Bakken Production To Hit 1.1 Million BOPD In June -- EIA

Reuters is reporting:

Oil production across U.S. shale fields will likely rise by 75,000 barrels-per-day in June after rising nearly as much in May, monthly estimates from the Energy Information Administration (EIA) showed on Monday.

The largest increase will be recorded in the south Texas Eagle Ford shale, where output will rise by just over 26,000 bpd to about 1.4 million bpd between May and June, according to EIA's drilling productivity report.

Bakken oil production will rise to just under 1.1 million bpd in June, some 22,000 bpd above a month earlier. The Permian basin in West Texas and New Mexico will produce 1.5 million bpd next month, about 21,000 bpd higher than May figures.

Remember: the "Bakken" includes that produced in eastern Montana. Remember, also, North Dakota has some production from formations other than the Bakken, e.g., the Madison and the Red River.

The North Dakota NDIC Director's Cut is due out any day now. His production numbers will be for the month of March, 2014. 

The most recent data available for North Dakota, February, 2014:  951,340 barrels/day (preliminary)(all-time high was 976,453 in 11/13).

Projections, at 2% increase each month --

• March, 2014: 951,340 x 1.02 = 970,367 bopd
• April, 2014: 970,367 x 1.02 = 989,775 bopd
• May, 2014: 989,775x 1.02 =1,009,570 bopd

By the way, back on April14, 2014, someone reported that the Bakken (including both Montana and North Dakota) had already hit the 1-million-bopd milestone.  But I can't recall if that was ALL oil or just Bakken oil. Machts nichts.

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ObamaCare 2015 Premiums Starting To Rollout

CNBCis reporting:

The first suggested Obamacare premium prices for 2015 don't look so scary, but a few states could soon be in for some nasty sticker shock.

Health insurers that are still processing enrollments from Obamacare signups are at the same time setting their premiums for 2015 individual policies—and setting the stage for more debate about the Affordable Care Act.

Virginia and Washington state have disclosed proposed premium rate increases for insurers for 2015, and more states could be following suit this week, according to media reports.

Any hike will be problematic, coming so soon after some folks just signed up. 

EOG Reports A Huge Well In The Bakken Tuesday

Tuesday, May 13, 2014

• 25663, 219, EOG, Wayzetta 37-1617H, Parshall, t12/13; cum 91K 3/14;
• 25776, drl, Statoil, Bugs 27-22 7H, Poe, no production data,
• 26265, drl, Petro-Hunt, Van Hise Trust 153-95-28D-21-4H, Charlson, no production data,
• 26376, conf, KOG, P Vandeberg 154-99-1-1-12-16H3, Stockyard Creek, no production data,
• 26713, 74, Corinthian Exploration, Corinthian Lochner 16-33 2H, North Souris, producing, very nicely, t12/13; cum 13K 3/14;
• 26820, 20, Enduro, RPSU 30-14, Mouse River Park, a Madison well, t12/13; cum 2K 3/14;
• 26879, drl, XTO, FBIR Guyblackhawk 24X-27A, Heart Butte, no production data,

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25663, see above, EOG, Wayzetta 37-1617H, Parshall:

Date	Oil Runs	MCF Sold
3-2014	17041	1
2-2014	11799	0
1-2014	29417	0
12-2013	29919	0
11-2013	2079	0

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Quite A Day On Wall Street

CLR Announces A Private Placement Of $1.7 Billion In Unsecured Notes

From the press release:

Continental Resources, Inc. announced today the pricing of its private placement of $1.0 billion of new 3.800% senior unsecured notes due 2024 and $700.0 million of new 4.900% senior unsecured notes due 2044. The 2024 notes were sold at 99.644% of par, resulting in a yield to maturity of 3.843% with respect to the 2024 notes. The 2044 notes were sold at 99.717% of par, resulting in a yield to maturity of 4.918% with respect to the 2044 notes. The offering is expected to close on May 19, 2014 , subject to customary closing conditions. Continental intends to use the net proceeds from this offering to repay in full amounts outstanding under its revolving credit facility, to finance the redemption of its 8 ¼% senior notes due 2019 and for general corporate purposes.

So, for slow readers like me, it appears I can buy a $1000 note (if available, and if available in that denomination), I guess for about $99.70 and receive almost 4% for notes that mature in 2024, and almost 5% for notes that mature in 2044.

If I am reading this correctly, US Savings Bonds currently have a fixed rate of 0.5%, but it's in really small print and I may be misreading it. But if that's really what US Savings Bonds are returning ...

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.

$1.7 billion for wells that cost $7 million will get CLR about 243 wells, net. Disclaimer: I often make simple arithmetic mistakes.

Disclaimer: if I don't know very much about investing or the Bakken, I know even less about bonds and notes. The above is just idle rambling; not to be taken literally. 

How Impressive Is The Oil Production Coming Out Of Dunn, McKenzie, Mountrail, Williams Counties In North Dakota? Production From Two North Dakota Counties (M&M) Surpass California, Alaska; May 12, 2014

Updates

May 13, 2014: Rob Port was very, very nice to credit me/this blog when he linked this post over "Say Anything Blog." 
 

Original Post

A reliable source provided the following information, data from official sources:

Check out these two items that were just released in the last few weeks. We wouldn’t have been close to either of these lists five years ago.

1.      The 2013 population growth for the top 25 non-metro counties in the US was released. ND had the top six and ten of the top 25. McKenzie and Williams lead the list.

2.      20 counties in the US have half of the 2013 US daily oil production. McKenzie county was 5th, Mountrail 6th, Dunn 10th, & Williams 12th. These are the big four I constantly tell people have nearly 90% of ND’s production and activity. Interesting to me was there were no Texas counties ahead of McKenzie & Mountrail counties. That was a surprise to me.

McKenzie & Mountrail counties (M&M’s) had surpassed Alaska (4th leading oil producing State) and was just even with California (3rd leading oil producing state) last November. The counties dropped back quite a bit this winter and we fell behind them. Feb’s numbers that were just released showed the M&M’s did pass Alaska again, but is still a little behind California. We should pass them again in the next couple months. Two counties in ND as the second leading oil producer in the US is mind-boggling!!

A huge "thank you" to the reader for sending this to me. It really is quite remarkable.

The data:

Natural Gas Liquids Stripping Units Now In The Bakken; Sanctions Don't Work -- A History Lesson

Updates

Later, May 15, 2014:  see "Note to the Granddaughters," below -- sanctions don't work. Now, Business Insider is reporting a huge gas pipeline deal with China.
 

Original Post

The Bismarck Tribune is reporting:

Mark Peterson is one of several entrepreneurs touting a new technology meant to reduce natural gas flaring and add value to mineral rights owners. However, there’s no way for him or mineral owners to know whether proper royalties were paid between the time the units started operating and when the state learned about them. 

Natural gas liquid stripping units have been around for decades but have not always been affordable or easy, said Lynn Helms, the North Dakota Department of Mineral Resources director. Peterson wanted to change that.

Go to the linked article for the rest of the information. This is critical information for mineral owner.

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Jobs graph says it all -- job growth during the recession, 2007 - 2014, California vs Texas. Before you go to the link, take a guess what the graph will look like. It would be interesting to see a similar graph comparing North Dakota with Minnesota.

Unemployment, March of each year indicated, Minnesota vs North Dakota:

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A Note to the Granddaughters

Update

May 13, 2014: in response to US sanctions on Russia over the Ukraine, Russia will deny the use of the International Space Station to Americans, and will no longer sell rocket engines to the US that were used to launch military satellites into space. Wow, this sounds just like Jefferson's Embargo Act of 1807.

Original Note

President Jefferson's Embargo Act of 1807 was supposed to bring economic pain to the warring nations of Great Britain and France. Whether it did or didn't is debatable. What is clear, the embargo destroyed the economy of Salem, Massachusetts. From Brenda Wineapple's biography of Nathaniel Hawthorne:

In 1807, sixty-one ships left Salem, Massachusetts, for the West Indies and South America, sixty-three for Europe, ten for India and China; later that year President Jefferson levied the embargo that would bleed the town. In 1808, no ships sailed from Salem. Docks stood idle, planks soggy with disuse, and soup kitchens soon fed over a thousand of the unemployed. 

We never learn, do we? But it makes us feel good, I suppose.