The Million Dollar Way (The Bakken Oil Blog)

Wednesday, February 3, 2016

Random Update Of First 100 Permits In 2Q15 -- North Dakota -- February 3, 2016

Permit	Operator	County	Field	Satus	Name	Comments
31003	BR	McKenzie	Elidah	conf	Cleetwood 44-22MBH
31004	XTO	McKenzie	North Tobacco Garden	SI/NC	Rita 44X-34HXE
31005	QEP	McKenzie	Grail	prod	Henderson 36-25-35-26T2H	a big well; choked way back
31006	QEP	McKenzie	Grail	prod	Henderson 36-25-35-26BH	a big well; choked way back
31007	QEP	McKenzie	Grail	prod	Henderson 1-12-2-11BH	a big well; choked way back
31008	QEP	McKenzie	Grail	prod	Henderson 1-12-2-11T2H	a big well; choked way back
31009	EOG	Mountrail	Parshall	SI/NC	Shell 44-3239H
31010	EOG	Mountrail	Parshall	SI/NC	Shell 46-3229H
31011	Newfield	McKenzie	Westberg	1348	Wahus Federal 152-97-13-24-11H	t9/15; cum 39K 12/15;
31012	Newfield	McKenzie	Westberg	833	Wahus State 152-97-12-1-12H	t9/15; cum 43K 12/15;
31013	Newfield	McKenzie	Westberg	1348	Wahus Federal 152-97-13-24-4H	t9/15; cum 55K 12/15;
31014	WPX	Mountrail	Van Hook	702	Elk 17-20HE	t10/15; cum 37K 12/15;
31015	Hess	Mountrail	Alger	conf	EN-Abrahamson-LE-155-93-3019H-1
31016	Hess	Mountrail	Alger	conf	EN-Abrahamson-155-93-3019H-4
31017	Hess	Mountrail	Alger	conf	EN-Abrahamson-155-93-3019H-9
31018	EOG	Mountrail	Parshall	conf	Shell 40-3229H
31019	EOG	Mountrail	Parshall	SI/NC	Shell 42-3229H
31020	BR	McKenzie	North Fork	conf	Saddle Butte 14-9MTFH-ULW
31021	EOG	Mountrail	Parshall	conf	Shell 49-3231H
31022	EOG	Mountrail	Parshall	conf	Shell 48-3231H
31023	Whiting	Williams	East Fork	prod	P Berger 156-100-14-7-19-13H	a huge well;
31024	Whiting	Williams	East Fork	loc	P Berger 156-100-14-7-19-13H3
31025	Whiting	Williams	East Fork	prod	P Berger 156-100-14-7-19-14H	a huge well;
31026	Whiting	Williams	East Fork	loc	P Berger 156-100-14-7-19-14H3
31027	Hess	Mountrail	Robinson Lake	796	EN-Frandson-154-93-2116H-7	t10/15; cum 45K 12/15; only 8 days in 12/15
31028	Hess	Mountrail	Robinson Lake	596	EN-Franson-154-93-2116H-8	t10/15; cum 29K 12/15; only 17 days in 12/15
31029	Hess	Mountrail	Robinson Lake	578	EN-Frandson-154-93-2116H-9	t10/15; cum 20K 12/15; only 4 days in 12/15
31030	EOG	Mountrail	Parshall	SI/NC	Shell 52-1930H
31031	EOG	Mountrail	Parshall	SI/NC	Shell 6-1930H
31032	EOG	Mountrail	Parshall	SI/NC	Shell 5-1930H
31033	Statoil	Mountrail	Alger	SI/NC	Vachal 3-34 5TFH
31034	Statoil	Mountrail	Alger	SI/NC	Vachal 3-34 6H
31035	Whiting	Mountrail	Sanish	loc	Kaden TTT 11-25H
31036	Whiting	Mountrail	Sanish	loc	Westin TTT 11-25H
31037	Statoil	Mountrail	Alger	SI/NC	Vachal 3-34 8TFH
31038	Statoil	Mountrail	Alger	SI/NC	Vachal 3-34 7H
31039	Statoil	Mountrail	Alger	SI/NC	Vachal 3-34 XW
31040	Thunderbird Resources	McKenzie	Ranch Creek	conf	Watson B N34-11-4H
31041	Thunderbird Resources	McKenzie	Ranch Creek	conf	Watson B N34-11-3H
31042	Thunderbird Resources	McKenzie	Ranch Creek	conf	Watson B N34-11-2H
31043	EOG	Mountrail	Parshall	SI/NC	Austin 92-1807H
31044	XTO	McKenzie	Grinnell	conf	Homer Federal 14X-32F2
31045	XTO	McKenzie	Grinnell	conf	Homer Federal 14X-32F
31046	XTO	McKenzie	Grinnell	conf	Home Federal 14X-32B
31047	OXY USA	Dunn	Manning	loc	State Dvorak A 8-16-21H-1542-96
31048	OXY USA	Dunn	Manning	loc	State Dvorak A 9-16-21H-142-96L
31049	Whiting	McKenzie	Pembroke	SI/NC	Smokeky 2-16-21-15H3
31050	Whiting	McKenzie	Pembroke	SI/NC	Smokey 2-16-21-16HA
31051	Whiting	McKenzie	Pembroke	SI/NC	Smokey 2-16-21-16H3
31052	Whiting	McKenzie	Pembroke	SI/NC	Smokey 2-16-21-16H
31053	Oasis	McKenzie	Camp	conf	Andersmadson 5201 42-24 3B
31054	Oasis	McKenzie	Camp	conf	Andersmadson 5201 42-24 4T
31055	Oasis	McKenzie	Camp	conf	Andersmadson 5201 42-24 5B
31056	Oasis	McKenzie	Camp	conf	Andersmadson 5201 42-24 6T
31057	MRO	McKenzie	Antelope	conf	Charmaine USA 14-35TFH
31058	MRO	McKenzie	Antelope	conf	Clarks Creek USA 14-35H
31059	MRO	McKenzie	Antelope	conf	Ethel USA 14-35TFH-2B
31060	MRO	McKenzie	Antelope	conf	Heather USA 13-35TFH
31061	MRO	McKenzie	Antelope	conf	Juanita USA 13-35H
31062	Denbury	Bowman	Cedar Hills	170	CHSU ML41-02NH 05	Red River B, t7/15; cum 30K 12/15
31063	Whiting	McKenzie	Pembroke	SI/NC	Smokey 2-16-21-16HU3
31064	SM Energy	McKenzie	Poe	SI/NC	Rich 1X-16HA
31065	SM Energy	McKenzie	Poe	SI/NC	Steve 1-16H
31066	SM Energy	McKenzie	Poe	SI/NC	Rini 1X-16HB
31067	Whiting	Williams	Epping	loc	P Ellis 155-99-13-31-30-4H
31068	Whiting	Williams	Epping	loc	P Ellis 155-99-13-31-30-4H3
31069	Whiting	Williams	Stockyard Creek	loc	P Ellis 155-99-13-31-7-13H3
31070	Whiting	Williams	Stockyard Creek	loc	P Ellis 155-99-13-31-7-13H
31071	Enerplus	McKenzie	Eagle Nest	conf	Bait 149-95-36-25H
31072	Enerplus	McKenzie	Eagle Nest	conf	Tackle 149-95-36C-25H
31073	SM Energy	Divide	West Ambrose	SI/NC	Inez 1B-16HN
31074	SM Energy	Divide	West Ambrose	SI/NC	Loren 1B-16HS
31075	SM Energy	Divide	West Ambrose	SI/NC	Rolie 1-16HN
31076	HRC	Dunn	McGregory Buttes	prod	Fort Berthold 147-94-2B-11-6h	a big well
31077	HRC	Dunn	McGregory Buttes	prod	Fort Berthold 147-94-2B-11-7H
31078	HRC	Dunn	McGregory Buttes	lprod	Fort Berthold 147-94-2B-11-8H	a big well
31079	HRC	Dunn	McGregory Buttes	loc	Fort Berthold 147-94-2B-11-10H
31080	HRC	Dunn	McGregory Buttes	prod	Fort Berthold 147-94-2B-11-9H	a big well
31081	HRC	Dunn	McGregory Buttes	loc	Fort Berthold 148-94-35C-26-10H
31082	HRC	Dunn	McGregory Buttes	loc	Fort Berthold 148-94-35C-26-7H
31083	HRC	Dunn	McGregory Buttes	loc	Fort Berthold 148-94-35C-26-9H
31084	HRC	Dunn	McGregory Buttes	loc	Fort Berthold 148-94-35C-26-8H
31085	HRC	Dunn	McGregory Buttes	loc	Fort Berthold 148-94-35C-26-6H
31086	Whiting	Williams	Truax	prod	P Pankowski 153-98-4-6-7-13H	a huge well
31087	Whiting	Williams	Truax	prod	P Pankowski 153-98-4-6-7-13H3	a huge well
31088	Whiting	Williams	Truax	prod	P Pankowski 153-98-4-6-7-13HA	a huge well
31089	Whiting	Williams	Truax	prod	P Pankowski 153-98-4-6-7-14H3	a huge well
31090	BR	Dunn	Cabernet	conf	E. H. Stroh 4B MBH-ULW
31091	XTO	McKenzie	Siverston	conf	Nordeng 34X-23A
31092	XTO	McKenzie	Siverston	conf	Nordeng 34X-23AXB
31093	XTO	McKenzie	Siverston	conf	Nordeng 34X-23EXF
31094	XTO	McKenzie	Siverston	conf	Nordeng 34X-23B
31095	XTO	McKenzie	Siverston	conf	Nordeng 34X-23F
31096	Crescent Point	Divide	Colgan	conf	CPEC Elgaard 3-31-32-164N-100@
31097	Crescent Point	Divide	Colgan	conf	CPEC Elgaard 2-31-32-164N-100W
31098	Hess	Williams	Beaver Lodge	444	BL-Iverson C-155-96-1423H-2	t12/15; cum 12K 12/15;
31099	Hess	Williams	Beaver Lodge	886	BL-Iverson C-155-96-1423H-4	t11/15; cum 34K 12/15;
31100	Hess	Williams	Beaver Lodge	740	BL-Iverson C-LE-155-96-1423H-1	t11/15; cum 30K 12/15;
31101	Samson Resources	Divide	Ambrose	conf	Beetle 3130-7H
31102	Samson Resources	Divide	Ambrose	conf	Beetle 3130-5H
31103	Samson Resources	Divide	Ambrose	conf	Charger 0607-6h
31104	CLR	Dunn	Oakdale	A	Hawkinson 15-22H	no test date; s5/15; cum 7K 12/15;
31105	Whiting	McKenzie	Poe	PNC	Koala 44-5H
31106	Whiting	McKenzie	Poe	SI/NC	Koala 44-5-2H

Number Of Active Business Registrations In North Dakota Leveling Off -- February 3, 2016

From The Dickinson Press:

The number of active business registrations in North Dakota climbed to nearly 117,000 last year and is up more than 35 percent since 2011, but filings have begun to level off with the economic slowdown driven by depressed oil and farm commodity prices, Secretary of State Al Jaeger said.

The slowdown and additional staff have helped the office catch up with processing, he said, after high demand for services in 2012 led to his controversial decision to shorten window hours by three hours, drawing criticism from Democrats during his 2014 re-election campaign.

Active business registrations soared from 85,911 at the end of June 2011 to 116,814 at the end of 2015. The registrations include corporations, limited liability companies (LLCs), partnerships, nonprofits, trade names, trademarks and cooperatives.

Monthly filings peaked at 1,851 in May 2012 as the oil boom was in full swing. But they’ve since leveled off, averaging 966 per month during the last three months of 2015 – the first quarter to average less than 1,000 filings per month since the second quarter of 2011.

He said he hopes he won’t lose any staff to budget cuts that are expected after the release of a new revenue forecast Monday.

Otherwise, he may have to "shorten window hours again." LOL.

I vaguely remember that story. I think it was three hours / week. Maybe it was per day. Regardless, I assume he knew what he was doing.

Random Update On Shale Gas In Europe -- February 3, 2016

Russia - Saudi Agreement? Not Gonna Happen -- Goldman Sachs

Story at Rigzone. Archived.

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Shale Natural Gas In Europe -- Update

When I saw the headline over at Rigzone, I didn't know what to think. Here's the headline: ""Mainland Europe Shale Gas: What Now?"

The last I had heard was that with regard to shale gas in Europe, it was a bust, geologically and politically. And now with the world awash in natural gas, I thought, what fresh hell is this?

But one almost has to laugh. Here's the story:

The shale gas boom has proved to be a game changer for the United States economy, bringing about an era of cheap natural gas that has helped to make the country's industry more competitive. Some other countries around the world would like to follow suit, with perhaps Argentina having the best hope of replicating the success seen in North America thanks to its Vaca Muerta shale gas province.

Europe has also been seen as a future shale gas region in recent years, but a Wood Mackenzie survey of global shale gas drilling activity highlights only three European countries – Poland, Ukraine and the UK – as having any shale gas wells scheduled for 2016.

The key data points from the survey:

the UK will lead the way; the country has "well-documented" support for the development of a shale gas industry and six wells are expected to be drilled in the UK in 2016
mainland Europe looks bleak after several setbacks in 2015
results in Poland were disappointing, and a widespread anti-fracking movement has also hindered shale gas development; last summer COP "gave up the ghost in Poland; CVX, XOM, Total, and MRO all withdrew during the previous three years
in the Ukraine, Eni could drill its first shale well in the Lviv Basin, in the west Ukraine, depending on regulatory and security factors
Denmark: disappointing
Germany: disappointing; some legislative support but members of the coalition government could not agree on the details

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Pakistan

From Rigzone:

Pakistan hopes to tap potential shale gas resources in the country and has alloted the exploration project to two oil and gas companies, a local media reported Tuesday.

"Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Company Limited (PPL) have been tasked to carry out a pilot project to explore shale gas deposits, estimated at more than 10,000 trillion cubic feet (Tcf)."

The Pakistani government is making efforts to explore for shale gas resources given a supply deficit of around 2 billion cubic feet per day (Bcf/d) gas in the South Asian country and rising energy needs, while domestic gas production stands at around 4.16 Bcf/d gas.

Wow, I hate dealing with natural gas. I can't get my hands around "trillions" of anything. Here we go again, another mother lode of natural gas estimated at "10,000 trillion cubic feet." To put that in perspective, the Marcellus is huge. Huge. And it's estimated to have 480 trillion cubic feet, so 10,000 trillion cubic feet seems a bit noteworthy. From an earlier post:

Disclaimer: I often make simple arithmetic errors. Numbers rounded. Natural gas reserves according to BP/wiki, 2013 - 2014 (US estimate as of December 2013). Top five countries:

Russia: 6,000 trillion cubic feet

Iran: 1,000 trillion cubic feet

Qatar: 900 trillion cubic feet

Turkmenistan: 600 trillion cubic feet

US: 350 trillion cubic feet

#11: Australia: 152 trillion cubic feet (as of January, 2014). (See this post.)

Now, let's go back and re-run the numbers that were posted earlier:

that recent huge Mediterranean natural gas find: 30 trillion cubic feet

Barnett, revised USGS figures: 53 trillion cubic feet

Utica, newly revised figures: 782 trillion cubic feet

Marcellus, EIA revised estimates: 65 trillion cubic feet, "proved" reserves

October 18, 2017: USGS survey -- 300 trillion cubic feet of natural gas, up from roughly 70 trillion cubic feet in its last survey in 2010.

Bakken/Three Forks, USGS estimate: 7 trillion cubic feet

Qatar: 800 trillion cubic feet, wiki, conversion

So, Pakistan might have discovered natural gas reserves almost twice what Russia has? I'm not holding my breath.

Miss Emily's Picture, John Conlee

Tuesday, February 2, 2016

Huge New Natural Gas Electric Plant Proposed For Chicago Area -- February 2, 2016

I'll let readers point out where I am wrong.

From Crain's Chicago Business:

Think of things Chicago has in abundance and cold weather, steakhouses and corrupt politicians might come to mind.

You might not add electricity to this list, but you ought to. With five mammoth nuclear stations and several coal-fired facilities furnishing more than enough juice to keep lights burning bright here, building a huge new plant might cause some head-scratching.

But a Maryland-based power generator plans to do just that. Competitive Power Ventures Holdings, based in the Washington, D.C., suburb of Silver Springs, says it's constructing an 1,100-megawatt plant fueled by natural gas in Grundy County, about 50 miles southwest of Chicago, near Exelon's existing Dresden nuclear plant.

That's an unusually large combined-cycle gas plant, generating enough to power 1.1 million homes—more than either of Dresden's two reactors. (Dresden as a whole can power 1.5 million homes.)

CPV unveiled the $1 billion-plus CPV Three Rivers Energy Center, as it's called, on January 28, 2016. The facility will be built and run strictly by union workers. The project is expected to create about 500 construction jobs and 25 full-time jobs once built.

My comments to the reader who sent me the link:

As plants get bigger, economy of scale comes into play. Something doesn't make sense with this. The most I've seen a natural gas plan cost is about $850,000/MW.

This one is said to be $1 billion-plus for 1,100 MW.

Even at $1 billion, that works out to over $900,000/MW -- my hunch is that cost overruns will easily put this into the $1 million / MW ballpark.

Maybe readers can point out something I missed. I often make simple arithmetic errors. Perhaps I put the decimal point in the wrong place.

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Apparently The Science Is Not Settled

NOAA data shows downward trend of extreme high temps since 1930s.

Of course, the warmists cannot handle this. Reminds me of the Romantic Period which followed the Industrial Revolution.

The Number Of Active Rigs In North Dakota Hits A New Post-Boom Low: 44 -- February 2, 2016

One (1) well comes off the confidential list Wednesday:

31091, SI/NC, XTO, Nordeng 34X-23A, Cabernet, no production data,

Active rigs:

	2/2/2016	02/02/2015	02/02/2014	02/02/2013	02/02/2012
Active Rigs	44	145	192	187	201

No new permits.

Slawson canceled five (5) permits, they were all Hunter permits in Mountrail County.

There was one permit renewal: a CPEUSC Fairholm permit in Divide County renewed by Crescent Point Energy.

Halcon added five (5) more wells to the "plugged or producing" list.

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Note to the Granddaughters

Our oldest granddaughter had an eventful weekend.

Friday evening she participated in a music ensemble competition. She played the bass flute in her ensemble. I think I may have talked about this before on the blog; can't remember. Regardless, yesterday, she came home with a first place ribbon: her ensemble took first place.

On Saturday, she was among 300 middle school students to participate in a math and science competition. Today, she came with a ribbon, having placed 10th among the 300. I assume the top nine were boys, and all with Indian (sub-continent India) or Asian background.