- 2015: 1647
- 2014: 2100
- 2013: 1819
- 2012: 1647 (coincidental, huh?)
Sunday, September 20, 2015
Where We Stand On Permits For Oil And Gas Wells In North Dakota -- September 20, 2015
Where we stand on permits in North Dakota. On September 18th, for each of the following years, the number of oil and gas permits issued (does not include permits for salt water disposal wells). The numbers may be off, but not by much:
Six (6) DUCs; Three (3) High-IP Wells Reported In The Bakken -- September 20, 2015
Monday, September 21, 2015
26943, see above, Whiting, Smokey 4-15-22-14H3, Pembroke:
28254, see above, Emerald Oil, Excalibur 6-25-36H, Boxcar Butte:
- 29797, conf, BR, Morgan 24-21MBH, Pershing, no production data,
- 30375, SI/NC, Statoil, East Fork 32-29 1H, East Fork, no production data,
- 30565, SI/NC, Statoil, Folvag 5-8 1H, Stony Creek, no production data,
- 30791, drl, SM Eenrgy, Ashley 13X-9H, Poe, no production data,
- 26943, 3,038, Whiting, Smokey 4-15-22-14H3, Pembroke, t5/15; cum 45K 7/15;
- 29796, SI/NC, BR, Kirkland 24-21MBH, Pershing, no production data,
- 30376, SI/NC, Statoil, Folvag 5-8-2TFH, Stony Creek, no production data,
- 30651, SI/NC, XTO, Odegaard State 21X-16AXB, Midway, no production data,
- 28254, 1,410, Emerald Oil, Excalibur 6-25-36H, Boxcar Butte, t3/15; cum 41K 7/15;
- 29510, SI/NC, Zavanna, Shepherd 3-11 4TFH, Stony Creek, no production data,
- 30101, 1,742, Hess, BB-Ole Anderson-151-95-3130H-8, Blue Buttes, t8/15; cum --
*******************************************
26943, see above, Whiting, Smokey 4-15-22-14H3, Pembroke:
| Pool | Date | Days | BBLS Oil | Runs | BBLS Water | MCF Prod | MCF Sold | Vent/Flare |
|---|---|---|---|---|---|---|---|---|
| BAKKEN | 7-2015 | 8 | 6248 | 5789 | 3524 | 15885 | 0 | 15869 |
| BAKKEN | 6-2015 | 23 | 22959 | 23703 | 6174 | 55139 | 0 | 55096 |
| BAKKEN | 5-2015 | 8 | 15798 | 14915 | 0 | 33235 | 0 | 33221 |
28254, see above, Emerald Oil, Excalibur 6-25-36H, Boxcar Butte:
| Pool | Date | Days | BBLS Oil | Runs | BBLS Water | MCF Prod | MCF Sold | Vent/Flare |
|---|---|---|---|---|---|---|---|---|
| BAKKEN | 7-2015 | 31 | 5007 | 5064 | 10289 | 4312 | 3662 | 650 |
| BAKKEN | 6-2015 | 30 | 6274 | 5971 | 12557 | 5584 | 5132 | 452 |
| BAKKEN | 5-2015 | 26 | 6192 | 6628 | 13040 | 5661 | 2087 | 3574 |
| BAKKEN | 4-2015 | 30 | 13166 | 13219 | 25235 | 11657 | 0 | 11657 |
| BAKKEN | 3-2015 | 16 | 10392 | 9710 | 30330 | 9289 | 0 | 9289 |
And This Is Why Folks "Like" Wind Energy -- Texas Electricity 101 -- September 20, 2015
Updates
The installation of new transmission lines across Texas has reduced the amount of time wind generators aren’t able to transmit power across the state due to congestion, the U.S. Energy Information Administration wrote this week.
Through a $7 billion project completed last year, 3,500 miles of transmission lines were laid out across Texas, connecting rural regions — where there are wind farms are most prevalent — to the urban centers with high demand for electricity. The project was dubbed Competitive Renewable Energy Zones, or CREZ.
CREZ has reduced incidents of “curtailment,” in which wind generators can’t transmit power through the grid because there’s not enough free space on power lines. That amounts to wasted energy, since the power of wind that’s blowing can no longer be used.And that's just "in-state." Wait until they have to cross state lines.
Original Post
A very strange thing happened here in Texas, early this morning: The so-called spot price of electricity in Texas fell toward zero, hit zero, and then went negative for several hours. As the Lone Star State slumbered, power producers were paying the state’s electricity system to take electricity off their hands. At one point, the negative price was $8.52 per megawatt hour.(Perhaps this is what T. Boone Pickens saw coming, years ago when he failed in his attempt for a huge west Texas wind farm.)
Impossible, most economists would say. In any market — and especially in a state devoted to the free market, like Texas — makers won’t provide a product or service at a negative cost. Yet this could only have happened in Texas, which (not surprisingly) has carved out its own unique approach to electricity.
Consider these three unique factors about Texas.
First, Texas is an electricity island. The state often behaves as if it is its own sovereign nation, and indeed it was an independent republic for nearly 10 years. Alone among the 48 continental states, Texas runs an electricity grid that does not connect with those that serve other states. Texas, the state, needs to consume all the electricity it produces.
Second, Texas has way more wind power than any other state. In 2014, wind accounted for 4.4% of electricity produced in the US. Texas, which has more installed wind capacity (15,635 megawatts) than any other state and is home to nearly 10,000 turbines, got 9% of its electricity from wind in 2014.
(Interesting way to run an auction, to say the least.)Third, Texas has a unique market structure. It’s complicated, but ERCOT has set up the grid in such a way that it acquires a large amount of power through continuous auctions. Every five minutes, power generators in the state electronically bid into ERCOT’s real-time market, offering to provide chunks of energy at particular prices.ERCOT fills the open needs by selecting the bids that are cheapest and that make the most sense from a grid-management perspective — i.e., the power is being fed into the grid at points where the distribution and transmission systems can handle it. Every 15 minutes, the bids settle — at the highest price paid for electricity accepted in the round.
So if 100 MW of electricity are needed, and some producers offer 60 MW at $50 per megawatt-hour, some offer 30 MW at $80 per megawatt-hour, and others offer 40 MW at $100 per megawatt-hour, all the bidders will receive the highest price of $100. (Note: The price ERCOT pays is the wholesale generation charge.)
After midnight on Sunday, the combination of these three factors pushed the real-time price of electricity lower. Demand fell — at 4 a.m., the amount of electricity needed in the state was about 45% lower than the evening peak. The wind was blowing consistently — much later in the day Texas would establish a new instantaneous-wind-generation record.(Winds.)
At 3 a.m., wind was supplying about 30% of the state’s electricity. And because the state is an electricity island, all the power produced by the state’s wind farms could only be sold to ERCOT, not grids elsewhere in the country.
That gave wind-farm owners a great incentive to lower their prices. The data show that the clearing price in the real-time market went from $17.40 per megawatt-hour for the interval ending 12:15 a.m., to zero for the interval ending 1:45 a.m. Then it went into negative territory and stayed at zero or less until about 8:15 a.m. For the interval ending 5:45 a.m., the real-time price of electricity in Texas was minus $8.52 per megawatt-hour.
How could this be? I mean, even the most efficient producer couldn’t afford to provide electricity for free or pay someone to take it.
Well, there’s one more wrinkle. Typically, wind is bid at the lowest prices — because you don’t need fuel, it doesn’t really cost that much money to keep wind turbines moving once they’ve been built. But wind operators have another advantage over generators that use coal or natural gas: A federal production tax credit of 2.3 cents per kilowatt-hour that applies to every kilowatt of power produced.
And that means that even if wind operators give the power away or offer the system money to take it, they still receive a tax credit equal to $23 per megawatt-hour. Those tax credits have a monetary value — either to the wind-farm owner or to a third party that might want to buy them.Much, much more at the link.
**********************
Clever. Why Didn't I Think Of This?
The New York Times is reporting:
Specialists in infectious disease are protesting a gigantic overnight increase in the price of a 62-year-old drug that is the standard of care for treating a life-threatening parasitic infection.
The drug, called Daraprim, was acquired in August by Turing Pharmaceuticals, a start-up run by a former hedge fund manager. Turing immediately raised the price to $750 a tablet from $13.50, bringing the annual cost of treatment for some patients to hundreds of thousands of dollars.
There are many other examples of the same thing. Incredible.
Wow, Wow, Wow -- Previously Discussed -- OXY USA And California Resources -- Monterey Shale A Scam -- Wolf Richter -- September 20, 2015
Updates
Later, 6:46 p.m. CT: see first comment below.
Original Post
Occidental Petroleum made a sweet deal on November 30, a masterpiece of Wall Street engineering. And just about every investor that touched it is now getting their hands burned off.
That day, Oxy spun off California Resources. It held Oxy’s oil-and-gas exploration-and-production assets in California. It’s the state’s largest natural gas producer and its largest oil-and-gas acreage holder with operations in the basins of Los Angeles, San Joaquin, Ventura, and Sacramento.
Oxy was the big player in the miraculous scam of the Monterey Shale formation in California, which had been hyped for years as the largest reserves of oil in the US. Any studies that showed that this oil wasn’t recoverable with [current] technologies due to the geological mess underground in earthquake land were shunted aside.
The EIA finally conceded that point in May 2014 and slashed the delusional estimates of the reserves by 96%. California isn’t exactly the easiest place for fracking in the US. When the EIA finally acknowledged reality, Oxy was the biggest loser.Much, much more at the article.
I track the Monterey Shale here.
New Player In The Neighborhood -- Marcus Hook Industrial Complex
The Marcus Hook makes the list of "Big Stories." First addition in quite some time.
Background: Marcus Hook Industrial Complex.
Update, September 20, 2015. TribLive is reporting:
Background: Marcus Hook Industrial Complex.
Update, September 20, 2015. TribLive is reporting:
At many shale-related events in Washington County, officials proclaim that region, with its abundant gas reserves and wells, is the “Energy Capital of the East.”
Hundreds of miles away in Philadelphia, where there is no shale drilling, leaders looking to tap into the gas boom are speaking of an energy hub that former Department of Environmental Protection Secretary Mike Krancer last week said would “rival and surpass Houston soon.”
The steps toward connecting both claims are taking place on 800 acres along the Delaware River south of the city in Marcus Hook, where rusty stacks and holding tanks are giving way to gleaming towers and pipes.
Nearly 1,000 contractors enter the site each day to convert the former Sunoco oil refinery into a terminal at which sister company Sunoco Logistics can receive and process hundreds of thousands of barrels of propane, ethane and other liquids pulled from Marcellus and Utica shale wells 300 miles to the west.
If Pennsylvania is to take full advantage of its shale boom, industry leaders and observers say it needs projects such as a revitalized Marcus Hook Industrial Complex to move products across state lines and overseas while attracting manufacturers to set up close by.
“Whether it's natural gas or other products, they need a final destination,” said Jonathan Hunt, senior director for terminal operations at Philadelphia-based Sunoco Logistics, which is spending at least $3 billion on the multi-phase Mariner East pipeline project to connect the shale fields of Western Pennsylvania, Ohio and West Virginia to the revamped terminal.
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