Wednesday, July 10, 2013

Wednesday Morning Links, News, And Views

Active rigs: 184 (up, steady)

Wells coming off confidential have been posted; scroll down.

RBN Energy: US natural gas to Mexico

WSJ Links

Nothing in Section D (Personal Journal). We must be moving into the summer doldrums. There was a story yesterday of six barrels of natural gas that had leaked into the Gulf of Mexico which will all evaporate, but the operator called in the professionals to stop it, after early efforts failed. That's how hard reporters are working to get the next big oil spill story.

This is interesting, in Section C (Money & Investing): with oil flirting with $105/bbl, one would have thought the dollar was getting really, really, really weak. But then this: "euro falls to 3-month low vs the dollar; no link. The headline tells me as much as I need to know, especially during the summer doldrums.

Maybe that Gulf oil leak is a bigger story than I thought: it's in Section B (Marketplace). Nah.
But speaking of big stories, whatever happened to Syria? Whatever happened to all the O'Bama scandals?

In The Front Section, a huge story on a train wreck in the making: US struggles to meet health-law dedeadline. The federal government has NOT written key rules guiding employers.
When Obama administration officials delayed a central plank of the new health law—requiring that big employers offer health insurance to workers—they said it was to help businesses pleading for more time.
Left unsaid was the federal government hadn't written key rules guiding employers, according to current and former administration officials, and computer systems that were supposed to run the program weren't operational.
The delay has opened the door for critics and allies alike who are now raising questions about the administration's ability to implement the biggest domestic policy initiative in a generation.
Oh, this is not good. The South Dakota Native American Reservation at Pine Ridge is considering lifting a ban on alcohol sales.
Robin Tapio has struggled with alcohol for much of her life. The father of her children died after years of drinking and their middle son lost his life after driving off a road on this vast Indian reservation. He was 16 years old and high on drugs and alcohol.
In June, Ms. Tapio, a member of the Oglala Sioux's tribal council, voted in favor of holding a public referendum to try something new to address the excessive drinking linked to crushing poverty and crime here: make alcohol legal.
So, we'll see how this goes. 

Oh, the answer to that question: whatever happened to Syria? The war has moved to Lebanon.

This story was posted earlier, late last night: that runaway Bakken crude oil freight train? It sustained a fire a few hours earlier in the day before it really caught on fire. The railroad's fortunes had turned around with CBR.

For those in favor of aligning the minimum wage with inflation: if the minimum wage tracked inflation, it would be $4.07 per hour. I'm sure it depends on when the two were first aligned. But facts never got in the way of Joe Biden's politics (nor any other politician's politics).

WTI-Brent Spread

This is a dated article, posted about a month ago, at Market Realist, but it has some good data points regarding the WTI-Brent spread. In addition, it has some great graphics.
  • A huge surge in oil production in North Dakota has caused differentials between Bakken crude (priced at Clearbrook, MN) and WTI Midland crude to fluctuate and blow out at several points over the past several years as takeaway structure had lagged production.
  • Recently, the differential between Bakken and WTI crudes had stabilized and closed in as newly finished infrastructure has come online. Bakken differentials to WTI had generally remained below $2.00/barrel since March, signaling sufficient takeaway capacity from the basin. Additionally, usage of rail rather than pipelines into Cushing have allowed Bakken crude to reach refining markets without having to pass through a crowded hub.
  • More stable Bakken based crude prices and a lesser risk of the differential blowing out to ~$20+/barrel again is a positive for producers operating in the region.
  • From May 30th to June 10th, the spread changed by $9 per barrel, in a positive catalyst for producers with Bakken assets, such as Continental Resources (CLR) and Whiting Petroleum (WLL).

This Is Quite Incredible: North Dakota, South Dakota Rank 3rd, 1st In America's Top States for Business for 2013

Yahoo!Finance is reporting:
South Dakota has climbed to the top of America's Top States for Business for 2013.
It is the best finish yet for the Mount Rushmore State, which has always been a quiet contender in our annual study, rarely finishing outside the Top 10. But more impressive, South Dakota's point total this year-1,639 out of a possible 2,500-is the highest logged by any state since we began keeping score in 2007.
The top five:
  • South Dakota
  • Texas
  • North Dakota
  • Nebraska
  • Utah/Virginia -- tied for fifth
North Dakota jumped from fifth to third this year. 
North Dakota, a historic economic success story, improves on last year's fifth place finish to come in third this year with 1,592 points. The Peace Garden State ranks second-just behind Texas-in Economy and in Infrastructure. But North Dakota is, in some ways, held back by its own prosperity. With the nation's lowest unemployment rate, workers are in short supply. That raises wage costs. And North Dakota's growing pains leave the state with some of the most expensive rental costs in the country for industrial space. North Dakota finishes 12th in Cost of Doing Business, and near the bottom-46th-for Technology & Innovation.

Wells Coming Off Confidential List Wednesday; Fidelity With A Huge Well

22752, 1,064, Fidelity, State 34-33-28H, Stanley; t1/13; cum 79K 5/13;
24352, 287/IA, CLR, Gibb 1-24H,  Beaver Lodge, t3/13; cum --; produced for one day, then went IA;

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

22752, see below, Fidelity, State 34-33-28H, Stanley:

DateOil RunsMCF Sold
5-201316409564
4-20135793259
3-2013166442282
2-2013193392180
1-2013197951032

Nine (9) New Permits -- The Williston Basin, North Dakota, USA; Statoil With Two Nice Wells

Active rigs: 185 (steady, up)

Nine (9) new permits --
  • Operators: Whiting (3), Petro-Hunt (3), Baytex (2), Murex
    Fields: Ambrose (Divide), Little Knife (Dunn), Pleasant Hill (McKenzie), Sanish (Mountrail)
  • Comments: Murex has a wildcat in Divide County
Wells coming off the confidential list were ported earlier; see sidebar at the right.

Two producing wells completed:
  •  22805, 1,971, Statoil, Wright 4-33 2TFH, Alger, t6/13; cum --
  •  23859, 2,909, Statoil, Wright 4-33 5H, Alger, t6/13; cum --