Wednesday, February 19, 2014

Random Update On The MRO Wells Targeting The Tyler

As my mom used to say, a little birdie told me this.

Apparently frack trucks are moving on site at both the Rundle Trust and the Powell wells. Activity is further ahead at the Rundle Trust site.

"The little birdie," in this case, is a reliable source.

Also, from The Dickinson Press, Feb 21, 2014:
The wells are in northeastern Slope County. The first was spudded on Sept. 12 and another Oct. 28. Nesheim said the first well the company drilled "didn’t turn out well," so Marathon “moved the rig over and started again.”
Marathon spokesman John Porretto wouldn’t comment on the status of the drilling. The wells will come off confidential status April 28.

I Guess I'm The Gullible One

Earlier I wrote this:
It seems the only place on earth that is actually warmer is the Arctic. The warmists explain that the the warming Arctic is responsible for one of the coldest winters on record. And on the other side of the earth, the Antarctic, a gazillion times bigger than the Arctic, is actually getting bigger based on whatever data we have. The earth tilts slightly off its vertical axis. According to wiki, the axial tilt is 23.4 degrees, with the Arctic tilted away from the sun. Wouldn't it be a hoot if the axial tilt has shifted to 23.399999999 degrees and that accounted for the slight Arctic warming, and the Antarctic cooling, as the former is tilted closer to the sun, and the latter is tilted farther from the sun. Of course, that's just tongue-in-cheek, but I wonder if the warmists have put that data point in their computer models. It would explain everything. And, of course, the US has started to lean so far to the left, that alone might result in the earth wobbling slightly off its axial tilt.
I truly thought the Arctic was the only warm spot on earth; all I ever read from the warmists is that it's unseasonably warm in the Arctic. A reader sent me the weather report for Prudhoe Bay today:
Right now:  -42°F FEELS LIKE -59° 
Earlier today: -42° HIGH AT 3:05 AM
Tonight: -50° LOW
Mostly Cloudy OQ1244 2
Some areas nearby are reporting fog.
Fog
Partly Cloudy 
Wow, I would hate to imagine how cold it would be in Prudhoe Bay if "we" didn't have global warming. But I guess I'm the gullible one, believing the warmists that the Arctic is "warm" this year.

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By the way, just for the archives, I spent a summer in Prudhoe Bay back in the 1970's. It must have been the summer of 1972. 

Catching Up On The News From Earlier Today -- Maybe Killing The Coal Industry Wasn't All That Clever

Earlier today, the news was coming fast and furious, and I didn't have time to expand. The second bit of news had to do with the interesting Motley Fool article Don sent me.

I normally don't care for Motley Fool but once in awhile they have a good article. Their article on coal today was particularly good.
Arch Coal CEO John Eaves recently noted that Powder River Basin coal stockpiles were so low that, "Some of our customers have raised concerns about potential stockpile shortages..." That's because of weather driven demand, but, "Even more intriguing is what is happening in the natural gas market."
It's worth paying attention when Arch Coal's CEO finds something about the gas market interesting because natural gas is the primary competitor to coal in the utility space. Eaves notes that, "So far this winter, 1600 BCF has been drawn from natural gas storage. This represents a withdrawal rate 45% above the five-year average..." and, "...we share our customers concerns about the potential lack of grid reliability and fuel diversity..."
Utilities throughout the country have been building up their natural gas fleets.
Industry giant Duke Energy, for example, is working to increase its reliance on natural gas to nearly a quarter of its fuel mix by next year. That's up from a paltry 5% in 2005. Natural gas use at Southern Company has been increasing, too, with CEO Thomas Fanning noting that his company is the, "...second or third largest gas consumer in the United States."
This pair of giants isn't alone, but Gregory Boyce, CEO of Peabody Energy, echoed Arch Coal's concerns during his company's full-year 2013 conference call, "...it's our view that we're going to see some serious review of previous decisions as to the exact time frame when some of these [coal] plants are going to be retired..." That's because, "...we're seeing more and more evidence that people are concerned about the ability to supply power particularly in swing periods, whether it be the summer or the winter."
Maybe that plan to kill the US coal industry was not all that clever.  Sort of reminds me of Harvard's "best and brightest" that dragged us into the Vietnam conflict.

Catching Up On The News Of The Day -- The Increasing Irrelevancy Of President Obama And His Secretary Of State John Kerry

Earlier today, the news was coming fast and furious, and I didn't have time to expand. The second bit of news had to do with the increasing irrelevancy of President Obama and Secretary of State John Kerry.

I think this winter pretty much put the final nails in the coffin in global warming. I was writing about that BEFORE the BloombergBusinessweek story came out later today telling us how badly the government climate forecasting agency did. [By the way, Mt Rainier is expected to get up to 9 feet of snow -- i.e., 108 inches snow over the next three days. Mt Rainier seldom gets that much snow in a month; the average is less than 95 inches in the entire month of February. Remember all those articles from Patrick Kennedy et al lamenting over the fact that our children and grandchildren might never see snow in the future. What hogwash.]

We will still hear speeches ad nauseum from both President Obama and SecState John Kerry but they are talking to their base and 90% of Americans don't switch television stations to hear another speech on global warming. Many of those folks not switching stations are not doing so because they have no electricity. A global warming storm has taken out the power lines. I think if the New England folks here one more speech this week on global warming, they will re-register en masse as Tea Partiers.

On a completely different subject, I think President Obama finally noted the small print on an earlier PowerPoint slide that is now a major bullet in the newest "JOBS" briefing. It's simply this: a huge percentage of their base will see their hours cut to just below 30 hours/week because of ObamaCare. Raising the minimum wage is their only "salvation." And even if passed into law tonight, it would not be effective for most folks who will see 30-hour work weeks before the 2014 elections. The GOP should get ahead of this, and start putting out position papers saying if the government doesn't raise the minimum wage to $15/hour, the poorest wage earners are going to feel the full brunt of ObamaCare.

And that was going through my mind before the newest DrudgeReport link that says the fourth hospital in the US southern state of Georgia is closing its door as a hospital because of ObamaCare. No links; the story is easily found.

Finally, it is interesting that the price of oil has silently moved up to almost $104, when the US is producing record amounts. What gives? I know but I'm not telling. Because the reason doesn't matter to 90% of the American population. All they care about is what gasoline is costing them. Last week I mentioned that gasoline was selling at our neighborhood service station for $2.99 -- it caught my attention because it was under $3.00. This morning, that same service station was selling gasoline for $3.28/gallon and this afternoon I see it has been raised to $3.29. We haven't even begun the spring switch-over process -- when refineries switch from winter formulations to summer formulations. If record cold weather extends into that period of refinery switch-over, owners of gas-guzzling SUVs better hope they have money in their IRAs from which to take a bit of gasoline money. Then, peak driving season and the price of gasoline will continue to go back up, if history is any guide.

As a reader noted in his comments regarding minimum-wage jobs and 30-hour-work-weeks and holding down two jobs to make ends meet, it costs a lot in gas money going back and forth to two different jobs every day.

These were just some of the thoughts going through my mind when I wrote that the President and his SecState were becoming less and less relevant.

Catching Up On Earlier News -- Devon

Earlier today, the news was coming fast and furious, and I didn't have time to expand. The first bit of news had to do with Devon, the price of oil, and western Canadian oil. [Additional story on Devon operations in Oklahoma.]

I was eagerly waiting to see what Devon would report. I don't invest in Devon, never have, never will, but for some reason I had an intuition regarding Devon.

Just before the earnings came out, there was a story that Devon had sold $2.8 billion of its Canadian interests. Later, we learn that the assets are "non-core" assets. I haven't bothered to look at what assets are being sold; maybe they are worthless; who knows. All I know is that Devon is selling $2.8 billion of its Canadian assets. It doesn't surprise me, what with the Keystone debacle.

Then, surprise, surprise: the Nebraska folks are asking for a "do-over." It seems everyone wants a "do-over" when it comes to fossil energy. Whatever. But the Keystone XL 2.0 North is more dead than it was 24 hours ago. There are few things that can be "more dead" in life, but the Keystone is one of them things.

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I thought disco was dead. This takes me back to a great disco night at an air force base in the Netherlands (Europe) in the late 1980's or early 1990's.


Remix, Summertime Sadness, Landa Del Rey vs Cedric Gervais

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Devon, in the press release, it was also mentioned that the company increased its proved oil reserves to the highest level in company history. That sorta jumps out at you.
The press release continued:
  • Permian Basin: record production (the Permian was supposed to be a "dying" field)
  • Anadarko Basin: record production 
  • Mississippian-Woodford Trend: a 47% increase over comparable previous period 
  • Barnett shale: a 17% net increase in natural gas production
  • Canadian thermal oil: a 16% net increase in net production
Bottom line: a North Ameircan-focused company hitting on all cylinders in multiple shale plays, in both oil and natural gas.
A huge story for a company that I don't follow, that has no operations in the Bakken, and is getting record production in a 50-year-old Texas field that was supposed to be dead or dying.