Friday, July 11, 2014

Friday, July 11, 2014 -- Eleven (11) New Permits -- The Williston Basin, North Dakota, USA -- Friday, July 11, 2014

Active rigs:


7/11/201407/11/201307/11/201207/11/201107/11/2010
Active Rigs190185210173131

Eleven (11) new permits --
  • Operators: Fidelity (3), Oasis (3), Marathon (2), American Eagle (2), Hunt,
  • Fields: Sanish (Mountrail), Parshall (Mountrail), Bailey (Dunn), Colgan (Divide)
    Comments:
Wells coming off confidential list:
  • 24155, drl, KOG, Koala 16-32-29-1H3, Poe, no production data,
  • 24324, drl, CLR, Topeka 4-12H, Brooklyn, no production data,
  • 26984, drl, Hess, EN-Dobrovolny-155-93-2128H-4, Alger, no production data,
  • 27065, drl, Hess, EN-KMJ Uran-154-93-2734H-7, Robinson Lake, no production data,
  • 27081, drl, Arsenal, Craig Allen 10-3H, Stanley, product 1,285 bbls first day
  • 27089, drl, Hess, GN-Alice-158-97-1324H-3, New Home, no production data, 
  • 27150, 200, CLR, Buresh 1-3H1, Barta, t4/14; cum 4K 5/14;

Minimal Blogging -- On The Road -- Traveling -- July 11, 2014

We're traveling cross-country: north Texas to southern California. Upon entering California, I-40, near Needles, CA, the least expensive grade of gasoline was $4.99/gallon at the first service station we came to (where we filled up) and then it was $5.09/gallon a few miles down the road. I remember when I first started the blog, talking about "$5-gasoline" and at least one reader wrote to tell me I was crazy to think we would ever see $5-gasoline in the states. That was just a few years ago. I see WTI crude oil is down to $100/bbl. I remember reading somewhere, the California legislature is looking to add to the current price of gasoline through additional taxes and/or regulations.

The big question: will we see $6-gasoline in California for any grade of gasoline before the end of August, 2014? I think we will. 


Original Post

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

COP raises its quarterly dividend from 69 cents to 73 cents.

Personal Observations Based on Reports from The Wall Street Journal

The Mideast appears to be imploding and the top story in The WSJ: Europe worries rattle markets. Worries over the health of a major Portuguese lender spooked global markets, drubbing stocks in southern Europe. US shares swooned but recouped much of their losses.

President Obama's Open Borders policy continues to move forward; few children are deported. Two important data points: a) the bill allowing Open Borders was passed in 2008; b) 60,000 children trekked across the entire Pan-MexicUS desert to arrive on American soil over a span of just a couple of days in the middle of summer, 2014.

Changes proposed by the Obama administration could make it easier for the Houma Nation and dozens of other tribal group to go on the federal dole for health, education, and other benefits.

Global warming success story! Adelie penguin population on the rise. For the first time, researchers have counted the world's Adelie penguins -- a sprightly seabird considered a bellwether of climate change -- and discovered that millions of them are thriving in and around Antarctica.

Pulling a Bergdahl: top US military leaders looked into President Obama's eyes and agreed unanimously to pull a Bergdahl.

House and Senate lawmakers advanced measures to replenish the federal fund that finances road, bridge, and mass-transit projects before it runs out of money next month.

Humor for the day: a judge tells IRS to explain e-mail loss. Spoiler alert: the IRS already explained it. The hard drive on Ms Lois Lerner's simply crashed, most likely due to global warming -- computers crash when inadequately cooled. Ms Lerner called in her own highly trained IT personnel who said, "yup, the hard drive crashed. Let's trash the hard drive, erase everything, and re-use it. We don't have the funds available to buy a new hard drive." That was back in 2013. Interestingly enough, the e-mails that were sent by Ms Lerner to others -- have never been found either. Sometimes these things just happen. [By the way, the best way to really destroy data on a hard drive -- a) erase all data; and, then, re-write over it. Sort of a two-step process.]

Related: US authorities are investigating an apparent breach of computer systems at the Office of Personnel Management, which stores data on federal employees. Gee, I wonder who would even think of snooping on federal employees?

Gaza death toll rises sharply. Really?

Ukraine still at war.

Remember all that talk about a sterling 2Q14? Hey, not so fast. WSJ headline: slowing store traffic worries US retailers. Remember all that talk about the bad weather causing the collapse of the economy in 1Q14 (their word, not mine)? I opined early on that I strongly doubted that bad weather could cause the collapse (their word, not mine) of the world's second largest economy -- the US has had much worse weather in the past -- and now, 2Q14, we don't have the weather to blame. The WSJ lede: American retailers may have more than a weather problem. For many stores, customer traffic has slowed and sales weakened in the spring, when warmer temperatures had been expected to help business. This does not bode well for 2Q14 GDP.

It really is quite funny when you think about it. ObamaCare finally kicks in (okay, the 20% of the plan that hasn't been delayed by executive order) with an incredible 8 million Americans (their number, not mine) enrolled in national health care, all paying their premiums, and coincidentally GDP in 1Q14 collapses (their word, not mine). And the collapse (their word, not mine) of the economy is blamed .... drum roll ... on the weather. LOL.

Microsoft getting ready to lay-off a lot of employees.

Exxon and Pennsylvania fighting over fracking. The most important data point in that article: "fracking" is spelled with a "k."

SecState John Kerry arrived in Kabul to give a global warming speech.  Half of that sentence is true.

Energy prices tumble: energy prices are tumbling, with natural-gas prices hitting a six-month low, in a setback for investors who were betting that supply shortfalls would drive markets higher.  Many, many story lines here. Gotta go....traveling again.

Fiction department. Oh, before we go, what was the jobs report yesterday? Bloomberg is reporting:
Claims remain steady at favorable levels with initial claims down 11,000 in the July 5 week to a lower-than-expected 304,000. The 4-week average is down 3,500 to a 311,500 level that is slightly lower than the month-ago comparison.

Continuing claims, in lagging data for the June 28 week, did rise 10,000 to 2.584 million but the 4-week average is at a new recovery low, down 8,000 to 2.571 million. The unemployment rate for insured workers is unchanged at 2.0 percent, just off a recovery low hit in early June of 1.9 percent.

Thursday, July 10, 2014

Thursday, July 10, 2014 -- Back To Reporting By Innings, I See

Clean Energy Fuels to double CNG capacity for Saddle Creek heavy-duty truck station and opens two more America's Natural Gas Highway Stations: Co announced plans to double the CNG station capacity at Saddle Creek Transportation's natural gas station in Lakeland, Fla., where an additional 25 heavy-duty natural gas trucks are expected to fuel. Additional fueling agreements recently signed have resulted in the construction of new natural gas stations to support Clean Energy's growing portfolio of natural gas fuel customers in the heavy-duty trucking, ready-mix and transit market segments.

Shale boom confounds forecasts as US is set to surpass Russia, Saudi Arabia. Reuters is reporting:
Four years into the shale revolution, the U.S. is on track to pass Russia and Saudi Arabia as the world's largest producer of crude oil, most analysts agree. When that happens and by how much, though, has produced disparate estimates that depend on uncertain factors ranging from progress in drilling technology to the availability of financing and the price of oil itself.
Forecasts for U.S. shale oil production vary from an increase of 7.5 million barrels per day by 2020 – almost doubling current domestic output of 8.5 bpd -- to a gain of 1.5 million bpd, or less than half of what Iraq now produces.
The disparities are a function of the novelty of the shale boom, which has consistently confounded forecasts. In 2012, the U.S. Energy Information Administration (EIA) estimated that production from eight selected shale oil fields would range from 700,000 bpd of so-called tight oil to 2.8 million bpd by 2035. A year later, those predictions had been surpassed.
"The key issue is not whether production grows, it's by how much," said Ed Morse, global head of commodities research at Citigroup in New York. "We're only at the beginning of the first inning and this is a nine-inning game."

VERY LITTLE BLOGGING -- On The Road -- Traveling; Nine (9) New Permits -- The Williston Basin, North Dakota, USA; -- Wednesday, July 9, 2014

VERY LITTLE BLOGGING -- On The Road -- Traveling

Wells coming off confidential list Thursday:
24325, drl, CLR, Topeka 5-12H, Brooklyn,
25220, 1,587, Oasis, Birch Federal 5300 24-15T, Willow Creek, t2/14; cum 35K 5/14;
25724, 1,566, Oasis, Barnes 5892 21-30B, Enget Lake, t2/14; cum 48K 5/14;
25897, 1,734, MRO, Chase USA 21-15H, Moccasin Creek, t6/14; cum 5K 5/14;
26224, A, Oasis, Elm 5892 42-12 1H, Cottonwood, no IP, cum 12K 5/14;
26225, 344, Oasis, Foxtail 5892 42-12 1H, Cottonwood, t1/14; cum 20K 5/14;
26502, 582, Oasis, Hendricks 5602 43-36 2T, Tyrone, t5/14; cum 2K 5/14;
26781, 1,071, Oasis, Ava 5693 43-35T, Alger, t4/14; cum 1K 5/14;
26821, drl, XTO, Boe State 31X-16D, Beaver Lodge,
26946, 1,806, XTO, Lucy 14X-32F, Siverston, t5/14; cum 3K 5/14;
27121, 201, CLR, Winchester 43-8SH, Cedar Hills, a Red River well, t3/14; cum 26K 5/14;
27281, 28, Enduro, Hay Draw 21-33, Hay Draw, a Stonewall formation well, t5/14; cum -- 

Active rigs:


7/10/201407/10/201307/10/201207/10/201107/10/2010
Active Rigs189186212170131


Nine (9) new permits --
  • Operators: Triangle Petroleum (4), SM Energy (3), CLR (2)
  • Fields: Elk (McKenzie), Camp (McKenzie), Pembroke (McKenzie)
  • Comments:
Wells coming off confidential list today will be posted in the usual place; see sidebar at the right. 

Two (2) producing wells completed:
  • 25989, 2,338, HRC, Fort Berthold 148-94-20C-21-4H, Eagle Nest, t6/14; cum 2K 5/14;
  • 27193, 495, EOG, Austin 87-36H, Parshall, t6/14; cum 3K 5/14;

Baytex To Sell Some Acreage In North Dakota Bakken?

A big "thank you" to a reader for alerting me to this. A source in North Dakota suggested one of the bigger operators in North Dakota might get bigger, acquiring Baytex acreage in Divide County.

Link here.
Baytex Energy Corp. has identified assets that could be sold by yearend, in a process that one analyst said may raise as much as C$400 million ($375 million.)
The Calgary-based oil and natural gas exploration and production company said the assets constitute 5 percent to 10 percent of current production. The review was launched after Baytex acquired Aurora Oil & Gas Ltd. this year, expanding its reach in the Eagle Ford formation in East Texas.
Brian Ector, a Baytex spokesman, said the company is focusing on more lucrative projects.
“We’re going to direct capital to the highest rate of return projects in our portfolio, which is really the Eagle Ford; it’s Peace River, and it’s the Lloydminster region,” he said in a telephone interview.
He declined to name which assets were candidates for sale. Ector said the company had been working with some banks already for a potential sale.
“This process will unfold over the course of this year,” he said.
Chris Cox, a Raymond James analyst, said the company’s North Dakota Bakken acreage could be put up for sale, noting it makes up about 4 percent of current production.
Baytex could generate between C$300 million and C$400 million in proceeds from the sale of the Bakken assets that would help focus the portfolio and reduce debt from the Aurora acquisition, Cox said.
Ector said the North Dakota Bakken acreage could be on the auction block.