Idle Rambling While Watching Game 5 -- Takeaway Capacity -- The Bakken, North Dakota, USA

I don't know if folks have followed my thoughts regarding takeaway capacity or if I have adequately expressed them on my blog. Based on Lynn Helms' comments over the past year, and all the corporate slide presentations (WLL, BEXP, CLR) I thought the takeaway capacity was well ahead of production.

Then about two months ago, two dots connected. First, I started reading about more and more crude-by-rail (CBR) oil loading facilities; and, then, b) I started seeing these facilities being built in the local area. I started telling a friend who I bounce ideas off of, that something doesn't make sense. If takeaway capacity is more-than-adequate, and transporting by rail is a bit more expensive, why are they building all these CBR facilities?

Two explanations: a) either "they" like the flexibility of rail; or, b) there is going to be a lot more oil produced than we are being told.

I am beginning to think the latter and expressed that to several folks this past weekend in idle chatter.

I have now come across talking papers by at least two analysts that suggest pipeline capacity will be stretched/strained/come under pressure to keep up. There have been several articles in the past week or so that suggest the output from the Bakken could triple by 2015.

This is truly amazing. Who would have thought that takeaway capacity was going to be an issue at this stage?

Now, add this dot:

The Bakken Takeaway Conference in Denver, January 31-February 1, 2012.

If takeaway capacity was not going to be a problem, why schedule a conference on that very topic?

Something tells me we are going to see an explosion of production by this time next summer and perhaps takeaway capacity will become a bigger issue than any would have guessed.

If nothing else, the Bakken Takeaway conference in Denver in late January, 2012, could not have come at a better time.

Rumor: Harold Hamm To Visit Cyclone 28 Tuesday, October 25, 2011

The note was sent to me by a reader; a big thank you to RJ.

Cyclone 28 is located a few miles north of Killdeer as of today, according to RJ and the NDIC GIS map server. If NDIC is accurate, the well is Kate 2-19H, northwest of Killdeer, probably in some very beautiful country.

It gives me a chance to remind folks that Cyclone has an interactive map to track their rigs.  When you get there, click on "North Dakota," obviously, and as the red icons pop up, click on the one you are interested in.

Quite a nice site by Cyclone.

For Investors Only -- Some Links While Waiting for Reports

Motley Fool: What to expect in energy this earnings season. Note the emphasis on pipelines, something talked about frequently on the blog.

Motley Fool: Miss or not, Schlumberger packs a wallop. SLB is one of my favorite companies, and I accumulate SLB shares.

Wow: Wall Street analysts expect a rise in oil prices to help boost Exxon Mobil Corp.’s third-quarter profit by about 40 percent over last year, and Chevron Corp.’s earnings to widen by about 84 percent. I have told my story too many times about CVX to tell it again; needless to say, I "love" CVX.

Financial Times sneak peak on the majors.

Opportunity for Investing in Dome Housing in Watford City Area -- The Bakken, North Dakota, USA

Update

See first comment. We don't know if this is example of dome housing referenced in post below, but gives you some idea of dome housing.

Original Post

I received the following as a comment at an earlier post. Knowing that not all folks see the comments, and this individual is looking for widest audience, I will post his comment here:

Hi Bruce

Just read your pages and would like to post that I am from Boston via New Orleans, as Jarvis Green is.

I have started building Dome buildings in Watford City for the hundreds of "new" campers that soon face some cold months. I would appreciate a contact from any investors still interested in housing projects on my 200+ acres.

The domes can house workers, RVs, trailers, trucks; and, I have one or two that can create a four (4) story hotel site.

The structures are foam and concrete and can withstand high winds, as in category 4 storms.

Thank you for the opportunity to post,

My email is DakotaDome@Gmail.com

Ed D. 

No hidden agenda here. This is not a paid advertisement. Ed simply wrote me.

Nine (9) New Permits -- OXY USA With Two Nice Wells in Burke County -- The Bakken, North Dakota, USA

Daily activity report, October 24, 2011 --

6 of 13 wells reporting today actually reported an IP. 

Operators: BEXP (4), Whiting (2), Eternal Energy, Oasis, SM

Fields: Sanish, Alger, and Ash Coulee

Eternal Energy has a permit for another wildcat (is this #3 in the past few days?).

BEXP has permits for four wells on one pad, Alger field.

Some great wells were reported today:

• 20208, 960, CLR, Hawkinson 2-27H, Dunn
• 20288, 1,377, MRO, Fisher USA 41-5H, Mountrail
• 20196, 1,592, OXY USA, Sorlie 160-98-18-P-1H, Burke
• 20317, 1,462, OXY USA, Swenson 160-91-11-P[1H, Burke
• 20403, 1,391, Slawson, Jaguar 2-32H, Mountrail

Only 6 of 13 wells that reported today were completed/fracked. That's less than half.