Thursday, January 26, 2017

20% Tax On All Mexican Imports? -- January 26, 2017 -- Hardball With Donald J Trump

By now, I'm sure everyone in the western hemisphere has heard that President Trump is considering slapping a 20% tariff on all Mexican goods imported into the US.

I completely missed this one; Bloomberg didn't. Via Twitter: this would be a "huge gift" for the Canadian oil patch. What country just submitted a new permit application for the Keystone XL?

Something tells me the President of Mexico is going to beg to have the meeting with President Trump re-scheduled.

From the Bloomberg link:
  • tax could make Mexican oil less competitive versus Canadian
  • proposal comes days after Trump revived Keystone XL
  • the proposal would apply to countries with which the US has a trade deficit, which would "seemingly" exempt Canada; the US ran a surplus of nearly $12 billion Canada in 2015
  • Canadian heavy oil competes with Mexican oil in the US refining market
  • in October, 2016:
  • Canada: 3.24 million bbls to the US
  • Mexico: 555,000 bbls to the US
  • could it also apply to Saudi Arabia? US has a trade deficit with KSA to the tune of $31 billion
  • Western Canadian Select crude oil priced in Alberta: $40.28 (today)
  • Mexican Maya sold in the US for $46.50 (today)
NOTE: unlikely to happen. 
***************************
US Crude Oil Imports

Link here
Source, Monthly (October, 2016) in thousands of bbls/month (rounded)
  • all countries: 300,000 
    • OPEC: 100,000
      • Iraq: 16,000
      • Saudi Arabia: 32,000
      • Venezuela: 23,000
    • Non-OPEC: 200,000
      • Canada: 112,000
      • Mexico: 20,000
Back-of-the-envelope:
  • Mexico: 20,000,000 bbs/month = 650,000 bbls/day
  • Canada: monthly record -- 127,444,000 bbls in January, 2016 = 4.1 million bopd
  • $53 x 1.20 =  $64/bbl
******************************
Mexico Crude Oil Exports To US

Thousand bbls/month:

NDIC Hearing Dockets -- February, 2017; Two New Operators/Lessees? CLR With Request For 23 Wells On One Spacing Unit

Link here.

The highlights of the February hearing docket agenda are at this link.  

Operators in this list I do not recall having seen before:
  • Trendwell Energy Corporation: according to NDIC, has two (2) permits in North Dakota
  • DW Slate: mentioned once below; I do not find this operator listed at the NDIC "Well Search" site; google search reveals that DW Slate LLC is a corporation entity based in NYC, and named as a lessee in 4 oil and gas leases; locations at this thedrillings.com site
Disclaimer: I often do these in haste; there will be factual and typographical errors. If this information is important to you, go to the source. My notations on the screenshots below are not "official." They are simply my thoughts and could be very, very wrong.


Wednesday, February 22, 2017 (eight pages)

25567, NDIC, terminate or other appropriate action of the Zenith-Tyler "A" Unit, Stark County, operated by New Millennium Resources.
25568, NDIC, Grinnell-Bakken, to review the status of the progress towards developing sections 30/31-154-96, McKenzie County
25569, QEP, Spotted Horn-Bakken, amend; extend timeframe in which development must occur in the E/2 of a 2560-acre unit, until December 31, 2017, McKenzie County
25570, BR, Twin Valley-Bakken, terminate a 2560-acre unit; change it to two 1280-acre units; 7 wells on each; McKenzie
25571, BR, Westberg-Bakken, establish an overlapping 2560-acre unit, 1 well; McKenzie
25572, BR, Elidah-Bakken, establish an overlapping 5120-acre unit; 2 wells; McKenzie
25573, MRO, Antelope-Sanish, establish a 2560-acre unit; 1 well; McKenzie County
25574, MRO, Reunion Bay-Bakken, establish a 2560-acre unit; 1 well; Mountrail County
25575, MRO, Bailey-Bakken, reduce setbacks, Dunn County
25576, MRO, Bailey-Bakken, establish two 2560-acre units; 1 well; establish three 2560-acre units; 2 wells; Dunn
25577, NDIC, treating plant
25578, BR, pooling
25579, BR, pooling,
25580, BR, pooling,
25581, BR, commingling,
25582, SM Energy, commingling,
25583, SM Energy, commingling,
25584, SM Energy, commingling,
25585, SM Energy, commingling,
25586, Cornerstone Natural Resources, pooling,
25587, Cornerstone Natural Resources, pooling,
25589, Cornerstone Natural Resources, pooling,
25590, Cornerstone Natural Resources, pooling,
25591, Cornerstone Natural Resources, pooling,
25592, Cornerstone Natural Resources, pooling,
25593, Cornerstone Natural Resources, pooling,
25594, Hess, pooling,
25595, Hess, pooling,
25596, Hess, pooling,
25597, Hess, commingling,
25598, Hess, commingling,
25599, Hess, commingling,
25600, Hess, commingling,
25601, Whiting, SWD
25602, Petro-Hunt, Little Knife-Bakken, 5 wells on a 1280-acre unit; Dunn County
25603, Marathon Oil, Bailey-Bakken, i) 8 wells on a 1280-acre unit; ii) 10 wells on another 1280-acre unit; and, iii) 11 wells on another 1280-acre unit, Dunn County
Note: not much else of interest, except commingling and pooling cases

Thursday, February 23, 2017 (eight pages)

25604, Resonance Exploration, Westhope-Spearfish/Madison, amend, establish an overlapping 320-acre unit, 1 well; Bottineau County
25605, XTO, Bear Creek-Bakken, amend, establish an overlapping 1920-acre unit; 3 wells; created an overlapping 3840-acre unit; one well; Dunn County
25606 Trendwell Energy Corp, Woburn-Madison, establish two 1280-acre units; 1 well; Burke County
25607, Statoil, Avoca-Bakken, amend, establish an overlapping 2560-acre unit; 1 well; Williams County
25608, Statoil, file #31973, inadvertently drilled outside of setbacks; relief requested; Williams
25609, DW Slate LLC, Eagle Nest-Bakken, establish a 320-acre unit; 2 wells; establish an overlapping 640-acre unit; 2 wells; Dunn County
25610, Abraxas, #32098, an exception to the field rules, McKenzie
25611, CLR, #32805, an exception to the field rules, Dunn
25612, NDIC, Alkali Creek-Bakken, appropriate spacing for a 2560-acre unit; Mountrail, McKenzie
25613, CLR, Elm Tree-Bakken, create an overlapping 1920-acre unit; 2 wells; McKenzie
25614, CLR, Elm Tree-Bakken, two wells, exception to field rules, McKenzie
25615, White Owl Energy, treating plant, Williams County
25616, NDIC, treating plant
25617, Newfield, Northwest McGregor-Bakken, legalese, Williams County
25618, Trendwell, pooling,
25619, Trendwell, pooling,
25620, WPX, pooling,
25621, XTO, pooling,
25622, CLR, pooling,
25623, CLR, Elm Tree-Bakken, 23 wells on an existing overlapping 2560-acre unit, sections 14/23/26/35-T153N-R94W (see graphic below), McKenzie County
25624, CLR, Rattlesnake Point-Bakken, 7 wells on an existing 1280-acre unit; Dunn County
25625, Resonance, pooling,
25626, Resonance, pooling,
25627, Crescent Point, Ellisville-Bakken, 9 wells on each of five 1280-acre spacing units; Williams County
25628, Crescent Point, Winner-Bakken, 9 wells on each of nine 1280-acre spacing units; Williams County
25629, Crescent Point, Dublin-Bakken, 9 wells on each of three 1280-acre spacing units; Williams County
25630, Sinclair, Sanish-Bakken, risk penalty legalese, Mountrail County
25631, Sinclair, Sanish-Bakken, risk penalty legalese, Mountrail County
25632, Sinclair, Sanish-Bakken, risk penalty legalese, Mountrail County
25633, Sinclair, Sanish-Bakken, risk penalty legalese, Mountrail County
25634, Sinclair, Sanish-Bakken, risk penalty legalese, Mountrail County
25635, EOG, commingling,
25636, Henry Hill Oil Services, SWD
Note: not much else of interest, except commingling and some continued case

Friday, February 24, 2017 (three cases)

25637, RIM Operating, Lakeside-Midale/Nesson Unit Area, unitization of all of section 11-163-89, within Lakeside Field in Burke County
25638, plan to be signed by owners of interest related to same case, #25637
25639, conversion of Mesa 44-11H (file/permit #17013) in section 11-163-89, SWD

Briefs -- January 26, 2017

Miami-Dade mayor drops sanctuary policy: Trump tweet.

TransCanada submits new application for Keystone XL: via Twitter.

Trump administration fires US Border Patrol chief, a former FBI agent, appointed days ago by former president; political appointee. After chief fired, Trump signs EO on "barrier."

Mexican peso in free-fall.

John Kemp says treaties don't allow tariffs as proposed: via Twitter.

Trump "delays" signing EO on voter fraud: via CNN


Steady At 38 Active Rigs; Four DUCs Reported As Completed -- January 26, 2017

Active rigs:


1/26/201701/26/201601/26/201501/26/201401/26/2013
Active Rigs3848156187190

No wells coming off confidential list Friday.

Three new permits:
  • Operator: Whiting
  • Field: East Fork (Williams)
  • Comments:
One permit renewed: a Petro-Hunt USA permit in McKenzie County.

One permit canceled: a BR Cleetwood permit in McKenzie County.

Four producing wells (DUCs) reported as completed:
  • 31308, 510, EOG, Wayzetta 96-3019H, Parshall, t11/16; cum 7K after 27 days;
  • 31596, 287, XTO, Johnson 31X-6CXD, Siverston, t11/16; cum --
  • 31597, 122, XTO, Johnson 31X-6D, Siverston, t11/16; cum --
  • 31609, 1,326, XTO, Johnson 31X-6G, Siverston, t11/16; cum --

NDIC Hearing Dockets For February, 2017, Highlights

Link here.

These are only the highlights of the February hearing docket agenda.  A summary of the full agenda is here.

Disclaimer: I often do these in haste; there will be factual and typographical errors. If this information is important to you, go to the source. My notations on the screenshots below are not "official." They are simply my thoughts and could be very, very wrong.


Wednesday, February 22, 2017 (eight pages)

25603, Marathon Oil, Bailey-Bakken, i) 8 wells on a 1280-acre unit; ii) 10 wells on another 1280-acre unit; and, iii) 11 wells on another 1280-acre unit, Dunn County
Note: not much else of interest, except commingling and pooling cases

Thursday, February 23, 2017 (eight pages)

25623, CLR, Elm Tree-Bakken, 23 wells on an existing overlapping 2560-acre unit, sections 14/23/26/35-T153N-R94W (see graphic below), McKenzie County
25627, Crescent Point, Ellisville-Bakken, 9 wells on each of five 1280-acre spacing units; Williams County
25628, Crescent Point, Winner-Bakken, 9 wells on each of nine 1280-acre spacing units; Williams County
25629, Crescent Point, Dublin-Bakken, 9 wells on each of three 1280-acre spacing units; Williams County
Note: not much else of interest, except commingling and some continued case


Friday, February 24, 2017 (three cases)

25637, RIM Operating, Lakeside-Midale/Nesson Unit Area, unitization of all of section 11-163-89, within Lakeside Field in Burke County
25638, plan to be signed by owners of interest related to same case, #25637
25639, conversion of Mesa 44-11H (file/permit #17013) in section 11-163-89, SWD

*****************************
Case 25623

25623, CLR, Elm Tree-Bakken, 23 wells on an existing overlapping 2560-acre unit, sections 14/23/26/35-T153N-R94W (see graphic below), McKenzie County. Three graphics of this 4-section  (2560-acre) stand-up drilling unit. Note all the other pads in the immediate area. I did not check but I assume move of these are 1280-acre spaced wells.

Note: for newbies who might have a few wells in the better part of the Bakken, you, too, will participate in this many wells sometime in the future. The graphic does not include additional units that will permit wells to recover oil along section lines, so it is likely that there will eventually be even more wells in this area.

Screenshot #1:


Screenshot #2: 




Screenshot #3: