Just How Big IS The Bakken?

This looks like a press release, but it's a huge story, nonetheless, at the Bismarck Tribune.

BNSF has created a special Unit Energy Desk to plan trains to and from the oil patch, with unit trains up to 118 oil tankers.

BNSF has increased its capacity to haul up to 1 million bopd out of North Dakota and Montana. North Dakota now ships in excess of 660,000 bopd, the most recent reporting period in June. Pipeline capacity is 450,000 bopd. Another 200,000 bopd of pipeline capacity will come on line by the middle of next year, but the gap between pipeline capacity and production will continue to widen before it narrows, according to the linked story.

BNSF currently has eight oil terminals with two more coming on line this year. [There are currently 16 CBR facilities in North Dakota; I don't know if "two more" is part of the sixteen or are we looking at 18 CBR facilities?]

BNSF says it has invested almost $200 million, and has hired more than 560 employees to fill existing and new positions in North Dakota and Montana.

"BNSF has been hauling Bakken crude out of the Williston Basin area for over five years. In that time, we have seen the volume increase nearly 7,000 percent, from 1.3 million barrels in 2008 to 88.9 million in 2012," said Dave Garin, BNSF group vice president, Industrial Products.

Just how big is the Bakken? At least one company thinks it could be a trillion-barrel reservoir with 45 billion bbls of recoverable oil.  

"He Didn't Build It" -- Boy, That's For Sure -- The August ISM Numbers

From Bloomberg, the committee's official statement, released September 4, 2012:

The PMI registered 49.6 percent, a decrease of 0.2 percentage point from July’s reading of 49.8 percent, indicating contraction in the manufacturing sector for the third consecutive month.

This is also the lowest reading for the PMI since July 2009.

The New Orders Index registered 47.1 percent, a decrease of 0.9 percentage point from July, indicating contraction in new orders for the third consecutive month.

The Production Index registered 47.2 percent, a decrease of 4.1 percentage points and indicating contraction in production for the first time since May 2009.

The Employment Index remained in growth territory at 51.6 percent, but registered its lowest reading since November 2009 when the Employment Index registered 51 percent.

The Prices Index increased 14.5 percentage points from its July reading to 54 percent. Comments from the panel generally reflect a slowdown in orders and demand, with continuing concern over the uncertain state of global economies.” 

Wow, that's an understatement.

Lowest readings since July, 2009.

It's been too long since the last recession to call the coming recession a double dip recession. This next recession will get a new moniker. 

I did not watch CNBC this morning when this came out; I can only imagine the spin. This is really quite incredible.

Lowest readings since July, 2009.

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Construction numbers

And then this headline from Bloomberg: Construction spending in US unexpectedly dropped in July.

Brings new meaning to "he didn't build it."

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US Slips in Competitiveness Ranking

CNBC, September 5, 2012:

The United States has slipped further down a global ranking of the world's most competitive economies, ....

The world's largest economy, which was placed 5th last year, fell two positions to the 7th spot --marking its fourth year of decline.

A lack of macroeconomics activity, the business community's continued mistrust of the government and concerns over its fiscal health ...

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FedEx cuts estimates for June - August quarter

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Record 46 million Americans on food stamps

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This Is Truly An Incredible Human Interest Story From The Bakken

Link here to the Bismarck Tribune. More at the link.

By-line: Alexander, North Dakota.

Entrepreneurial start-up: mobile shower, laundry facilities

Seed money: $15,000; selling muskrat pelts to Chinese firm at $10/pelt; past two years

He pitched the idea to his parents back at their farm near Lake Preston in eastern South Dakota. His father and other relatives helped him convert a 53-foot semitrailer into a five-stall shower center with an office and laundry facilities.

A 6,000-gallon semi tanker alongside the trailer provides fresh water and collects the graywater.

Jensen paid for the renovation with $15,000 he earned in the past two years trapping muskrats, whose fur is sent to China to be fashioned into coats, slippers and earmuffs. Each pelt fetches about $10.

“That’s a pile of muskrats,” Jensen said after the construction was done.

The mobile venture, called Better Showers, rolled into an RV campground in the heart of the oil patch in June. A shower costs $10, with a half-price discount for residents of the RV park where the business is located. Towels and washcloths are $1 extra. The water pressure is strong, the soap is free and there is no time limit.

The business is parked along U.S. Highway 85, the busiest two-lane highway in western North Dakota, where about 100 trucks pass by every 10 minutes. The showers are open from 4 to 11 p.m., the time when most people are getting off work.

Throw in a mobile office: laptop, scanner, printer, internet connection, and it will be complete. Oh, and soft drinks. No beer.

By the way, the target audience carries a fair amount of cash; $10 for many of them is nothing.

Frac Sand For Sale

Frac Sand for sale:  e-mail frac.sand@prairieblue.com or call Bruce Conway at 701-770-2221 for price and availability.

Purely Coincidental: US Debt Crosses the $16 Trillion Mark; DNC Convention Opesn

Just saying.

Link here.