Week 46: November 13, 2016 -- November 19, 2016

Operations
NDIC December, 2016, hearing dockets posted 
North Dakota oil production falls to 31-month low
Bakken well production increasing almost by 30% -- Filloon

Bakken 101
Comparing the Permian with Bakken

Fracking
Another high-proppant EOG completion 
Another high-proppant EOG completion
Shenanigans in Wyoming: fracking doesn't affect ground water -- Obama administration

Bakken economy
Update on that $500 million fertilizer plant in western North Dakota
Truck reliever northeast of Williston still under discussion
North Dakota county votes down wind farm
Update on Williston activity

Miscellaneous
US begins exporting LNG to LNG-rich Mideast
Tesoro to buy Western Refining
USGS releases new Permian survey, 3x the size of the Bakken
The USGS 2016 report on the Permian
Permian Basin oil deals soar 
Global peak oil demand won't be seen until after 2040 -- there simply is no alternative to fossil fuel energy

Bakken 2.0: Sixteen Permits Renewed; Eight New Permits -- November 18, 2016

Active rigs:

	11/18/2016	11/18/2015	11/18/2014	11/18/2013	11/18/2012
Active Rigs	39	65	184	183	187

Eight (8) new permits:

• Operators: Hess (5), EOG (3)
• Fields: Beaver Lodge (Williams), Parshall (Mountrail)
• Comments:

Sixteen (16) permits renewed:

• Emerald Oil (7): three Clark Griswold Federal permits; two Coleman Federal permits; a Dagny Taggart permit; and, a Cameron Frye permit, all in McKenzie County
• CLR (4): two Schroeder permits and two Marlene permits in Williams County
• Slawson (3): three Goblin Federal permits in Mountrail County
• Oasis: a Barron permit in Burke County
• Hunt: a Scorio permit in Williams County

One producing wells (DUC) reported as completed:

• 30227, 792, BR, Sun Notch 42-32TFH, Sand Creek, Three Forks first bench, 4 sections, t10/16; cum -- ; total length of lateral was 9,599 feet; above drilling target, 540' (6%); inside drilling target, 7,659' (80%); below drilling target, 1,400' (15%); above target zone, approx 0 - 17' beneath the base of the lower Bakken shale; target zone Three Forks, approx 17' - 37' beneath the base of the Lower Bakken shale; below target zone, approx 37' - 47' beneath the base of the lower Bakken shale;

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

CIA Director - Select

US Rep Mike Pompeo:

The 52-year-old congressman from Kansas was a visible member of the House investigation into Benghazi. He graduated from West Point, served as an Army officer and attended Harvard Law School before working as an executive in aerospace manufacturing and the oil industry. 

Another man with a no-nonsense approach when it comes to global warming.

NPR failed to mention that Rep Pompeo graduated first in his West Point class.

NDIC December, 2016 Hearing Dockets Posted -- November 18, 2016

Note: as usual, done in haste; for my benefit only; there will be typographical and factual errors; if this is important to you, go to the source.

Track the NDIC hearing dockets here. 

Wednesday, December 14, 2016 -- 10 pages

25463, NP Resources, Whiskey Joe-Bakken, proper spacing, Billings County
25464, NDIC/Whiting, Poe-Bakken, legalese on "halo effect," Koala #29495, McKenzie
25465, NDIC/Whiting, Hay Creek-Bakken, legalese on "halo effect," Langwald #27847, McKenzie
25466, NDIC/Whiting, Harding-Bakken, legalese on "halo effect," Asbeck #27197, McKenzie
25467,  NDIC/Whiting, Estes-Bakken, legalese on "halo effect," Evy June #27196, McKenzie
25468, NDIC/Whiting, Timber Creek-Bakken, legalese on "halo effect," Rovelstad #29815, McKenzie
25469,  NDIC/Whiting, Pleasant Hill-Bakken, legalese on "halo effect," Cherry State #30510, McKenzie
25470,  NDIC/Whiting, Bully-Bakken, legalese on "halo effect," Stenehjem  #30463, McKenzie
25471, Whiting, Truax-Bakken, establish four new or amend four existing overlapping 2560-acre units; 1 well each; Williams
25472, Kraken Oil and Gas, LLC, Tree Lake-Bakken, 14 wells on a 1280-acre unit; one horizontal wells on a newly established overlapping 2560-acre unit; Williams County
25473, Kraken Oil and Gas, LLC, Oliver-Bakken, 14 wells on a 1280-acre  unit; establish nine overlapping 2560-acre units, one well on each; Williams County;
25474, BR, Bailey-Bakken, establish two laydown 1280-acre units; 7 wells on each; establish one overlapping 2560-acre unit with one well; Dunn County
25475, BR, Corral Creek, Bailey, and Bear Creek-Bakken; establish four 2560-acre units with one well each; Dunn County
25476, Hess, Ross-Bakken, injectivity test, Nelson Farms #43937; Mountrail County
25477, Hess, commingling
25478, Hess, commingling
25479, Hess, commingling
25480, Hess, commingling
25481, Hess, commingling
25482, Hess, commingling
25483, Hess, commingling
25484, Hess, commingling
25485, Petro Harvester, SWD
25486, Oasis, pooling
25487, Oasis, pooling
25488, Oasis, pooling
25489, Oasis, pooling
25490, QEP, Van Hook-Bakken, 20 wells on a 3200-acre unit; Dunn, Mountrail counties; 3200/20 = 160-acre spacing;
25491, BR, pooling
25492, BR, pooling
25493, BR, pooling
25494, BR, pooling
25495, BR, pooling
25496, BR, pooling
25497, BR, pooling

Thursday, December 15, 2016 -- 5 pages

25498, Statoil, Tyrone and/or East Fork-Bakken; create five overlapping 2560-acre units; one well each; Williams County
25499, EOG, Parshall-Bakken; establish an overlapping 3840-acre unit; multiple wells; Mountrail County
25500, Crescent Point Energy, creating two 1600-acre units; one well each, Divide County
25501, Crescent Point Energy, create a 1600-acre unit; one well, Divide County
25502, NDIC, Sanish-Bakken; Elm Tree-Bakken; review setback rules for wells on two specific 2560-acre units, McKenzie, Mountrail
25503, CLR, Jim Creek and/or Rattlensnake Point-Bakken, establish an overlapping 2560-acre unit; one well, Dunn County
25504, CLR, Bear Creek and/or Corral Creek-Bakken, establish an overlapping 1280-acre unit; several wells; Dunn County
25505, Liberty Resources, Temple-Bakken, terminate an overlapping 2560-acre unit; in lieu thereof, eight wells on each of two existing 1280-acre units; Williams County
25506, NDIC, treating plant for Apollo Resources, McKenzie County
25507, XTO, pooling, Siverston-Bakken, McKenzie County
25508, XTO, pooling, Lost Bridge-Bakken, Dunn County
25509, CLR, pooling, Jim Creek and/or Rattlesnake-Bakken, Dunn County
25510, Liberty Resources Management, pooling, Temple-Bakken, Williams County
25511, Liberty Resources Management, pooling, Temple-Bakken, Williams County
25512, Liberty Resources, Ray-Bakken, 9 wells on an existing 1280-acre unit; Williams County
25513, Newfield, Nrothwest McGregor-Bakken 5 wells on an existing 1280-acre unit; Williams
25514, WPX, commingling
25515, WPX, commingling
25516, EOG, SWD

As noted above, there were a lot of commingling cases. This is an example of a commingling case: 


Example of a commingling case: Case No. 25480: Application of Hess Bakken Investments II, LLC pursuant to NDAC § 43- 02-03-88.1 for an order allowing oi l and gas produced from

• the EN- Abrahamson-155-93-3019H-6 (File No. 27610), 
• EN-Abrahamson-155-93- 3019H-7 (File No. 27611), 
• EN-Abrahamson-155-93-3019H-8 (File No. 27612), 
• EN-Abrahamson-155-93-3019H-1 (File No. 18838), 
• EN- Abrahamson-155-93-3019H-2 (File No. 18839), 
• EN-Abrahamson-155-93- 3019H-3 (File No. 18840), 
• EN-Abrahamson-155-93-3019H-5 (File No. 27609), 
• EN-Cvancara A-155-93-3231H- 1 (File No. 19905), 
• EN-Cvancara A-155-93-3231H-2 (File No. 19902), 
• EN-Cvancara A-155-93-3231H-3 (File No. 19900), 
• EN-Cvancara A-155- 93-3231H-4 (File No. 25786), 
• EN- Cvancara A-155-93-3231H-5 (File No. 25787), 
• EN-Cvancara A-155-93- 3231H-6 (File No. 25788), 
• EN-Cvancara A-155-93-3231H-7 (File No. 31000), 
• EN-Cvancara A-155-93-3231H- 8 (File No. 31001), 
• EN-Cvancara A-155-93-3231H-9 (File No. 31002), 
• EN-D Cvancara-154-93-0409H-1 (File No. 17562), 
• EN-Fretheim A-155-93-3334H-1 (File No. 19903), 
• EN- Fretheim A-155-93-3334H-2 (File No. 19901), 
• EN-Fretheim A-155-93- 3334H-3 (File No. 19899), 
• EN-Fretheim A-155-93-3334H-4 (File No. 28576), 
• EN-Fretheim A-155-93-3334H-5 (File No. 28575), 
• EN-Fretheim A-155-93-3334H-6 (File No. 28574), 
• EN-Fretheim A-155-93-3334H-7 (File No. 24870), 
• EN-Fretheim A-155-93-3334H-8 (File No. 24869), 
• EN- Fretheim A-155-93-3334H-9 (File No. 24868), 
• EN-Fretheim-154-93- 0508H-1 (File No. 17683), 
• EN-Fretheim 154-93-0508H-2 (File No. 22080), 
• EN-Fretheim 154-93-0508H-3 (File No. 22079), 
• EN-Hermanson A- 154-93-0136H-1 (File No. 18131), 
• EN-Hermanson-154-93-0235H-1 (File No. 17551), 
• EN-Hermanson 154-93-0235H-2 (File No. 24356), 
• EN- Hermanson 154-93-0235H-3 (File No. 24357), 
• EN-Hermanson-154-93- 0235H-4 (File No. 24561), 
• EN-Hermanson-154-93-0235H-5 (File No. 24562), 
• EN-Horst-154-93-0310H-1 (F ile No. 16981), 
• EN-Horst 154-93- 0310H-2 (File No. 22185), 
• EN-Horst 154-93-0310H-3 (File No. 22186), 
• EN-L Cvancara-155-93-2726H-1 (File No. 18440), 
• EN-Uran-154-93- 1213H-1 (File No. 18228), and 
• J. Horst 1-11H (File No. 15986) wells, 

Sections 19, 26, 27, 30, 31, 32, 33 and 34, T.155N., R.93W., and,
Sections 1, 2, 3, 4, 5, 8, 9, 10, 12, 13, 35 and 36, T.154N., R.93W.,
Mountrail County, ND, to be commingled in a central production facility located in Section 6, T.154N., R.93W., pursuant to NDAC § 43-02-03-48.1 or granting such other and further relief as may be appropriate.

ConocoPhillips (COP) Will Sell Its Kenai (Alaska) LNG Export Terminal -- November 18, 2016

From SeekingAlpha:

• ConocoPhillips says it is in the process of selling its Kenai liquefied natural gas export terminal in Alaska, and will open a "data room" associated with the sale in January
• COP says its current focus is on North Slope operations; COP has a nearly $1B capital budget for Alaska in 2016, and has accepted delivery of two new drilling rigs this year
• COP says it has not exported any gas so far in 2016 because of market conditions, but the Kenai plant remains operational and ready to resume exports

Note: this is not an investment site. Do not make any investment, financial, travel, relationship, or job decisions based on anything you read at this blog. If this is important to you, go to the source.

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

A Note For The Granddaughters

I'm actually ahead of the "game" this year. Often I wait until it's too late, but for whatever reason I cleaned up my equity portfolio before the end of the year, selling my losers (and some were significant) and using whatever cash I might have for new investments.

A reader asked me earlier this month on some of my thoughts on investing. I am the last person one would want to ask. No doubt I would have done much better over the years had I turned everything over to a professional financial advisor, but

• I would not have had as much fun;
• I would not have learned as much; and,
• I would not have stayed involved in the US economy, which I really enjoy

I have mentioned to other readers that I seldom check my portfolio unless I plan to sell or buy something. In the process of buying something, I then check to see if there's anything worth selling. I am not a trader. I am pretty much "buy and hold."

Now that I am retired I don't have as much discretionary income as I had when I was part of the labor force. Most of my discretionary income available for investing comes from dividends that are not automatically reinvested from which they came.

It takes a few months for enough cash to accumulate to make purchases in new investments worthwhile.

So, that brought me back to the reader's question, about my thoughts on investments.

Reflecting on that, I asked myself, where did I do best over the years? What investments did the best? Anecdotally, it appears I did best when a company was spun off, or a company was bought, or a company was sold. And some of those "events" were incredibly significant. The problem: no one can predict those "events."

Two of the commonalities of those "events" were:

• the "events" all involved blue-chip stocks (small-cap, mid-cap, or big-cap)
• shares in all companies had originally been bought with a 20-year horizon

Examples:

• BNSF/Berkshire
• BAX/Baxalter/Shire
• ATT breakup (years and years ago)

Close but no cigar:

• HAL/BHI

Pending:

• GE/BHI

Some of these deals resulted in a better outcome even if the dollar amount at the time was not particularly noteworthy. For example, at the time, I would have preferred that BNSF not be bought by Berkshire (for several reasons) but it has turned out to be much better than expected over the years.

So, now with my cash today, where do I invest?

For awhile I was accumulating GE because I think it's a great company for someone with a 20-year horizon. But then when I saw the big computer chip companies buying smaller computer chip companies, I began to wonder whether accumulating XLNX might not be a better idea. In other words, invest in a great company with a "small market cap" in an enviable sector, thinking it might be taken over.

So, a challenge: should I change my investment strategy from accumulating a big-cap company like GE and investing in a blue-chip company that might be bought by another company? So, I'm struggling with that right now, but I think I've come to a solution.

I think I will stop here. The post is getting long. Maybe more later.

Oh, some thoughts with regard to the economy / political environment.

XLNX was recently in the news as a possible buyout candidate, but that "excitement" died when a chip company other than XLNX was bought by a larger chip company. I had invested in XLNX over the years and the question rose whether I should now sell it, that it was temporarily out of favor as a take-over candidate. Then Trump won the election, and XLNX suddenly looks incredibly better. I did not sell; I purchased more. I bought XLNX before the election (for the same reason) but with the election outcome, I feel even better.

The other day, I mentioned GEO. In the current political environment, it's interesting. Two problems: I don't see this as something I would accumulate over a 20-year horizon; and, it's in a sector I know little about. I haven't said I won't invest in GEO but it would go against two of my "rules" when investing.