Gas Buddy Finds Gasoline Below $2.00 / Gallon In DFW Metroplex -- August 19, 2019

Link here.

To enlarge, click on image.

Throw in some "loyalty / reward" points and one might find gas for $1.75 / gallon.

The Incredible, Growing Bakken -- August 19, 2019

From From NorthAmericanShale, June 25, 2019:

Along with record oil output, the Bakken’s associated gas production is rising at an even faster pace, according to the ESAI Energy report.

While crude oil production has increased by 19 percent over this time last year, natural gas volumes have climbed by 29 percent. The large increase in natural gas production is continuing to strain gas  processing capabilities, resulting in North Dakota failing to meet its gas capture goals.

Although processing capacity is being added by the end of this year, constraints on NGL takeaway will last into 2020 when a new long-haul NGL pipeline will be completed. Despite these infrastructure bottlenecks, ESAI projects Bakken crude oil to reach 1.5 million b/d by the end of 2019 and continue to grow into 2020. 

And then look at this:

“Unlike the other major shale basins, the Bakken is still showing large gains in rig productivity,” ESAI analyst Elisabeth Murphy explains. “If this productivity is sustained, it will create better economics for production outside of the core, giving producers more confidence to drill and complete more wells during a volatile oil price environment”.

Even for someone inappropriately exuberant about the Bakken, this is quite stunning. 

If I remember, I will come back to this tomorrow. It's too late to really press on. 

But let's parse that sentence in bold:

• "unlike the other major shale basins...."
• "the Bakken is still showing ... gains...in rig productivity"
• "large gains in rig productivity...."

Again...

"unlike other major shale basins ... still showing ... not small, not moderat, but large gains in rig productivity.

More of this North American Shale story can be found at this post.

Bakken To Add Almost 250,000 BOPD To Total US Crude OIl Production Over Next Two Years -- Source -- August 19, 2019

I can't recall if I posted a link to this article before. I was looking for something else when I stumbled across this article.

Interesting to read now in light of recent news.

From oilprice, June 20, 2019, this headline:

North Dakota set an all-time crude oil and natural gas production record -- an all-time high -- in June, 2019.

I don't recall whether I posted this story back in June; it's not likely I would post the story but I could easily be wrong.

From the article, this item of interest:

The Energy Information Administration (EIA) predicted in its latest Drilling Productivity Report that Bakken oil production will rise by 11,000 bpd in July from an expected production of 1.428 million bpd in June. [Actual: came in a bit lower -- 1.425 ... but that's a preliminary figure, and the final figure --- reported a month later -- is generally higher.]

The EIA dashboard for the Bakken is here.

North Dakota production in June, 2019, preliminary: 1,424,625 bopd (a new all-time high).

From the EIA monthly drilling productivity report, July, 2019 ((estimate to nearest 1K):

• July, 2019: 1,435,000 bopd
• August, 2019: 1,442,000  bopd

From the EIA monthly drilling productivity report, the dashboard linked above, August, 2019:

• August, 2019: 1,425,000 bopd
• September, 2019: 1,437,000 bopd

From NorthAmericanShale, June 25, 2019:

ESAI Energy reports crude and condensate production from the Bakken shale basin will surpass current record output into 2020.

In the company’s recently published North America Watch, ESAI Energy points to increasing rig productivity and efficiency gains in areas outside of the Bakken core that are translating into high growth rates for the basin as a whole.

Bakken production growth will add almost 250,000 barrels per day to total U.S. crude production over the next two years.

Along with record oil output, the Bakken’s associated gas production is rising at an even faster pace, according to the ESAI Energy report. While crude oil production has increased by 19 percent over this time last year, natural gas volumes have climbed by 29 percent.

To the best of my knowledge, oilprice has yet to report North Dakota's record June, 2019, production.

It's now 11:30 p.m. Central Time ...  I'll meet you at midnight ...

I'll Meet You At Midnight, Chris Norman

Weekly US Shale Wrap -- "Focus On Fracking" -- August 19, 2019

Updates

August 20, 2019: update here. 

Original Post 

"Focus on Fracking" is perhaps the best weekly wrap-up on the subject, the US shale revolution. The weekly update is posted every Sunday. The site is linked at the sidebar at the right.

After noting the production numbers, the completion numbers, and the demand numbers for July, 2019, "Focus on Fracking" post this interesting headline, which I will break out in three bullet points:

• OPEC reports July's oil output was two (2) million bopd short of global demand;
• US DUCs were down the most in almost three years (33 months to be precise); and, 
• completion / fracking is at a 54-month high.

But then this, the fourth data point that was not in the headline:

• the number of new wells drilled in July, 2019, was at a 16- or 18-month low depending on the data source.

It should be noted, that to the best of the writer's knowledge, no one is reporting that OPEC supply in July, 2019, was two (2) million bopd less than global demand.

It will be interesting to see the July, 2019, DUC status -- my data suggests DUCs in the Bakken were at a near all-time high in June, 2019. We will see the July data on/about August 15, 2019.

Comment: again, these dots to connect --

• US DUCs were down the most in three years
• completions / fracking is at a 54-month high (almost five years)
• the number of new wells drilled .... which correlates directly with number of active rigs -- was at a 16- or 18-month low

Five New Permits -- August 19, 2019

Peak fuel: Australia now the world's third largest fossil fuel exporter. [Later: a reader sent me a link. Scroll to the bottom at the linked story for the chart. The amazing thing about this chart, is that the US might not have even been on this list a few years ago (except perhaps for coal). The gap between Australia and the US is almost negligible in the big scheme of things. Note: the graphic below is "billion tonnes of CO2." The Guardian is a bit left, politically, to The New York Times.

*************************************

Back to the Bakken

Active rigs:

$56.19	8/19/2019	08/19/2018	08/19/2017	08/19/2016	08/19/2015
Active Rigs	62	59	53	32	74

Five new permits, #36865 - #36869, inclusive:

• Operator: CLR
• Field: Long Creek (Williams County)
• Comments: CLR has permits for five new wells in their recently announced Long Creek Unit project: five Truman LCU permits in section 14-153-99;

Six producing wells (DUCs) reported as completed:

• 34398, 3,347, WPX, Lion 18-19HX, Mandaree, t7/19; cum --; neighboring, #17658, s short lateral; off line most of 6/19;
• 34396, 3,810, WPX, Lion 18-19HW, Mandaree, t7/19; cum --;
• 34960, 3,084, WPX, Lion 18-19HEL, 4 sections, Mandaree, t7/19; cum --;
• 34397, 3,387, WPX, Lion 18-19HA, 4 sections, Mandaree, t7/19; cum --;
• 34400, 2,397, WPX, Lion 18-19HY, 4 sections, Mandaree, t7/19; cum --;
• 34399, 2,684, WPX, Lion 18-19HB, 4 sections, Mandaree, t7/19; cum --;