Minimal Blogging -- We've Lost Our Internet Connection At Home Due To Texas Thunderstorms, Flooding, And Gremlins; Whiskey For My Men, Beer For My Horses

There is nothing about the Bakken in this post. If you came here looking for the Bakken, move on, skip this post. I am posting this mostly for the archives, for the granddaughters.

I'm at Starbucks doing a bit of internet surfing. Fortunately they are open to 10:00 p.m. tonight. I'm not sure when our internet will be back up. Our internet at home is always "iffy" but with storms, flooding, and the usual gremlins, it's even worse right now. As in "not working."

The good news is that I read a bit more at home and watch a few more DVDs when I lose the internet. If my wife did not mind, I would get rid of cable completely: no television and no internet at home. I find enough wi-fi opportunities without needing connectivity at home, and television hasn't been a factor in my life for years.

I generally read about five books at a time -- actually, I don't really read five books at a time -- I generally have about five books at arm's length at any given time and I read whatever interests me at the moment. The two classics I am reading right now are Fitzgerald's This Side of Paradise and Oscar Wilde's The Picture of Dorian Gray. It is simply a coincidence that I am reading them at the same time. I say that because I finished the first chapter of Dorian Gray last Friday, and then today, started the second chapter of Paradise. In the second chapter, Fitzgerald's character spends a couple of pages discussing Wilde's Dorian Gray. Had no idea. Amazing.

I don't recall reading any Fitzgerald in high school, nor in college. How I missed Fitzgerald, I don't know. Took too many science courses, I suppose. I would not have enjoyed Fitzgerald in my teens, early twenties. I needed life experiences to enjoy Fitzgerald. It was important to read the introduction by Sharon G. Carson to understand why this book was considered his best. I'm not sure I would have enjoyed the book as much had I not read her introduction.

I also just received the classic on the Indian tipi -- first edition written back in 1957 or thereabouts and the second edition published in 1989, I guess. It it incredibly good. I have just browsed through it, and am eager to start getting serious about it. When I find a book that I'm really going to enjoy, I don't like to start it until in exactly the right mood, and with the right munchies and right beverage.

A fourth book is a novel of Ernest Hemingway's first wife, Hadley, The Paris Wife: A Novel. I  have the soft cover edition; it looks wonderful, better than I ever expected.

And finally, a book that just came out this year, Oliver Sacks, On The Move, A Life. If one enjoys the best of Hunter S Thompson's writing (his letters -- first volume), and Hell's Angels, I think one will enjoy this Oliver Sacks book. I've also just read the first chapter of this book and don't think I've enjoyed a book this much in a long, long time.

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

Minimum Wage

Speaking of minimum wage, which we weren't, this is a note from my journal, dated: 11:00 p.m. -- July 25, 1969, Friday, Williston, ND --

Worked 9 - 5. Pulled jeep home -- installed new voltage regulator but it still discharges sporadically. Not much new. Goodnight, diary. Got paycheck for $53.00 for 33 1/2 hours work last week. Only $42.12 left after taxes, etc. [Page 328] 

$53/33.5 hours = $1.58/hour -- don't even talk to me about $15/hour minimum wage.

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

Wow, it's pouring rain right now, outside Starbucks. It is amazing. Must be "inches per hour." I'm hoping they extend the hours because of the rain. Of course, they won't do that, but if I were the manager, I would send the employees home at the regular closing time (if they wanted to leave) and then just kick back, enjoy coffee with any of the regulars that are still here. Perhaps even order pizza for the regulars. And maybe something other than coffee ...

Beer For My Horses, Willie Nelson and Toby Keith
This might be a good anthem for Baltimore, Milwaukee, and Cleveland.

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

This is too technical to talk about but this is a very interesting development coming out of Apple: replacing the problematic "Discoveryd" process.

As long as we're talking about Apple --

Smart Watch: Android vs Apple in The Wall Street Journal -- Apple wins, hands wrists down. 

North Dakota's Exports Have Grown From $1 Billion In 2004 To Over $5 Billion In 2014 -- May 26, 2015

Updates

May 27, 2015: see first comment. I am bringing it up here so it is google-searchable:

There is a big Case IH tractor plant in Fargo, which used to make Steiger tractors, which were huge (and help end the need for farm labor). Also, Phoenix Incorporated, a subsidiary of John Deere, has a plant in Fargo to assemble electronics for other Deere plants.

There's a number of smaller implement manufacturers, like Summer Manufacturing, in Devils Lake.

Original Post

This is really, really cool. For the mainstream media this story might not be much more than a footnote to all that is going on in North Dakota, but for me this may be the biggest story of the month. It takes me back to "Pigs In Space -- Almost. But, It's Kows Over Kazakhstan" posted back in October, 2011.

The AP is reporting:

A group of government and business leaders from Belarus is touring North Dakota this week to talk about trade. This is the second visit by a Belarusian delegation within the last year.

The delegation is interested in the state’s beef, dairy and agriculture sector, including farm machinery.

Officials say North Dakota’s exports have grown from $1 billion in 2004 to nearly $5.3 billion in 2014. The state’s top exports include front-end shovel loaders, tractors, wheat and soybeans.

Farm machinery? I am unaware of any farm machinery manufacturing in the state of North Dakota except for "Bobcat." But see RDO Equipment below.

For those who have forgotten, Belarus separates Poland from Russia, and is almost the same latitude as North Dakota. (Minsk: 54 degrees north; Alamo: 49 degrees north.)

By the way, speaking of Kazakhstan, this is from an October, 2014, press release:

The North Dakota Trade Office (NDTO), along with North Dakota agriculture machinery and technology companies, are returning to the KazAgro Farm Show October 27-29, 2014, in Astana, Kazakhstan.  This year, the Ministry of Agriculture of the Republic of Kazakhstan – the main sponsor of the show – has invited NDTO to co-sponsor the program, because of North Dakota’s long-standing relationship with leaders in the Kazakh agriculture sector.

That link will take you to RDO Equipment:

Despite these impressive gains, RDO Equipment's true growth spurt did not begin until 1997, when Offutt opted to take the company public with the hope of generating capital with which to fuel future expansion. In its initial public offering, launched in January 1997, RDO Equipment sold about 42 million shares and raised $68.3 million, becoming the first corporation based in North Dakota to be listed on the New York Stock Exchange. The company immediately used $10 million of this total to retire debts and paid out another $15 million in dividends to existing shareholders. The remaining $34 million was intended 'to allow us to continue to grow the company, expand our dealership numbers,' Offutt explained to the Fargo Forum.

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

Unwinding The Nation's Worst Nightmare Will Take Decades

This story was printed in The Washingon Post of all places. One would have expected to see this in the Orange County Register.

President Obama's second-term agenda, it seems, is in the hands of the courts. Same-sex marriage. Immigration. ObamaCare. Climate change.

It will take decades to unwind this. This is not to say that I'm in favor or not in favor of any of his initiatives, it's just what The Washington Post is saying.

And the article didn't even touch on what has already happened in the Mideast due to his policies.

Or the US energy industry.

Flooding The Market And Other Hyperbole -- May 26 ,2015

It took all the energy I had to link this story. Bloomberg is reporting:

Iraq is taking OPEC's strategy to defend its share of the global oil market to a new level.

The nation plans to boost crude exports by about 26 percent to a record 3.75 million barrels a day next month, according to shipping programs, signaling an escalation of OPEC strategy to undercut U.S. shale drillers in the current market rout.

The additional Iraqi oil is equal to about 800,000 barrels a day, or more than comes from OPEC member Qatar.

The rest of the Organization of Petroleum Exporting Countries is expected to rubber stamp its policy to maintain output levels at a meeting on June 5.

Talk about hyperbole ... taking things to "a new level."

I saw the article earlier today but was ambivalent about linking it. A reader sent the link later and I figured for archival reasons, I need to link it. 

The headline for this story: Iraq Is About To Flood The Oil Market.

That was a Bloomberg headline. A country at war, who has just lost its biggest province to a JV team, and simply announces it will increase production is hardly "about" to do anything. Then, when I saw the "800,000 bopd" increase -- ? That's hardly "flooding" the market. I have no idea what it even means to say this is equivalent to what "comes from OPEC member Qatar. 

I don't want to mix apples and oranges, production vs exports, but production figures are very, very hard to come by. Even import figures are several months old. But that statement suggesting the additional Iraqi oil is more than what comes from Qatar is almost laughable. In the most recent data available, and again note, this is imports NOT production, the US imports as much oil from the Bahamas as it does from Qatar. 

Bloomberg may link the Iraqi message to US fracking, but one can hardly deny that this is as much about OPEC members scrambling to save market share as it is about competing with US shale. 

From the attached graph, it certainly looks like Qatar is scrambling to find new markets for its oil. I assume Bahrain is also scrambling to find new markets for its oil. 

Source: EIA.

In a few months, we will get the data. US auto dealers report auto sales for any given month within 24 hours after the end of the month; on the other hand it takes the EIA three months or more to tally up how much oil is imported into the US. This is almost June and the latest data is for February. And as far as "production" goes, it's anybody's guess what foreign countries are actually producing.

Five (5) New Permits -- May 26, 2015

Active rigs:

	5/26/2015	05/26/2014	05/26/2013	05/26/2012	05/26/2011
Active Rigs	84	191	186	214	173

Wells coming off confidential list Tuesday:

• 29057, drl/NC, XTO, Amundson 34X-22E, Siverston, no production data,
• 29085, SI/NC, WPX, Helena Ruth Grant 33-34HC, Reunion Bay, no production data,
• 29270, 948, Hess, EN-Cvancara-155-93-1522H-7, Alger, t4/15; cum 4K 3/15;

Five (5) new permits --

• Operators: QEP (4), Luff
• Fields: Heart Butte (Dunn), Corey Butte (Bowman)
• Comments:

Five (5) producing wells completed:

• 28375, 974, Hess, AN-Brenna-LE-153-94-3129H-2, Antelope, Sanish, 4 secs, t5/15; cum --
• 28543, 1,107, Hess, BW-Arnegard State-151-100-3625H-6, Sandrocks, t5/15; cum --
• 28871, 659, Hess, GO-Hodenfield-157-97-0607H-2, Ray, t5/15; cum ---
• 29165, 739, Hess, SC-Norma-LE-154-98-0705H-2, Truax, t5/15; cum --
• 29348, 927, Hess, SC-Ellingsberg-154-98-3239H-4, Truax, t5/15; cum --

Background Gases In Bakken Wells -- May 26, 2015

Background gas in Bakken wells is often mentioned: 100 units is equal to 1% methane equivalent in air. Source: MRO, file #28231, page 27 of 140, May 26, 2015.

**************************** 
Not A Whole Lot Longer Than A Simple Vertical

If I read this report correctly, this short lateral in the Bakken was drilled in seven days:

• 27765, 484, EOG, Wayzetta 57-3433H, Parshall, 30 stages; 4 million lbs; spud date June 18, 2015; lateral begun June 22, 2014; FTD date, June 25, 2014; TD, 15,731 feet.

If I read this report correctly, this short lateral in the Bakken was drilled in nine days

• 27764, 834, EOG, Wayzetta 54-34H, Parshall, single section, 22 stages; 3 million lbs; spud date June 27, 2014; lateral began July 4, 2014; FTD date, July 6, 2014, horizontal in pay zone 100%, t11/14; cum 36K 3/15;  

*************************** 

Pipeline

From Yahoo!In-Play:

American Midstream Partners begins open season for Bakken Crude Oil Gathering System in North Dakota : American Midstream Partners announced that American Midstream Bakken, a wholly-owned subsidiary of the Partnership, is conducting a binding open season for a proposed approximately 50-mile Bakken crude oil gathering and transportation system in the core of McKenzie County, North Dakota, to transport up to 40,000 barrels per day of crude oil for delivery to major intrastate and interstate pipeline systems beginning in June 2015.

As proposed, the Bakken System will have initial transportation capacity up to approximately 15,000 bopd with the ability to expand up to ~40,000 bopd.

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

Dividend Announcement

Previously announced, WMB increases quarterly dividend from 58 cents to 59 cents, yielding nearly 4.5%.