month early.
 Ah, yes, isn't global warming wonderful?

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USC 13 Stanford 10

An incredible game.

And Oregon: 46 -- Michigan State: 27.

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Filling The Void
Icebreakers Required

The US has pretty much ceded the Arctic to the rest of the world (previously posted). Russia is taking advantage of the situation (while all eyes are on the Ukraine, and the golf links). Yahoo is reporting:
Russia on Saturday sent six ships carrying personnel and equipment to a Soviet-era military base in the Arctic that it is reopening to bolster its presence in the region, Russian news agencies reported.
Moscow is ramping up its military presence in the pristine but energy-rich region as other countries such as Canada and Norway are also staking claims to access its resources. [Of note: the US is not mentioned.]
President Vladimir Putin last year ordered the military to return to a base on the far-Northern New Siberian Islands that was abandoned in 1993.
On Saturday, a fleet of six ships including two large landing ships set off from the port of Severomorsk in northern Russia, a spokesman for the Western military district, Vadim Serga, told ITAR-TASS news agency.
The ships will be accompanied by several icebreakers.
Abandoned in 1993. Hmmmmm .... filling the void. SecDef Hagel's priority is drawing down the US military after two highly successful wars in Iraq and Afghanistan. Putin has other priorities.

A Tool For Tracking Your Bakken Royalties -- September 6, 2014

A reader has sent me the link to his "royalty-tracking" tool / website.

The link: https://myroyaltyreport.com/

This is the background from the reader:
The service evolved from my work in monitoring our family’s mineral interests.
Early on I designed a excel spreadsheet and would manually input the monthly production data and cross reference the royalty check statement with the NDIC data. Only a few months after starting to monitor the wells, I spotted a substantial disparity (over 8,000 bbls) between the royalty check statement’s barrels sold and the NDIC’s barrels sold.
I contacted the oil company and was initially told they would look into it. Months passed without any action and then quietly a correction was made to a monthly royalty check with no explanation as to why.
I then decided that I needed to pay closer attention to what was happening with our minerals on a continuing basis. At first it was exciting and easy to monitor a few individual wells each month, it was like a birthday present every 30 days. As the development of the Bakken continued and the drilling progressed from lease holding to field development, the time spent monthly to manually input the data into the spreadsheet started becoming a part time job.
That was the point that the idea for myRoyalty Report was born. A friend was also interested in the Bakken activity and had the computer/web skills to automate the collection of data process for my spreadsheet. After some initial trial and error we decided to make the process purely a web based activity.
Soon family friends that have mineral interests were asking if I would help them monitor their interests also.
With their feedback, we continued to refine the website and decided to build a business around the service and open it up to any North Dakota mineral owner that is interested in monitoring their minerals.
The website provides data tailored specifically to a client’s current production data, royalty check verification, historical production data, monthly & life of well charts and a file cabinet for storage and easy access to their lease specific details. If you are interested in seeing what the website has to offer, please visit the site, https://myroyaltyreport.com and click the sign-in button in the upper right corner. We have set up a sample account for people to explore the website.
I don't own any mineral rights, but anything that might help others, I am glad to post or link such tools (as long as there isn't much of a monetizing component to the site).

I've said many, many times: if you are receiving royalties from one Bakken Pool well, you will eventually have four wells; probably 8, and possibly 12 or more. A financial adviser puts it this way for farmers who still own their mineral rights in the Bakken: you are no longer a farmer; you are an oil man (or woman).

My hunch is that many folks have developed their own tools for tracking their wells, but I still suggest that once you have four or more wells, you should have professional assistance.

Back to the linked "royalty report." A similar thing happened to me. When I first started following the Bakken, I wanted to track it using Microsoft Word. However, it quickly became clear that a web-based system would work much, much better. I went from Microsoft Word to html (the blog), and decided that I might as well share it with others who want to learn more about the Bakken, at least as I understand it.

The best thing that came out of posting my information on the internet: all the news and links that readers send me. A huge "thank you" to all.