Why I Love To Blog: Reason #1,284

A year ago I knew nothing about natural gas, and now I know almost next to nothing about natural gas.

So, quick review. How many remember how much natural gas a country must have to be said to have "massive" amounts? The answer, apparently, is 20 trillion cubic meters. At least that's how Turkey's natural gas reserves are described, or more exactly, potential reserves. That's an easy number to remember.

So, as I was saying: I know almost next to nothing about natural gas. But when I read this story posted by Rigzone, I knew exactly how much 80 trillion cubic meters was. Four times twenty. Reuters reported this week on natural gas potential in Scotland -- look at this:

Scotland, heading for a September independence referendum, could hold enough shale gas resources to cover UK gas needs for more than 30 years, a geological report published by the British government showed on Monday.

But Scotland's roughly 80 trillion cubic metres of gas is only around 6 percent of Britain's potential, with the rest mainly in the Bowland Shale region across northern England. 

Scotland has about 80 trillion cubic meters of natural gas, which could supply all of the UK for 30 years.

But that 80 trillion might only represent 6 percent of Britain's potential. Quick, grab that napkin -- 6% of what = 80 trillion. The "what" = 1,333 trillion. Let's check the math: 0.06 x 1,333 trillion = 80. The math works, but it almost makes me think I'm reading the story incorrectly. Again, cut and paste, " ... Scotland's roughly 80 trillion cubic metres of gas is only around 6 percent of Britain's potential, with the rest mainly in the Bowland Shale region across northern England."

The reason it confuses me is because the US natural gas reserves are said to be about 210 trillion cubic meters. It's hard to imagine the UK with 1,333 trillion, so I must be reading something wrong.

Then the next page of the Reuters article:

In total, the three BGS reports on unconventional oil and gas resources showed Britain has around 1,409 trillion cubic feet of shale gas and 10.4 billion tonnes of shale oil in place. 

Notice how Reuters switched to "feet" all of a sudden. 

1,409 trillion cubic feet converts to 40 trillion cubic meters which corresponds nicely to the 20 million cubic meters that Turkey is thought to have.

So, I'm confused by the article. I must be reading something incorrect. But at least I now know enough that:

• Turkey might have 20 trillion cubic meters of natural gas reserves, which is considered "massive"
• the US apparently has about 210 trillion cubic meters
• the Brits might have 40 trillion cubic meters
• the Scots have a lot but probably not 1333 trillion cubic meters

I'll be more than happy if someone can point out where I went wrong with the numbers, cubic feet, and cubic meters in this story. 

Random Comment On The Sleeping Giant; Idle Chatter On The Market

I've added a few more links with regard to the Strata-X story in the "Sleeping Giant."

These posts on Strata-X and the "Sleeping Giant" have nothing to do with investing. I am simply trying to learn more about the potential (or non-potential) of this play. I think it's rather interesting. If folks remember, I also thought "Oil for America and the Lodgepole" was interesting, but that story came to nothing.

So, again, not only do these posts have nothing to do with investing, the entire blog has nothing to with investment advice per se. Do not make any investment decisions based on what you read here or what you think you may have read here.

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For Investors Only

Idle Chatter

Just Because

However, having said that, my thoughts on the market. Again, this is not an investment site. Do not many any investment decisions based on anything you read here or think you may have read here.

I find the market extremely interesting. The economy collapsed (their word, not mine) in 1Q14, and the market continues/continued to melt up, breaking new records. The market melts up despite hints that 2Q14 may not be as good as once hoped. At one time, full year GDP was forecast to be around 3% but with the first quarter cratering it's going to take quite a second, third, and fourth quarter to get it back to 3%.

Every day I see headlines (and if I watched television, I suppose "talking heads") predicting the crash is coming. And it doesn't. High-priced oil is supposed to put a drag on the market. I think it was six months ago, maybe a year ago, when it was said that this was the longest stretch of "high-priced oil" ever. And yet, here we are again, not only is it higher than it was then, it is "very high." But yet, considering what might be going on in the Mideast, the price has barely risen (from $103 exactly two days before the "surprise") to barely $106 today. [Remember, up until recently, the talk that oil should be at $60/bbl; we haven't heard that talk in a long time, and yet there is more oil than ever.]

Meanwhile here in the US, it is hard to find any really good news, and yet the market melts up. I don't know what the other sectors are doing because I don't follow them but the oil and gas sector has done quite well: names in the oil and gas industry that are quite familiar to all of us are hitting new highs every day. Take a look at EOG vs AAPL over the past two years: AAPL, after two years -- 0% change; EOG, after two years -- 140%.

I am reminded of all this, again, because tonight futures are up, and up nicely. The DOW is up and even WTI oil is up slightly (futures). Earlier this evening WTI oil futures were down slightly and with everything so "hunky dory" in the world, I really thought oil would continue its imperceptible melt-down back to ... say $102. Which, of course, would scare every oil and gas bull, and shares of companies primarily in the Bakken would tank. [By the way, these high prices could affect some Bakken companies adversely if they did not hedge correctly.]

Futures, of course, mean squat, and this week, the market may be even more difficult to decipher for two reasons: a) a shorter week with relatively little economic news scheduled (earning season doesn't start until next week -- Alcoa, July 8); and, b) small trading volume, I would assume, with traders starting their long weekend early.

Speaking of earnings: I am also excited by the fact that I have not heard any "earnings warnings," although it's possible I've missed them. I'm not very good at details.

So much hinges, it seems on China's economy. If the US economy starts to go sour, it simply tends to get Wall Street irritated and anxious; the US economy has been in such doldrums for so long now that if the economy collapsed (their word, not mine) again 2Q14, Main Street would hardly notice.

But if the Chinese economy goes sour, there are a half-billion (or a quarter billion or a 100,000 or whatever) young Chinese men who will be out of work; that many young unemployed men is not a pretty picture. The Chinese central government will do whatever it takes, if they're smart, to keep those young men dutifully employed. Think of the "LA RIOTS" times a thousand. Or a million.

I don't know what the pundits have been saying about China's economy the past few weeks, but think about it. But this story supports my thesis, presstv.ir is reporting:

China’s National Bureau of Statistics (NBS) has released new figures that point to the expansion of the country’s industrial production output in May, marking an economic comeback following a slowdown earlier in the year.

The NBS stated in a Friday report that the country’s industrial output accelerated to 8.8 percent year-on-year in May 2014, which is higher by 0.1 percent recorded a month earlier.

The newly released data further indicates that retail sales in the country climbed for a second consecutive month, reaching the 12.5 percent mark. That reflects the highest level of retail sales since last December.

The signs of economic growth in the world’s second largest economy come as Beijing has stepped up what economists describe as the mini-stimulus to avert a slowdown earlier this year.

Unlike the US, which is broke (his words, not mine), the Chinese have lots of American dollars to spend if necessary to stimulate their economy.

All of which puts me in a great mood this evening.

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And A Bit More

Don't you just love this Rigzone headline? Brent and US crude reach 18-day low on easing Iraq supply fears. The first paragraph:

Brent crude fell toward $112 a barrel on Monday, hitting an 18-day low as did U.S. crude near $105, as investors grew less worried about potential supply disruptions from Iraq.

Now, we're doing "18-day lows"? This is going to be a long war.

This is a "low?" Brent trending toward $112 and WTI toward $105?

And it "fell?"

Brent is still up about 3 percent in June, its biggest monthly gain since August. But the North Sea benchmark has come off the nine-month high of $115.71 hit two weeks ago, as the Sunni advance in Iraq appears to have stalled.

Brent lost 94 cents to settle at $112.36 a barrel, its lowest settlement since the rally spurred by the Iraqi crisis started on June 12. U.S. crude lost 37 cents to settle at $105.37 a barrel, also its lowest since June 12.

First Half, 2014, Statistics -- Permits

Note: this data is from my databases. I make mistakes but I bet the data isn't too far off. 

As of June 30, 2014, there have been 1,398 oil and gas permits awarded, which puts "us" on track for 2,388 permits for the full calendar year (2014).

Last year, as of this date, June 30, 2013, there had been 1,200 oil and gas permits awarded which put the state on track for 2,420 permits for the entire year (2013). The state actually issued 2,671 permits for calendar year 2013; about 30 were canceled during the year.

For calendar year 2012: 2,521 permits were issued and approximately 144 were canceled. 

By county:

• Dunn County: 192
• McKenzie: 483
• Mountrail: 273
• Williams: 213 

By operator:

• BR: 62
• CLR: 145
• Emerald Oil: 35
• EOG: 70
• Fidelity: 15
• Hess: 158
• HRC: 26
• Hunt: 20
• KOG: 54
• MRO: 52
• Newfield: 24
• Oasis: 131
• OXY USA: 36
• Petro-Hunt: 47
• QEP: 44
• Samson Resources: 11
• Slawson: 36
• SM Energy: 23
• Statoil: 28
• Triangle: 27
• Whiting: 89
• WPX: 23
• XTO: 104
• Zavanna: 10

High Initial Production Numbers -- Page 5

Starting July 18, 2014, page 5 of "high IP" wells will begin. 

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27581, 2,342, MRO, Viani USA 44-10H,  Chimney Butte, t6/14; cum 42K 8/14;
 
26179, 2,024, Oasis, Clementine 5693 44-35T, Alger, t4/14; cum 30K 8/14;
26265, 2,168, Petro-Hunt, Van Hise Trust 153-95-28D-21-4H, Charlson, t9/14; cum --
27579, 1,920, BR, Sequoia 31-4MBH, Hawkeye, t9/14; cum --

27151, 2,208, MRO, Glisar 14-32TFH, Reunion Bay, t8/14; cum 13K 8/14;
27019, 2,204, Whiting, Gajewski, 31-18-2H, Lonesome, middle Bakken, 1280-acre, t4/14; cum 42K 8/14;

27148, 1,920, BR, Old Arches 14-35MBH ULW, Keene, target middle Bakken, 20 feet thick; 13 feet below the top of the Upper Bakken shale; actual tops Upper Bakken shale 10,563; middle Bakken, 10,638; paragraph 4.2 in geologist report: (Target Zone: Upper Three Forks) -- was that an error; frack report says middle Bakken; permit app also says Bakken; 30 stages; 3.5 million lbs "other"; t8/14; cum 15K 8/14;

26300, 1,441, QEP, Veeder 2-27-23BH, Grail, t6/14; cum 46K 8/14;
26301, 1,411, QEP, Veeder 2-27-34TH, Grail, t6/14; cum 47K 8/14;
26302, 1,146, QEP, Veeder 3-27-34BH, Grail, t6/14; cum 55K 8/14;
26303, 2,170, QEP, Veeder 3-27-34TH, Grail, t6/14; cum 44K 8/14;
27061, 2,088, BR, Denali 21-4MBH, Johnson Corner, 4 sections, t9/14; cum --

27139, 2,156, MRO, Sloan 34-32H, Reunion Bay, middle Bakken, gas peaked at 2,000 units; 20 - 35' flare, t8/14; cum 25K 8/14;

25534, 2,529, HRC, Fort Berthold 148-94-33C-28-3H, Eagle Nest, t9/14; cum --
25677, 2,576, Statoil, Lucy Hanson 15-22 6H, Catwalk, t9/14; cum --
26298, 2,139, Oasis, Oasis Meiers 5692 44-18 3T, Alger, t8/14; cum 6K 8/14;

26521, 2,661, QEP, TAT 4-33-28BH, Grail, t5/14; cum 79K 7/14;
26522, 2,709, QEP, TAT 3-33-28TH, Grail, t5/14; cum 66K 7/14;
26523, 2,767, QEP, TAT 3-33-38BH, Grail, t5/14; cum 73K 7/14; 
26524, 2,561, QEP, TAT 2-233-28TH, Grail, t5/14; cum 72K 7/14;
26539, 1,921, Whiting, Bratcher 14-36-2H, Ellsworth, t4/14; cum 55K 7/14;
26540, 2.047, Whiting, Bratcher 14-36H, Ellsworth, t4/14; cum 57K 7/14;

27449, 2,550, XTO, Tuckerman Federal 11X-11A, Lost Bridge, t8/14; cum 10K 7/14;

25674, 3,113, Statoil, Lucy Hanson 15-22 4H, Catwalk, t8/14; cum --  

27040, 2,082, SHD, Thud 12-36H, Clarks Creek, one section, Three Forks B1, 20 stages; 3.7 million lbs sand, t6/14; cum 39K 7/14;
27152, 2,253, MRO, Cloon 14-32H, Reunion Bay, 4 sections, middle Bakken; 30 stages; 2.55 million lbs sand, t8/14; cum --
27559, 2,052, MRO, Harry 34-24TFH, Chimney Butte, t7/14; cum 24K 7/14;

26654, 2,331, Whiting, Thurlow-Williams 11-18-2H, Lonesome, one of the most detailed geology reports I have ever seen in a file; gas units early on averaged 600 to 1,000; near the end 1,200 and then jumped to 2,500 in the last 1,000 feet; if the frack report was there, I missed it; I assume it was similar to #26760 on the same pad; t3/14; cum 47K 7/14;
26760, 2,239, Whiting, Thurlow Williams 11-18H, Lonesome, middle Bakken; 28 stages; 2.5 million lbs sand/ceramic; t3/14; cum 48K 7/14;

25598, 2,919, HRC, Fort Berthold 147-94-2B-11-3H, McGregory Buttes, t8/14; cum --
26406, 2,164, BR, CCU Four Aces 24-21MBH, Corral Creek, t8/14; cum --
26766, 1,931, KOG, P Irgens 155-99-2-4-9-15H, Epping, t8/14; cum -- 
27130, 1,964, BR, CCU Four Aces 34-21MBH, Corral Creek, t8/14; cum --
27554, 2,787, XTO, Walton Federal 41X-19D, Bear Den, t9/14; cum --

26130, 3,396, Oasis, Hysted 5200 14-30 2B, Camp, t3/14; cum 74K 7/14;
26886, 3,489, Oasis, Brier 5200 44-22 7B, Camp, t6/14; cum 52K 7/14;
26887, 2,979, Oasis, Brier 5200 44-22 4T2, Camp, t6/14; cum 17K 7/14;

25670, 2,541, Statoil, Larsen 3-10 3TFH, Williston, t8/14; cum --
25671, 3,081, Statoil, Larsen 3-10 4H, Williston, t8/14; cum --
27138, 2,400, MRO, Lantz 24-32TFH, Reunion Bay, t8/14; cum --
27555, 1,922, MRO, Keith 44-31TFH, Reunion Bay, t8/14; cum --
27865, 1,652, P Wood 154-98-16-23-35-9H3, Truax, t8/14; cum --
27866, 1,986, KOG, P Wood 154-98-16-23-35-15H, Truax, t8/14; cum --
27867, 1,924, KOG, P Wood 154-98-16-23-15H3, Truax, t8/14; cum --
25944, 2,346, QEP, Poncho 1-3-10BH, Grail, t4/14; cum 73K 7/14;
25945, 2,656, QEP, Poncho 1-3-10TH, Grail, t4/14; cum 41K 7/14;
25946, 2,907, QEP, Poncho 2-3-10BH, Grail, t4/14; cum 55K 7/14;
25947, 2,701, QEP, Poncho, 2-3-10TH, Grail, t12/13; cum 87K 7/14;
26329, 3,180, QEP, Poncho 5-3-10BH, Grail, t4/14; cum 61K 7/14;

26763, 2,125, KOG, P Irgens 155-99-2-4-9-14H, Epping, t8/14; cum --
26765, 1,903, KOG, P Irgens 155-99-2-4-9-15H3A, Epping, t8/14; cum -- 
26767, 1,398, KOG, P Irgens 155-99-2-4-9-15H3, Epping, t8/14; cum --
28035, 1,199, Whiting, Ness 41-21-3XH, Sanish, t8/14; cum --
28343, 1,414, Whiting, Perry State 11-25-2H, Sanish, t8/14; cum -- 
26069, 1,704, BR, Big Jon 11-2MBH-ULW, Camel Butte, 4 sections, t8/14; cum --
25596, 2,706, HRC, Fort Berthold 147-94-2B-11-5H, McGregory Buttes, t8/14; cum 1K 7/14;
25597, 2,750, HRC, Fort Berthold 147-94-2B-11-4H, McGregory Buttes, t8/14; cum 1K 7/14;
26295, 2,569, HRC, Fort Berthold 148-94-35C-26-3H, McGregory Buttes, t8/14; cum 7K 7/14;
26294, 2,567, HRC, Fort Berthold 148-94-35C-26-4H, McGregory Buttes, t8/14; cum 6K 7/14;
26293, 2,769, HRC, Fort Berthold 148-94-35C-26-5H, McGregory Buttes, t8/14; cum 7K 7/14; 

26138, 2.080, QEP, TAT 2-35-26TH, Grail, t4/14; cum 46K 7/14;
26139, 2,232, QEP, TAT 3-35-26BH, Grail, t4/14; cum 50K 7/14;
26140, 2,496, QEP, TAT 4-35-26BH, Grail, t4/14; cum 48K 7/14;
26408, 1,884, BR, CCU Corral Creek 21-28TFH, Corral Creek, t4/14; cum 43K 7/14;
26528, 2,071, Whiting, Wisness 14-34-2H, Juniper, t3/14; cum 41K 7/14;
26529, 2,294, Whiting, Wisness 14-34H, Juniper, t3/14; cum 41K 7/14;
27513, 1,595, XTO, Serrahn 41X-6H, Siverston, t7/14; cum 5K 7/14;
27658, 2,263, Statoil, Buford 10-3 1H, Buford, t7/14; cum 6K 7/14;
26796, 2,131, HRC, Fort Berthold 152-94-24D-13-7H, Antelope, Sanish, t8/14; cum 13K 7/14;

25467, 1,821, Whiting, Privratsky 11-27PH, Zenith, Three Forks (Pronghorn), no frac data, t3/14; cum 57K 6/14;
25468, 1,920, Whiting, Privratsky 21-27PH, Three Forks (Pronghorn), no frac data, t3/14; cum 72K 6/14;
25469, 2,272, Whiting, Privratsky 41-27PH, Zenith, Three Forks (Pronghorn), no frac data, t3/14; cum 81K 6/14;

26212, 1,967, EOG, Wayzetta 40-1424H, Parshall, 1920-acre although it's technically a long horizontal, in fact it really only drains one section (section 23), t3/14; cum 124K 6/14;
26346, 2,384, Statoil, Cvancara 20-17 7H, Alger, t7/14; cum --
26797, 2,236, HRC, Fort Berthold 152-94-24D-13-6H, Antelope, t8/14; cum --
26798, 2,295, HRC, Fort Berthold 152-94-24D-13-5H, Antelope, t7/14; cum --
27490, 1,905, KOG, P Irgens 155-99-3-4-9-13H, Epping, t7/14; cum -- 

26081, 2,304, BR, Big Bend 11-2MBH, Camel Butte, t7/14; cum --
26093, 2,170, XTO, Loomer 24X-34A, Tobacco Garden, t7/14; cum

25871, 2,322, QEP, Pogo 1-28-33BH, Grail, t3/14; cum 62K 6/14;
26319, 2,183, QEP, Pogo 28-33-27-34LL, Grail, t3/14; cum 64K 6/14;
25869, 2,938, QEP, Pogo 2-28-33TH, Grail, t3/14; cum 77 6/14;

27326, 2,430, KOG, Skunk Creek 4-8-17-13H, South Fork, t7/14; cum -- 

27327, 2,357, KOG, Skunk Creek 4-8-17-14H3, South Fork, t7/14; cum --

24846, 2,013, QEP, MHA 1-06-07H-147-92, Heart Butte, t6/14; cum 29K 6/14;
24848, 2,187, QEP, MHA 5-06-07H-147-92, Heart Butte, t6/14; cum 24K 6/14;
24847, 2,238, QEP, MHA 7-06-07H-147-92, Heart Butte, t6/14; cum 34K 6/14;
24845, 2,736, QEP, MHA 3-06-07H-147-92, Heart Butte, t5/14; cum 43K 6/14;
27082, 2,371, Whiting, Johnson 34-8-2H, Pleasant Hill, t2/14; cum 60K 6/14;

25490, 2,262, QEP, Johnson 2-4-9TH, Grail, t6/14; cum 12K 6/14;
23862, 2,633, Statoil, Hovde 33-4 3H, Sandrocks, t7/14; cum --
23861, 3,340, Statoil, HOvde 33-4 4H, Sandrocks, t7/14; cum --
25776, 3,043, Statoil, Bugs 27-22 7H, Poe, t7/14; cum --
26599, 2,565, BR, Sequoia 14-9MBH, Hawkeye, t8/14; cum --

26412, 2,091, Whiting, Hansen 21-3H, Sanish, t7/14; cum --
26598, 1,923, BR, Sequoia 14-9TFH, Hawkey, t8/14; cum --
26890, 3,415, Oasis, Brier 5200-44-22 3B, Camp, t7/14; cum --

27557, 2,013, XTO, Kaye Federal 43X-4E, Lost Bridge, t7/14; cum -- 

27443, 2,153, XTO, FBIR Guyblackhawk 24X-27ER, Heart Butte, t7/14; cum --

24911, 2,585, Whiting, Roen Federal 24-10H, Elk, t5/14; cum 38K 6/14;

24912, 2,607, Whiting, Roen 24-10-2H, Elk, t5/14; cum 16K (14 days) 5/14;

27366, 2,395, MRO, Grover 11-3TFH, Reunion Bay, t5/14; cum 40K 6/14;

24913, 2,424, Whiting, Roen 24-10-3H, Elk, t5/14; cum 15K 5/14;

26888, 2,443, Oasis, Brier 520044-22 5T, Camp, t6/14; no production data, spacing ICO

27204, 2,290, XTO, McCoy 44X-36C, Siverston, t6/14; no production data,

25381, 1,872, XTO, Loomer 41X-3D, Tobacco Garden, t7/14; cum --
26454, 1,666, XTO, Broderson 31X-27G, Siverston, t7/14; cum --
26879, 1,940, XTO, FBIR Guyblackhawk 24X-27A, Heart Butte, t7/14; cum --
25688, 1,750, Oasis, Mangum 5493 44-7 T3, Robinson Lake, t1/14; cum 79K 5/14;
26129, 2,525, Oasis, Lefty 5200 14-30 3B, Camp, t4/14; cum 27K
27203, 2,067, XTO, McCoy 44X-36D, Siverston, t6/14; cum --

27177, 1,943, XTO, Cherry Creek State 44X-36C, Siverston, no production data,

26062, 1,658, MRO, Two Crow USA 21-15TFH, Moccasin Creek, t6/14; cum --

24156, 1,790, KOG, Koala 16-32-29-2H, Poe, t6/14; cum --

24155, 1,928, KOG, Koala 16-32-29-1H3, Poe, t6/14; cum --

26244, 1,955, KOG, Koala 16-32-29-1H, Poe, t6/14; cum --

26243, 1,898, KOG, Koala 16-32-29-2H3, Poe, t6/14; cum -- 

24373, 2,719, Statoil, Garmann 19-18 2TFH, Banks, t6/14; cum --

24180, 4,065, Statoil/BEXP, East Fork 32-29 3H, East Fork, t8/13; cum 176K 7/14; 

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Statoil, XTO, BR With Great Wells / "High IP" Wells In The Bakken; Nine (9) New Permits -- June 30, 2014; 5 Of 8 Producing Wells Go To DRL Status -- Waiting To Be Completed

Again, the mainstream media doesn't make it easy. Earlier it was reported GM recalled another 8 million ignition-switch-vehicles. So, 8 million. What does that mean? The entire US automobile production on an annual basis is 4 million cars. So, this most recent recall is equivalent to two full years of all US automobile production. Government motors culture run amok. The number varies from 8.23 to 8.4 million. Whatever.

The New York Times is reporting:

In a vast escalation in its safety crisis, General Motors recalled more than 8.4 million vehicles worldwide on Monday, bringing its total figures for the year above 28 million cars — more than the 22 million recalled last year by all automakers combined.

Stunning fact of the day, June 16, 2014. 

So, with that, let's get on with today's daily activity report coming out of North Dakota, where they don't make cars with faulty switches. Not one car was produced last year in North Dakota which had to be recalled due to a faulty 38-cent ignition switch designed in Detroit, manufactured in China.

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Wells coming off confidential list Tuesday, the first day of the new quarter:

• 23140, 409, OXY USA, State Andrew Schmidt 2-3-10H-143-97, Crooked Creek, t1/14; cum 32K 5/14;
• 23141, 623, OXY USA, State Andrew Schmidt 3-3-10H-143-97, Crooked Creek, t1/14; cum 42K 5/14;
• 26496, drl, Hess, GN-PNR-158-98-1003H-1, Rainbow, no production data,
• 26664, drl, Hess, HA-Link-152-95-3526H-5, Hawkeye, no production data,
• 26771, drl, CLR, Winston 7-12H, Long Creek, no production data,
• 26852, drl, SM Energy, Bonner 9-12H,  Poe, no production data,
• 26930, 13,91, Oasis, Monson 18-19H, Foreman Butte, t3/14; cum 11K 5/14;
• 27195, drl, XTO, Emil 24X-36B, Wildcat (on the Williams/Divide County, north of Williston, it's a wildcat but has producing wells in the area; 

Active rigs in North Dakota:

	6/30/2014	06/30/2013	06/30/2012	06/30/2011	06/30/2010
Active Rigs	190	189	215	173	129

Nine (9) new permits --

• Operators: Hunt (4), Oasis (3), CLR (2)
• Fields: Smoky Butte (Divide), Baker (McKenzie), Elk (McKenzie), Green Lake (Williams)
• Comments: there were two additional permits that did not show up on either yesterday's or today's daily activity report but were granted on either today or yesterday: one for EOG in Parshall oil field (Mountrail) and one for Slawson in Clarks Creek (inside the reservation, Dunn County)

Wells coming off the confidential list over the weekend, today were posted earlier; see sidebar at the right.

Twelve (12) producing wells were completed:

• 24183, 1,949, Statoil, Folvag 5-8 4TFH, Stony Creek, t5/14; cum --
• 24808, 366, CLR, Wahpeton 10-16H2, Banks, t6/14; cum --
• 24842, n/d, CLR, Wahpeton 5-16H2, Banks, producing, no IP yet;
• 24844, n/d, CLR, Wahpeton 7-16H3, Banks, producing, no IP yet;
• 25644, 3,008, Statoil, Bill 14-23 6H, Alexander, t5/14; cum --
• 25645, 1,578, Statoil, Bill 14-23 4TFH, Alexander, t5/14; cum --
• 25934, 221, Murex, Stephanie Catherine 18-19H, t6/14; cum --
• 25979, 2,412, XTO, Inga Federal 41X-29D, t5/14; cum --
• 26092, 1,643, BR, Big Bend 21-2TFH, Camel Butte, t6/14; cum --
• 26191, n/d, CLR,  Montpelier 3-14H1, Indian Hill, producing, no IP yet,
• 26420, n/d, CLR, Montpelier 2-14H, Indian Hill producing, no IP yet
• 27684, 1,596, Whiting, Uran 11-24-2H, Sanish, t5/14; cum -- 

************************

A Note to the Granddaughters

It was pretty much an oath that Air Force commanders took when taking command: it was their intent to leave the installation in better shape than they found it.

I was reminded of that when I read the headline today that President Obama is sending 200 ground troops back into Iraq.

Five years into his presidency and almost as many years into the recovery, the economy collapsed (their word, not mine) in 1Q14. A trillion dollars of stimulus and I don't think mainstream America feels much better in 2Q14 than they did in 2Q09.

One of the architects of ObamaCare has called it a trainwreck and decided not to run for re-election. Apparently, based on headlines in The Los Angeles Times, Obamacare is a wreck out in California.

The Veterans Administration, despite multiple warnings, and a promise when he took office to "fix it," (or maybe that promise was back when he was a junior senator) is in worse shape than ever before. The VA has been without a director for who-knows-how-long, the last director leaving in disgrace, and the first man asked to replace him said, "no." We still don't have a director.

We're now up to 13 or 14 Supreme Court cases in which the President was on the wrong side or was blatantly accused of overstepping his executive powers. Even his appointees ruled against him in seldom-seen 9-0 rulings.

In Maryland, which can be seen from the President's bedroom on a clear night, the driving public will be facing the highest gasoline prices in six years, partly because the president failed to take advantage of the one bright spot in "his" economy: the oil and gas revolution in the United States. After six years he still can't decide "yes or no" on a pipeline that becomes more irrelevant very day.  No one will blame George Bush for low gasoline prices.

Institutions whose integrity seemed beyond reproach have carried the president's water: first, The National Geographic has a cover with the Statue of Liberty halfway under water (that's either irony or "no pun intended"), and now NOAA, the nation's watchdog for climate matters has quietly changed its website to say that July, 1936, was the hottest month ever in the United States, not July, 2012, which NOAA had previously said was the hottest month ever, and crowed about it every chance it got.

The US consulate in Beghazi is certainly not in better shape than when he took office. His own IRS is caught red-handed (is it politically correct to say that any more?) trashing hard drives, destroying evidence in the minds of most, and it's a shrug of the shoulders. 

I suppose the one bright spot we have is on immigration. We finally have ipso facto immigration reform: those coming across our southern borders and those watching those coming across our southern borders now call immigration reform "open borders." It sort of makes one wonder why folks from Europe even have to go through "passport control" when arriving at JFK or Atlanta. It's very likely the president will appoint a US High Commissioner of Refugees (Michelle) before it's all over, a directorate of Homeland Security to manage the entire situation, from refugee camps to resettlement to deportation. I assume reparations will be paid to those "forced" to wait in refugee camps or those who have to fly discount airlines. The President is acting quickly to disperse this mass of humanity by trucking, busing, and flying the newcomers away from the borders as quickly as possible. A video of ten-thousand refugees along the Arizona border is not going to play well in Peoria. If any of these new citizens-to-be make it to New York City, they will be allowed to drink any size soft drink they want. And that's probably all they want, anyway.

I understand the big story on ABC national news this evening, according to my wife, was the tornado weather in Iowa. And so it goes.

On a positive note: the market had a relatively good day. The oil and gas sector, again, did particularly well. Futures tomorrow are particularly noteworthy, and positive. What a great country.  Oil continues to hold its own.

[The other day I suggested the Ukraine/Russia called a cease-fire because of the first round in the World Cup. The first round is over, the games now move to the second round, and lo and behold, Ukraine has called an end to the cease-fire.]