1.034 bo/day + 0.304296/day = 1.34 million boe/day
Disclaimer: I often make simple arithmetic errors.
Permitting:
76 in November is down from 82 in October.
Rig count:
December's count at 40, is above the 37 in November, and the 33 in October.
DUCsand inactive wells:
estimated to be 839, down 21 from end of October to end of November
estimated number of inactive wells is up 16, up to 1,519 inactive wells, estimated
Takeaway capacity:
dependent on CBR to coastal refineries
Natural gas
US storage is now 0.1% below five-year average
statewide capture: 89%
FBIR Bakken capture: 88%
"mandate": 85% by October 31, 2018
"mandate": 91% by November 1, 2010
NOTE: The percentage of gas flared decreased to 11% with Alliance Pipeline back in service. The Tioga gas plant is still way below capacity; it is operating at 83% capacity. The expansion of gas gathering from south of Lake Sakakawea has now been approved with start-up anticipated in 1Q17. (That's this quarter, folks!)
This is really quite a story. Denmark already has an incredibly bad energy story going forward (highest utility rates in Europe due to all their wind energy) and now add one more problem: Denmark's largest gas field will close by the end of ... next year. Not 20 years from now. Not 10 years from now. Not even five years from now. Less than two years from now Denmark's largest gas field to close.
UPI is reporting that the operator, Maersk Oil says it has not found an economic solution to continue production from the Tyra field. Wow.
This is not simply the largest gas field supplying Denmark, it's about the only gas field supplying Denmark (it supplies 90% of the nation's gas production).
Maersk Oil operates the Tyra natural gas field on behalf of a broader
consortium that includes partnerships with energy majors like Royal
Dutch Shell. Maersk said that, even after spending more than $140
million on reinforcing structures associated with production over the
past 15 years, safety is becoming a clear factor.
The company said in a statement decommissioning of Tyra will proceed with the aim of ending production by October 2018. Starting next month, any resources now targeting reconstruction will go toward shutting the field down.
**************************
Rugby, Out; Center, In
Geographical Center of North America
I first heard about this "controversy" some weeks ago; didn't post it. A couple days ago a reader sent me a long note on his thoughts on this issue. Now The Bismarck Tribune covers it:
CENTER -- In the debate for the title
Geographical Center of North America, a new contender has risen, and
the namesake may be more literal than originally intended.
Center,
an Oliver County town of roughly 600 located 40 miles northwest of
Bismarck, is the center of North America, at least according to the
calculations of Peter Rogerson, a professor of geography and
biostatistics for the University of Buffalo in New York.
“It
was a great sort of serendipitous surprise when (the geographical
center of North America) came out when it was plotted out on the map,”
he said. “I said, ‘Oh my gosh, it is called Center.’ ”
The
professor has done work determining important points, including centers
of population in the U.S. He said he is more interested in determining
geographical points, including the geographical center of North America.
********************************
Notes To The Granddaughters
I was probably seven or eight years old when I got my first "train set." We were living in Williston, North Dakota. My parents must have had "no" money at that time, and four children. How my mother was able to find gifts for all her children in those days still amazes me. We never had a "bad" Christmas; it was amazing how many presents she could find for all four children (later, the family grew to six children).
My first "train set" was a Lionel train set. I still have the set; it's in storage somewhere: a locomotive, a coal car, a caboose, and two boxcars.
I was curious where BR came up with the "railroad" names for some of their CCU wells in Corral Creek.
"Mainstreeter"? It's a railroad magazine. Other CCU railroad-related names: Boxcar, Burner, Alantic Express, Pacific Express, Zephyr, Pullman, Olympian (Hiawatha).
I never added to that Lionel train set, and never did anything will trains after my childhood years until some decades later when we moved to Germany where/when I became an avid collector of Marklin. Huge, huge collection of Marklin. In storage. Will be handed down to great-grandsons some day.
Screenshots from a file report of the EOG Clarks Creek pad above. To make it easier to see, I had to break up the graphic into three screenshots. It's difficult to sort it all out, but I think one can count 15 horizontals running south, and 17 horizontals running north. This does not include any third or fourth bench Three Forks wells.
Several years ago, shortly after starting the blog, I said that if you "had" one well, you would definitely "two." You might have four, and you could possibly have many, many more.
Almost anyone with two or more wells needs professional assistance.
Disclaimer: this is not an investment site. It is also not a travel site nor a North Dakota tourist site. It most definitely is not a dance site.
WPX Energy buys into the Permian (original post incorrect; I made huge error; a reader corrected me, see first comment; much appreciated). From Yahoo!Finance/MarketWatch:
18,100 net acres acquired; brings WPX up to 120,000+ acres in the Permian
23 producing wells in the acquisition
$775 million
will pay with proceeds from equity issuance and cash on hand
Back-of-the-envelope: $775 million / 18,100 net acres -- $43,000 / acre.
Sanchez, Blackstone team to buy Eagle Ford acreage from Anadarko for $2.3 billion, from Oil & Gas Journal:
Sanchez Energy Corp., Houston, and funds managed by private equity firm Blackstone Energy Partners LP have entered a 50-50 partnership and agreed to acquire working interest in 318,000 gross operated acres in the western Eagle Ford shale of South Texas from Anadarko Petroleum Corp., The Woodlands, Tex., for $2.3 billion.
Encompassing the Comanche area, the 155,000 acres net to Sanchez Energy and Blackstone is contiguous to Sanchez Energy’s Catarina area, where the firm has 106,000 net acres in Dimmit, LaSalle, and Webb counties with 100% working interest. Eagle Ford shale development covers 80% of the acreage to be acquired, with resource potential from the Austin Chalk and Pearsall shale.
includes 132 DUCs
70% liquids
proved reserves: 300 million boe, 70% liquids
individual rates of return expected to exceed 100%
more than 4,000
Eagle Ford drilling locations
more than 20 years of
economic drilling inventory at current strip prices
$2.3 billion / 155,000 net acres = $15,000 / acre.
Later, 11:35 a.m. Central Time: this is why I love to blog. Earlier today I noted a story that I thought was quite amazing: Saudi Arabia saying that a) it had cut production to less than 10 million bopd in January; and, b) that it planned to cut deeper. I thought that was pretty remarkable, deserving of a headline story over at CNBC (maybe next week). But Zacks caught it:
Saudi surprised the world bycutting oil output to less than 10 million
barrels a day, which is below its pre-set level, and indicating a
renewal of its plans to slash crude output in six months. With this, the
world’s biggest oil exporter is currently pumping at a 22-month low.
Later, 9:21 a.m. Central Time: there's a big article, page B10, Friday's print edition of The Wall Street Journal, talking about the difficulty OPEC will have getting the price of oil to rise. The big problem: huge global reserves. Part of the problem is the huge amount of oil placed in storage when price of oil dropped so low, part of Saudi's trillion-dollar mistake. OPEC says this "storage" is their chief "enemy," not US shale producers. Wink, wink.
The problem: no one knows how much oil is actually in storage around the world:
While most industrialized nations publish data about oil storage, an increasing proportion of inventories are stored in Asian countries that don't publicize such data. Russia, the world's largest oil producer, stopped publishing such information in 2009. Singaport, a storage and refining hub, keeps storage numbers secret for refiner, which consider the information proprietary.
OPEC will need to force prices up quickly to move oil out of storage, pushing the market into backwardation -- a term that means oil is more expensive today than in the future. Storing oil generally works only when traders believe they can sell for higher prices in the future (contango).
Pricing: Saudi announcement not moving the price of oil, WTI under $53; about $52.50. Mexico: Rigzone looks at "what's next" for Mexico's energy sector. Average production was 2.3 million bopd in 2015, the lowest level since 1981.
Wood predicts that PEMEX’s production will fall below 2 million barrels
per day (MMbpd) over the next 12 to 18 months because of Mexico’s aging
oil and gas fields. Optimistically, Mexico’s production will climb above
2 MMbpd in 2020.
We are talking about more extensive coverage on the west and east coast as well as expansions in states currently without any stations, like North Dakota or Arkansas, that were supposed to get some Superchargers in 2016, but which are now on the 2017 map.
Last night, Tesla updated the Supercharger network map on its website to
show its expansion plans for next year. With only a few weeks left in
2016, the company had fallen behind on its 2016 expansion plans for its
network of DC fast-charging stations and the current Supercharger maps,
which should have looked like the “2016 maps,” were missing several
stations.
Utilities paying customers to take their electricity? From ISO Express (New England) early this morning?
India: low-cost airline to buy up to 205 new Boeing planes.
California: that didn't last long. Wasn't it just last year we were told California budget looked great? Maybe it was two years ago. Whatever. Governor Brown notes that the deficit is back: $1.6 billion. This morning -- on some cable news network, which I now forget -- said that public schools could expect not getting the $1.2 billion they otherwise might have gotten -- whatever that means. From The Los Angeles Times:
Brown's budget does not take into account a repeal of the Affordable
Care Act, which would be unlikely to happen during the fiscal year at
hand. But the governor made clear such a rollback could have a
significant impact on California, where federal subsidies to Medi-Cal
now top $16 billion.
Shipping companies now know that within three years all vessels
involved in international trade will be required to use fuel with a
sulfur content of 0.5% or less—an aggressive standard, considering that
in most of the world today, ships are currently allowed to use heavy
fuel oil (HFO) bunker fuel with up to 3.5% sulfur.
This is a big deal.
Ships now consume about half of the world’s residual-based heavy fuel
oil, but starting in January 2020 they can’t—at least in HFO’s current
form. How will the global fuels market react to a change that would
theoretically eliminate roughly half the demand for residual fuels? How
will ship owners comply with the rule? What are their options?
Today we
discuss the much-lower cap on sulfur in bunker fuels approved by the
International Marine Organization, and what it means for shippers and
refineries.
The international shipping industry is a major energy consumer, and for that reason we’ve blogged about it often.
We talked about how the International Maritime Organization (IMO) in
recent years has been implementing rules that gradually reduce emissions
of sulfur (sulphur for many of our non-American readers). In January
2012, the “global” cap on sulfur content in marine fuel was reduced to
3.5% (from the old 4.5%), and in
January 2020 (per an IMO decision in October 2016) it will be reduced
to a much stiffer 0.5% sulfur cap. There has been an even tougher
standard (a 0.1% sulfur cap) in place in the IMO’s “Sulphur Emission
Control Areas” (SECAs, or sometimes ECAs), which include Europe’s Baltic
and North seas and (more recently) areas within 200 nautical miles of
the U.S. and Canadian coasts.
