Only two wells coming off the confidential list today:
- 17308, drl, BR, CCU Meriwether 44-19TFH, Corral Creek,
- 22572, 147, Samson Resources, Saratoga 12-1-161-92H, Black Slough, t9/12; cum --
Wednesday, October 17, 2012
Two Confidential Wells Reported
Active rigs: 186 (steady)
Only two wells coming off the confidential list today:
Only two wells coming off the confidential list today:
How Big Is Crude-By-Rail Coming Out of the Bakken? Pretty Big
Link to Billings Gazette (huge "thank you" to Don for the link).
The Bakken is producing about 700,000 bopd.
Rail. Flexible. Scalable. Incredible.
BNSF’s oil shipments out of the Bakken have grown exponentially, from 1.3 million barrels in 2008 to 90 million barrels in 2012.
Thirty-five facilities for unloading crude oil from trains are under development in several states, and that will lead to even more shipments, Rose said.
Likewise, the railroad is shipping more freight into the Bakken area. Sand used in hydraulic fracturing is in big demand, as well as other products such as lumber used to build new houses, Rose said.
BNSF’s big investment in oil hauling resulted from a shortage of pipeline capacity that has constrained oil shipments out of the Bakken.90 million / 365 --> 250,000 bopd.
The Bakken is producing about 700,000 bopd.
Rail. Flexible. Scalable. Incredible.
Wall Street Money Discovers the Bakken
Earlier today, I linked an article in a fairly well-known newspaper, but did not post this from the article:
Mr. Perkin said he was putting together a group to invest in a unique way in the oil boom in North Dakota: lodging.
“Every oil company in the world is going gaga over the Bakken oil fields,” he said. “The problem is there is zero infrastructure: terrible roads, no restaurants, nowhere to stay, the airport is awful, no hospitals or schools, nothing.”
Despite all that, he said, he has a group of clients investing $60 million into a hotel project with another $40 million of investments planned.
“It’s the kind of thing people are looking for — infrastructure and a hard asset,” he said. “It’s like the California gold rush. Who made the most money on the gold rush? Levi Strauss. We’re looking at the ancillary businesses that come out of the demand for oil.”
This is not without risks beyond the lack of liquidity in the deal. If the price of oil drops below $60 a barrel, the demand for Bakken crude could slow, he said. But now, he said, clients like investments that appear uncorrelated with the market volatility the fiscal cliff could cause.
So, what newspaper? The New York Times.
MDW has noted that Wall Street money has not found its way to the Bakken yet. Occasionally I get notes from readers suggesting that once Wall Street "discovers" the Bakken, the bar will be raised; it will be a whole new ball game.
I believe this is the second post -- only the second post -- that links a story about Wall Street money discovering the Bakken. Here was the first.
HUGE ARTICLE: The Bakken: A New Exploration Frontier -- SeekingAlpha
Note: this is a story I have been anticipating for some time. I am guilty of not having done some of the primary research on my own, but Richard Zeits, SeekingAlpha.com, has provided that for us, in a format much better than I could have done. For additional background, you may want to read a couple of other posts with the same tag.
I don't know if it's hyperbole to say this is one of the most exciting developments to come out of the Bakken in the past few months.
There are so many story lines in this Richard Zeits story, but maybe for another time.
Some months ago I think I jumped the gun, jumping on the same bandwagon as many others, suggesting and agreeing that "we" were entering the manufacturing stage in the Bakken. Then the blockbuster briefing by Continental Resources following through with aggressive plans to test two, three, or four "benches" below the upper Three Forks.
Earlier this month, I started changing my comments to reflect that perhaps some operators were moving into the manufacturing stage, some, particularly Continental Resources, were still very much in the exploration phase. Other operators, due to the high cost of completing a well, were delaying plans to enter the manufacturing phase.
Now, we have another nice SeekingAlpha.com article suggesting that exploration is still the name of the game for some in the Bakken.
This could be huge, and was foreshadowed by PN.com with regard to Slawson (see other posts with the same tag).
Back on June 16, 2012, I posted a note about Slawson testing the Upper Bakken shale (for newbies, 99% of the "Bakken formation" wells are middle Bakken wells (dolomite sand); "no one" is drilling the Upper Bakken "tight" shale -- "no one," that is, except Slawson.
According to the linked SeekingAlpha.com story, CLR recently made reference to the drilling results by Slawson in the Mondak, recently made public, that tested the upper Bakken shale.
It is very, very exciting.
Play this loud (real loud) while reading the SeekingAlpha.com article:
What is Love? A Night at the Roxbury, Haddaway
75th best-selling single of all time in Germany.
I don't know if it's hyperbole to say this is one of the most exciting developments to come out of the Bakken in the past few months.
There are so many story lines in this Richard Zeits story, but maybe for another time.
********************
Some months ago I think I jumped the gun, jumping on the same bandwagon as many others, suggesting and agreeing that "we" were entering the manufacturing stage in the Bakken. Then the blockbuster briefing by Continental Resources following through with aggressive plans to test two, three, or four "benches" below the upper Three Forks.
Earlier this month, I started changing my comments to reflect that perhaps some operators were moving into the manufacturing stage, some, particularly Continental Resources, were still very much in the exploration phase. Other operators, due to the high cost of completing a well, were delaying plans to enter the manufacturing phase.
Now, we have another nice SeekingAlpha.com article suggesting that exploration is still the name of the game for some in the Bakken.
This could be huge, and was foreshadowed by PN.com with regard to Slawson (see other posts with the same tag).
Back on June 16, 2012, I posted a note about Slawson testing the Upper Bakken shale (for newbies, 99% of the "Bakken formation" wells are middle Bakken wells (dolomite sand); "no one" is drilling the Upper Bakken "tight" shale -- "no one," that is, except Slawson.
According to the linked SeekingAlpha.com story, CLR recently made reference to the drilling results by Slawson in the Mondak, recently made public, that tested the upper Bakken shale.
Go to the link for the rest of the story. I may post some data points later, but the story is too incredible to wait for me to post data points.On September 27, Slawson Exploration (the operator) and its 10% working interest partner PetroShale announced the initial results from their first four test wells in the Mondak field. These four horizontal test wells are noteworthy for having been drilled and completed in the Upper Bakken Shale itself (as opposed to the vast majority of the industry's development activity which has targeted the Middle Bakken dolomite, a reservoir rock sandwiched between the low permeability source rocks, the Upper Bakken Shale and Lower Bakken Shale).
It is very, very exciting.
Play this loud (real loud) while reading the SeekingAlpha.com article:
75th best-selling single of all time in Germany.
Fourteen (14) New Permits
Bakken Operations
Active Rigs: 186 (steady, but down)
New wells reporting were posted earlier; see sidebar at the right.
Fourteen (14) new permits:
- Operators: BEXP (4), Zenergy (2), SM Energy (2), American Eagle, Whiting, Mountain View, Murex, Cornerstone, Baytex
- Fields: Colgan (Divide), East Fork (Williams), Stony Creek (Williams), Bully (McKenzie), Stanley (Mountrail), Foreman Butte (McKenzie), Bear Den (McKenzie), Garnet (Baytex)
A temporarily abandoned well:
- 21279, TA, Petro Harvester, Wright 12-10NESE 12-163N-81W, Bottineau,
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