CBR Surging In North Dakota -- Genscape

A reader sent me this. Google key phrases to find the source.

Reuters is reporting:

Oil-by-rail shipments via a dozen major loading terminals in the Bakken region in North Dakota rose again on Monday after running at unusually low rates last week following new U.S. testing and shipping regulations, Genscape data showed on Tuesday.

A total of 688,425 barrels of crude was loaded at 11 terminals on Monday, up from 665,000 on Sunday and more than double the average rate of the four days proceeding Sunday, according to an assessment by industry intelligence group Genscape, which uses cameras to count the number of tank cars loaded at major terminals.

In the two weeks prior to Tuesday's emergency order imposing new oil testing rules, shipments had been running at about 550,000 barrels per day (bpd), on average. But in the four days following the order, shipments dropped to some 312,000 bpd. On Friday and Saturday, an average of 280,000 barrels was loaded.

"Over last week, Bakken rail loadings averaged 470,692 bpd, their lowest average level since the week ending Sept. 13 last year. This constitutes a 103,093 bpd week-on-week decline, a fall of just below 18 percent," Genscape analysts said in their weekly PetroRail Report.

They said factors apart from regulation had also affected loading rates, including severe cold weather that has slowed traffic and caused congestion in the Midwest.

Oil traders were on high alert for any sign that tougher rules on shipping Bakken's light crude by rail could slow supplies out of the booming region, where existing pipelines are unable to keep pace with rising production.

One Fact, One Rumor

Fact: Judge rules in favor of Harold in Hamm divorce.

Rumor: three MRO landmen seen in the Slope County courthouse two days ago. I'm not sure if I'm supposed to post that. If not, send me a note, and I will take it down. But I might not get to it right away; I'm traveling and don't get to the internet until I stop for gasoline. [Later: Pacer Energy may be working for MRO.]

American Eagle Announces Estimated Proved Reserves For 2013

I'm traveling; limited time to post, just just the facts, ma'am:

American Eagle Energy Corporation today -- March 4, 2014 -- announced December 31, 2013 estimated proved reserves, reaffirmed first quarter 2014 production guidance and issued an operational update.

Highlights:

• American Eagle's year-end proved reserves engineered by Ryder Scott Company, L.P. of 13.6 million barrels of oil equivalent (88% oil) with an associated pre-tax PV-10 of $308 million. Long laterals in the Three Forks formation, for which the company is targeting a majority of its drilling capital for 2014, had estimated ultimate recoveries (EURs) of 449 MBoe, with a pre-tax PV-10 of $7.9 million based on completed well costs of $6.4 million.
• Increased 4Q13 average daily production 38% quarter-over-quarter to approximately 1,879 barrels of oil equivalent per day.
• Completed and placed on production four gross wells during 4Q13 with an additional five gross wells waiting on completion at year-end.
• Estimated drilling seven gross wells and completing nine gross wells in 1Q14.
• Reaffirmed 1Q14 production guidance of 1,850 to 1,950 boepd. 
• Reduced average well costs by approximately $0.5 million or 8% from previous guidance during 2H13.

Random Update On The Whiting Revenue Statement Over At The JIBLink Website

This was over on the discussion group. Knowing that some folks may not visit the discussion group, here's the note:

If any of you are waiting to see your 2/28/14 Whiting Revenue statement on the JIBLink website, there was a problem with the upload last night and they are still working on a fix. 

Good News, your direct deposit should be OK.

I really appreciate folks taking time to write, let folks know what is happening. 

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Timeless:

Crazy, Patsy Cline

Wednesday - The Day After Putin Blinked And The Market Surged

Active rigs:

	3/5/2014	03/05/2013	03/05/2012	03/05/2011	03/05/2010
Active Rigs	192	186	206	172	99

RBN Energy: natural gas and manufacturing in the US, part 2, a revolution.

Consistent lower natural gas prices resulting from the boom in shale production are expected to fuel a major increase in industrial demand over the coming years. RBN expects that sector’s demand to increase by 5 Bcf/d from 19 Bcf/d in 2013 to 24 Bcf/d in 2025. There have been numerous announcements of new plant builds and expanded capacity projects in primary industries. Less well documented are the wider ramifications of abundant shale natural gas and natural gas liquids (NGL) supplies for US manufacturing industry as a whole. Today in the first of a two part series Taylor Robinson from PLG Consulting outlines the changes underpinning a new industrial renaissance.

ObamaCare delayed for a full two years. That was easy. That's pretty much the end of ObamaCare as we know it. There will be a few unintended consequences, but this will work out perfectly for Big Business, not necessarily for Big Health.

Didn't Mike say this a year ago: the price of frack sand could go parabolic in 3Q14? The article is dated March 4, 2014,  but I know I saw this same article a year ago, or thereabouts.

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

At least one analyst has raised its EOG price target from $190 to $214.

Stock market. Ratio of new highs to new lows -- 14:1.

Exxon Mobil to start production at record number of new oil and gas projects in 2014; 10 major projects to add new capacity of 300,000 net oil equivalent barrels per day this year: Co announces it expects to start production at a record 10 major projects in 2014, adding new capacity of ~300,000 net oil equivalent barrels per day and contributing to profitable production growth.

Price of oil fell quite a bit after Putin's quiet invasion of the Ukraine has evolved into a diplomatic spat, something that Mr Obama is very comfortable with. Putin has obviously studied Sun Tzu; Obama, not so much (probably never). Speaking of which I was unaware that then-Senator Obama led the fight to de-arm the Ukraine, and then re-affirmed his position as president. I had forgotten why the Ukraine had no will to fight. The army had no means. Now, the president is getting ready to cut the US Army to numbers not seen since before WWII.

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A Note to the Granddaughters

I left North Dakota earlier this morning and have just gotten to Chadron, Nebraska. I love cross-country driving, but I have to admit, my least favorite stretch between the Rio Grande and the Missouri-Yellowstone confluence is eastern Nebraska. It's too bad they aren't laying the Keystone XL; it would have been something to watch.

Having said that, I love cross-country driving. It is a paradox, but the trip seems to go by much more quickly the slower I drive. I try to keep the speedometer at 59 so I can watch the scenery. Periodically, I look down and see that my speed has crept well above 59. I don't like to go to cruise control on rolling hills; cruise control is perfect on I-94, I-90, and I-84 through the Great Plains but that's about it.

For the past hour or so I've been listing to "The Range," 95.3, I think. Not sure. Just before I stopped for a rest:

Sweet Dreams, Patsy Cline, Jessica Lange