Vern Whitten Photos

My wi-fi access ends in less than 12 minutes, so this will be brief.

See you in the a.m.

Meanwhile enjoy some outstanding Vern Whitten photos!

I'll be back in the morning for more updates on the Bakken. Good luck to all. I hope some of you close down the bars - and get home safely.

Random Comment Regarding The NDIC GIS Map Server And Overlapping Spacing Units

Somewhere in the blog I provide an explanation of how to use the NDIC GIS map server. (I have not updated that post in ages, so there may be some inaccuracies. It was accurate at the time I posted it to the best of my knowledge, which is quite limited.)

I understand much of the GIS map server, but not all of it. But I understand enough of it to a) make it useful; b) know that it is the best GIS map server among the 50 US states; and, c) make me think I know all I need to know about the GIS map server.

Recently there has been a new wrinkle: "overlapping spacing units." I explain how the GIS map server designates "overlapping spacing units" elsewhere. At that site, scroll to the August 2, 2013, entry.

Seven (7) New Permits -- The Williston Basin, North Dakota, USA

Active rigs: 179

Seven (7) new permits --

• Operators: Marathon (2), BR (2), HRC, American Eagle, CLR
• Fields: Reunion Bay (McKenzie), Strandahl (Williams), Burg (Williams), Camel Butte (McKenzie), Colgan (Divide)
• Comments:

Wells coming off the confidential list were posted earlier; see sidebar at the right.

Three (3) producing wells completed:

• 23304, 1,444, WPX, Blackhawk 1-12HW, Moccasin Creek, t7/13; cum --
• 24664, 503, Triangle, Dwyer 149-101-2-11-5H, Antelope Creek, t7/13; cum --
• 24665, 454, Triangle, Dwyer 149-101-2-11-6H, Antelope Creek, t7/13; cum --

US Crude Oil Reserves Sets Record In 2011 -- EIA; An Increase Of 15% Is Not Trivial; Second Year In A Row That A Record Is Set; Note -- 2011 Is Before 2013 (For Becky); The USGS Completed A New Bakken Study, Doubling Reserve Bakken Estimates, In 2013

"Yes, there's some oil there, but don't be fooled by the Bakken hype." -- Jane Nielson, paraphrasing. 

Rigzone is reporting:

Proved crude oil reserve additions in the United States reached a record volumetric increase in 2011, the second year in a row that a record was set, the Energy Information Administration (EIA) said in its Today in Energy brief, which was released Thursday. The increase in crude oil reserves of 15 percent – or about 3.8 billion barrels – sent crude oil reserves to the highest level since 1985.

While not setting a record, proved natural gas reserves increased by nearly 10 percent – or about 31.2 trillion cubic feet (Tcf) – making it the second largest annual increase since 1977. Additions to reserves of natural gas might have been even larger, had a drop in natural gas prices not occurred, the EIA said.

The data for 2011 was the most recent year that complete data was available, an EIA spokesperson told Rigzone. Data for 2012 is still being collected.

The 2012 data would have been reported by now, but bureaucrats are stunned by the numbers coming out of the Bakken and the Eagle Ford and are double checking their figures. At least that's why I'm thinking.

Back to the EIA:

The largest increase in proved oil reserves was in Texas, and was due mainly to the Eagle Ford formation in the Western Gulf Basin, and the Permian Basin shale formation. The second largest increase was in North Dakota, and was attributed to the Bakken formation in the Williston Basin.

A Little Bit More On RINs And Milton Bradley Board Games

I'm still trying to understand the federal shell game with the acronym RINs.

Platts is reporting:

Unlike many of refiners, renewable fuel credits, or RINs, were not a big factor in Tesoro's bottom line this year, partly because of its ample products blending capability. Credit Suisse analyst Edward Westlake said in a note the company has minimal exposure in 2013, but it will rise to about $106 million in 2014.

RINs are a tradeable credit many refiners are using to meet growing US federal mandates for renewable fuels in the transportation pool.

Refiners are relying more on RINs as growing renewable mandates fail to match weaker-than-expected transportation fuel demand. Those that can physically blend renewables into fuel like gasoline and diesel can cut their RINs purchases. A RIN is generated when the fuel is blended so the blender gets that RIN to either trade or keep and use to meet its federal renewables target.

"A RIN is generated ..." sounds like the rules from a Milton Bradley board game.  "The play always goes to the left. The game ends with there are no more RINs in the discard pile."