Sunday, September 20, 2015

New Player In The Neighborhood -- Marcus Hook Industrial Complex

The Marcus Hook makes the list of "Big Stories." First addition in quite some time.

Background: Marcus Hook Industrial Complex.

Update, September 20, 2015. TribLive is reporting:
At many shale-related events in Washington County, officials proclaim that region, with its abundant gas reserves and wells, is the “Energy Capital of the East.”

Hundreds of miles away in Philadelphia, where there is no shale drilling, leaders looking to tap into the gas boom are speaking of an energy hub that former Department of Environmental Protection Secretary Mike Krancer last week said would “rival and surpass Houston soon.”
The steps toward connecting both claims are taking place on 800 acres along the Delaware River south of the city in Marcus Hook, where rusty stacks and holding tanks are giving way to gleaming towers and pipes.
Nearly 1,000 contractors enter the site each day to convert the former Sunoco oil refinery into a terminal at which sister company Sunoco Logistics can receive and process hundreds of thousands of barrels of propane, ethane and other liquids pulled from Marcellus and Utica shale wells 300 miles to the west.
If Pennsylvania is to take full advantage of its shale boom, industry leaders and observers say it needs projects such as a revitalized Marcus Hook Industrial Complex to move products across state lines and overseas while attracting manufacturers to set up close by.
“Whether it's natural gas or other products, they need a final destination,” said Jonathan Hunt, senior director for terminal operations at Philadelphia-based Sunoco Logistics, which is spending at least $3 billion on the multi-phase Mariner East pipeline project to connect the shale fields of Western Pennsylvania, Ohio and West Virginia to the revamped terminal.
Tale of two states: Pennsylvania and New York.

Slawson Wells Being Choked Back Due To Flaring Penalties? -- September 20, 2015

I assume these Slawson wells are being choked back due to flaring penalties. These wells are inside Fort Berthold Indian Reservation, previously discussed.

**************************
Biden's In

Tea leaf

Random Update On A CLR Holstein Well That Was Plugged Despite Great 30-Day IP -- September 20, 2015

Previous update:
February 17, 2015: this well was IA/SI (inactive/shut-in) the day it came off the confidential list; during the slump in oil prices:
  • 27563, 420, CLR, Holstein Federal 1-25H, Elm Tree, when I checked May 5, 2015, the frack data showed only one frack stage; the well was shown as active, having produced nicely in February and March, 2015, but no test date; was it fracked? Update: test date 2/11/15; cum 32K 5/15; only 10 days in 6/15;
Update, September 20, 2015: this looked like a very good well; it was surprising to see it be abandoned but now we have the explanation (see below):
  • 27563, PA/420, CLR, Holstein Federal 1-25H, Elm Tree, test date 2/11/15; cum 32K 5/15; only 10 days in 6/15;
The sundry form says the well was plugged and abandoned because a hole developed in the liner during stimulation operations. CLR says the plan is to come back to this well, "pull the remaining line or redrill a sidetrack."

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-20150000000
BAKKEN6-20151073111181428400803
BAKKEN5-20153146984391116955674680639
BAKKEN4-20153075047767139778606687941
BAKKEN3-20153186839082165992128794178
BAKKEN2-201528100269169322310573952482

Random Update On Hess Norman Well Back On-Line Aftter One Year Of Inactivity -- September 20, 2015

Update, September 11, 2016: still doing great; most recent production data:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-201631316832021890797363401416
BAKKEN6-201630285928221554572624583131
BAKKEN5-201625372036232142688824244328
BAKKEN4-2016746246134272161560
BAKKEN3-20163132573048171353714823377
BAKKEN2-201629339136351744779340853559
BAKKEN1-201631368336961825735526034619
BAKKEN12-201531413938002097838931975017
BAKKEN11-20153042874684199376645007129
BAKKEN10-201523409140732613618766181
BAKKEN9-20152115871614882364510182524


Update, October 18, 2015: still doing great; most recent production data:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN8-20153165566382333413843113842
BAKKEN7-201528694768073589123338312241
BAKKEN6-20150000000


Previous update:
February 14, 2015: why is this one inactive?
  • 20272, IA/800, Hess/Tracker, SC-Norman 154-98-3130H-1, 36 stages, 4.4 million lbs, t10/11; cum 166K 7/14; went inactive 6/14; 
Update, September 19, 2015: it looks like this well is back on active status. There is no information in file report (Basic Subscription) to explain the change in production.
  • 20272, 800, Hess/Tracker, SC-Norman 154-98-3130H-1, 36 stages, 4.4 million lbs, t10/11; cum 173K 7/15; went inactive 6/14;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-201528694768073589123338312241
BAKKEN6-20150000000
BAKKEN5-20150000000
BAKKEN4-20150000000
BAKKEN3-20150000000
BAKKEN2-20150000000
BAKKEN1-20150000000
BAKKEN12-20140000000
BAKKEN11-20140000000
BAKKEN10-20140000000
BAKKEN9-20140000000
BAKKEN8-20140000000
BAKKEN7-20140000000
BAKKEN6-20140000000
BAKKEN5-2014234374802249412641242
BAKKEN4-20143056954331994624454777
BAKKEN3-20143113751263300022091991218

***************************
Down Memory Lane

A reader who has an interest in the Norman well sent me a number of photos including this well that was photographed in the same area back in 1961. Note the four (?) youngsters running around the well, something we probably don't see much of these days -- kids running around Bakken wells, though Girl Scouts could roast their S'mores on the flares.



Sunday Morning Rants And Raves -- September 20, 2015

How many remember this post from a month ago?
MichiganLive published an open letter from a solar-installation owner that "net metering would destroy solar investments:
I am writing in regard to [Michigan] Senate Bill 438. My interests are self-preservation, ensuring Michigan is looking to and working toward a sustainable energy plan, and reversing the effects of global warming.
So, how did that work out for the "rent-seekers"? The state legislature is still working this issue, but Midwest Energy News is reporting
As major investor-owned utilities push the Michigan Legislature to dismantle the state’s solar net-metering program, the state’s smallest electric cooperative is taking action on its own with a similar policy effective October 1,  2015.
Roughly 20 net-metering members of the Upper Peninsula’s Ontonagon County Rural Electrification Association were notified last month that the co-op would no longer purchase their excess electricity at retail prices.
Instead, the member-owned co-op will purchase excess electricity from its net-metering customers at wholesale rates “minus line loss” — a difference of nearly 10 cents per kilowatt hour (kWh).
****************************************
Environmentalists' Nightmare: Ethanol Derailment

I was behind in my blogging while traveling. I received this tweet from a couple of readers, about a derailment back on September 19, 2015:
Authorities say 6 ethanol tanker cars caught fire after Burlington Northern Santa Fe Railroad train derailed on a bridge southeast of Scotland, SD.
Environmentalists can't have it both ways: the desire to ban CBR while shipping ethanol by rail. The bad news for faux environmentalists: ethanol cannot be shipped by pipeline.

Maybe we need to ban EBR. The full story with a great photo at msn. Just think if this had happened in downtown Chicago, or Boston, or even NYC.

****************************************
Real Cost Of Filling Up By Country

Don sent me this link while I was traveling when I remarked to him how inexpensive gasoline was in America in the big scheme of things.
With high incomes and some of the cheapest gasoline around, Americans have little to complain about at the gas station. Imagine selling out $7.71/gallon (in Norway) or putting in a full day's work for a single gallon of gasoline (India, Pakistan).
No one can compete with the US when it comes to burning gasoline. Americans guzzle 1.2 gallons/person/day, more than any other country by a long shot. 
And then this:
Even with falling gas prices, America's thirst for the open road can take a toll on budget. [Really?]
Reality:
The average daily income in the US is $155. It takes just 1.8% of a day's wages to afford a gallon of gas, and remember, on average, each American "guzzle's" 1.2 gallons per day or about 2% of one wages. 
Compare that to what one spends at fast food restaurants. Compare that to what one spends at the local multiplex theater for popcorn. 

It cost me about $85 for gasoline from Grapevine, Texas (near DFW) to Williston. Had I brought a friend we would have split the cost, $45 each.

Travelocity, today, shows a roundtrip flight from DFW to Williston, two weeks advance, at around $500. Which, by the way, seems to be lot less expensive than it used to be.

The price for one night's lodging in a 1950's-vintage motel in Belle Fourche, SD, after the tourist season ended, cost me $78, almost exactly what the entire trip from Texas to Williston (1,500 miles) cost me in gasoline.

***********************************
What Passes For Science These Days

The Los Angeles Times is reporting, without questioning or critical analysis, that the Sierra Nevada snowpack may be the "thinnest" in over 500 years. The article notes that records of the Sierra Nevada snowpack have only been recorded since the 1930's.

I can't make this stuff up.  By the way, a day later, when this story was picked up by another outlet, the inconvenient truth that data had only been recorded since the 1930's was conveniently omitted.

No mention, of course, was ever made of the "last glacial period" -- something my granddaughters have never mentioned to me, suggesting they are not being taught the whole story of climate change.

********************************
Texas Economy

I really wish everyone had the chance to experience the economic activity in north Texas, specifically north of Dallas-Ft Worth, up through Grapevine, and on to Flower Mound and Denton to the northwest and / or Carrollton and Plano to the northeast. It is quite incredible. It is not an exaggeration to say there are pockets in this area larger than Williston/Watford city combined that show as much ground being broken for new commercial and residential projects as we saw during the height of the Bakken boom.

I saw that yesterday when I made a NASCAR dash from Bob Jones Park (Southlake, TX) the R. E. Good soccer complex in McInnish Park (Carrollton, TX), to get our granddaughter from one soccer game to the next. (We would have helicoptered had a) the weather cooperated; b) we had a helicopter; c) heliports existed; and, d) we had a bit more money.) There are a few roads in disrepair, notably 35E north of Dallas, but nothing compared to the state of roads in some parts of eastern Massachusetts and along the eastern section of the entire US (which I experienced in my drive from Boston to Dallas a couple of years ago). In general, the roads up here (or down here, depending on your perspective) are in incredibly good shape, and many of them relatively new; many are still under construction. Driving the elevated interstates, one can see the booming Texas economy below.

Carpe Diem validates what I am talking about:



By the way, the distance between the two soccer complexes yesterday was 23 miles. Highway driving, our minivan gets about 23 miles/gallon. There were five people in the van -- one driver and four passengers. At $2.09/gallon, the trip cost each of us about 84 cents round trip. Eighty-four cents each. And parking was free and readily available.

Speaking of which: our youngest granddaughter, age 15 months now, got her first experience with tailgate parties. Because of the light rain -- which later turned to pretty heavy rain -- we backed up the minivan, raised the "door," and sat protected while watching the game. She had a grand time.