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TedNugget
03-01-2011, 05:38 PM
An investment consideration

Lets understand the new technology.
This has come about in just the last 2-3-5 years and is still being improved on.

Here is a good concise 6 1/2 minute video that shows how well fracturing for crude oil is accomplished.

http://www.geoart.com/educational/hsd_oil.php

(One caveat on the video; currently wells are being completed with far more fracturing. Instead of 1000 foot fracs often they are 350 - 500 ft fracs.)

Imagine a similar well for Natural Gas that is shallow where the ground water is in or within 500 feet of the shale play.
The fracturing with a variety of chemicals clearly is going to cause serious problems.
Fracturing with just water and sand can still release undesirable compounds into the ground water from the source rock.

===========

Now consider those areas where the petro is well below the lowest ground water.

Say, the Bakken (Williston Basin) in North Dakota/Montana/Southern Canada. Or the Niobrara in the Rockies.
Bakken wells are typically 1.5 miles down then they go horizontal. Ground Water usually stops at around or just below 2,000 feet down. Providing a one mile safety margin. There can be problems with the well casing and concrete liner. Since I have been following this I only know of blow-outs at the well head. (Our Montana well actually had one of those.) The well head problems may not be easy to clean up but they are not into the ground water because of the collection pool they are required to put in place prior to spudding - the start of drilling. (In our case it made for a pond sized pool of the pure black mess you saw on the Star Trek Next Generation episode. They recovered almost all of the oil and cleaned up the mess very nicely.)

- - - - - - - - - - -

May I suggest investing in oil/gas in the following manner:

1) US & Canada operations,
2) No off-shore and especially no deep water companies,
3) Avoid shallow shale plays. They are screwing up drinking water and going to come under increasing regulation and many will be shut down.

TedNugget
03-01-2011, 05:48 PM
CLR is one of the 'American' oil companies.

Here is their latest powerpoint:

http://media.corporate-ir.net/media_files/irol/19/197380/NAPE_Presentation_Bakken_Shale_Evolution_by_Jack_S tark.pdf

Goto slide 25 and look over that well pad.
Four wells side by side.

Look at slide 23 and picture how they will go down, go horizontal and do multifraccing. The gold standard just now could be 3 Bakken and 2 Three Forks Sanish wells from one ECO pad. As in ecological because of less impact on the land.

===========

It should be noted that Continental was a leader in bringing about these new drilling techniques not just to the Williston Basin but improving them in theatre.


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Nothing special but here are some places to do research that you may not normally use.
Note that often you can sub in any stock ticker and look it over.

http://messages.finance.yahoo.com/mb/CLR
I just noted someone saying something about CLR is going to sell 10 million shares. I will have to read up on that.
Please notte that the commentary here is not as refined as at Kitco.

+++++++

For a quick check on after market prices:
http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=CLR&mkttype=after

TedNugget
03-01-2011, 06:01 PM
Why would Continental be going after more cash.

One thing is the well drilling costs etc.

But another is acquiring acreage.

In the US and Canada the land (mineral) owner is paid for their resource. That is almost always not true elsewhere as I understand it.

To do this there is no system within most states for easily determining who is the mineral owner and who holds any leases.

LANDMEN go to county courthouses and study and copy all they can and make contact trying to tie up as much acreage as they can.

Landmen are commonly thought of as being south of lawyers. Most are just fine but never sign with the first one.

How many acres any US company has, that are either net or gross, is very important.

Leases were almost always 5 year but because of the need to get as many acres 'in the bank' by these companies as possible they have signed for 4 and now commonly 3 acres just to get 'er done. If its three years that means they need to drill within 3 or loose you to another company/landman.

Then there is the bonus.
Figured per acre. We leased a trust in Montana for $150/acre bonus 4 years ago, Last year we leased a nearby ND trust for $2250/acre bonus that was 8 miles away.
In many of these areas they are experiencing 100% success in their wells. It's easy to bid things up with higher oil prices and that kind of success. Even George W Bush could drill wells in the Bakken.

TedNugget
03-01-2011, 06:05 PM
Why would Continental be going after more cash?

One thing is the well drilling costs etc.

But another is acquiring acreage.

In the US and Canada the land (mineral) owner is paid for their resource. That is almost always not true elsewhere as I understand it.
So elsewhere Bribes and fees are what gets a company access to an oil field.
In the US the bribe goes to the mineral owner who pays taxes on it.

To do this there is no system within most states for easily determining who is the mineral owner and who holds any leases.

LANDMEN go to county courthouses and study and copy all they can and make contact trying to tie up as much acreage as possible.

Landmen are commonly thought of as being south of lawyers. Most are just fine but never sign with the first one.

How many acres any US company has, that are either net or gross acres, is very important.
You should invest paying strong attention to the number of acres any company has. DYODD!
Here is a map by BEXP - Brigham Exploration. Note on the left the acreage figures they provide for themselves abd several other companies;
http://www.bexp3d.com/Willistonbasinmap.pdf
As per the Cramer show, here is the list of lease owners for Bakken - ordered high to low.
1. Hess HES
2. EOG Resources EOG (don't buy, too much nat gas)
3. Continental Resources CLR
4. Whiting Petrol WLL
5. Brigham Exp. BEXP
6. Oasis Petro OAS
No numbers provided!
Note that CLR moves from 1st to 3rd.
I don't understand that other than possibly dated data from the BEXP map/chart.

I noticed some companies like Slawson - Independent are not listed.
I think some of these companies may be listing the acreage from cooperators like Slawson, but I don't know that. again DYODD

Leases were almost always 5 year but because of the need to get as many acres 'in the bank' by these companies as possible they have signed for 4 and now commonly 3 acres just to get 'er done. If its three years that means they need to drill within 3 or loose you to another company/landman.

Then there is the bonus.
Figured per acre. We leased a trust in Montana for $150/acre bonus 4 years ago, Last year we leased a nearby ND trust for $2250/acre bonus that was 8 miles away.
In many of these areas they are experiencing 100% success in their wells. It's easy to bid things up with higher oil prices and that kind of success. Even George W Bush could drill wells in the Bakken.

TedNugget
03-01-2011, 06:17 PM
Even though the Bakken is the second largest oil play discovered in the US, (after North Slope), and that North Dakota is now the #4 state in production there are other possibilties.

NIOBRARA.

In the Rockies.

It is just being opened up and you might want to look into this to get in now.

http://oilshalegas.com/niobrarashale.html

This site is also worth looking over so don't just glance at the map and leave if you are interested in investing in Shale.

- - - - - - -

remember - shale on the surface is hard to get the oil out of.
but under the ground it can be high pressure fractured and the rock will give up a portion of that oil.

GO NIOBRARA - for our sake we need it.

TedNugget
03-01-2011, 06:20 PM
Originally, none of the really big boys were interested in the Bakken.
That is in the process of change.

Marathon (MRO) and Exxon/Mobile have been.
Marathon has our ND Lease and my experience with them is that they are top drawer. but I wouldn't invest with them because they are in Libya and drill off-shore. DYODD.

That is about as big as they get locally.

However, most of these companies - including Marathon, could be buy out targets of Exxon/Mobile or BP or Shell.
Look at the world situation and guess where the big guys might have to go next.
Marathon seems to have the strongest rumor mill of a takeover in their future. At least that was the rumor prior to Libya.

TedNugget
03-01-2011, 06:38 PM
Just thought that a place to go for oil info in the US would be worthwhile now.

I know this is a metals forum but put it here until its relocated elsewhere.

Ongoing project.

TedNugget
03-01-2011, 11:35 PM
Today there were 168 active drilling rigs in ND.

https://www.dmr.nd.gov/oilgas/riglist.asp

15 months ago I think it was around 90.
Remember, this is just for North Dakota.
Canada has a lot of Williston Basin too and then the oil sands are further up.
The American side folks I've talked to and read have been positive about the innovativeness of the Canadian Operations and both sides are paying keen attention to each other. I don't know anything about Canadian Companies for the most part and the only place I know of would be to see what CYCLIST recommends up north.

=============

You can look over this list and figure out which company is doing the most drilling.

Montana operations in the Williston Basin aren't nearly has large as they are in ND.

Also note that some of these aren't big rigs. They are just there to do the first leg to below the ground water with a cost effective mostly mounted on one truck drilling platform. They get the first leg done and cement it in, then the big rig comes in later when it's schedule allows. The big rigs cost about 5 million apiece I guess and rent for something like $100,000 a day.

http://www.thestreet.com/story/11020164/7/whiting-petroleum-corporation-announces-fourth-quarter-and-full-year-2010-financial-and-operating-results.html

"Whiting estimates that the total completed well costs for its most recently completed wells in the Sanish field will come in below $5.5 million per well. The last five wells that Whiting drilled in Sanish field reached a total measured depth of approximately 20,000 feet, including 10,000 feet of lateral, in an average of 22 days."

TedNugget
03-01-2011, 11:43 PM
Goto;
https://www.dmr.nd.gov/oilgas/

and then select the GIS Map Server from the middle left menu.

This gives one a quick overview of what's happening in Western North Dakota.

========================

If you want work head to North Dakota:

http://www.bls.gov/web/laus/laumstrk.htm

- - - - - - -

Oil well work pays but finding housing is hard.

http://www.nytimes.com/2010/04/21/us/21ndakota.html

inframan
03-02-2011, 10:22 AM
An investment consideration

Imagine a similar well for Natural Gas that is shallow where the ground water is in or within 500 feet of the shale play.
The fracturing with a variety of chemicals clearly is going to cause serious problems.
Fracturing with just water and sand can still release undesirable compounds into the ground water from the source rock.

Yup, NY state even banned water based fracking. But not gas fracking, BUY GASFRAC, just my opinion, but it works and it could be a gamechanger in fracking.

nickndfl
03-02-2011, 05:55 PM
(OAS) Oasis is all Bakken.

TedNugget
03-02-2011, 07:25 PM
Oasis just did its IPO last June or thereabouts.

Started off in the $14/share neighborhood and finished today at $35.76
Up 1.18 for the day despite Jim Cramer jinxing it.

Oasis is run by mostly former Burlington Oil Folks.

Here is how the Oasis insiders have been trading their own stock:
http://www.reuters.com/finance/stocks/insiderTrading?symbol=OAS

(Just change out OAS to most other stock tickers and you'll get their insider buying and selling.)

OAS just delayed its Q4 report till Tuesday next week.

Hmmmmmmmmm

==================

In the area near a Trust I'm part of in North Dakota; Oasis and Brigham and Continental are duking it out to see who can get the most acres in spacing units, permitted and drilled.
They all are doing well. pun intended.

TedNugget
03-02-2011, 07:50 PM
http://www.dec.ny.gov/energy/46288.html

Has some info from 2009 regarding NY Marcellus Shale.
They talk about a bunch of the shale being deep.
("Geologists estimate that the entire Marcellus Shale formation contains between 168 trillion to 516 trillion cubic feet of natural gas throughout its entire extent. It is not yet known how much gas will be commercially recoverable from the Marcellus in New York. To put this into context, New York State uses about 1.1 trillion cubic feet of natural gas a year.")

============

http://www.catskillmountainkeeper.org/node/290

Better map for a larger area and they're still talking about it being deep.

============

Here is some of the hydro fraccing concerns that INFRAMAN mentioned:
http://www.brooktroutfishingguide.com/conservation/marcellus-shale-hydrofracking-pollution-ground-water-and-trout

Be sure and link to the blue highlighted text for good info especially on the publicly reported fraccing chemicals.

TedNugget
03-02-2011, 07:55 PM
I'm not making this up.

http://nextbigfuture.com/2010/09/paris-basin-shale-oil-could-have-more.html

The Paris Basin has an area of ~170,000 km2, encompasses most of the northern half of France and extends into Luxembourg, Belgium and Germany.

IT COULD HAVE MORE RECOVERABLE OIL THAN THE BAKKEN !

============

However, the French may not take well to oil wells in their grape fields.

==============

What they say over and over in the Williston Basin regarding the Bakken and other horizontal drilling is that this is A TECHNOLOGY PLAY.

They've known about the Paris Basin for awhile.
Because of the innovation in the US/Canada the French may benefit from our technology.

TedNugget
03-04-2011, 01:32 PM
Because of the nature of leasing from mineral owners, American Oil Companies are usually very inefficient in the development of oil field.

The spacing units were typically 1 section in size but now are 2 - that's 1280 acres.

A company signs up as many folks it can within an area that they hope to drill.

They apply for a spacing unit,
Then a permit to drill,
Then spud - start the drilling process,
Then Frac - usually most wells in the Shale plays,
Then pump and reap profits.

That cost anywhere from 4-6 million / well so they need a few years of 100 - 500 barrels/day wells.

The most efficient thing to do is drill numerous wells side by side in the areas with the most production initially.

Moving the big drilling apparatus takes 3-5 days, It has to be disassembled then trucked and put back together without killing anyone.

Since they rent for about $100,000 a day this costs the company that owns the rig.
Since there is no drilling when they're being moved this hurts the oil company.

If a drilling rig can be just 'jacked' over to the side several yards on the same pad this saves time-saves money.
A large rig can be 'jacked' over in usually a half day.

==================

The Oil Companies need to tie up as many spacing units as possible.

In a SU that could have 4-5 wells they will drill just one and move on.

If they don't they will lose other leased acres because if they don't get a producing well someone else could get the lease that just expired.
Leases used to all be 5 year but many are now 3 and 4 year because of the frenzy to sign.

This is actually very complex as most spacing units will have multiple leases to deal with and they often will expire in different years.
Deciding where to drill for the coming year in a series of meetings at one of these large companies must be stressful.

Here is a cost analysis:

Let's say a top lease, (that's a new lease signed before the old one expires by the same company), costs a modest $700/ acre bonus.
For a section that is $448,000.

Then lets say that new lease goes from a royalty of 1/6th to 1/5th.
Over the life of a well that produces 300,000 barrels that would be an increase of $800,000 at below current prices.
(.03333 increased royalty x 300,000 barrels = 10,000 barrels lost x $80/barrel=
$800,000

Going with modest figures we are looking at possibly 1.25 million lost to the oil company if they have to top lease.

Now, worse than that.
They may not get the new lease, it could go to someone else.

===========

Some bonuses in the prime areas are going for 6-8 thousand per acre.
The price of oil in the Williston Basin is generally $10 under NY Spot so a conservative $80/ barrel was used here.

- - - - - - - - - - - - -

You get the point.
Keeping acres in the Bank is JOB #1.

So when you look at the acreage figures listed by any company understand that its complicated.

They have to develop their fields one well at a time.

TedNugget
03-04-2011, 05:46 PM
http://www.investorideas.com/Companies/NaturalGas/Karl_Miller/news/2011/03031.asp

Energy Commentary from Karl Miller

"It has not become a foregone conclusion that the Environmental Protection Agency (EPA) will be given full authority and mandate to regulate any and all activities surrounding Hydraulic Fracturing, to include an imminent ban on the injection of all toxic chemicals into the ground, imposition of major fines for violations of the Clean Water Act, and designation of De-facto superfund/clean up sites in major drilling areas already seriously contaminated by the Natural Gas and Drilling Producers.

The future of Hydraulic Fracturing "Fracking" in the Continental U.S. is very much at risk given the undeniable facts that the process can't be conducted without the use of toxic chemicals, contamination of water tables, use of known carcinogens known to be harmful to humans and violation of the U.S. Clean Water Act."

TedNugget
03-04-2011, 06:03 PM
I don't know anything about DENBURY ONSHORE, LLC

But they apparently just bought out ENCORE OPERATING, LP TO the tune of 521 WELLS IN North Dakota:
https://www.dmr.nd.gov/oilgas/daily/2011/dr030311.pdf

Remember; if a property had a producing well at one time under most contracts (exception BIA and possibly other federal contracts) that property can be permanently leased under a 'shut in' provision. Re-selling those leases is absolutely legal and common. The yearly fees for continued leasing of a shut in property are typically $3-5 per acre. That is nothing! Royalty rates stay the same as the original contract.

So let's say 100 of those wells are not producing or have very little oil left in them. That doesn't matter now because we are going after different layers of oil and/or with new technology. A dry Ratcliffe well is not a concern, what is important is that a Bakken well can be drilled at the leisure of the Operator. Denbury does not have to drill on any of these properties now. They will have to on most if not all of the leases Encore held as mentioned in post #15.

Small time but producing wells are very valuable in America in these shale plays where technology is opening up some of the largest oil fields ever.

I've got to pay attention to:
http://www.denbury.com/index.php?id=7

NYSE: DNR

...

TedNugget
03-04-2011, 06:15 PM
The Pugh Clause essentially doesn't exist in the Bakken or is extremely rare.

Some lawyer in Louisiana back in the day came up with breaking out a mineral lease to the different layers of oil.

This would be especially problematic in the Williston Basin with 10+ potential layers of source rock in any area.
Plus the oil has been shown to leak between strata. Back and forth from/to the Bakken/Three Forks Sanish is understood.

So these oil leases that are tied up under a 'shut in' provision are still good as we move from one play to another.

TedNugget
03-04-2011, 06:40 PM
LINN ENERGY has just moved into the Bakken.

Their CEO Mark Ellis is saying:

Finding costs in the Bakken are $15/barrel
operating costs in the Bakken are $10/barrel

Do the math. Lots of profit.

Then a brief discussion of disposing of frac water.
CEO Ellis said they try to re-cycle all their Frac water.
When they can't they do salt water disposal.
What he means by that is that they are re-injecting the water deep into the ground where the ancient oceans were that made this oil.
{These waters are called brine. They are of the same composition as ocean water.
Noah was holding out. North Dakota had many floods. They came they went, dryer rock formed. Then another ocean came in.
When drilling for oil in the Williston you aren't trying to hit a land dinosaur, more commonly just a lot a deceased plankton and their food chain superiors.}

==============

http://www.reuters.com/article/2011/02/28/conchoresources-idUSL3E7DS19S20110228

Feb 28th .UPDATE 2-Linn Energy to buy oil rich assets for $434 mln

- - - - - -

http://beforeitsnews.com/story/449/152/LINN_Energy_snaps_up_positions_in_Bakken,_Permian_ and_Wolfberry_oil_and_gas_plays.html
LINN Energy snaps up positions in Bakken, Permian and Wolfberry oil and gas plays.
(One of the deals is the acquisition of Concho Resources’ (NYSE:CXO) North Dakota Bakken assets for $196 million.)

- - - - - - - -

TedNugget
03-04-2011, 07:48 PM
Here is a problem with even the best salt water/frac'ing water disposal.

They use old wells.
Old.
Quality was lesser back in the day.

It takes pressure to re-inject water into the deep.

Stuff can happen.

TedNugget
03-04-2011, 07:57 PM
On our Montana well.
Two farmers we have had contact with confirmed that the well had two blow-outs.
The first started a fire under the drilling rig - expensive drilling rig - that burned uncontrolled for "a day and a half".

The company, to remain unnamed, denied the fire in a casual conservation with our representative.

I was talking to a state official who said he had no knowledge of this then our conversation was cut short as he had "to get back to work".

I have photos of when I visited the well pad, before it was frac'd, of galvanized roofing pushed off to the side as if by a dozer. This galvanized roofing was burnt on one side.
Just like it was mounted on the front of a dozer used to fight a well fire.

===========

One thing everyone should understand about every industry is that there are problems and many are hid.

I would like to reference the re-assurances Obama was given on deep water drilling and the Macondo fiasco.

earplug
03-04-2011, 08:18 PM
I have been studying the various energy investment options.
Any information is good. I'm long ERF, PWE, ENP, PGH, CEO. COSWF.
I'm still underwater on some Canadian stuff that was bought high before the Canadian government changed the trust system.
Sort of like owning rental property, I get the rental check but still waiting for the property to appreciate.

TedNugget
03-04-2011, 08:51 PM
I'm an acknowledged stock market ignoramus.

I can't do any recommendations and that is especially true with regard to Canadian petro stocks.

What did occur to me is that there was a need for a background thread for the world of crude just now.

Please feel free to discuss stocks and make corrections.
One could e-mail me with typos grammar and other sources.

I think this is a good idea, hope you folks do too.

DYODD.
Hopefully this thread can be a PART of that DILIGENCE.

TedNugget
03-04-2011, 11:52 PM
http://www.youtube.com/watch?v=_3lbgX0DVjI

Shows the well drilling activity in the Williston Basin for the US.
(Remember Canada has Williston Oil also)

Video is too long so just go to near the end and be sure and look over the page counting the spuds.
7 minute video can be shortened to <1 minute and you get the point.

TedNugget
03-05-2011, 12:54 AM
Marathon is one of the companies that uses H&P's flexrigs.

http://www.hpinc.com/hpfrnb.htm
http://www.iadc.org/dcpi/dc-sepoct02/Sep2-landrig.pdf
http://www.upstreamonline.com/live/article242575.ece

Stock: Helmerich & Payne (NYSE: HP) One might want to invest in these guys.
There are 21 H&P drilling platforms today in North Dakota.

I don't know beans about them but with more problems in the ME H&P's business could explode.
With their rigs they have cut drilling down to 18 days for one of these deep long wells.
Plus they have a shorter turn around to the next well pad.

==================

http://www.youtube.com/watch?v=MavL8--oI58

The above Youtube video shows how much automation is involved in these newer rigs.

TedNugget
03-05-2011, 01:07 AM
Oil well water injection explained on a Kitco level:

http://www.youtube.com/watch?v=QI-wcDt-_yM

Actually, it just shows that oil is lighter than water and floats.
Some of those tanks you see on the well pads are to separate the oil from the brine.

==============
==============

Arkansas earthquake swarm:

http://www.youtube.com/watch?v=_L-SSugJ2FY

- - - - - - -
Oil and Gas panel bars use of two injection wells in quake area

http://arkansasnews.com/2011/03/04/oil-and-gas-panel-bars-use-of-two-injection-wells-in-quake-area/

- - - - - - - -

Arkansas Suspends Drilling of Injection Wells after Earthquake Swarm

https://lunaticoutpost.com/Topic-Arkansas-Suspends-Drilling-of-Injection-Wells-after-Earthquake-Swarm

greenbeard
03-05-2011, 11:59 AM
So gasfrac does not use an liquids? What kind of gas is gasfrac using?



Yup, NY state even banned water based fracking. But not gas fracking, BUY GASFRAC, just my opinion, but it works and it could be a gamechanger in fracking.

TedNugget
03-05-2011, 01:05 PM
Here is the best reasonably short explanation of the Marcellus I've found:

http://oilshalegas.com/marcellusshale.html

=========

Most of the page is a listing of companies that are involved in the play and some specifics and CEO quotes.

One thing I noticed is that LINN sold a bunch to XTO.

As noted in post #19 LINN is moving into the Bakken just now.

I don't know this but it seems as if they might be avoiding the bad publicity of one play for the good publicity of another.

TedNugget
03-05-2011, 08:18 PM
Bud Brigham has often been described as a 'darling' of the investor community.
Brigham (NYSE: BEXP), has come back from near death as a company a few times over the years but Bud never lost faith and brought her back.

Now, look at how good the company is with a $36 stock and one of the biggest players in the Bakken.

===========

Now time again for a take-over rumor:

http://groups.google.com/group/bakken-shale-discussion/browse_thread/thread/37d57bd0e0895164

- - - - - - -

Just pure rumor, I couldn't find anything else.

However, in an oil play at this time one should expect layers of rumors and actual takeovers periodically.

TedNugget
03-06-2011, 01:51 PM
Here is a good read on why shale oils may not be the complete solution they have been touted to be:

http://www.theoildrum.com/node/7499

============

Its long but perhaps worth your time.

Please pay particular attention to the chat by the geologist and others at the bottom.

"As a petroleum geologist, the distinction between thermally mature oil in the Bakken, et al, and kerogen deposits is clear to me, but the distinction is not apparent to a lot of people, e.g., talking heads on CNBC, so I would suggest that any articles on oil from shales* should have an explanation about thermally mature oils versus kerogen deposits."

*Of course, the Green River formation in Colorado is really mostly an ancient lacustrine marl deposit. The marlstone is undercooked so the kerogen hasn't turned into oil. Just give it another 60 million years or so, maybe pile a few mountains on top to speed things up. Heavy oil (bitumen - like the oil sands Athabasca in Alberta Canada, is overcooked - the lighter fractions have escaped)."

A key point here is how good the Bakken oil is.

Perhaps all you should focus on is that there are many types of 'oil'.
It goes well beyond this brief discussion.
Simply understanding that over mature Kerogen, under mature Kerogen and Bitumen are less desirable than most of the Williston Basin Bakken Oil is enough.
(They are far more expensive to refine and pollute more)

Take that to the earlier comment by nickndfl that Oasis (OAS) is all Bakken may have some merit.
Sure Oasis is a 'come lately' outfit that is pushing to get acreage and wells but they are doing both well and they are in the best area.

A thought on that company.

TedNugget
03-06-2011, 02:08 PM
"The dramatic upturn in oil production from the Bakken Formation in North Dakota during the last few years underscores the value of incorporating new models of geologic thought with advances in drilling and completion technology. The development of the Bakken Formation resulted from advances in drilling and completion technology that were originally developed to exploit regionally extensive gas resources known as basin-centered gas accumulations. The breakthrough in exploration thought that led to the development of petroleum from the Bakken Formation, was the realization that the same basic geologic principles used to explore for basin-centered gas resources also apply to oil."

TedNugget
03-06-2011, 02:12 PM
"Unfortunately, I have seen this stated about the Bakken more than once. Why? Some people have just enough knowledge to be dangerous. There are oil shales that can be mined. However, the Bakken formation does not fit this category. The Bakken is thousands of feet underground, and contains mature “sweet crude”. In contrast, shallow mineable oil shales contain kerogen which does not easily flow, and may appear waxy or have similar properties grease or tar. There is a window of heat and pressure that is favorable for oil to mature (Oil window ca. 60°-120°C, gas window ca.120°-150°C). Mineable oil shales typically missed at least one part of the oil formation process."

http://geothunder.com/2010/03/02/bakken-formation-myths/

Check out the video too! 5 miutes but you can shorten it.
Its a promo but the spot from :55 to about 1:20 shows an explanation of shale oil - although they don't mention the difficulties.

TedNugget
03-06-2011, 04:09 PM
The oil sands are not tar;

http://en.wikipedia.org/wiki/Oil_sands

"Bituminous sands - colloquially known as oil sands (and sometimes referred to as tar sands) - are a type of unconventional petroleum deposit. The sands contain naturally occurring mixtures of sand, clay, water, and a dense and extremely viscous form of petroleum technically referred to as bitumen (or colloquially "tar" due to its similar appearance, odour, and colour). Oil sands are found in large amounts in many countries throughout the world, but are found in extremely large quantities in Canada and Venezuela."

==========

"....... one in every 8 liters of gasoline sold in Canada is made from tar sand derived synthetic crude oil.

( http://www.responsiblenergy.org/tarsands.asp )

Canada is the world leader in tar sands oil production and now produces nearly 1 million barrels per day from its mines. Canadian energy officials hope to be producing 3 million barrels per day from the tar sands by 2015—roughly the amount of crude oil produced today by Norway, the world’s third largest oil exporter. Canada’s proven tar sands reserves are 180 billion barrels, meaning that the country has the resource base to support its goal of tripling production in 10 years."

{Tar comes from Pine Tree pitch.
North Carolina University 'Tar Heels' are so named based on the people who gathered pine pitch in the same manner as Maple Syrup and carried a pole over their shoulders with a bucket of pitch on each side. If they got sloppy the tar fell onto their feet. That Tar was used for Naval Stores - to water proof ships and other uses. We still use it for turpentine.}
The Oil Sands in Canada are sometimes mislabeled as Tar sands like the La Brea 'Tar" pits are also mislabeled.
They should be called the Asphalt Pits if anything.

-------------------

A side bar here is that Venezuela mostly has 'oil' that is very difficult to process.
So when Venezuela and China announced a big 'oil' sale agreement last year it didn't mean that much.
That Bitumen is just hard to work with.

Much of the Canadian Oil Sands Bitumen is mixed with better light sweet crude just to facilitate the processing.

===========

The Saudi's recently have increased production to offset Libyan reduced flow.

That can't be done exactly because the Libyan oil is a very good light sweet crude and the Saudi not so much.

http://nationalinterest.org/commentary/sweet-light-crude-o-mine-4971

"Libyan crude may represent 2% or so of the global market, but it is 10% of the world’s light sweet crude, and it cannot be replaced."

===========

Told you those stories to tell you this one:

Iran has to send a lot of its 'oil' to Saudi Arabis to be made into gasoline etc.
Their 'oil' isn't that great either.


----


I'll get some links here later.

TedNugget
03-06-2011, 06:03 PM
Alberta backs C$5 billion oil sands refinery plan

http://www.reuters.com/article/2011/02/16/us-alberta-refinery-idUKTRE71F4L620110216

neat trivia at the bottom of the article:
"In addition to the bitumen plant, the Alberta government will provide C$495 million to Enhance Energy Inc's Alberta Carbon Trunk Line, which will ship carbon dioxide from the facility plant to be injected into oil fields to increase output."

======================

Remember the comment by INFRAMAN on investing in GASFRAC back in post #10 ?

http://www.gasfrac.com/gasfrac_comparison.aspx

Gasfracs page does a comparison between:

"Conventional Fracturing Process: Water or Refined C7+ Oil, treated with proprietary chemicals that can be comingled with CO2 or N2 to create an energized, foamed or emulsified stimulation fluid.
and
GASFRAC's LPG Fracturing Process: 100 % LPG (Liquefied Petroleum Gas), gelled with GASFRAC's proprietary chemicals."

=============

So there is an ongoing discussion as to what to put down a well to frac it the most effectively and 'safely'.

There is something of a push to use Carbon Dioxide as injecting it into the ground is a two bird with one stone option and sells with the global warming concerned a little.

earplug
03-06-2011, 06:16 PM
I like to study the developing oil and gas pipelines in the Bakken and other locations.
I figure its a good investment area if the pipeline company thinks the reserve is going to last long enough for them to profit. Many companies have been using trucks to haul the crude from the well site. This costs much more then a pipeline.
Not unlike a railroad hooking up to a mine instead of using trucks.
The reverse might be the lack of maintenance on older pipelines.

TedNugget
03-06-2011, 06:24 PM
Halliburton refused to give out what it was using as fraccing fluids until recently. Claiming it was proprietary.
Several other companies did the same.
This was based on a Bush 43 era law (circa 2006)

===========

There was complaining about it before it passed:
http://www.halliburtonwatch.org/news/epa_whistleblower2.html

--------------------

Things have changed with all the bad press fraccing is getting.

"EPA subpoenas Halliburton over natural gas extraction method"

http://latimesblogs.latimes.com/greenspace/2010/11/epa-issues-subpoena-to-halliburton-over-natural-gas-extraction-method.html

This was from November 9, 2010. Since then these companies are in the process of turning over at least most of the info on what they are using.

= = = = = = = = =
Another sidebar related to all of this:

"Cheney declined to be interviewed or to answer specific questions for this story. His spokesman, Kevin Kellems, cited the vice president's commitment to keeping the 2001 energy policy deliberations confidential, a principle Cheney is defending in federal court."

- - - - - - - - -

All this is mentioned not to drag out a DEM/REP argument for a few days.

Just understand that as an investor if one adds Cheney & Halliburton to Fracturing you'll get a certain amount of public animosity toward the industry overall.
That can hurt the companies that are doing a good job just as much.

earplug
03-06-2011, 06:44 PM
I have read that diesel fuel is used for fraccing. I'm sure there are other things added.

TedNugget
03-06-2011, 10:30 PM
I really don't know beans about all the chemicals that are being used.
I just found out that LNP was being used when I went to the GASFRAC web site.

Here is my first search return:
http://earthblog.org/node/58
when i searched for "oil well horizontal fracturing diesel" it brought back over 26,000 returns.

To Quote from the EARTHblog 02/19/2010 article:
"According to the House Energy and Commerce committee, the three largest hydraulic fracturing companies may be using diesel fuel or diesel-based solutions, along with other hazardous chemicals, in their hydraulic fracturing fluids.

This potentially violates the Safe Drinking Water Act."

Probably no one actually knows all the substances that have been tried.

TedNugget
03-07-2011, 05:32 PM
A barrel is 42 gallons (US).

The oil prices we are generally familiar with are:

Brent – European Market based on North Sea Light Sweet Crude.
NY Spot –
WTI – West Texas Intermediate – (The ‘Cushing Spot' refers to Cushing OK)

http://www.bloomberg.com/energy/
http://tonto.eia.doe.gov/dnav/pet/pet_pri_spt_s1_d.htm


The Williston Basin is a different market and is generally $10+ under NY Spot.

Its complicated:
The API in the Basin ranges from 27° to 48° so we wouldn’t find a single price anyway.
Typically producers have a contract with the refineries to which they sell, specifying a grade range of their product (largely based upon API viscosity and sulfur content) and a price (typically a percentage of a benchmark like WTI or NY Spot). For example, you might be paid 80% of the price of West Texas Intermediate.
Getting those contract terms is generally not easy.
- - - - - - - -
Sweet Crude refers to low sulfur.
API refers to the specific gravity scale developed by the American Petroleum Institute (API)
for measuring the relative density of various petroleum liquids in degrees.
Most values fall between 10° and 70°.
The lower the API the heavier the oil.

Lower Sulfur and lighter oil are easier to refine.
- - - - - - - - - -

Here are a zillion questions answered;
http://en.allexperts.com/q/Oil-Gas-3147/index_all.htm
You might be able to key word a question.

An oilfield glossary;
http://www.glossary.oilfield.slb.com/

JohnRav
03-07-2011, 06:07 PM
were you asking that last question. seems you started to define types of crude, but stopped there (I did not go to any of the links) so I did not see price quotes.

I had recently heard the Brent Crude was not only more expenseive, but more difficult to refine (mainly to to enviromental standards.) That at Texas crude was eaiser to refine. (hope I have that right.)

and price was 100 ish for Texas crude, 110-115 for Brent. (?)

TedNugget
03-07-2011, 06:15 PM
Pricing Differences Among Various Types of Crude Oil

http://www.eia.doe.gov/ask/crude_types1.html

- - - - -

"West Texas Intermediate (WTI) crude oil is of very high quality and is excellent for refining a larger portion of gasoline. Its API gravity is 39.6 degrees (making it a “light” crude oil), and it contains only about 0.24 percent of sulfur (making a “sweet” crude oil). This combination of characteristics, combined with its location, makes it an ideal crude oil to be refined in the United States, the largest gasoline consuming country in the world. Most WTI crude oil gets refined in the Midwest region of the country, with some more refined within the Gulf Coast region. Although the production of WTI crude oil is on the decline, it still is the major benchmark of crude oil in the Americas."

- - - -

"Brent Blend is actually a combination of crude oil from 15 different oil fields in the Brent and Ninian systems located in the North Sea. Its API gravity is 38.3 degrees (making it a “light” crude oil, but not quite as “light” as WTI), while it contains about 0.37 percent of sulfur (making it a “sweet” crude oil, but again slightly less “sweet” than WTI). Brent blend is ideal for making gasoline and middle distillates, both of which are consumed in large quantities in Northwest Europe ..........."

- - - - - - -

"NYMEX futures price for crude oil, which is reported in almost every major newspaper in the United States, represents (on a per-barrel basis) the market-determined value of a futures contract to either buy or sell 1,000 barrels of WTI or some other light, sweet crude oil at a specified time. Relatively few NYMEX crude oil contracts are actually executed for physical delivery. The NYMEX market, however, provides important price information to buyers and sellers of crude oil in the United States (and around the world), making WTI the benchmark for many different crude oils, especially in the Americas. .............."

TedNugget
03-07-2011, 06:22 PM
Just information sharing:

"If you are interested in trading Brent crude, there is a relatively new ETF, BNO, that tracks its price. It’s already 20% in just the past 3 months."

BNO closed today down $.90 to $76.16

===========

Here is a chart of BNO's performance over the last six months;
http://etfdb.com/etf/BNO/charts/


DYODD of course.
Full disclosure, I've never invested in this type of ETF.

TedNugget
03-07-2011, 09:38 PM
Active Drilling Rigs – March 2011
http://bakkenstocks.com/oil/2011/03/active-drilling-rigs-march-2011/

- - - - - - - - -

A discussion of some of the smaller players in the Bakken:
http://seekingalpha.com/article/256606-investing-in-the-bakken-part-i-8-companies-with-a-market-cap-under-1b

- - - - - - - -

A discussion of larger Bakken Stocks:
http://seekingalpha.com/instablog/663848-user-663848/125910-2011-oil-plays-10-bakken-stocks-you-should-watch-this-year

- - - - - - - - - - -

Thinking Canadian?
The Best Junior Oil Stocks in the Alberta Bakken Formation
http://oilandgas-investments.com/2010/oil-stocks/the-best-junior-oil-stocks-in-the-alberta-bakken-formation/

- - - - - - - - - - - -

TedNugget
03-08-2011, 11:11 AM
The worlds largest oil storage facility is the Cushing Tank Farm.

http://www.energyindustryphotos.com/largest_oil_storage_facility_in.htm

(Check out the oil rig blowouts and fires on the left menu)

Note tha capicity figures and be sure and deduct for blending etc.

About 40 million barrels can be stored at Cushing.

TedNugget
03-08-2011, 11:21 AM
http://fuelfix.com/blog/tag/cushing-oklahoma/

"At the moment, about 11 percent of the nation’s oil inventory is parked in Cushing .........."

==========

Right now, the US has plenty of short term oil and we don't get any oil from Libya.

Think of buying into oil in some manner in the US right now as part of a fear trade.
Similar to PM's.

============

US foreign oil sources:

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

Canada is certainly #1.

TedNugget
03-08-2011, 11:26 AM
http://www.transcanada.com/keystone.html

"The proposed Keystone Gulf Coast Expansion Project is an approximate 2,673-kilometre (1,661-mile), 36-inch crude oil pipeline that would begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. It would incorporate a portion of the Keystone Pipeline (Phase II) through Nebraska and Kansas to serve markets at Cushing, Oklahoma before continuing through Oklahoma to a delivery point near existing terminals in Nederland, Texas to serve the Port Arthur, Texas marketplace."

=============

Oil Sands bitumen to the Gulf of Mexico.
Is that what they're saying?

-----------------

This was from the wiki page on Cushing OK:
"In 2006, with production increases from Canadian oil sands, two pipelines reversed direction, bringing crude into the Cushing Hub, rather than delivering crude from Cushing to oil refineries."

TedNugget
03-08-2011, 11:36 AM
Montana's Governor - the Bakken needs more pipelines - $100 million dollar solution:

http://www.mtbusiness.com/Business/governor-schweitzer-comments-on-the-keystone-pipeline.html

"(HELENA) – TransCanada announced a positive conclusion to its Montana On-Ramp “open season” by entering into firm term contracts with independent oil producers. According to TransCanada, 65,000 barrels of crude oil per day will be shipped through a new Baker, Montana on-ramp to be constructed as part of the Keystone XL pipeline project. The approximate cost of the on-ramp project will be $100 million dollars, which is in addition to the $1 billion estimate cost to construct the Montana portion of the Keystone XL pipeline. The on-ramp will add about $2 million annually of property tax revenue in Fallon County."

==================

This was the news 14 months ago as the battle raged:
http://energypipelinenews.blogspot.com/2010/01/montana-governor-wants-access-to.html

TedNugget
03-08-2011, 11:46 AM
TransCanada is big.
The pipeline that goes through Central Oregon on the way to Southern Cal is a TransCanada operation. Starts in Alberta, of course.

I've worked with TansCanada at one of their 'compressor stations' (#12) south of Bend Oregon.

As a Forest Service employee we were taking care of the fuel problem with a non-commercial thinning and hand piling and burning of those piles next to their station. We mowed the brush so they wouldn't get smoke in their filters and have an automatic shutdown. We also burned the handpiles on several different days to get favorable winds.

It took a long time as I had to write a grant application then do all the picky stuff.
The Forest Service is slow doing things anyway but this was an endurance event for just 45 acres.

They were patient and professional.
Could be just the two guys I worked with but I liked them.

Canadians are OK even if they marry Yanks.

TedNugget
03-08-2011, 11:57 AM
New rail facility moving North Dakota oil to Oklahoma

http://www.tulsaworld.com/business/article.aspx?subjectid=49&articleid=20100104_49_0_BSACND901517

"The company says crude from North Dakota's oil patch will be unloaded in Stroud, and sent through a new 17-mile pipeline to a terminal in Cushing."

=================

http://www.reuters.com/article/2011/02/04/us-crude-rails-idUSTRE7134AH20110204

"Shipments of oil in rail tankers, though still small, may have already doubled from a year ago, industry estimates show. They could soon surge further as producers, railways and storage firms build up to a dozen crude-by-rail terminals, allowing oil from an oversupplied U.S. Midwest to flow to destinations where it's priced much higher, including on the Gulf Coast."

TedNugget
03-08-2011, 12:00 PM
Remember when Warren bought Burlington Northern Rail for $34 Billion?

http://articles.latimes.com/2009/nov/04/business/fi-buffett4

"Burlington Northern is the nation's largest rail transporter of coal and grain and provides a vital link for consumer goods from Asia to the Midwest, many of them flowing through the ports of Long Beach and Los Angeles."

=============

Just something to file away.

BTW:
When Warren bought into Burlington Northern he sold out his positions in Norfolk Southern and Union Pacific entirely.
So he wasn't investing in railroads.
The Sage was investing in a specific railroad.

TedNugget
03-08-2011, 12:06 PM
The reasoning to buy a railroad giant don't stop there.

Did someone mention Potash?

No, but .......

"A small portion of North Dakota sits on 33% of all the known potash reserves in the world.
It is the same basin that allows Saskatchewan to produce 90% of all potash produced in North America."

"Once brought to the surface, best way to ship potash: railroad. Warren Buffett's railroad, the Burlington Northern Santa Fe, runs right through the middle of Lignite."

The Chinese want more fertilizer - now we mention potash.

TedNugget
03-08-2011, 12:12 PM
If you're Canadian, you should be thinking about Prince Rupert, British Columbia. Or perhaps more correctly - Port Edward just to the south in this case. Where they already load coal etc.

I don't know this but with what I saw in the way of container shipments expanding in Prince Rupert, (because it is so much shorter to get Chinese/Korean products through Canada to Chicago), it may just be the ticket to get Potash to China from Alberta.
(http://www.youtube.com/watch?v=IfM_cqOLnE8 ; I know its not all the same line but it works)

That could be something to watch over the next few years.

{Goto 54 13 47, -130 19 10 on Googlearth and just pull back.
This shows the Chicago to the East Route better.}

TedNugget
03-08-2011, 05:15 PM
http://www.minotdailynews.com/page/content.detail/id/549999/Potash-possibility.html?nav=5002

From a Dec 10, 2010 article:

"LIGNITE A company drilling an exploratory well for potash in northern Burke County has nearly completed the work.

Denver-based Dakota Salts LLC, a subsidiary of Sirius Minerals Plc., began drilling the well last month near Lignite. The site is along U.S. Highway 52 and near Lignite.

Sirius is a potash mining group based in London.

"The coring should be completed by the end of next week," J.T. Starzecki, of Minneapolis, senior director of North American Operations for Sirius, told The Minot Daily News, Tuesday.

Dakota Salts was issued a permit for the test well in August. It was the first exploratory drilling permit issued in North Dakota for potash in more than 30 years.

"Potash is one of three main ingredients in fertilizer, which is the main use of the product," Starzecki said.

The company has acquired about 8,500 private mineral acres in Burke County, said Starzecki. He said the company is continuing its acquisition of leases in Burke County, basically in the Lignite and Portal areas. Portal, on the North Dakota/Saskatchewan border, is about seven miles north of Lignite. He said Dakota Salts also has leased "just shy" of 400 acres from the state.

Burke County is the only county where the leasing is being done,"

- - - - -

LIGNITE North Dakota is within 10 miles of the Canadian border.

TedNugget
03-08-2011, 05:42 PM
http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=OAS&mkttype=after

Oasis (OAS) was down $1.75 today to 33.50 with the overall drop in the oil market and has dropped further in after market to 32.70.

That was because of their falling short of earnings by 11 cents I heard but will get a better rumor later.

===========

DYODD but this might be a time to buy and hold for a month.

TedNugget
03-08-2011, 05:53 PM
Continental (CLR) finished the day down $1.30 to 66.30

However, they are probably going to finish or have just finished an offering that dropped them a couple bucks and MOST would suspect that they will recover quickly. All things in the market being reasonable - DYODD

After market shows CLR up 63 cents to $66.93 just now.

http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=CLR&mkttype=after

Due Diligence would be good.

TedNugget
03-08-2011, 07:46 PM
Somebody bought 250,000 shares of BEXP after hours.

http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=BEXP&mkttype=after

===========

There were over 3,000,000 shares of BEXP sold today.

So 250,000 isn't that much of an eye opener.

But there could be someone that knows something that I don't and it bugs me.

TedNugget
03-08-2011, 07:49 PM
Here is the Oasis short version:

* Announces quarter and year ending December 31, 2010 earnings and
year-over-year production growth of 167%
* Q4 revenue $49.1 million versus I/B/E/S view $47.4 million
* Says grew average daily production to 7,511 barrels of oil equivalent ("boe") per day for Q4
* Says plan on directing 90% of $490 million capital expenditure budget to the drill bit in 2011
* Says grew estimated proved reserves from 13.3 million boe to 39.8 million boe at quarter end
* First and second qtrs of 2011 production will be around low-end of its
previously announced guidance ranges
* Says expects to add a seventh operated rig before the end of the first
quarter of 2011

===========

The rest of the story:


"Oasis Petroleum Inc. (NYSE: OAS) reported Q4 EPS of $0.02, $0.11 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $49.1 million versus the consensus estimate of $47.37 million."

TedNugget
03-08-2011, 07:54 PM
Now Oasis just brought in a new operating officer and shuffled the directors chairs:

"HOUSTON, Feb. 17, 2011 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that Mr. Ted Collins, Jr. has been appointed as a Director of the Company, increasing the members of the Oasis Board of Directors to seven. ?Beginning on May 1, 2011, Mr. Collins will serve on the Nominating and Governance Committee and the Audit Committee, replacing Mr. Michael McShane on the Nominating and Governance Committee and Mr. Doug Swanson on the Audit Committee."

=============

That was less than three weeks ago.
Then they were supposed to release their Q4 earnings a week ago but delayed it.

Put those two items together and perhaps the 11 cents below expectations Q4 was predictable.

TedNugget
03-08-2011, 07:57 PM
After you've looked it over Oasis, at this point - including your Due Diligence, might be worth a longer look while under 33.

Then the big item.

What is the Middle East going to do next?

A No-Fly zone with US action might actually drop oil stocks for at least a couple days.

Tough call. No one knows this future.

TedNugget
03-08-2011, 08:09 PM
What does BOE mean?

Used to be that a well came in and the company reported an IP (Initial Production) of XXX barrels /day.

This was done by measuring the barrels a well produced over 24 hours.

It was complicated because they would be trying to get the choke right and other stuff but it was OK data.

Then we need to make the numbers more attractive for stockholders so we figure an IP that is only based on an hour flow pro=rated out over 24 hours. The choke can be set just so we get a really nice flow in that hour. You get the idea.
Then what would be more fair than including the Natural Gas in the IP?

That seems fair.
The BOE is the # of barrels of energy equivalent by adding in the NG as if its energy release potential were that of crude oil.

There are problems with that, however.
Often North Dakota doesn't fully utilize their NG from these wells, its water-gas or something. So I'm not sure if the BOE is as accurate as it is over in Montana where they seem for some reason to do a better job of utilizing their NG and not 'flaring off' so much.

============

But But

When the figures are for extended periods that means a lot more than just for 24 hours.

Do expect a tremendous difference between IP and the third month.

TedNugget
03-09-2011, 08:02 AM
There are efforts to get ND to better utilize its NG.

http://www.bismarcktribune.com/news/opinion/editorial/article_51cd0cfa-64f8-11df-825d-001cc4c03286.html

"In North Dakota's oil patch, 17 percent of the natural gas is flared, compared to only 1 percent nationally."

===========

"A year ago, almost one-third of natural gas that came to the surface in North Dakota went up in smoke as an unmarketable byproduct of oil production. The 26 billion cubic feet of natural gas that billowed flames and smoke from scores of oil wells was about twice the annual gas consumption of the state."

http://www.firstenercastfinancial.com/forums/natural-gas/599-flaring-gas.html

============================

Understand that a certain amount of flaring of NG as a well is coming in and being set up is common and reasonable.
Just that the oil industry in the ND Bakken needs to be made more of the gas industry too.

When looking at a well pad picture if you see a tank or two off to the side that has a rounded top and bottom that is a NG tank.
Usually most wells don't have a pipeline to them so they have to truck the gas just like they have to truck the oil.

TedNugget
03-09-2011, 11:57 AM
American Oil stocks are down today.

NY Spot is down about 30 cents now but;

Continental (CLR) is down 2.30 to $64
Whiting (WLL) down a buck to $66.13
Brigham (BEXP) is down .75 to $33.50
Oasis (OAS) really dropped but is now just down a buck to $32.50


so forth.

Let's say some sort of cease fire happens in Libya.

Then NY Spot drops back to under 100 quickly. It's possible - OK?

I think one should consider putting out some bait for:

CLR under $60
WLL under $61
BEXP under $29
OAS under $26


Then go with stops at least a dollar under any of the above. ????????

This would take one back to essentially pre-Tahrir Square days.

With the potential for other Arab revolts on the calendar.

There is the rub.

Potential.

DYODD Diligence Diligence Diligence Diligence Diligence Diligence

TedNugget
03-09-2011, 12:36 PM
http://www.huffingtonpost.com/2011/03/06/fracking-arkansas-earthquakes_n_831633.html

'Fracking' Disposal Sites Suspended, Likely Linked To Arkansas Earthquakes

============

In many areas it will not be just the fracking fluids that are being disposed of.

There are wells in ND/Montana that 'produce' hundreds of times more brine (water) than oil. That water would convert farmland to salt flats so they have had to dispose of it under the water tables for decades.

Eventually that could be a problem.

TedNugget
03-09-2011, 01:51 PM
http://seekingalpha.com/article/257171-can-petrobakken-energy-double-reserves-on-property-it-already-owns

The above article on a Canadian Bakken Oil Co is there for your enjoyment and to pick up on the future of these oil plays.

Long term we're going to get more and more out of the rock.

==========

BTW:

Water Cut refers to the amount of water that a well produces when compared to oil produced.

A higher water (brine) cut costs to dispose of properly and gets in the way of the oil. You need more tanks to settle and employee time - that stuff.

TedNugget
03-09-2011, 02:11 PM
"Brigham announced that it plans to accelerate its Williston Basin operated rig count to 12 rigs by continuing to add an incremental operated rig every 4 months after adding its planned eighth rig in May 2011. Accelerating from eight to 12 operated rigs is anticipated to increase Brigham's drilling pace by approximately 44 gross wells per year, or approximately 29 net wells, once at the 12 operated rig level. Brigham anticipates reaching 12 operated rigs by September 2012.

Based on an accelerated level of activity in 2011, Brigham anticipates drilling approximately 66 net Williston Basin Bakken and Three Forks wells during 2011 as compared to approximately 39 net wells in 2010. Drilling capital is anticipated to be approximately $582.1 million in 2011, which incorporates a total per well cost of approximately $7.9 million plus a 10% budgeted overage."

from Feb 24th

http://seekingalpha.com/news-article/658214-brigham-exploration-announces-acceleration-to-12-operated-williston-basin-rigs-confirmation-of-incremental-downspacing-opportunity-smart-pad-development-montana-and-north-dakota-well-results-and-provides-an-operational-update

TedNugget
03-09-2011, 02:22 PM
100% well success rates justify these costs:

Also:
ECO Pads have a reduced surface footprint. They also decrease 10% of the D&C cost per well. The increased lateral length means more of the oil will be pulled from the well. Results have been very good utilizing ECO Pads.
Continental has been a leader in these parts and their eco=pads are part of that.

http://seekingalpha.com/article/249655-continental-resources-lots-of-bakken-upside?source=qp_article

TedNugget
03-10-2011, 01:49 PM
The Cushing OK tank farm is at record storage capacity.

http://www.stockbloghub.com/2011/03/03/xom-eia-data-shows-record-crude-inventory-at-cushing-oklahoma-also-unexpected-drop/67994

It has been that way for a couple months.

They are fudging the amount of blending tanks available.
This allows for a greater 'capacity'.

Think of this as the way they overfilled the CowBoys stadium for the super bowl.

Everyone is worried about the ME so being full is good.

============

HOWEVER

"The U.S. Energy Department’s weekly inventory release showed an unexpected drop in crude stockpiles though supplies at the key delivery hub of Cushing hit a record high. The agency’s report further added that fuel inventories were off from the previous week levels, while refinery run-rates increased."

"fell by 364 thousand barrels for the week ending February 25, 2011"

==============

The US uses 18,771,000 barrels/day, so remember that 364,000 barrels is only 2% of one days use.

Here is a good stat page on USA Oil Usage.

http://www.eia.doe.gov/energyexplained/index.cfm?page=oil_home#tab2

TedNugget
03-10-2011, 02:06 PM
"Chinese February Trade Surplus Drops So Much It Becomes Deficit, Largest In 7 Years"

http://www.zerohedge.com/article/chinese-february-trade-surplus-drops-so-much-it-becomes-deficit-largest-7-years

"Bank of America-Merrill Lynch estimates that each $1 increase in oil prices per barrel may cut China’s annual trade surplus by $1.9 billion. Oil climbed today in New York as violence in Libya renewed concern that supplies are under threat."

============

Chicken or the egg.

http://www.ibtimes.com/articles/121132/20110310/oil-prices-decline-on-bearsih-chinese-trade-data.htm

TedNugget
03-10-2011, 02:12 PM
http://www.forbes.com/wealth/forbes-400#p_1_s_arank_17_

shows Harold Hamm of Continental to be #44 in the US.

============

http://money.cnn.com/2011/03/04/news/economy/oil_shale_bakken/

"Today, Hamm's wealth is estimated by Forbes to top $5 billion and he's thought to own more oil and gas than any other American."

Greed, for lack of a better word, makes for a great company.

TedNugget
03-10-2011, 02:14 PM
"Hamm, like most in the oil industry, says fracking is a time-tested practice that poses no danger.

He downplays the water issue in dry North Dakota and says his workers are developing ways to use less water.

Even pipelines don't seem to be an issue. Hamm said he's moving most of his oil out by rail.

For Hamm, the biggest challenge is simply the drilling. Getting a drill bit to go where you want it to at 10,000 feet underground is no easy feat."

from the above limk.

TedNugget
03-10-2011, 04:08 PM
Forgive my lack of knowledge but I thought I saw reports that we didn't get any oil from Libya.

http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbblpd_a.htm

The above table shows that in 2009 we got some. Less than 1% but some.

TedNugget
03-10-2011, 05:55 PM
We just had a tough day for the DOW. -228.48

S&P was down about 23 I think.

The worst day in 7 months.

=========

"A Look At No POMO Friday As Saudi, Yemen, Kuwait And Bahrain Brace For Protests"

http://www.zerohedge.com/article/look-no-pomo-friday-saudi-yemen-kuwait-and-bahrain-prepare-protests

Without artificial support and with a ME stress test called 'DAY OF RAGE" there is the possibility that the stock market could plummet tomorrow.

TedNugget
03-10-2011, 05:58 PM
I'm saying a stock market plunge should prevent you from buying any of these Bakken Oil Stocks.

Its just too volatile.

==========

My numbers to buy in LOW weren't that bad:

CLR under $60 it did drop to 60.89
WLL under $61 it did drop to 61.96
BEXP under $29 it did drop to 31.66
OAS under $26 it did drop to 30.07

Given that no cease fire sparked a sudden drop in NY Spot those were reasonable guesses for entry.

BUT NO.

Not with a Stock Market CRASH a plausible event tomorrow.

Eventually the oil market in the US would come out strong.
But there is too much chance of a local petro crash me thinks.

TedNugget
03-10-2011, 08:45 PM
This is the most complete list of fluids found in fracc'ing I could find:

http://www.youtube.com/watch?v=S_a9amyk_yw

Of course, these aren't used by everyone.

TedNugget
03-10-2011, 11:18 PM
Halliburton plus

http://seekingalpha.com/article/248786-samson-s-deal-with-halliburton-crucial-for-moving-ahead-in-the-niobrara

"Samson's Deal With Halliburton: Crucial for Moving Ahead in the Niobrara"

"HAL will pay for one or two horizontal, 4,500' lateral wells on SSN's retained 16,530 net acre position (their Hawk Springs Project) in Goshen County, Wyoming, in search of the Niobrara. The drilling of the second well is at HAL's option following results from the first well.
Costs of the wells will be on HAL and SSN will receive partial reimbursement of SNN's just completed Goshen 3D shoot (which costs as I recall about $2.5 mm).
While SSN will remain the operator, HAL will provide project management and provide oil field services."

==============

The point being made now is how much cooperation goes on between companies.

TedNugget
03-10-2011, 11:31 PM
http://www.thefreelibrary.com/GeoResources,+Inc.+Provides+Operations+Update.-a0170155148

"In North Dakota, G3 (GeoResources, Inc. - NASDAQ: GEOI), has expanded its Bakken Shale acreage position with its joint venture partner, Slawson Exploration Company, Inc., to include a 10%-15% working interest in approximately 38,000 gross (26,000 net) acres in Mountrail County. The acreage includes leases in proximity to significant discoveries by large independent operators..........."

Slawson is an interesting and important operator in the region.
Not listed on any Stock Exchange and they never will be. Fiercely Independent and viewed with respect throughout the industry.

Slawson also has agreements with Triangle Petroleum (NYSE Amex:TPLM), who I think just does the leasing and then has Slawson and/or others drill and operate the wells.

Slawsons web site is:
http://www.slawsoncompanies.com/
They have hotels in Portland OR and run a juice store and do just what they want. I think most are jealous.

TedNugget
03-10-2011, 11:39 PM
What all these agreements do is really make it hard to understand any operator completely.

Combine that with where their acres are, how many are gross or net and when the leases expire it gets more complicated.

==========

The confidential List is how they can keep secrets in North Dakota.
6 months from the time a well is spudded the operator does not have to report its IP or any production numbers.

https://www.dmr.nd.gov/oilgas/confidential.asp

They can if they have a great well and want to impress shareholders plus they have the neighboring acres already sewn up. (If they don't they could make it more expensive for themselves to sign additional leases in the area.)

TedNugget
03-11-2011, 01:03 PM
"NDIC Docket for Thursday, March 24, 2011
Case No. 14433:
Application for an order amending the field rules for the Charlson-Bakken Pool, Williams and McKenzie Counties, ND, to allow the flaring of gas and unrestricted production of oil from wells not connected to a gas gathering facility until the same can be connected and such other relief as is appropriate. Denbury Onshore, LLC; XTO Energy Inc."

In North Dakota they 'get away' with burning off the NG, because its a hassle and not the money maker that crude is.

Trivia:
Old nomenclature still rules. Pool here is not an accurate description as Bakken oil is in source rock.

TedNugget
03-11-2011, 01:07 PM
wiki:

"Russian flaring

Russia has announced it will stop the practice of gas flaring as stated by deputy prime minister Sergei Ivanov on Wednesday September 19, 2007.[7] This step was, at least in part, a response to a recent report by the National Oceanic and Atmospheric Administration (NOAA) that concluded Russia's previous numbers may have been underestimated. The report, which used night time light pollution satellite imagery to estimate flaring, put the estimate for Russia at 50 billion cubic meters while the official numbers are 15 or 20 billion cubic meters. The number for Nigeria is 23 billion cubic meters."

TedNugget
03-11-2011, 01:09 PM
http://ei-01.eia.doe.gov/dnav/ng/hist/n9040mt2M.htm


Montana Natural Gas Vented and Flared (In Million Cubic Feet)
Stats through 2009

TedNugget
03-11-2011, 05:47 PM
Thursday, 3 March, a fire and explosion occurred 16 miles south of
Bowbells in Burke County. Monday, 7 March, oil well in McKenzie
County, 8 miles north of Arnegard, caught fire.

http://www.minotdailynews.com/page/content.detail/id/552717/Boots---C...

excerpt: “Boots & Coots, world-renown well control specialists from
Texas, arrived early Thursday morning to extinguish a blaze at the
site of an oil well fire north of Arnegard.”

http://www.inforum.com/event/article/id/311414/

excerpt: “North Dakota, despite its booming oil patch, has no specialized equipment to battle oil well fires, Helms said. That may change now, he said.”

According to The Forum, the owner of the McKenzie County oil well is
SM Energy Co. of Denver. No oil company owner was listed for Burke
County.

TedNugget
03-11-2011, 05:48 PM
The second link from above:

"Helms said a hot engine from a pump truck likely ignited hydraulic fracturing fluid from the well. He said “thousands of gallons” of fluid spilled at the site, and the state will monitor the cleanup.

McKenzie County Sheriff Ron Rankin said in a statement that the well's owner, SM Energy Co. of Denver, notified authorities of a steam and oil leak at the site about 2:30 a.m. Fire erupted about seven hours later “and the area became engulfed in flames,” the statement said.

A dispatcher at the McKenzie County Sheriff's office who refused to be identified said residents near the well were evacuated from their homes. She did not know how many people were affected or when they would be allowed to return to their homes. Arnegard has about 100 residents."

TedNugget
03-11-2011, 07:56 PM
http://milliondollarway.blogspot.com/2011/03/another-frack-record-in-bakken-baker.html

"Baker Hughes has successfully installed a 40-stage openhole completion system in the Williston Basin for Whiting Petroleum Corporation. This achievement marks the most number of stages ever performed in a single lateral frac sleeve / packer completion system. The Baker Hughes FracPoint™ EX-C multistage fracturing system was deployed in the Whiting Petroleum Smith 14 29XH horizontal well."

Baker Hughes would be a service contractor (like a Halliburton) that does Drilling and Fracc'ing stuff.
http://www.bakerhughes.com/
Baker Hughes Incorporated (NYSE: BHI) They were up 2.24 today to nearly $69.00
They do a lot of stuff all over.

============

Back to the record frac well in ND.
It is:
"This well is 1,160 feet north of:
17285, 1,207, Whiting, Bartleson 11-32H, Sanish, Bakken, IP test date 3/18/09; 89K cumulative through 1/11"

17285 is a well number
1207 is number of barrels/day and that is very good BTW although I think that is for an IP
Whiting is a big oil company for the Bakken (WLL)
Bartleson 11-32H is the name of the well,
Sanish, Bakken are two different shale layers

3/18/09; 89K cumulative through 1/11 is basically 89,000 barrels of oil over 24 months. Which is about 125 barrels per day even after the drop off of 2 years.

=========

So what that means is that Whiting elected to go for a record number of Fracs next to a known quality well.
But maybe trying to get a little more out of the rock.

TedNugget
03-11-2011, 09:38 PM
"Analysts at Bank of America Merrill Lynch say oil could trade as high as $240 a barrel over the next year, were the dominoes to start falling."

March 10, 2011

http://finance.fortune.cnn.com/2011/03/10/dont-sweat-the-oil-speculators/

============

I'm sure everyone here trusts Bank of America Merrill Lynch completely.

However, the dominoes are holding up pretty well all things considered.

TedNugget
03-12-2011, 07:04 PM
"All of this is putting upward pressure on prices. We believe that we will be able to absorb and increase completion costs within our existing CapEx budget, given that we included a bucket for contingencies in our development capital. We had well cost as we exited 2010 around $7 million to $7.4 million for a 28 stage job, but we think that well cost currently should be more around the $7.5 million range, which is more in line with what our budget including the contingency would have implied.

One other thing to remember is that our base case in the budget had WTI at $78 per barrel, and just last week we put on a two way collar for 1000 barrels a day for the rest of the year at 95/117 when the swap rate was above $103 per barrel. While we do have some service cost increase with higher oil prices, we are trying to do something to mitigate that including hedging.

As we look to add rigs starting with our seventh rig in the few weeks, we will have to make sure that we can match frac slots with the wells we are drilling. Fortunately, we have a number of interesting options that we are currently exploring as we look to bring on at least one more full-time crude in the near term, and potentially another in the next 12 to 18 months. Unfortunately, we’re not in a position to give you more definitive information on that today, but we will update as we can as it is a very important component of our execution plan as you all know.

I will wrap up my comments with another broader discussion about the decisions that we have made based on some science work we have been doing across our operations. We are primarily completing our wells with 28 stages through 2010. And as we knew these wells, we are above our economic thresholds, and well within our type curve bands, and we were very comfortable with linear relationship of oil recovery per stage up to this level.

We have added several 32 and 36 stage jobs to test the impact of initial stages on recoveries, and results so far are very encouraging. With costs around the $100,000 per stage and the recoveries in the range of 15,000 to 20,000 barrels of gross reserves per stage, or 12,000 to 16,000 net, the incremental F&D cost should be in the $6 to $8 per barrel range, some of the most efficient capital that we can spend.

We are deciding to go ahead and complete the majority of our remaining operated wells with 36 stages for the remainder of 2011,"

This was from the text of a conference call:

http://seekingalpha.com/article/257371-oasis-petroleum-ceo-discusses-q4-2010-results-earnings-call-transcript

It gives some idea of one operators costs.

TedNugget
03-12-2011, 07:11 PM
http://www.bismarcktribune.com/news/local/article_183f06f0-4c1f-11e0-af7b-001cc4c002e0.html

Its been one of the worst ND winters.

Tough yet the industry has kept spudding away.

===========

Devils Lake is not near the Oil activity but it is increasing in size steadily.

http://undnews.areavoices.com/2011/02/09/und-geographer-forecast-rise-in-devils-lake’s-level-could-significantly-expand-flooded-area/

UND geographer: Forecast rise in Devils Lake’s level could significantly expand flooded area
Posted on February 9, 2011
The cost of flood control in the Devils Lake region has surpassed $1 billion

BTW: Devils Lake would have been better translated as Spirit Lake. Trivia.

TedNugget
03-13-2011, 07:26 PM
http://ndenergynotes.blogspot.com/p/rig-tracker.html

Note that they are both going after Williams County.

I've noticed this as I have a 10 acre share in a Trust located in Williams Co. that is leased by Marathon while Oasis and Brigham are doing battle next door.

I also noticed that the two stocks will do radical short range movements - sometimes opposite of each other.
Often i can't figure out why.
They are just Yin and Yang.

So here is a trade I've done 4 times.
I'm in one of the stocks and it has gone up a little.
The other one has gone down - maybe even mirror image.

I trade to the other as fast as I can.

I'm not buying on the dip I think will happen.
I trading on a known peak and trough.

I cannot predict the top and bottom.

But I can trade what I see right in front of me.

Then they pass each other going opposite directions.

On a 500 share trade by the time I cycle back I've gained 6 - 10 shares.
Not a big deal but it adds up. Cumulative is nice.

I realize looking back I could have gotten more.
But I just take what I've been given.
I trade just as fast as I can on what is there so I'm not left behind.

==========

Full disclosure:

I'm retired and can drop by the computer 6 - 10 times a day.

I developed a simple cheat sheet to help me set up for doing the trade as fast as possible.

I don't try and weasel out every penny. I'll set up the buy back in number a couple cents higher than the last sell offer to make sure I get in before a run.

I've got a wide IMAC screen that shows multiple pages nicely.

- - - - - - - - - - - - -

This trade is not there on most days. But it does seem to happen a couple times a week.

TedNugget
03-13-2011, 07:34 PM
I feel like we are so close to s SM crash or even just an oil market plunge that I'm back out and I think headed back to silver.

(I do have a GTU / CEF position core that I don't touch)

Thinking back to PSLV on Monday.

===========

DYODD

But if you can find a couple similar stocks that you watch and you see them trading back and forth and not in synch maybe you can make that work.

One could still get caught in a collapsing market so be cautious.

At least with this kind of trade you can take a portion of the uncertainty out.

============

BTW:

I was thinking Gold vs Silver works this way sometimes.

If caught, at least you're in PM's

TedNugget
03-13-2011, 07:48 PM
One needs to do another DD effort just prior to any of these sell/buy's.

Make sure that a piece of news/rumor hasn't caused the one stock to drop.

I actually check zerohedge first for a world overview.
Of course the Kitco POO.
Then the info on my brokers page on both stocks.
Then I go to the rumor page: http://messages.finance.yahoo.com/mb/oas or BEXP at the end.

Then I write down the numbers off of the current price info ..........

TedNugget
03-13-2011, 07:57 PM
To give you an idea of how crazy this is.

Let's say stock A gains .50 and you trade to stock B that has just dropped .50

Then later that day stock B gains .50 and you trade back to stock A that has just dropped .50
(You are gaining with BOTH Trades - this isn't a one dip and smile)

However; eventually both stocks drop 1.00 on the day (from when you started you're down 1.00 in stock A)

========

But you made a dollar a share, even though those stocks went down.
Plus you have more shares for later if things boing up.

- - - - - - - -

Full disclosure, I haven't traded with that much of a disparity between companies.
But this could actually happen if you found the right volatile companies.

And that's the rub isn't it?

Volatile means they both could drop a lot more than a dollar a share.

TedNugget
03-13-2011, 11:52 PM
http://finance.yahoo.com/news/ND-oil-companies-ship-by-rail-apf-4275879410.html?x=0&.v=2

"Motivated by the possibility of making more than $20 a barrel, North Dakota producers increasingly are sending crude on rail, including to a Louisiana terminal some 1,800 miles away."

The key to the rail shipping is that they can send oil to non-pipeline markets and get more for the oil.

=========

Once again, coals to newcastle.

Bakken oil to the Gulf area.

TedNugget
03-13-2011, 11:56 PM
"EOG Resources sees a long life for its Bakken production, but doesn’t want to wait for new pipeline takeaway capacity in North Dakota to market its burgeoning oil output there. On Dec. 31, 2009, the company loaded the first cargo of Bakken crude oil at its new rail terminal at Stanley, ND, to travel via rail and pipeline for ultimate delivery to Cushing, Okla. Plans call for EOG’s rail system to have a maximum capacity of 60,000 gross barrels of oil per 100-unit train per day, although initial shipments may be less frequent.


EOG also is mulling buying third-party crude to bolster the rail shipment scheme. The company’s impatience on waiting for new pipeline capacity is also warranted by the depressed value of Bakken crude. Because of a lack of takeaway capacity, Bakken crude has been getting discounted as much as $10/barrel vs. NYMEX crude."

===========

"Plans call for EOG's rail system to have a maximum capacity of 60000 gross barrels of oil per 100-unit train per day .........."

TedNugget
03-15-2011, 08:30 AM
http://minotdailynews.com/page/content.detail/id/552831/Murder-charges.html?nav=5010

"Davis, who like the victim was employed by Halliburton, applied for a court-appointed attorney prior to the hearing."

"McLees noted that Davis had been paid nearly $50,000 per year after taxes for his job working on a fracture-stimulation crew, meaning he far exceeded the court's guideline amount for qualification for indigent services"

===========

This Fracc'ing is a messy affair.
This murder by knifing happened in a conference room at a Fracc'ing conference.

"and from there that second witness told Goodman he saw Davis stab Flowers again."

TedNugget
03-15-2011, 03:29 PM
On the Feb 1st state land lease auction for North Dakota these companies got bids, (http://www.land.nd.gov/):

LIBERTY RESOURCES LLC
LARCO RESOURCES LLC
B J KADRMAS INC
TRINITY WESTERN
DIAMOND RESOURCES CO
LSM ENERGY INC
YATES PETROLEUM CORPORATION
IRISH OIL & GAS INC
LEGACY RESOURCES INC
==========
SUNDANCE OIL & GAS LLC
PETRO-HUNT LLC
EMPIRE
and
LONE STAR NATURAL RESOURCES LLC

===========

Most of the first 9 I've never heard of.

Their parent companies or whoever they work for we know most of their names. If we could get those at the state office to tell us.

Someyimes this secret keeping is necessary to hid the name of someone new that is moving in to the Bakken and they want to play things carefully.

TedNugget
03-15-2011, 07:11 PM
Legacy Oil + Gas (TSX: LEG)

"Comments by Legacy oil and gas----Five horizontal wells targeting
light oil in the spearfish formation in Bottineau County were
completed. Based on drill cuttings, gas detectors and oil shows all
five wells have now been cased as potential Spearfish oil wells.This
could be wonderful news for the potential of new drillng in the
Spearfish formation in Bottineau County."

The Spearfish is another formation that is producing.
In Canada and now on the US side of the border it is just being developed.

The formation generally isn't as thick as one moves south so not too much being done in the spearfish elsewhere.

TedNugget
03-15-2011, 08:13 PM
Rule of thumb on how long it takes for a well to pay for itself:

"It is not barrels sold but dollars of oil sold that matters.

The latest long laterals (1280 spacing units mean the horizontal legs are close to 2 miles) with multi-stage fractures cost around $7.5 million.

After paying the royalty owners, the North Dakota production taxes, transportation and operating costs, the driller needs to sell about $10 million of oil before any money goes into their bank account."

==========

Sooooooo.

At say $85 a barrel, (remember the Williston Market pays typically $10 under NY Spot / WTI), we need to get XXX barrels to market from said well.

That's $118,000 barrels in this case.

The price of oil this high means its easy to drill baby frac baby pump.

While no one knows what these new fraccing techniques will do for EUR, most would say that 200,000 barrels will be easy to get and probably 300,000 is a reachable average.


ultimately recoverable reserves (EUR)

Baby needs new shoes

TedNugget
03-16-2011, 03:02 PM
OK, on the premise that there will be some sort of continued bad news tomorrow morning about Japans Nuclear Power Plants.

http://www.zerohedge.com/article/tepco-chimes-news-powerline-nrcs-jaczko-warns-japan-radiation-levels-very-high

That sort of thing.

===========

DYODD:

There is a possibility that one could buy in at opening or even pre-market tomorrow on a Bakken Oil Stock and ride it for an hour then get out quickly if the new powerline looks promising.

This is volatile.

Pay attention to this powerline thing actually hurting the Price of Oil.

I didn't say it was going to make the world better, just that traders are getting on board with officials frowning.
While this powerline may be a minor event after all that has happened, it could really affect anyone's trade.

TedNugget
03-17-2011, 11:11 PM
"#20609 - CONTINENTAL RESOURCES, INC., SALO 3-35H, SESE 35-160N-96W,.................
#20610 - CONTINENTAL RESOURCES, INC., HAMLET 4-2H, SESE 35-160N-96W, ...........
#20611 - CONTINENTAL RESOURCES, INC., SALO 2-35H, SESE 35-160N-96W, ...........
#20612 - CONTINENTAL RESOURCES, INC., HAMLET 3-2H, SESE 35-160N-96W, ...........

Four wells; Salo 2-35H and Salo 3-35H from the same
pad as Hamlet 3-2H and Hamlet 4-2H.
It would appear that they are drilling into different spacing units from the same pad."

------------

This is really efficient and good to see.
Two sections on the Salo side and then two sections on the Hamlet side.
So from one pad they will be extending laterals out two mile North and then two miles south.
All this for basically one rig move and the frac fluid has a home for a couple months.

TedNugget
03-19-2011, 01:57 PM
I'll do this for a couple days:

Starting at the top.

https://www.dmr.nd.gov/ndfossil/Poster/hellcreek/pdf/Hell_Creek.pdf

Note that the Niobrara is at the bottom of this geologic history.

The Niobrara is not being developed in the Williston Basin but is over in Colorado Wyoming etc.

It is essentially the first layer of possible oil.

{This si subject to correction.}

Note:

all of the above areas do not exist everywhere - erosion.
There are layers of coal on this cross-section.

=========

Following the HILL CREEK link will take one to neat dino stuff.

TedNugget
03-19-2011, 02:05 PM
https://www.dmr.nd.gov/ndfossil/education/pdf/Trexsue.pdf

Sue was found in South Dakota:

- - - -

http://www.youtube.com/watch?v=dndMLqAUU-8

- - - -

http://www.msnbc.msn.com/id/7285683/ns/technology_and_science-science/

This dna story is from Montana.

Unrelated to any investment strategy but interesting

TedNugget
03-20-2011, 01:17 AM
http://www.zerohedge.com/article/possible-new-oil-spill-100-10-miles-reported-gulf-mexico

A new oil sheen in the GOM?

100 miles by 10 miles?

Possible culprit a deep water well?

==========

Anyone remember posts #46 and #91 that mentioned Bakken Oil making it by pipeline to Port Arthur Texas or by Train to (St. James) Louisiana?

TedNugget
03-20-2011, 05:37 PM
" In the Bakken, Continental is running perforating guns and bridge plugs as deep as 22,000 feet total measured depth, and is pumping as many as eight large multi-stage fracs a day."

= = = = = =

"Within our company,(Continental), our Bakken team has to compete for dollars with our Woodford team. If commodity prices yield a higher rate of return for projects in one basin, then it will get the dollars and the team in the other basin will have to figure out how to improve return rates. That is an overall positive for the entire country because the competition stimulates creativity and leads to getting resources developed at lower cost."

- - - - - - - - - -

"The Bakken was undervalued for a long time. Continental went public in 2007, and except for the Elm Coulee and Parshall fields, where there was higher permeability, very little value was given for the Bakken at the time. Through the necessity of having to improve recoveries, we have gone from an early estimated ultimate recovery model of fewer than 200,000 barrels per well to more than 500,000 barrels in EUR for an average Bakken well today. Over the past five years, crude oil production in North Dakota has jumped almost 400 percent, from 90,000 bbl/d in early 2005 to 342,000 bbl/d in the third quarter of 2010. In total, Williston Basin oil production is ramping at about 5 percent a month!"

===========

"That said, a Credit Suisse study of the various oil and gas resource plays in North America found that the best rates of return were in the core portion of the Marcellus, where returns are even higher than in the Bakken or Eagle Ford oil window."

-----------------------

"Today, almost all operators in the Bakken execute well completions on a 24-hour schedule."

==============

I just tried to give you the meat of:

http://www.rangeresources.com/rangeresources/files/e0/e0cd8ded-e749-444f-bc85-c156f10633e6.pdf

The American Oil & Gas Reporter Jan 2011 Newsletter

TedNugget
03-20-2011, 05:43 PM
http://www.ryderscott.com/Newsletters/311nsltr.pdf

March–May 2011

on page 4 check out the photo with this caption:
"Continental Resources Inc. drilled these four wells in the greater Bakken from a single pad with an 800,000-pound rig that walks on hydraulic feet between drill sites. That eliminates dismantling time. The single pad and walking rig have reduced costs."

Tons of other interesting stuff.

========

At the bottom of page 5 the photo shows round tanks that are for oil/brine recovery that will stay on-site for years perhaps decades and the square truck trailers are the fracking fluid show.

They aren't kidding are they?

The four round tanks appear to be a permanent installation. It used to be that they brought in 'temp' tanks that would be beat up until they figured out what the well was going to do.
100% success rates make some decisions easier.

These operations were conducted almost 24/7 even in this last winter in ND/Montana.
Occasional delays because equipment breaks when frozen.

TedNugget
03-20-2011, 06:18 PM
1) http://runredhot.com/?p=2887
This new oil spill in the gulf.

2) War in Libya.
I'm convinced Quadaffy will pull a Hussein/Kuwait before this is over. Lite everything in a pout.

3) Ongoing Japanese nuclear Crisis.
When other forms of energy stumble ..............

4) Ongoing revolution fever in the ME.

=============

The long term I think supports the Bakken Companies strongly.

But I don't have a clue about tomorrow.

OF COURSE A STOCK MARKET CRASH COULD DROP THE Price of Oil dramatically. Causing one to sell in a panic or create a buying opportunity.

TedNugget
03-20-2011, 06:26 PM
http://www.aogr.com/index.php/magazine/us_oil_gas_counts/

This isn't the home page but you can link to there easily.

The reason i posted this page is click on the USA map for recent month drilling permits. Good perspective USA wide.
From the table below the map note the drop in off shore drilling permits from last year.

TedNugget
03-21-2011, 05:46 PM
Why did Oasis (OAS) do so poorly on Friday and is now almost $5.00/share behind Brigham (BEXP)?

http://www.insidercow.com/
Once there enter the OAS stock symbol (or any other as needed) and you'll get insider buying and selling.

Note that OAS has 6 mucky mucks selling over 6 1/2 million shares last Friday, (two are listed twice).
This event was coordinated obviously.

This comes after falling about 12 cents below expectations as i recall.
Which came just after delaying their Q4 report by a week.

BUYER BEWARE

Oasis has a lot going for it but not short term from my read.

I would think it should be a buy out target for amassing Bakken acreage with the world situation.
However, those 10% owners shouldn't be selling now unless they think a correction is coming.

Then again, they could have waited for this selling spree to occur AFTER the Q4 problem announcement so as to not raise heck.
Then they just go on their way until the next quarter report.

Amazon for years was a looser, but investors stuck with it because it was building up.
Watch the social network to see how FaceBook built before going commercial.

Oasis is building long term IMO.
Speed bumps included.

Goooooooo Brigham!

TedNugget
03-22-2011, 10:25 AM
Now here is a quality blog:

"The CEO (of NOG) sold 794,913 shares last week after the StreetSweeper asked questions ...
Check http://www.sec.gov/Archives/edgar/data/1104485/000114036111017761/xslF345X03/doc1.xml

Apparantly, the CEO is scared .."

remember that was a blog.

===============

{Northern Oil & Gas Ticks Lower On StreetSweeper Article (NOG)
Here is the start of the article:
http://www.thestreetsweeper.org/undersurveillance.html?i=1665


http://thestreetsweeper.org/
in our service.

remember that was an article.


DYODD

.

TedNugget
03-22-2011, 07:23 PM
http://www.cbc.ca/news/business/story/2008/05/23/f-langton-bakken.html

"The Bakken Formation is a 350 million-year-old underground layer of rock that occurs in much of the Williston Basin, ........discovered in 1953 by a geologist named J.W. Nordquist and named after Henry Bakken, owner of the Montana farm where Nordquist first drilled."

"Price estimated in 1999 that the Bakken contained between 271 and 503 billion barrels of petroleum, with 413 billion barrels the most likely amount."

OK so that's an older estimate and who knows about the ultimate EUR, (Department of Redundancy Department)

" 125 billion barrels at the massive Ghawar field in Saudi Arabia, 7.8 billion at Alberta's Pembina Cardium and 21.4 billion for the entire U.S. reserves, not including the Bakken."

- - - - - - -

"Production from the Bakken has been stupendous," said Roy Schneider, spokesman for Saskatchewan Energy and Resources. "As recently as 2004, production was 278,540 barrels; last year, 2007, we were nudging up against five million barrels - the exact figure was 4,965,000 barrels."

TedNugget
03-23-2011, 07:31 PM
http://www.pennenergy.com/index/petroleum/display/5150084035/articles/pennenergy/petroleum/refining/2011/03/saudi-aramco__petrochina.html?cmpid=EnlDailyPetroMarch23 2011

"Saudi Aramco, and PetroChina (NYSE: PTR), a subsidiary of CNPC, signed a Memorandum of Understanding related to the planned development of a 10 million metric tons per annum (200,000 barrels per day) grassroots full conversion refinery in Yunnan Province in the People’s Republic of China.

The proposed refinery will be designed to process 200,000 bpd of Arabian crude oil and will produce high-quality refined products, such as ultra low-sulfur gasoline and diesel that meet current and future China products specifications."

==================

Let's put this in perspective.

The Saudi oil fields are playing out and new Saudi reserves haven't been discovered.

200,000 barrels/day is about 1/2 of what the North Dakota portion of the Williston Basin produces/day.

================

What I'm suggesting is that this is an example of how increased demand in China and India will increase the price of oil.

TedNugget
03-23-2011, 07:36 PM
"President Obama Encourages More Off-Shore Drilling ...
.... off Brazil.
March 21, 2011
WASHINGTON, D.C., March 21, 2011 - While gasoline prices in the U.S. continue to near the $4 mark, President Obama has finally embraced increased offshore oil production. Too bad it's in Brazil and not in the United States.

During remarks at the CEO Business Summit in Brazil this weekend, President Obama stated:

"We want to help with technology and support to develop these oil reserves safely, and when you're ready to start selling, we want to be one of your best customers. At a time when we've been reminded how easily instability in other parts of the world can affect the price of oil, the United States could not be happier with the potential for a new, stable source of energy."

Since taking office, President Obama has repeatedly blocked access to U.S. oil and natural gas production - including withdrawing onshore leases, imposing a de facto moratorium in the Gulf of Mexico and placing huge portions of the United States' offshore areas off-limits to new drilling. It's troubling that the President would promote oil production abroad while blocking it here at home."

TedNugget
03-23-2011, 07:41 PM
http://www.bloomberg.com/news/2011-03-22/natural-gas-may-reign-as-queen-following-japan-nuclear-crisis.html

"The $99 trillion U.S. natural-gas industry, led by Exxon Mobil Corp. (XOM) and Chesapeake Energy Corp. (CHK), is prepared for a surge in demand as Japan’s nuclear crisis shakes confidence in atomic energy,........

Natural gas futures have risen 11 percent since the March 11 record earthquake and tsunami in Japan spurred a round-the- clock battle against a meltdown of nuclear reactors there."

Who knows but its a thought.

TedNugget
03-24-2011, 10:14 AM
OK, so Brigham (BEXP) calls it no oil left behind.

http://www.bexp3d.com/IR_pres.pdf

Go to slide 35.

The cross section of the earth here shows that Brigham (Continental and others agree with this multiple parallel well philosophy), thinks is the best plan to get the fullest recovery.
Swiss cheese the ground.

The cross section is one mile wide.
The different layers show four of the possible oil strata in the basin.
Note on the lower left that there are NINE other layers of oil potentially besides the four mentioned by laterals in the illustration.

NINE OTHER LAYERS/ROCK WITH OIL

================

The illustration is showing 4+ Middle Bakken and 4+ Upper Three Forks laterals. {This is actually shown on slide 33 for simplicity}
The area below the Lodgepole and the Middle(lower) Three Forks are other options they are looking at doing this to and are color coded differently.
Part of the reason for these is that being so close by they get some transfer from the other above and below laterals.
This is known by both the fraccing fluids and types of oil being found in a lower layer.

This is all based on the 200-300 ' most of the frac energy' quote.
That would be the reason for moving the well laterals closer.
It has taken awhile to figure this out because drilling wells costs millions.
To just drill a few wells spaced at XXX distance with ______ propant and then comparing it with ....................
Still learning.

TedNugget
03-24-2011, 12:33 PM
Slide 30 shows a map 'from above' view.

Going for just Bakken and Three Forks Brigham is saying that they should be drilling 8 wells from two pads on two north/south adjoining spacing units.

{Spacing Units that run N/S are referred to as 'standing up'. E/W are 'laying down'.

N/S is preferred as the laterals line up better with the faults in the basin.
Actually NNW/SSE is best|

============

Brigham refers to their multiple wells from one pad as Smart Pads.
In contrast to Continental's ECO-PADS.
Continental was first, I believe.

TedNugget
03-24-2011, 03:21 PM
It used to be that in most of these areas the oil HAD to be trucked to a central on ramp on a main pipeline or even trucked all the way to a refinery.

Now look at slide 55 in the Brigham show.

These wells aren't huge like the off-shore Gulf Wells.
But they do get the oil out by doing things in quantity.

The newer stretch of pipeline in the upper left scheduled for completion this year to the Brad Olson Wells ends about 4.5 miles from a trust I'm part of. So I find this map encouraging and will be sending it to relatives.

============

The real point for this post isn't my hopes or the reduced truck traffic for those that live there but that a pipeline is an investment that says continued success is gonna happen.

This also makes it important to locate the well pads on a pipeline route. One wouldn't want to have to fill up a truck with oil for just a mile drive.

Those eco-pads / smart pads are looking good.

Doing two mile long laterals north and then another set south covers a four mile wide swath with one pipeline.

TedNugget
03-24-2011, 03:26 PM
That Paris Basin Shale Oil play that is bigger than the Bakken.

Picture how well it could be developed partly because of the efforts of these smaller oil companies in Canada and the US.

That oil in Europe might be a true long that could be worth it.

I haven't a clue if it is even possible to invest in that and what the time frames are.

Just a thought, because Europe sure could use some ME independence too.

TedNugget
03-24-2011, 03:40 PM
A couple pages back I described how I was doing a Yin Yang trade between Oasis and Brigham.
One would go up and the other down and I move to the lower.
Then they'd reverse and I'd go back.

My 475 shares of OAS are now 570 shares. Took me 5 cycles to get there.
(Full disclosure; I'm gonna try and get back to BEXP for the weekend. Safer to my way of thinking)

They are worth less but with more shares I'm doing OK and waiting / hoping for Oasis management to stay low and let the company grow.
Brigham I'm not worried about.

DYODD ; the oil industry could tank for a variety of reasons.

=============

I also did one cycle between GTU and CEF and back to GTU
This is in slow motion as i have my PM's in IRAs and have to wait for funds settling before I can think about finishing a cycle.
But I did get 13 more shares of GTU.
My other trade from CEF to PHYS hasn't shown an opportunity to trade back. That happens, but I'm still in a PM closed end mutual fund. Simple things for simple people.

The advantage to a goldish bug like myself is that I'm increasing my exposure in PM's while staying in the game. The PM game - my core position.
I'm only out for 15 seconds while I complete the trade cycle.

==============

Relevant posts for background on this are #87 - 90.

Due Diligence Folks.

TedNugget
03-24-2011, 06:43 PM
http://thestreetsweeper.org/undersurveillance.html?i=1665

The intro:
" NOG employs a well-connected CEO who has used his family’s deep roots in Montana and nearby North Dakota to negotiate valuable leases in the oil-rich Bakken shale. Moreover, NOG has secured that land at cheap prices – spending a fraction of the amount paid by larger Bakken players – by focusing on small “non-operated” properties that have yet to be explored. The company has then kept its overhead to a minimum, employing fewer than a dozen full-time workers, by partnering with established operators that actually drill the wells in exchange for a majority share of the gains that flow from those projects."

- - - - - -

"........ With Bakken wells notorious for their rapid depletion rate, critics say, NOG has long faced that inevitable hit.

“Their depletion numbers have appeared low,” says John Hempton, chief investment officer of Bronte Capital Management in Australia. “I think they will be taking more depletion charges – which may be very large – in the future … When you’ve extracted the oil, but you haven’t depreciated the land and the wells necessary to obtain it, that’s basically the end game.”

NOG failed to answer questions for this story."

+++++++++++

DYODD.

Could be important.

TedNugget
03-25-2011, 10:38 PM
For Continental:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE2OTc1fENoaWxkSUQ 9NDI5NDU1fFR5cGU9MQ==&t=1

slide 10 shows a cross section of laterals similar but not as extensive as in slide 33 of the above Brigham presentation for the Bakken and Three Forks.

slide 8 I don't understand what they are referring to by "MIGRATION"

I've read of this migration but I don't understand what the mechanisms are.

Note that there are better and worse areas for not just quantity of oil but quality.
The Bakken oil varies.
As I understand it some was overcooked and some undercooked, but overall the Bakken is a good Lite/Sweet crude.

- - - - - - - - - -

For EOG:
http://www.slideshare.net/plsderrick/eog-2011-feb-ppt

On the EOG presentation look at slide 12 - map of EOG leases in yellow.

Compare that green - Bakken Oil Saturated with the Continental slide 8 for the 'mature bakken Kitchen'.
Not exact but one gets the idea where the prime area is.

It would be nice if a geologist or at least a mud logger would chime in. Anytime.

- - - - - - - - - - -

TedNugget
03-26-2011, 10:14 AM
http://billingsgazette.com/business/article_e8dba1c2-de7e-5488-aa12-34dff4f2f31c.html

"....Central Montana is sitting on an oil field that some suggest could be a mini-Bakken...."

"Over the past four years, a dozen regional and major energy companies have leased acreage in the Heath Shale Formation. The rock runs about 30 miles north and 30 miles south of the Musselshell River from Lavina straight east into North Dakota."

"But there also have been some problems, .........."

"“We’ve had results so far to encourage us to keep going, but not enough to make it commercially viable yet,” said Central Montana’s Chief Operating Officer John Koch in Calgary. “We are cautiously optimistic.”
By the end of this year, with 10 wells drilled and the lengthy testing period over, drillers will know if the Heath can be profitable or not, Koch said. Even so, the Heath is no Bakken.
“No. It’s not as big an area and it doesn’t contain as much oil,” Koch said. “But it could be a very interesting play for Montana.”

============

Just something to keep an eye on.

It would seem that over the planet there will be more and more shale plays getting a better look with the newer technology / implementation.

TedNugget
03-26-2011, 10:16 AM
From that same page:

"What about the water?

In country where creeks are named the Big Dry, where will the water come from to develop the Heath Shale oil?
At the heart of the Bakken play in western North Dakota, each fracking job consumes 1 million gallons of clean water from Lake Sakakawea, the world's fifth-largest manmade lake, and from the confluence of the Yellowstone and Missouri Rivers.
Compared to those water riches, the Musselshell River is a trickle
However, Tom Richmond, who heads the Montana Board of Oil & Gas in Billings, said existing industrial water could be used.
"Until they get some experience, I don't know how fresh the water needs to be," Richmond said. "But there is probably enough produced oil field water that has been injected back into the ground or stored in Central Montana that could be used for fracking."

I pasted a lot here as newspaper articles disappear from the web.

TedNugget
03-26-2011, 10:20 AM
"Wyoming now has 36,000 producing oil, natural gas and methane wells. In 2009 for the first time in its history, Wyoming failed to meet federal air quality standards and the Pinedale area now has more ozone than Los Angeles, the Times said."

http://billingsgazette.com/business/article_5df86688-379e-50c9-89ac-e59dcc5884f0.html

last paragraph - short srticle.

TedNugget
03-26-2011, 11:26 AM
http://milliondollarway.blogspot.com/

This was copied in it entirety from:
Surge/Corinthian Acquires Ritchie's Bottineau Spearfish Wells

"In today's daily activity report, it was noted that seventeen wells in Bottineau County changed operator. Corinthian Exploration (USA) Corporation has now acquired these seventeen wells, including the recent Bernstein wells. They used to be operated by Ritchie Exploration. I assume Corinthian Exploration is related to Corinthian Energy headquartered in Calgary, Alberta, but do not know for sure. When you go to www.corinthianenergy.ca you end up at a website for Surge Energy. (I am unable to find any reference to Corinthian Energy at the Surge Energy website so one wonders if there is a typo. But everything else fits too nicely. I'm sure someone will sort this out.)

My hunch is that Surge Energy (SGY) is the name of the company in Canada, and its operating division in the US is Corinthian Energy.

The two Bernstein wells (#19384 and #19385) were drilled and completed in less than four days. I believe they were strictly fracked vertical wells, based on well file reports and the icons on the GIS map server. The IP (5) and cumulative oil appears to be extremely low (uneconomical?) but I don't have enough experience with Spearfish wells to know what the expectations are.

Other posts earlier this evening linked the sources suggesting to me that Surge Energy will go back into these old vertical Spearfish wells and lay in horizontal laterals.

I have to thank one of my readers for alerting me to a couple of data points that piqued my interest in pursuing this. It's starting to come together. You might have to read several posts that were put up tonight to put together the whole story. It started out a bit disjointed but it's starting to come together.

******

Later. Actually the more I think about this, the more excited I get. Investors might want to take a look at the SGY corporate presentation which can be found at the link above, and then look at Yahoo!Financial SGY.V.

Look at the economics of the Surge Spearfish wells just north of the border:
Cost to complete a well: $1.2 million
Typical production for a horizontal fracked Spearfish well: 2,400 bbls/month the first year; 28,800 bbls the first year; at $50/bbl = $1.4 milion (note: $50/bbl; oil is now $105/bbl)
Payout: 0.9 year
EUR: 65K at $50 = $3.25 million (note, current price of oil is $105/bbl)
Very, very favorable tax treatment in Canada; I don't know tax treatment in US

A EUR of 65K looks pretty paltry compared to Bakken wells, but Surge's core competency is tapping into multiple pay zones from the same well; once one has any production, that well holds the lease by production for all "eternity"

That might draw the more interested into the rest of this guys posts.

He's certainly well above me.

Definitively a conservative with a trice weekly Obama Bash.

Good info site for the region and beyond.

TedNugget
03-26-2011, 11:29 AM
If you go to the best sites like Milliondollarway they'll lead you to stuff like:

a PDF of a study comparing fracking long and short laterals in the Canadian Bakken just north of North Dakota.

http://docs.google.com/viewer?a=v&q=cache:FIdLK7wZjzEJ:www.wbpc.ca/assets/File/Presentation/17_Hassler_TriStar%2520bakken%2520talk.pdf+what+is +fracture+stimulation&hl=en&gl=us&pid=bl&srcid=ADGEESifwAJ1mh14ZT7nkl1AMauaednj_VBirjigRl4O 5nqCQ4Bxqa4BYGW0S3NgEdOG3q1em5ictENCe07FC0-Ba0dCF7UQKJiSnojrq-OVMenhNr59iHRwjL7RbsA-a3FHnfnpI2Cp&sig=AHIEtbSC1Vnt90FZo1n4jVsRmLXldaLWrw

TedNugget
03-27-2011, 11:04 AM
The oil from Eastern Libya is some of the best in the world.
It is almost diesel without being refined. I remember Cyclist saying it basically could be run straight in a diesel engine - (assuming some maintenance).
I saw a reporter who had been given some oil by Libyan Rebels and she looked perplexed. She didn't understand why they were so proud of it.
It was as if she still hadn't figured out why Rommel was there with the Afrika Corp or we are there with the NATO Corp.
"Libya produces some of the most coveted and highest quality light, sweet crude oil on the planet. Its crude is easily refined into gasoline and diesel. It is also lower in sulfur, making it cleaner to burn.

Libya's crude oil stream includes Es Sider, whose light density and low sulfur content makes it desirable. Even more desirable is the oil from the huge El Sharara oil field in Libya run by Spain's Repsol. This oil is a mere 0.07 per cent sulfur!"

http://wallstreetmess.blogspot.com/2011/03/why-libya-is-important-to-oil-prices.html

===============

More Trivia:

Diesel
deodorize that diesel some = Kerosene.
Clean up and high quality that Kerosene and we get JETA.
(I wonder how much JETA in planes enforcing the no-fly came from Libyan oil to start with? Perhaps some in the European aircraft?)

===============

How does Bakken oil stack up to the Libya standard?

http://www.turnermason.com/Publications/petroleum-publications_assets/Bakken-Crude.pdf

goto slide 13 and we see that Bakken oil is under 1% sulfur. By weight it is typically .2% which is really good but its still a ways from that super sweet Libyan at .07%.
To qualify as sweet a crude must be under .5%. Note that WTI is very good also. The Bakken and WTI can flow to the same refinery settings essentially.

Its important for oil to be light and sweet for ease of refining but its also important to be set up for the future without having to change the refineries because thats expensive and we are not investing in refineries now.

What makes an oil light?
The API Gravity, (is a measure of how heavy or light a petroleum liquid is compared to water.)
http://en.wikipedia.org/wiki/API_gravity

"Generally speaking, oil with an API gravity between 40 and 45 commands the highest prices. Above 45 degrees the molecular chains become shorter and less valuable to refineries.Crude oil is classified as light, medium or heavy, according to its measured API gravity.
Light crude oil is defined as having an API gravity higher than 31.1 °API. (less than 870 kg/m3)
Medium oil is defined as having an API gravity between 22.3 °API and 31.1 °API. (870 to 920 kg/m3)
Heavy oil is defined as having an API gravity below 22.3 °API. (920 to 1000 kg/m3)
Extra heavy oil is defined with API gravity below 10.0 °API. (greater than 1000 kg/m3)
Not all parties use the same grading.[2] The United States Geological Survey uses slightly different definitions.[3] Simply put, bitumen sinks in fresh water, while oil floats.
Crude oil with API gravity less than 10 °API is referred to as extra heavy oil or bitumen. Bitumen derived from the oil sands deposits in the Alberta, Canada area has an API gravity of around 8 °API. It is 'upgraded' to an API gravity of 31 °API to 33 °API, and the upgraded oil is known as synthetic crude."

==========

Note that the higher the API up until API 45 the more desirable it is.
Bakken oil is highly desirable at 41 and WTI is close behind at 39.

This is all generalized some. Each well is tested and the Bakken can vary from one area to another.
There can be some haggling on price with the refineries but not now with the glut.

TedNugget
03-27-2011, 06:13 PM
http://finance.yahoo.com/news/GeoResources-Inc-Provides-an-bw-180789841.html?x=0&.v=1

GeoResources, Inc.
(NASDAQ:GEOI)
{Trivia:
GeoResources, Inc. (Nasdaq: “GEOI”), is a Houston-based oil & gas company engaged in acquisition, development, exploration and production activities. In April, 2007, the Company completed a reverse merger with Southern Bay Energy, LLC and Chandler Energy, LLC. The mergers resulted in a change of control and management of the Company. Properties are located primarily in the Gulf Coast, Permian Basin, Rocky Mountains and Williston Basin. The Company operates through two wholly owned subsidiaries. Southern Region operations are conducted through Southern Bay Energy, LLC, located in Houston, Texas and Northern Region operations are conducted through G3 Energy LLC, located in Denver, Colorado. In addition to its direct activities the Company is the general partner to an institutional oil & gas partnership.}

========

Scroll down 1/3rd and look over the table.
Note the wells completed in Q3 last year. Look at the declining production rates from the IP / 24 hour to the first 30 day production to the first 60 day production. The 30 and 60 day are averages so you can see that they are dropping off quickly.

Look at the working interest column.
from under 2% to over 14%.
Can you feel the fight for signing leases?
These guys are scrambling for every acre in the prime areas.

Lease holders in Oklahoma and Texas etc are just amazed at the bonuses being paid in the Williston.
We signed one lease in 2007 for $150/acre bonus and were very happy as 4 months before we got one offer of $35 that was upped to $39/acre.
Then last year we signed another lease 8 miles away for over $2200/acre.
There are bonuses going for 6-7-8,000 per acre.

If a company is putting out info on wells that they are averaging working interest of say 8% that tells you there are a lot of other players and maybe its desirable to be there.

TedNugget
03-28-2011, 02:25 PM
That sweet Bakken, how sweet is it?

http://pubs.usgs.gov/fs/2008/3021/pdf/FS08-3021_508.pdf

The USGS:
Assessment of Undiscovered Oil Resources in the Devonian-Mississippian Bakken Formation, Williston Basin Province, Montana and North Dakota, 2008

===========

"Using a geology-based assessment methodology, the U.S. Geological Survey estimated mean undiscovered volumes of 3.65 billion barrels of oil, 1.85 trillion cubic feet of associated/dissolved natural gas, and 148 million barrels of natural gas liquids in the Bakken Formation of the Williston Basin Province, Montana and North Dakota."

Province in the last quote is slightly misleading, it does not include Canada.

= = = = = = = = =

"......... were used to aid in the estimation of the undiscovered, technically recoverable oil and associated gas resources of the Bakken ........"

technically recoverable oil
technically recoverable oil
technically recoverable oil
technically recoverable oil
technically recoverable oil
technically recoverable oil

TedNugget
03-28-2011, 02:31 PM
Recently I've been bringing to your attention good stuff from million dollar way.

http://milliondollarway.blogspot.com/2011/03/overview-of-activity-in-williston-oil.html

This is nice concise overview of the Williston Players.

Too good and to my understanding - fairly accurate so I couldn't to pass it up.

DYODD of course.

TedNugget
03-28-2011, 09:42 PM
In the future it's a for sure.

(Sunni + Shiite) - the oil money = civil war.

February 09, 2011
Saudi oil reserves may be overstated by 40%

http://www.zerohedge.com/article/latest-and-greatest-tsunami-video

"The U.S. fears that Saudi Arabia, the world's largest crude oil exporter, may not have enough reserves to prevent oil prices escalating, confidential cables from its embassy in Riyadh show.

The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom's crude oil reserves may have been overstated by as much as 300bn barrels-- nearly 40%."

=================

The logic is that without the possibility of buying off the people of the kingdom there will be a recall, of sorts.
How soon this happens may certainly be dependent on continued oil income.

http://www.theblaze.com/stories/bribe-saudi-king-offers-protesters-cash-not-political-rights/

In fact, part of the reason the Saudi's so graciously agreed to make up for any disruption in the oil flow because of Libya could just be to finance 'the reforms' the king made.

Now, does anyone think the Saudi's really want the price of oil to go back under $100/barrel?

+++++++++++++++++++++++

Link to the massive oil quote at the bottom of the above link:

"America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant."

http://www.nextenergynews.com/news1/next-energy-news2.13s.html

The Bakken gets bigger all the time.

TedNugget
03-29-2011, 01:04 PM
"East Libya oil terminals Ras Lanuf, Zueitina, Es Sider suffered minor damage, can restart when workers return."

This tidbit was supplied by Ransquawk/Zerohedge.

=========

this is some of the best oil in the world and it is important that MQ doesn't get his hands or bombs on it.

TedNugget
03-29-2011, 01:11 PM
Brent chart on the POO:

http://upload.wikimedia.org/wikipedia/commons/0/0f/Brent_Spot_monthly.svg

Remember that analysis that every recession since WWII has been preceded by a hike/spike in the price of oil?

Reflecting at how serious this 'recession' we are in is look at the price of oil throughout 2007 and well into 2008.

Of course, look at what is happening again.

TedNugget
03-29-2011, 01:20 PM
Remember those analysis that a primary reason why the US economy has succeeded so well is how much cheaper energy has been in the USA?

============

http://www.bilateralist.com/2011/03/29/obama-outline-energy-security-plan-wed/

"WASHINGTON – On Wednesday, March 30, 2011, President Obama will deliver a speech at Georgetown University where he will outline his plan for America’s energy security."

- - - -

"The speech comes as oil markets have been roiled by the crisis in Libya, and Japan is struggling to contain radiation from its earthquake-damaged Fukushima nuclear plant and stabilize the complex’s nuclear reactors and its storage tanks for nuclear waste."

TedNugget
03-29-2011, 01:32 PM
"Thursday, March 31, 2011 at 8:00pm (not sure exactly which time zone)
Drilling For Answers: The Marcellus Shale Debate

This one-hour special explores the controversial issue of Marcellus Shale drilling in the Pittsburgh region. Hosted by Chris Moore, the program features guest panelists who are experts on various issues related to Marcellus Shale drilling. Viewers will be invited to interact through email and other social media."

This is possibly on your local PBS so expect a little slant.

TedNugget
03-30-2011, 02:37 PM
http://english.aljazeera.net/indepth/features/2011/03/20113287346280214.html

Al Jazeera reports on the Bakken.

The video and much of the article focuses on the Fort Berthold Reservation in North Dakota.

Negative effects of growth and fracking.

Fair and Balanced.

TedNugget
04-01-2011, 11:00 AM
http://www.philstockworld.com/2011/04/01/jpm-sees-brent-spiking-as-high-as-130-unless-opec-steps-in/

JPM says:

"and expect 2Q2011 Brent crude to average $118/bbl, prices possibly spiking towards $130/bbl, if OPEC fails act in time and raise production.”

TedNugget
04-01-2011, 11:13 AM
stumbled across this

http://article.wn.com/view/2011/03/29/mountainview_acquires_additional_acreage_in_willis ton_basin/

==========

that lead me to this:

http://www.newswire.ca/en/releases/archive/March2011/22/c5473.html

"VANCOUVER, March 22 /CNW/ - Stikine Energy Corp. (TSX.V: SKY) ("Stikine" or the "Company") announces that it has recently collected numerous samples from its Angus Frac Sand Project and is currently trucking approximately 500 tonnes of this material to its pilot plant operation in Abbotsford, BC.

The Angus Frac Sand project is located approximately 60km north of Prince George, BC near the community of Bear Lake and is accessible by logging road from Highway 97. Samples were drilled and blasted in early March 2011 to take advantage of winter road conditions. Photos of the sampling program are available to view at www.stikineenergy.com. The Angus material will be processed in the pilot plant in the coming months after pilot testing of the Nonda project material is completed. Similar plant and process flowsheet developed for the Nonda project will be used to evaluate yields, capital and operating costs.

Stikine is focused on becoming a dominant frac sand supplier to British Columbia's developing shale gas industry. The Horn River, Liard and Montney Basins are large-scale gas plays led by major producers who currently rely on frac sand transported over great distances.........."

- - - - - - -

OK. I didn't know BC was doing so well.

I mention this as its possible someone here could pay attention to what Cyclist says about Canadian Oil and Gas and combine that with Nuke screw-ups to go ahead with an investment in BC Gas.
Trivia.
DYODD

TedNugget
04-01-2011, 02:15 PM
http://finance.yahoo.com/news/Big-Find-Sends-Statoil-Shares-indie-3579291922.html?x=0&.v=1

"Shares of Statoil ASA (NYSE: STO - News), Norway's largest oil company are surging 3% after the company announced what may be Norway's most significant oil discovery in over a decade,"

{The two companies had previously drilled two dry wells in the Barents Sea in recent months, according to Bloomberg News. Statoil, which is majority-owned by Norway's government, has been struggling to find new oil deposits at home and has been looking to regions such as the Canadian oil sands to bolster output.}

TedNugget
04-01-2011, 02:25 PM
"Oasis Petroleum (OAS) is trading around $29.84. Oasis is an oil and gas company, based in Texas. These shares have traded in a range between $13.88 to $36.15 in the last 52 weeks. The 50 day moving average is $31.30. OAS is estimated to earn about $1.03 per share in 2011 and $1.64 in 2012. You can see the insider buying here.

What Oasis insiders and other investors might be seeing: With oil up about 25% in the last few weeks, it could be that insiders believe earnings estimates are too low. Also, Oasis is a direct play on the oil rich reserves in the Bakken Range. Here is an article that calls Oasis the "purest Bakken play."

http://seekingalpha.com/article/260634-7-big-new-insider-buys?source=yahoo

=============

Now what got oasis stock in trouble recently was all the insider selling, right after OAS fell short on earnings and had changed out management and delayed its earnings report.

Then this article from three days ago.
Oasis shares have recovered 3 bucks a share.

++++++++++++++

I tell you, the pattern I see is numerous officers of the company buying on the 14th and then selling on the 16th.

http://www.reuters.com/finance/stocks/insiderTrading?symbol=OAS

It doesn't look as good to me as seekingalpha is painting it.

Also I think much of the buys were gifted ........

Plus look at the number of shares leaving.

TedNugget
04-01-2011, 02:40 PM
http://www.zerohedge.com/article/guess-what-isnt-selling

Well, right now oil is not only staying up but walking up the up escalator.
Must be late for a flight.

There is the possibility that MQ in Libya in a pout sets oil fields on fire and even American Oil Companies, where there is yet even more of an oil glut in Cushing OK this week, could spike up quickly with video of smoke in the sky.

I'm now making sure I'm in.
Wouldn't want to get caught on a weekend sitting in too much cash.
Not all in.
Core in PM's of course.
Plus I bought even more of CEF with the offering.

DYODD

TedNugget
04-09-2011, 11:09 AM
This is a copy of another good post over at million dollar way:

"Cumulative Oil By Formation, 2009 vs 2010
Formation: 2009, Wells, Cum Oil, % ND Total ---> 2010, Wells, Cum Oil, % ND Total (numbers rounded) (from selected formations)

Bakken: 1,566, 120 million, 6.9% ----> 2,338, 205 million, 11%
Bakken/Three Forks: 9, 0.19 million, 0.01% ---> 12, 0.67 million, 0.04%

Birdbear: 171, 18 million, 1% ---> 171, 18 million, 1%
Devonian: 137, 99 million, 5.7% ---> 137, 99 million, 5.4%
Duperow: 337, 50 million, 2.9% ---> 338, 50 million, 2.7%

Heath: 197, 66 million, 3.8% ---> 197, 66 million, 3.6%
Lodgepole: 48, 56 million, 3.2% ---> 49, 57 million, 3.1%

Madison: 5,469, 905 million, 52% ---> 5,505, 914 million, 49%
Red River/B: 1,220, 218 million, 12.4% ----> 1,238, 228 million, 12.4%

Sanish: 58, 13 million, 0.8% ---> 63, 14 milion, 0.7%

Spearfish (3): 330, 54 million, 3.1% ---> 330, 54 million, 2.9%

Tyler (2): 87, 18 million, 1% ---> 88, 18 million, 1%


Totals:
2009: 10,245 wells, 1.7 billion barrels from 1951 - 2009

2010: 11,095 wells, 1.9 billion barrels from 1951 - 2010

Comments: At the end of 2010, North Dakota had produced a cumulative of 1.9 billion barrels of oil. The general consensus is that there are about 2 billion barrels of recoverable oil from the Bakken, and slightly less than 2 billion barrels from the Bakken/Three Forks. The increase from 1.7 billion barrels in 2009 to 1.9 billion barrels in 2010 represents a 13 percent increase in one year."

==========

I'm a little confused because some companies list the Three forks sanish as one play. Here we have the Bakken/ three forks at the top, somewhat together and the Sanish lower down separately.

You can see that there are several oil layers beyond just the Bakken.

Again, if serious about the oil play in the states you should be reading:
http://milliondollarway.blogspot.com/

In the article just below the above copy he mentions a record figure of $12,500 per acre being paid as a bonus for one lease.
Hypothetically, if that were for a full section of your land, that would be 8 million dollars for just the bonus.
Any Oil/Gas produced would be on top of that.

You can stop telling North Dakota farmer jokes anytime.
They are the ones laughing.

TedNugget
04-20-2011, 01:32 PM
Chesapeake Energy (CHK) edges its way into the Bakken

http://energyconnectionsus.blogspot.com/2011/04/chesapeake-edges-its-way-into-bakken.html

"Chesapeake Energy is a major player in the horizontal drilling of shale plays in almost all US plays, except the Bakken. That might be starting to change with this latest development between Bronco Drilling and Chesapeake. With a price tag of $315 million, a deal has been made between the two companies. Bronco Drilling currently owns 22 rigs, these rigs are mostly in the Bakken and the Anadarko basin. Chesapeake may not own mineral acreage in the Bakken but one can bet that their involvement through the drilling services will be noticed in Bakken."

===========

Chesapeake Energy does have Bakken acreage and may be about to become the #1 Bakken player.

TedNugget
04-20-2011, 01:38 PM
That they have 100,000 acres in the Bakken back on their Nov 2010 conference call.

See CHK's April, 2011, corporation presentation;
http://www.chk.com/Investors/Pages/Presentations.aspx , slide 3:
CHK established a >150,000 net acre position in the Williston Basin at an attractive cost.
In addition, "anonymous" hints that there will be more to follow. In the same CHK presentation, this little nugget:
In just the past 18 months, CHK has captured leading positions in 5 of the 6 best
unconventional oil plays in the U.S.
#2 in the Eagle Ford with 445,000 net acres and 3.0 bboe of unrisked unproved resources
#2 in the Niobrara with 535,000 net acres and 3.4 bboe of unrisked unproved resources
#1 in the Anadarko with 1,460,000 net acres and 4.9 bboe of unrisked unproved resources
#1 in the Permian (unconventional) with 560,000 net acres and 1.3 bboe of unrisked unproved
resources
#1 in an unnamed big liquids play (details to come later in 2011) with >1,000,000 net acres
Chesapeake will be announcing sometime later this year a deal involving more than 1 million net acres in a liquids play somewhere in the states, most likely the lower 48, and I've had two "anonymous" comments (maybe the same individual) suggesting we could see CHK taking a larger position in the North Dakota (correct; see above). There are no single North Dakota players that I know of that has 1 million acres. CHK would have to buy more than one leaseholder in North Dakota (corrected; see above) to get a million acres here.

This last was all pasted from Million dollarway.

TedNugget
04-20-2011, 01:40 PM
I believe there is about to be (a) big buyout(s) in the Bakken.

The question is how to get to that > 1,000,000 million net acre number.

Remember, the Bakken is a liquids play and not much of a gas play.

TedNugget
04-20-2011, 01:57 PM
Again, this is all from Milliondollarway but worth your time:

"Net acreage in the North Dakota Bakken
OAS: 303,000 net acres
KOG: 70,000 net acres
Market cap
OAS: $2.75 billion
KOG: $1.24 billion
Number of rigs
OAS: five
KOG: four by the end of the year; currently 2; a third next month (May, 2011)
Comments:
It is obvious that KOG is increasing the pace of its drilling (increasing its cash and increasing the number of rigs significantly). OAS has 300,000 acres and 5 active rigs; KOG will have 4 active rigs for one-fourth the acres (70,000). KOG might have "better" acreage, but with a market cap of $2.75 billion for 300,000 acres (OAS) and a market cap of $1.24 billion for 70,000 acres (KOG), OAS is either under-valued or KOG is over-valued, based on net acreage only, comparatively speaking. They could both be over-valued or both under-valued, also. [On acreage alone, investors are valuing KOG at $18,000/acre; and, OAS at $9,000/acre.]

Fracking remains the bottleneck in the Bakken, but it appears that KOG is addressing this by negotiating for a dedicated frack team for 14 days/month.

By putting four wells on one pad and simul-fracking, a dedicated frack crew for half a month may be adequate. The delay is no longer due to fracking, but due to waiting for the fourth well to reach total depth before fracking all four wells.

For investors, this is either concerning or exciting: valuation of the companies based on net acreage alone (OAS, $9,000/acre; and, KOG, $18,000/acre). KOG's acreage is more contiguous; KOG's acreage is closer to the core Bakken; KOG's infrastructure may be more robust (a pipeline in place); KOG has an interesting "partner," in XOM. In addition, KOG, with its 4-well pads, is now putting in four horizontals in some sections."

=============

I think one likely target for CHK on a takeover is OAS - Oasis.

It is trading at under 30 now.

I just got the guts to move back in to the Bakken and bought some, thinking about it being bought out at around 32 as a guess.

Who knows ?????????????

The better play could be KOG as an investment????

TedNugget
04-20-2011, 02:05 PM
7 Oil and Gas Stocks With Continued Upside:

http://seekingalpha.com/article/264317-7-oil-and-gas-stocks-with-continued-upside-part-v?source=yahoo

Of the seven, those that are in the Bakken:
Encore Energy Partners (ENP)
Northern Oil & Gas, Inc. (NOG)
Oasis Petroleum (OAS)

TedNugget
04-20-2011, 02:10 PM
150,000 acres is what CHK is saying they have now - up from the Nov 2010 figure.

309,000 is what Oasis has.

Assuming Oasis is one of the buyouts, then we need at least another 550,000 net acres from someone.

- - - - - - - - -

As of March 1, 2011, Northern Oil controlled 147,407 net acres.

We may have to go a bigger player.

TedNugget
04-20-2011, 02:17 PM
http://stocks.investopedia.com/stock-analysis/2011/The-Bakken-Will-Still-Rule-In-2011-WLL-ROSE-NFX-MUR0111.aspx

This is odd:

Whiting WLL, trading at $71.57 just now;

"Whiting Petroleum (NYSE:WLL) has approximately 552,000 net acres (from a Jan 2011 story) under lease in several project areas across North Dakota and Montana. The company drilled 62 net wells into the Bakken in 2010."

============

Could it be OAS and Whiting that are 'rumored' to be .................???????????

TedNugget
04-20-2011, 02:24 PM
I didn't mention Brigham but they could be involved too.

But I think its OAS because they are the better fit.

OAS is has too much acreage and too little drilling/fraccing logistics.
They're OK because they are in the Bakken but they are weaker than most.

CHK buying a drilling company first gives them the control they would want and fits with developing OAS better.

I am curious who may be loosing Bronco drilling platforms.
I wonder how far out those contracts go??????????

TedNugget
04-20-2011, 05:31 PM
Apparently the Whitting CEO has sold all of his stock.

TedNugget
04-21-2011, 02:50 PM
"Chesapeake Energy, and its wholly-owned subsidiary Chesapeake Appalachia LLC headquartered in Charleston, West Virginia, has 1.73 million net acres under lease in the Marcellus shale area and is drilling in 14 states.[4] According to the Common Cause "Deep Drilling, Deep Pockets" report, Chesapeake has 519 well permits in Pennsylvania.[5] Its CEO was ranked the 3rd highest paid CEO in the U.S., with an annual compensation of $116.89 million.[6] The company has been reporting annual revenues of between $7.6 billion and $11.3 billion a year over the past four years. Chesapeake Energy has had numerous lawsuits filed against them for spoiling drinking water by contaminating it with methane gas, cheating landowners out of royalties and evading investors. Chesapeake Energy and its executives have also been very active in making partisan political donations, predominantly in favor of Republicans. This company, headquartered in Oklahoma City, has invested significant funds in elections in Pennsylvania and West Virginia, states with large shale deposits, and its CEO was a major spender in the election of the new governor of Pennsylvania, Tom Corbett."

TedNugget
04-21-2011, 09:53 PM
http://www.a-dcenter.com/Headlines/2011/4/item80627.php

This was from April 6th, 2011:

"Petro-Hunt Offers 97,500 Acres In Bakken/Three Forks Play


The properties are separated into six packages; however, Petro-Hunt is open to receiving an offer for 100% of the assets."

===========

Of a trivial relationship perhaps.

Petro-Hunt uses Bronco drilling rigs at least part of the time.
3 of the 7 rigs drilling today for Petro-Hunt are Bronco.

Could they be hostile to a takeover and trying to dump acreage before or to prevent said takeover?

Nope;
"..... Petro-Hunt, is one of the largest privately-held companies in the world and remains active in the onshore and offshore sectors of the energy industry worldwide."

They must be selling in the Bakken to get some fun money.
Or they're about to loose their drilling platforms, they know how tough it is to replace them and they don't want to be forced to sell on the cheap to CHK.
- - - - - -

http://www.petro-hunt.com/index.php?option=com_content&view=article&id=64&Itemid=74

--

TedNugget
04-24-2011, 04:06 PM
Here is a six minute video on a basic vertical well.

http://www.whiting.com/video/rig_tour_sd.mp4

============

More Whiting videos available at:

http://www.whiting.com/

- - - - - - -

http://www.whiting.com/video/frac_animation_sd.mp4

Interesting info on ball and frac sleeves.
4000psi stated also.

TedNugget
05-05-2011, 10:27 PM
"* Made at request of President Barack Obama

* Panel to identify steps to improve safety in 90 days

WASHINGTON, May 5 (Reuters) - After a series of high-profile natural gas drilling spills, the U.S. Energy Department named a panel to recommend ways to improve the safety of hydraulic fracturing, or fracking, a technique that has expanded the country's potential to extract the fuel.
President Barack Obama asked the DOE to form the panel of academic and environmental experts to identify any immediate steps that can be taken to improve the safety and environmental performance of fracking, the DOE said on Thursday.
The panel, which includes John Deutch, a professor at the Massachusetts Institute of Technology, and Daniel Yergin, the chairman of IHS Cambridge Energy Research Associates, will report those steps within 90 days of beginning their work.
Within six months they will also develop advice for the government on practices for shale extraction to ensure public health and the environment.
"America's vast natural gas resources can generate many new jobs and provide significant environmental benefits, but we need to ensure we harness these resources safely," DOE Secretary Steven Chu said in a release.
In fracking, drillers unlock trapped natural gas by cracking rocks deep underground with blasts of mixed water, sand and chemicals.
Drillers say fracking has opened up vast new supplies of natural gas that will reduce imports of the fuel. Backers also say it could reduce oil imports in the future, if vehicles are converted to run on natural gas.
But residents near drilling wells have complained fracking has polluted ground water supplies. In addition, accidents at wells have led to fires and floods of fracking fluids have reached streams.
Late last month Chesapeake Energy suspended fracking operations in Pennsylvania after thousands of gallons of drilling fluid used in the process spewed from a well after a blowout.
And early this year a Congressional probe found a dozen energy companies used diesel in their fracking fluid without permits.
The Environmental Protection Agency is studying fracking practices, but initial results are not expected until late 2012.
The other members of the panel are Fred Krupp, president of the Environmental Defense Fund, Kathleen McGinty, a former secretary of of the Pennsylvania Department of Environmental Protection, Susan Tierney, a managing principal at Analysis Group, which does economic and financial consulting, and Mark Zoback, a geophysics professor at Stanford University."

TedNugget
05-07-2011, 03:32 PM
From the OXY web page:
"Occidental Petroleum Corporation (NYSE:OXY) is an international oil and gas exploration and production company — the fourth-largest in the U.S., based on market capitalization — and our OxyChem subsidiary is a major North American chemical manufacturer."

On todays;

NORTH DAKOTA INDUSTRIAL COMMISSION page

[url]
https://www.dmr.nd.gov/oilgas/daily/2011/dr050611.pdf
bottom of page;

ANSCHUTZ EXPLORATION CORPORATION sold 85 wells to OXY USA INC

Mostly Dunn County

This seems to be happening about every other week.
This type of buyout of existing production leases.

==============

Remember, getting control of a lease means all you have to do is minimum production or pay a very small 'production rental fee' and you get cheap control for decades over a spacing unit that could have a dozen other wells drilled in the next five years that produce an average of 400,000 barrels EUR.

The real reason these were bought is for future wells not the existing ones on the land already.

100% success rates says so.

So OXY paid for these. Paid well but maybe they got a bargain.
OXY is an expensive stock.

========

(This purchase happened late last year and is just showing up in the registry now.)

TedNugget
05-11-2011, 01:18 PM
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6073010

France's lower house adopts bill banning shale oil, gas drilling

============

"The government of President Nicolas Sarkozy has given the draft law, submitted by Christian Jacob, the parliamentary head of the ruling UMP party, an "accelerated" status, meaning the bill is read just once by the lower and upper houses.

Following increasing opposition, the French government has halted all shale oil and gas drilling activity until two separate government impact reports are published in June."

TedNugget
06-26-2011, 01:17 PM
Why to pay more attention to Canadian and American oil producers?
Especially those in the Bakken.

1) Obama and several others release a portion of their strategic reserves in a foolish move to drop prices.

============

2) http://www.zerohedge.com/article/iea-opec-nash-equilibrium-collapses-1973-style-opec-embargo-next

"the move by the U.S. and its allies to release strategic reserves of oil could provide a much-needed shot in the arm for the U.S. economy, but risks inflicting lasting damage on the already tense relationship between oil producers and consumers." The move comes on the heels of the dramatic collapse in OPEC talks in Vienna two weeks ago when Saudi Arabia was effectively kicked out of the cartel, further confirmed by reports that the IEA consulted with Saudi (and China and India) in advance of its decision ........
with a high possibility of a 1973-type OPEC oil embargo announcement in the immediate future."

=========

3) http://milliondollarway.blogspot.com/2011/06/another-housing-subdivision-breaks.html

"Another Housing Subdivision Breaks Ground in West Williston -- 2,295 Housing Units -- 5,000 New Residents -- Bakken, North Dakota, USA"

-----------------------

Williston is small but stuffed with oil workers.
Its going to take years to develop this large of a shale play.

TedNugget
06-26-2011, 03:15 PM
I quit posting for awhile basically because I got to the point where I was just re-digesting what million-dollar-way and others had covered pretty well already.

That's still the case.

=========

Two good sites for Oil/Bakken info:

http://milliondollarway.blogspot.com/

http://www.theoildrum.com/frontpage

TedNugget
07-01-2011, 12:37 PM
Guy next door tried to make it in ND over the last 17 days.

He said:
Williston is disgusting and just crammed.
$1,000/month to hook up an RV is the going rate.
Met one guy who is renting out each bedroom, his living room, garage and several RV spots on his larger lot for almost $15,000 a month total.
They spent 4 nights in the Wal Mart parking lot as they were coming and going. (Its well regulated) One night they could not find any meat in the Wally freezers. They were told they sell out most days. There were a bunch of pallets laying around where all kinds of food had been brought out in what was possibly a panic.

Part of the reason Minot is under water is that the Canadians didn't release enough water earlier from the 2 dams in Canada that we paid for. We being US Taxpayers. (A US Dam had the same problem)
He said you can see real tragedy all over. People staring at their rooftops through binocs, because that's all they can see.
Farmers fields with lots of pools of water scattered throughout and nothing being planted.

Its boom or bust in ND.

Boom for the oil guys.
Bust for the farmers and those by the rivers.

===============

Told you that story to tell you this one.

Don't expect virtually any of the Bakken oil companies to meet expectations.
The mud is too deep.
Very hard to operate and move heavy equipment.

It rained almost every day he was there and some of it was HARD RAIN.

TedNugget
07-01-2011, 06:42 PM
http://www.ogj.com/index/article-display/3725559784/articles/oil-gas-journal/general-interest-2/economics-markets/20100/july-2011/market-watch__energy.html?cmpid=EnlDailyJuly12011

talks about how we have so much oil that are tanks are overflowing and there are 5 companies that are having to store oil in OFFSHORE TANKERS.

This is before President Obama released 30 million barrels.

=======

Jakob said, “We count five large international oil-trading companies taking floating storage options in tankers (a mix of very large crude carriers and Suezmaxes). Some oil might have to stay on the water while some room is made in the onshore tanks.

TedNugget
07-04-2011, 05:28 PM
This is from http://milliondollarway.blogspot.com/2011/06/part-i-and-part-ii-bakken-update-during.html
Just select the Part IV option;

"QEP Resources (QEP) has 89000 net acres in the Bakken. It estimates well costs of $6.5 to $8.5 million. QEP estimates it will have EURs of 350 to 750 Mboe. It has acreage in Bailey field which has IP rates of 500 to 1000 Bo/d. More important is its Parshall/Sanish field locations which has IP rates of 750 to 3000 Bo/d. It has 3 rigs running and has averaged an IP rate of 1530 Boe/d with long laterals and 998 Boe/d with short laterals.

QEP has modeled its Bakken wells. This model includes:

IP of 1370 Boe/d
75% initial decline
Terminal decline of 8%
Well life of 28.3 years
EUR of 610 Mboe
50% of EUR in 5.3 years"

This last line is of course a projection like the two above it.

50% of the wells EUR happens in the first 5.3 years.
The next 305 Mboe comes over the final 23 years.

TedNugget
08-11-2011, 06:33 PM
But this is worth repeating;

Wall Street doesn't get how good and important the Bakken Oil Play in Montana/N Dakota/Canada is.

http://milliondollarway.blogspot.com/2011/08/why-bakken-is-different-bakken-north.html

==========

"But the takeaway I took from this CEO is that Wall Street analysts are absolutely missing how huge the Bakken is.

He mentioned two things: a) these are monster wells; and, b) there are "no" DRY holes in the Bakken. I have said that many, many times, that the fact there are "no" DRY holes in the Bakken is a huge develoment.

He also did not mention that technology is improving exponentially, and the wells now being drilled are so much better than wells that were first drilled in this boom in Montana in 2000. Mostly it has to do with completions: in 2000, it was single stage fractures; in 2008 it was 12-stage fractures; now the standard is moving to 32-stage fracture completions."

===========

Did I say take your money out of PM's and invest in the Bakken right now?

NOOOOOOOOO

But put it in the back of your head.
I'm thinking about the possibility of doing a little of that if we have a crash.

TedNugget
08-11-2011, 06:35 PM
Can you imagine an area approaching 200000 square miles where every single well drilled, if done properly, will produce not just oil but a predictable amount?

Don't forget, there are multiple other former oceans down there.

More oil than just the Bakken to be utilized.

TedNugget
10-17-2011, 02:21 PM
BEXP (Brigham Oil) stock jumped $6.00 today.

http://online.wsj.com/article/SB10001424052970204346104576636643736228236.html

Bought out by a Norwegian company that has other American positions.

BEXP is moderately big in the Bakken and this speaks highly of the Bakkens future.

There are those that think this was a real bargain;

"First person said BEXP deal: $11,733/acre.
Second person said BEXP deal: $12,500/acre.

The second person was incredibly disappointed with the price/acre paid, and I agree.

My calculations show that the better Bakken is conservatively valued at $156,250/acre over the lifetime of the well, and probably much more.

What's really bad about this $/acre basis, is that some E&P companies are paying upwards of $12,000/acre for land that has not been de-risked. With BEXP, most of their land is derisked; they have the permits; they have done the legwork; they have the rigs; they have production,"

That was from milliondollarway.

TedNugget
10-17-2011, 02:27 PM
DYODD


But KOG was down to $4.00/share a couple weeks ago and it is up to $5.70 currently.

There are a lot of small fry in the Bakken that could rocket with a ME event.

Not to be forgotten is that 100% success rate of the Bakken wells.

==========

I should point out the difficulty and expense the fracing operations are experiencing.

There is a 6 month period in N Dakota where a well is listed as confidential. No production data is provided from the time of spudding during this time.

In that 6 months it is not uncommon to find half the wells not listing production numbers because they haven't been fracked yet.

The good news is that the fracking is getting much better and production numbers look very good so far.

The bad news is that it costs for the ceramics to do this and that material has to be shipped and its hard to get.

chartsrgood
10-17-2011, 09:48 PM
Not to be forgotten is that 100% success rate of the Bakken wells.


Unreal, looks like oil is all over the place in that region.

TedNugget
10-17-2011, 10:30 PM
"Unreal, looks like oil is all over the place in that region."

I saw an article where it was something like 25 different layers of source rock had produced oil in the Williston Basin.

Now that doesn't mean that all those layers are worthwhile or that they all exist under every tract.

==============

But regarding the Bakken.
Everywhere one drills within an area about the size of West Virginia there is oil.

- - - - - - - - - - -

The problem isn't finding it or finding the funding. Its getting the fracing completed.
To correct my earlier stat it works out to be 1 in 4 wells hasn't been frac'ed by the end of the 6 month confidential period.

Listen to this:

"BEXP fracked the Lucy Hanson (well name) with 36 stages using 2.7 million pounds of ceramic proppants."

The good news is that ceramic proppants are not polluters in and of themselves. So spills on the surface etc are going to be focused on the oil clean-up.

TedNugget
10-17-2011, 10:32 PM
"20013, 3,771, BEXP, Lucy Hanson 15-22 1H, Catwalk, Bakken, middle Bakken, it looks like it was a 36-stage frack; 1.3 million pounds sand; 2.7 million pounds ceramic. Lucy Hanson is about 3.5 miles east on 1804 out of Williston, and one mile north of the highway.
On this same pad: 20842, BEXP, Larsen 3-10 2H, Catwalk, Bakken"

============

3,771 barrels pro rated out for the initial day is a lot of oil.

Brigham spent a lot of money to get that fracing done.

Looks like it really paid off.

TedNugget
10-17-2011, 10:35 PM
The N Dakota rig list shows 195 active rigs.

https://www.dmr.nd.gov/oilgas/riglist.asp

There have been over 200 but some are in transit.

The fracking operations are not part of the rig list.

TedNugget
10-25-2011, 05:41 PM
This would be sweet:

"North Dakota's booming oil patch is sweeping down to South Dakota, amid speculation that a reservoir similar to the rich Bakken shale formation could contain millions of barrels of crude.

The Associated Press has learned that a flurry of recent leasing activity in South Dakota is tied to hopes for the Tyler Formation. State geologist Ed Murphy in North Dakota said the formation extends from the western part of that state into northwest South Dakota and may hold up to one-third the volume of oil estimated in the prolific Bakken, a formation the U.S. Geological Survey called the largest continuous oil accumulation it had ever assessed."

http://www.businessweek.com/ap/financialnews/D9QFL9MG2.htm

Element
11-03-2011, 09:02 PM
Thanks for this great informative thread... I found just what I was looking for.. Gotta love that that million dollar way blog!

Anyway..I appreciate all the good info.. and will put it to use!

TedNugget
11-05-2011, 08:12 PM
http://latimesblogs.latimes.com/california-politics/2011/11/gov-jerry-brown-fires-states-top-oil-regulators.html

This is a link that Bruce provided:

"Gov. Jerry Brown has fired the state’s top two oil and gas production regulators.

................

The ousters, first reported by the Bakersfield Californian, come as the oil industry spars with state regulators over delays in the permitting process for new drilling projects. According to Bloomberg, the state has granted permits to 14 projects this year out of 199 applications received."

- - - - - - - - - - -

Bruce is conservative and doesn't hide it. He referred to Gov Brown as Gov Moonbeam and not in a positive way.
http://milliondollarway.blogspot.com/2011/11/absolutely-nothing-to-do-with-bakken_04.html

A point made would be the steady trend in the last year overall of liberal conservationists coming around to a more progressive self reliant energy policy.

TedNugget
11-05-2011, 08:25 PM
Just below the Bakken:

http://www.ogj.com/articles/2011/11/oil-promise-seen-in-multiple-three-forks-benches.html?cmpid=EnlEDNovember32011

The Three Forks Sanish; aka the Sanish has possibly 4 more layers of bearing rock.

The guy that runs Continental is throwing around almost Saudi Arabia numbers and that is based on the Bakken and Three Forks all producing.

That could be 5 layers being drilled a 1,000 feet apart horizontally.

- - - - - -

"As many as four dolomite benches in the Three Forks formation that underlies the Bakken in the Williston basin may have oil potential, said Continental Resources Inc., Enid, Okla.
Continental in 2011 cut six cores of the entire vertical thickness of the Three Forks formation, which is 180-270 ft thick under its acreage, over a distance of 115 miles north to south. The cores revealed that the formation has up to four separate benches of dolomite that contain oil."

- - - - - - - -

Think about the three forks as being a big step towards energy independence.

TedNugget
11-06-2011, 06:08 AM
Told by bloggers anyway.

The latest earthquakes in Oklahoma


http://www.cnn.com/2011/11/06/us/oklahoma-earthquake/index.html

5.6 or 5.7 depending on the report plus aftershocks.

May be in a Fracking utilized oil field.

= = = = = = = = =

If so this would lend credence to the Fracking is causing oilquakes theorem.

Element
11-06-2011, 06:34 AM
Told by bloggers anyway.

The latest earthquakes in Oklahoma


http://www.cnn.com/2011/11/06/us/oklahoma-earthquake/index.html

5.6 or 5.7 depending on the report plus aftershocks.

May be in a Fracking utilized oil field.

= = = = = = = = =

If so this would lend credence to the Fracking is causing oilquakes theorem.

Boy you are fast!
I was just going to report this to this thread:
http://online.wsj.com/article/SB10001424052970203716204577020972691312162.html?m od=mktw

I was holding two Oklahoma energy stocks, DVN and EQU, also to North Dakota stocks, WLL and STO (know has ND land)...

I also was considering, GSFVF (Gas Fracking) to see if the alternative to hydro fracking would take off in areas that are concerned about water contamination.

It will be interesting to see where this goes... Fracking back to the headlines?
A national debate on energy independance?

TedNugget
11-07-2011, 01:56 PM
This is repeat info but a complete quote from the Nov 3rd Conference Call FYI:


"The Company successfully completed the Charlotte 2-22H (91% WI) in
McKenzie County, North Dakota, in October 2011, with the well
producing 1,140 gross Boepd in its initial one-day test period. This
is the Company's first horizontal test of a deeper bench in the Three
Forks formation.
"We're very pleased with such a solid well in our first test of the
lower benches of the Three Forks," said Harold Hamm, Chairman and
Chief Executive Officer.
Continental is a pioneer in developing the Three Forks formation,
initially targeting the first bench of the Three Forks approximately
20 feet below the Lower Bakken Shale in mid-2008. In 2011 Continental
expanded its evaluation of the Three Forks by acquiring six cores of
the entire vertical thickness of the formation over a distance of 115
miles north to south. The cores revealed that the Three Forks
formation, which ranges from 180 feet to 270 feet thick under the
Company's acreage, contains up to four separate benches of dolomite
that contain oil.
"The Charlotte 2-22H was drilled horizontally in the second bench,
approximately 50 feet below a typical first-bench horizontal well,"
Mr. Hamm said. "This successful test demonstrates that the Three Forks
second bench has the potential to add incremental reserves to our
estimated 24 billion Boe of technically recoverable oil and natural
gas in the total Bakken."

TedNugget
11-07-2011, 02:08 PM
"Depending on the type of railcar you use a single open railcar can hold between 200,000 and 220,000 bulk sand or probably close to that amount in bulk ceramic proppants. It would be less for the 1,500 pound bags of proppants.

Figure 200,000 pounds average per rail car. If a well takes four million pounds that is 20 rail cars well. If we sub trucks figure five trucks per railcar of 100 semis of sand/proppant per well."

= = = = = = = = = =

If you were to have your own semi that might be just the ticket.

- - - - - -

Making a further guess.

If North Dakota were to get to that 225 drilling rigs projection and those rigs were to complete the drilling on a conservative one well per month.

That would be about 270,000 truck loads /year of proppant in addition to all the other truck loads of stuff needed

TedNugget
11-07-2011, 02:17 PM
http://www.nbc.com/news-sports/msnbc-video/2011/10/boomtown-jobs-await-in-nd-town/

This is just a 2:33 condensation of the program.

Note all the trucks.

The story focuses on people finding work.
Not much on the oil side but capturing the human side is worthwhile too.

At least 24 billion barrels of oil is a quoted figure.

{Proven oil reserves in Saudi Arabia are the second largest claimed in the world, estimated to be 267 billion barrels}

TedNugget
11-08-2011, 05:33 PM
Three wells that just came off confidential:

20538, 352, CLR, Calhoun 1-3H, Pembroke, Bakken, 24 stages; 2.3 million lbs (640K ceramics)

19968, 757, CLR, Peltan 2-18H, Jim Creek, Three Forks; 24 stages; 2.2 million lbs (588K ceramic)

20373, 2,812, BEXP, Alger State 16-21 1H, Alger, Bakken,34 stages; 4 million lbs (2.5 mill ceramic)

=============

1st number is a ND well number.
2nd is the IP for the initial 24 hours - Initial Production can be misleading - could be for an hour then prorated out to look good to investors. BEXP is possibly excessive here.
3rd is company ticker; CLR is Continental and BEXP is Brigham.
4th is the well name. Includes usually a section number and an H for horizontal.
5th is the oil field, usually a companies name for an area the well is pocated in.
6th is the layer of source rock drilled. Bakken or Three Forks are the most common currently.
7th is the number of fracturing stages - here 24 or 34. From the end of the horizontal segments are hit with high pressure injection of proppants. Mostly sand and ceramics.
8th is the amount of proppants used.

==============

It looks like Brigham is using almost three times the ceramics per frac and perhaps that is money well spent.

Element
11-08-2011, 09:32 PM
I have been reading up on the Bakken.... I am not seeing any of the oil companies really being profitable, and the stocks all seem to be over bought.. IMO.. Sure one gets impressive figures on oil output at first, but the numbers drop sharp after a year.. Yes?

To me it seems the "real" money in the Bakken is investing in all the supporting players.. However I get frustrated, Buffet bought Burlington Northern, so it is now private, so no play on the increased rail traffic..Trucking was mentioned, so I look at Western truck, it is a private company too.. Checked out the new Cryro NG processing plant that is private too.......:mad: Fracking, I am not interested in Haliburton, maybe some of the other frackers? Gas frack seems like a good bet, but right know the stocks shot up, so I will wait on that one too.. (I think water frack is going to run into big problems soon.)

I am going to need to spend a whole bunch more time, I know their are some good investments and good profits to be made on the oil boom, but they seem to be well hidden or private companies...:(

Thanks for this thread and info..;)

TedNugget
11-09-2011, 12:13 AM
http://www.investorplace.com/2011/10/oversold-fracking-supplier-has-breakout-potential/

Looks like the fracking suppliers may be overbought too.

yellowsnow
11-09-2011, 12:27 AM
Three wells that just came off confidential:

20538, 352, CLR, Calhoun 1-3H, Pembroke, Bakken, 24 stages; 2.3 million lbs (640K ceramics)

19968, 757, CLR, Peltan 2-18H, Jim Creek, Three Forks; 24 stages; 2.2 million lbs (588K ceramic)

20373, 2,812, BEXP, Alger State 16-21 1H, Alger, Bakken,34 stages; 4 million lbs (2.5 mill ceramic)

=============

1st number is a ND well number.
2nd is the IP for the initial 24 hours - Initial Production can be misleading - could be for an hour then prorated out to look good to investors. BEXP is possibly excessive here.
3rd is company ticker; CLR is Continental and BEXP is Brigham.
4th is the well name. Includes usually a section number and an H for horizontal.
5th is the oil field, usually a companies name for an area the well is pocated in.
6th is the layer of source rock drilled. Bakken or Three Forks are the most common currently.
7th is the number of fracturing stages - here 24 or 34. From the end of the horizontal segments are hit with high pressure injection of proppants. Mostly sand and ceramics.
8th is the amount of proppants used.

==============

It looks like Brigham is using almost three times the ceramics per frac and perhaps that is money well spent.what do bakken use for frac, condensate or slickwater? how long the is the average lateral?

TedNugget
11-09-2011, 11:48 AM
http://nextbigfuture.com/2011/11/potential-shale-plays-in-world.html

Potential shale plays on land world wide.

TedNugget
11-09-2011, 11:57 AM
"what do bakken use for frac, condensate or slickwater? how long the is the average lateral?"

The average lateral is two miles.
Currently, and the way the williston is being spaced I think that will stay.
{Three years ago I would have answered one mile.}

================

http://www.ndoil.org/image/cache/NDPC_CleanWave_2011_2.pdf

Or to be precise, I don't know the percentages on condensate or slickwater so I just threw a powerpoint at you.

I'll see if I can come up with something.

TedNugget
11-09-2011, 06:27 PM
http://oilprice.com/Energy/Natural-Gas/U.S.-Government-Confirms-Link-Between-Earthquakes-and-Hydraulic-Fracturing.html

U.S. Government Confirms Link Between Earthquakes and Hydraulic Fracturing

- - - -

"On 5 November an earthquake measuring 5.6 rattled Oklahoma and was felt as far away as Illinois.

Until two years ago Oklahoma typically had about 50 earthquakes a year, but in 2010, 1,047 quakes shook the state.

Why?

In Lincoln County, where most of this past weekend's seismic incidents were centered, there are 181 injection wells, according to Matt Skinner, an official from the Oklahoma Corporation Commission, the agency which oversees oil and gas production in the state.

Cause and effect?

The practice of injecting water into deep rock formations causes earthquakes, both the U.S. Army and the U.S. Geological Survey have concluded."

Element
11-10-2011, 08:11 AM
http://oilprice.com/Energy/Natural-Gas/U.S.-Government-Confirms-Link-Between-Earthquakes-and-Hydraulic-Fracturing.html

U.S. Government Confirms Link Between Earthquakes and Hydraulic Fracturing

- - - -

"On 5 November an earthquake measuring 5.6 rattled Oklahoma and was felt as far away as Illinois.

Until two years ago Oklahoma typically had about 50 earthquakes a year, but in 2010, 1,047 quakes shook the state.

Why?

In Lincoln County, where most of this past weekend's seismic incidents were centered, there are 181 injection wells, according to Matt Skinner, an official from the Oklahoma Corporation Commission, the agency which oversees oil and gas production in the state.

Cause and effect?

The practice of injecting water into deep rock formations causes earthquakes, both the U.S. Army and the U.S. Geological Survey have concluded."

I wonder if that is unique to the geology of Oklahoma, or if we will see this in other areas?

Element
11-10-2011, 08:22 AM
I am into the idea of Gas Fracking.... I wonder if this would solve the earthquake problem?

Especially after reading the comments of the worker in the artical you posted..

TedNugget
11-16-2011, 03:15 PM
http://www.bloomberg.com/news/2011-11-16/oil-rises-above-100-on-reversal-of-seaway-pipeline-allowing-more-outflow.html

"Oil in New York climbed above $100 a barrel to a five-month high as Enbridge Inc. said it will reverse the direction of the Seaway pipeline, adding an outlet for crude from the central U.S. and Canada."

or if you prefer:

"Enbridge Inc. ("Enbridge") (TSX:ENB) (NYSE:ENB) and Enterprise Products Partners L.P. ("Enterprise") (NYSE: EPD) today announced that they have agreed to reverse the direction of crude oil flows on the Seaway pipeline to enable it to transport oil from Cushing, Oklahoma to the U.S. Gulf Coast. Pending regulatory approval, the line could operate in reversed service with an initial capacity of 150,000 barrels per day by second quarter 2012."

= = = = = = = = =

Cushing Oklahoma is the largest Tank farm in the US, perhaps the world.

Oil from the Bakken makes it there plus lots from OK and ARK and WTI used to through the Seaway pipeline.

Right now, pipelines are bigger news than oil drilling.

Element
11-20-2011, 09:05 AM
What is this going to do to crude prices? It is my understanding the surplus in Chushing has been suppressing crude prices... This news should be a plus for shale players... yes?

earplug
11-20-2011, 12:16 PM
I'm betting that the reversal of the pipeline will increase demand, raising prices. And the cost of transporting the oil will be much less.
Several years ago the lack of a Rocky Mountain area NG pipeline caused a local drop in prices.
When the pipeline was completed the NG went to supply demand.

TedNugget
11-21-2011, 12:09 AM
I don't have a clue about the pipeline(s) and how they will affect the POO etc.

I did read just a couple days ago that it was in the works to transport by rail Bakken Crude to Anacortes Washington. There is a refinery there.

Already Bakken oil is being railroaded to Cushing OK.

=======

The Canadians are talking about if the US doesn't want the tar sands oil (bitumin) they'll just build a pipeline to the West Coast of Canada and supertanker it to China.
So that oil, which is very heavy - if you will, and pollutes greatly will be carefully refined in China and used in an environmentally safe way.

Meanwhile the Russians are about to open up their arctic reserves while we stay out of the North Slope.

This will keep us energy dependent while the planet gets polluted more anyway.

Arghhhhhhh

TedNugget
11-21-2011, 12:57 PM
http://milliondollarway.blogspot.com/2011/11/crude-by-rail-bakken-north-dakota-usa.html

"Continental Resources has been using the railroad to sell its crude in Louisiana. Louisiana Light is selling at a much higher price than WTI and should continue to do so. Hess' railcars will be able to initially ship 54000 bopd, but says it will increase to 150000 Bo/d depending on demand.

The premium seen for Louisiana Light Sweet more than covers the increased cost of transport. A very interesting point made by Mr. Hamm is his take on Cushing and the tightening of the differentials of WTI vs. Brent. He believes this has already begun. I think the recent tightening has more to do with the price of world oil (Brent) decreasing because of the fear of financial collapse in Europe. Mr. Hamm also sees in 3 to 6 months a relief caused by the Seaway Pipeline."

TedNugget
12-28-2011, 03:16 AM
http://www.bloomberg.com/news/2011-12-08/statoil-s-lund-to-expand-u-s-oil-shale-after-buying-brigham.html?cmpid=msnmoney

"“It’s almost a revolution,” Lund said in an interview in Doha, Qatar. “Shale oil has a significantly bigger potential that we have seen. It’s a natural thing that we continue to expand our resources base by buying land and to position us earlier in some of the plays that we find interesting.” Lund declined to comment on specific acquisition plans.

..............

Statoil is completing the acquisition of Brigham, expanding its stake in U.S. unconventional assets and becoming one of the top 10 holders of Bakken shale acreage. The company entered U.S. shale gas resources in 2008 by buying Marcellus Shale assets from Chesapeake Energy Corp. (CHK), and by acquiring acreage in the Eagle Ford shale in October 2010 and earlier this year."

TedNugget
12-28-2011, 03:23 AM
http://www.aljazeera.com/news/middleeast/2011/12/2011122715516459511.html

"Iran's navy launched a 10-day war game in the Strait of Hormuz on Saturday [Reuters]

More than one-third of the world's tanker-borne oil passes through the Strait of Hormuz. The US maintains a navy presence in the Gulf in large part to ensure that passage remains free.

Tehran in September rejected Washington's call for a military hotline between the capitals to defuse any "miscalculations" that could occur between their military forces in the Gulf."

TedNugget
12-28-2011, 01:19 PM
http://www.pennenergy.com/index/petroleum/display/9735004812/articles/pennenergy/petroleum/pipelines/2011/12/seaway-oil_pipeline.html?cmpid=EnlDailyPetroDecember28201 1

Seaway oil pipeline reversal, expansion on course

The reversal of the Seaway Pipeline is so that oil is moving from Cushing OK back toward the Gulf.
That pipeline is being partially bought out by Alberta-based Enbridge who wants to do the Keystone. {"MarketWatch reports that Enbridge completed the purchase of a 50 percent stake in the Seaway pipeline from ConocoPhillips for $1.15 billion on Tuesday"}

Enbridge wishes to expand that pipeline:

"MarketWatch reports that Enbridge completed the purchase of a 50 percent stake in the Seaway pipeline from ConocoPhillips for $1.15 billion on Tuesday. In concert with Enterprise Products, which owns the other half of the pipeline, the company plans to add an additional pipeline along the course of the Seaway, a project that is expected to cost around $1.9 billion and be completed by mid-2014."


This indicates to most anyone that Enbridge anticipates the Keystone going in - at some point - say after an election.
Why else would they want control of the Seaway and feel a need to double its size??

TedNugget
12-28-2011, 05:49 PM
http://www.cnn.com/2011/12/28/world/meast/iran-us-hormuz/index.html?hpt=hp_t2

"The free flow of goods and services through the Strait of Hormuz is vital to regional and global prosperity," Navy 5th Fleet in Bahrain spokeswoman Cmdr. Amy Derrick Frost told reporters on Wednesday.
"Anyone who threatens to disrupt freedom of navigation in an international strait is clearly outside the community of nations; any disruption will not be tolerated."

===============

I couldn't find any pics of spokeswoman Cmdr. Amy Derrick Frost.
I'm hoping she is hot and that really bothers those guys.

TedNugget
12-28-2011, 07:13 PM
http://www.zerohedge.com/news/iran-outlines-key-steps-and-actors-potential-straits-hormuz-closure

It should be noted that Iranian officials have previously threatened to close the strait as a means of deterring Iran's neighbors and the West (see previous MEMRI reports from 2010, 2008 and 2007)

========

this sounds scary;
"The most terrifying of all Iranian missiles is the Sejil long range missile. It has commonly been considered merely a surface-to-surface missile, but the armed forces recently announced that it can also be used to destroy naval targets. Although not much is known about the missile's guidance and targeting systems, the missile has shown great accuracy in hitting a predetermined target. This missile, with a range of 2,000 km, can reach speeds of Mach 8 to Mach 12 (2,700-4,100 meters per second)... Its warhead weighs at least 500 kilograms, helping it to destroy the target. This missile can be used to cover regions beyond the Strait of Hormuz even if deployed on the northern Iranian coast, or at the most distant point in northwest Iran. It is a two-stage rocket powered by solid fuel, and reaches great speed at the end of the first stage [of launch]. It is difficult for the enemy to detect and track it during the first stage, because it uses several methods to reduce its radar signature... Thanks to its high velocity, the chance of it being hit by enemy defense [systems] is even smaller than the chance that they will hit a Khaleej-e Fars missile."

TedNugget
12-28-2011, 07:17 PM
http://www.caller.com/news/2011/dec/27/propane-fracking-slowly-gaining-attention-as-in/

CORPUS CHRISTI — A Canadian company is experimenting in Texas with a drilling technique as a substitute for the enormous amount of water used in the hydraulic fracturing process.

Jadela Oil Corp., a Canadian exploration and production company, fractured its El Indio No. 1 horizontal well in Maverick County near Eagle Pass with more than 5,000 barrels of liquid propane and butane, a process known as gas fracking.

===========

Please reference the drought monitor for Texas:

http://droughtmonitor.unl.edu/

currently indicating a lack of water for fracking.

TedNugget
12-28-2011, 07:22 PM
http://trib.com/news/state-and-regional/epa-report-pavillion-water-samples-improperly-tested/article_99512ef4-6d23-5c9b-9038-c676eedd33c2.html

“They didn’t follow their own protocol they would’ve required of other people doing this same type of work,” said Mike Purcell, director of the water development commission staff, which does water planning and infrastructure development in the state.
EPA officials don’t dispute the samples went past due for testing, but they stand by the report’s overall conclusions, which suggest hydraulic fracturing might be responsible for Pavillion’s tainted water.

=================

Get ready for a big fight over fracking.

{"The EPA data indicates the agency only flushed the wells one-quarter of the amount needed, he said."}

TedNugget
12-28-2011, 07:26 PM
http://www.pennenergy.com/index/petroleum/display/5101314103/articles/pennenergy/petroleum/exploration/2011/12/u_s_-geological_survey.html?cmpid=EnlWeeklyPetroDecembe r272011

December 22, 2011
Source: U.S. Energy Information Administration

"According to an assessment conducted by the U.S. Geological Survey (USGS), the Arctic holds an estimated 13 percent (90 billion barrels) of the world's undiscovered conventional oil resources and 30 percent of its undiscovered conventional natural gas resources. While risks associated with economics, the region's harsh environment, and ongoing territorial disputes are considerable, potential rewards are immense.

At the end of August 2011, ExxonMobil (NYSE:XOM) announced that it had partnered with Russian state company Rosneft for the joint exploration and development of hydrocarbon resources throughout the world, including portions of the Arctic's Kara Sea. The American company is not alone among international oil companies wishing to exploit the Arctic's energy resources. Fellow supermajor Shell (NYSE:RDS-A) (NYSE:RDS-B), for example, filed exploration plans for its acreage in the Chukchi and Beaufort Seas off Alaska, and is hoping to begin drilling in 2012. Britain's Cairn Energy, which has initiated exploratory drilling off Greenland, planned to drill five Arctic wells this year, but has yet to make a commercial discovery.

Despite the massive size of the Arctic's resources, looking to the region as a potential source of commercially viable crude oil production is a relatively recent development................."

TedNugget
12-28-2011, 07:29 PM
http://www.bloomberg.com/news/2011-07-01/france-vote-outlaws-fracking-shale-for-natural-gas-oil-extraction.html

French senators voted to outlaw hydraulic fracturing, or fracking, making France the first country to pass a law banning the technique for extracting natural gas and oil.

TedNugget
12-28-2011, 07:43 PM
http://billingsgazette.com/business/turtle-mountain-band-of-chippewa-bans-hydraulic-fracturing-on-reservation/article_c12a4b63-5417-51d4-a38d-0bae6f6c02e9.html

"BISMARCK, N. D. — The Turtle Mountain Band of Chippewa has banned a contentious oil and gas recovery technique and wants to stop a federal auction that would open drilling on the north-central North Dakota reservation."

================

The Turtle Mountain Reservation has not yet had any successful oil or gas wells and there has been little activity there.

The Turtle Mountain Chippewa got moved there in the standard Native American relocation program.
They have a tendency to be suspicious and overprotective for obvious reasons.

yellowsnow
12-28-2011, 08:17 PM
http://www.bloomberg.com/news/2011-12-08/statoil-s-lund-to-expand-u-s-oil-shale-after-buying-brigham.html?cmpid=msnmoney

"“It’s almost a revolution,” Lund said in an interview in Doha, Qatar. “Shale oil has a significantly bigger potential that we have seen. It’s a natural thing that we continue to expand our resources base by buying land and to position us earlier in some of the plays that we find interesting.” Lund declined to comment on specific acquisition plans.

..............

Statoil is completing the acquisition of Brigham, expanding its stake in U.S. unconventional assets and becoming one of the top 10 holders of Bakken shale acreage. The company entered U.S. shale gas resources in 2008 by buying Marcellus Shale assets from Chesapeake Energy Corp. (CHK), and by acquiring acreage in the Eagle Ford shale in October 2010 and earlier this year." if people thinks tar sand is bad, oil shale is even environmentally worst to extract.

TedNugget
12-28-2011, 11:17 PM
The Canadian 'Tar' Sands, actually oil sands, have a limited downside. From the standpoint of extraction.
They rape the land then put it back. Sounds bad but they even replace it in the same contours they found it.
It does take awhile to regrow forests at northern latitudes. Slow motion.
One nice thing is that it cleans up the natural seepage a bit. Oil leaks straight into the Athabascan River all by itself. Actually its bitumin but it still is messy and sticky and yucky and it kills birds even if it is natural.

==========

It does look like in Arkansas and Oklahoma the fracking there is causing earthquakes. Who knows how bad those will get.

In the deeper Bakken wells where the fracks are about a mile below the lowest well water I'm not sure the risk is there. Only from the drilling process and immediate area may be the only realistic pollution.

TedNugget
12-29-2011, 02:34 PM
https://circulation.bendbulletin.com/publicus2/html/login?CSProduct=BUONLINE&CSAuthReq=1325186688:273450041007395:557187C34B869 B111F1C7ACC6E62A06F&CSTargetURL=http://www.bendbulletin.com/apps/pbcs.dll/login&AID=20111229/NEWS01/112290407

Dumping millions of gallons of water down a well deep into Newberry Volcano south of Bend will cause the ground to shake as underground rock....
then you have to subscribe.

The story is about a 10,600 ft geothermal well where they will be dumping millions of gallons of water down and fracturing the lava rock that is very hot.
This is just west of the Newberry Caldera in Central Oregon. Think of it as a flat Crater Lake. (The lava here was more viscous)
The drilling starts outside the caldera, and the national monument too, and angles under to get to the heat. They have been working on this awhile and prior wells found the heat but not the underground water to transfer the heat to the surface. 600 degrees down below is encouraging.

-------------

http://www.newberrygeothermal.com/project.htm

============

Full disclosure;
I live 40 air miles from this well and have a very high deductible earthquake insurance.

yellowsnow
12-29-2011, 03:29 PM
The Canadian 'Tar' Sands, actually oil sands, have a limited downside. From the standpoint of extraction.
They rape the land then put it back. Sounds bad but they even replace it in the same contours they found it.
It does take awhile to regrow forests at northern latitudes. Slow motion.
One nice thing is that it cleans up the natural seepage a bit. Oil leaks straight into the Athabascan River all by itself. Actually its bitumin but it still is messy and sticky and yucky and it kills birds even if it is natural.

yes, i am familar with the term tar versus oil sands. I was coining 'tar' in negative tone to show that oil shale is even worst than tar sand.

tar sand does not kills bird, it is the tailing ponds from the operation that birds land on. Oil companies have measure to prevent bird landing but it isn't 100% perfect system. For those who cries over some dead ducks, go check the number of migratory ducks and geese get shot by hunters each year. Then add on the millions of other birds (that eat pests) that got killed from collading powerlines, buildings, windmills, ingesting pesticide/herbicide, mauled by domestic cats, windmills, etc. Stuff that environmentalists don't tell u about.

bitumen has been leaking into rivers naturally for eons. Indians scooped them up from riverbanks to patch up their canoes for waterproofing.

TedNugget
12-29-2011, 07:43 PM
"tar sand does not kills bird,"

The oil sands, bitumen specifically, do get on wildlife and harm them.
The problem with the tailing ponds is that they inflict more on the birds than the natural seepage into the river and some other bodies of water.
Whether its from nature or man its bad either way.

=========

Just to clear this up for the reader tar is from pine pitch and not a petroleum by-product.
Picture a 'North Carolina Tar Heel' back in the day carrying two buckets of pine pitch on a bar across his shoulders and occasionally spilling some on his feet.
Those 'naval stores' could be made into the tar that coated wood ships for sealing or turpentine, for instance.
There is no tar sand so the statement that tar sand does not kill birds is accurate. The La Brea Tar Pits are asphalt pits. Not Tar. The nice thing about the La Brea pits is that they killed animals that we can study today, particularly carnivores.

- - - - - - - -

Oil sands leaking naturally into rivers and tailing ponds do the same on a much accelerated basis.

===========

I remember being in a bus of fire fighters being put up in a Suncor refinery in 1995 where we drove past one of these ponds with simulated shotgun blasts going off to scare birds away. We drove by that pond each day and looked for birds but saw none.

TedNugget
12-30-2011, 06:32 PM
I can't remember the official stat but it takes longer to frac than to drill in most cases.

Thanks to milliondollarway

http://milliondollarway.blogspot.com/2011/12/typical-day-ending-year-three-of-five.html

= = = = = = = = = = = =

friday dec 30th
"These are the five wells that came off the confidential list today. Notice that three of them have not been completed.

These are the last to be reported for this quarter. Technically a few may come off the confidential list tomorrow, but I am ready to start a new page, 1Q12.

20829, DRL, BR, Joel 21-2H, wildcat, Bakken, right in the bull's eye, south of Watford City
20623, 571, CLR, Mack 3-2H, Antelope, Bakken,
19940, DRL, XTO, FBIR Yellowwolf 21X-10, Heart Butte, Bakken,
19428, DRL, Newfield, 1-H Lila 8-5, Epping, Bakken,
17891, 1,064, MRO, Kovaloff 34-8H, Murphy Creek, Bakken,"

The confidential list is a 6 month from the time of spudding period where the operator is allowed to maintain a corporate level of secrecy.

This means that even after three months from the start of drilling; fracing hasn't been completed.

=========================

The drilling of so many wells all at once places many burdens on the related services.

The current school of thought is more fracturing per well with more proppants per fracture.

If that trend continues even longer delays may be the standard.

North Dakota currently has about 200 rigs drilling on any given day. It is expected to grow to 225, but statements by Statoil - who just bought out Brigham, tend to indicate that it may go beyond 225.
Eastern Montana only has about 10 active drilling rigs and that should grow much more in the next few years.

=============

In a related area, many wells are being refracted to a more aggressive standard. More fracs and more proppants the second time around.

TedNugget
01-01-2012, 01:14 PM
Ohio - second small quake

http://www.cnn.com/2011/12/31/us/ohio-earthquake/index.html?hpt=hp_t3

"(CNN) -- A 4.0-magnitude earthquake struck eastern Ohio on Saturday, one week after a similar but smaller tremor rattled the region, the U.S. Geological Survey reported.
............
According to the preliminary estimate, the earthquake struck 1.4 miles deep.
............
The quake struck one day after Ohio Department of Natural Resources Director James Zehringer announced that work would be halted on a fluid-injection well in Youngstown, due to fears it could be contributing to a recent apparent spike in seismic activity in the area. According to the U.S. Environmental Protection Agency, an injection well "is a device that places fluid deep underground into porous rock formations, such as sandstone or limestone, or into or below the shallow soil layer."

=============

Then there is this from the other side:
""We have approximately 1,000 wells between Ohio and Pennsylvania and we've never had a problem ... with an earthquake or spill," Lupo said."

========

It seems to me that in regard to Arkansas and Oklahoma there is enough coincidence to back the fracing there has a cause of their swarms of quakes.

Elsewhere, the jury is still out.

TedNugget
01-01-2012, 06:13 PM
http://www.cnn.com/2012/01/01/us/ohio-earthquake/index.html?hpt=hp_t3

Work halted at 4 more Ohio fluid-injection wells in wake of quake

"We need to get more information," Ware said.

TedNugget
01-02-2012, 04:27 PM
http://seekingalpha.com/article/316964-2011-performance-review-for-7-dividend-paying-canadian-oil-gas-equities?source=yahoo

Do your own due diligence:

===========

Seeking Alpha:

2011 Performance Review For 7 Dividend Paying Canadian Oil & Gas Equities.

for seven Canadian oil and gas equities that trade within the United States (listed in alphabetical order): Baytex Energy Corp. (BTE), Cenovus Energy Inc. (CVE), Enbridge Inc. (ENB), Enerplus Corporation (ERF), Pengrowth Energy, Corporation (PGH), Provident Energy Ltd. (PVX) and Penn West Petroleum Ltd. (PWE).

============

FYI;

I know nothing about these.

TedNugget
01-04-2012, 11:30 AM
Enbridge is the Canadian Company that wants to build the Keystone Pipeline.

The U.S. portion partly owned by that company is through Enbridge Energy Partners, LP, {formerly known as Lakehead Pipe Line Partners and Lakehead Pipe Line Company}.

=============

http://milliondollarway.blogspot.com/2012/01/enbridge-crude-by-rail-bakken-north.html

"Enbridge Energy Partners LP will expand its Berthold rail terminal capacity in the Bakken shale by 80,000 b/d and include a rail car loading facility to accommodate the additional volume.

EEP has contractual commitments for 70% of the rail loading capacity and anticipates it will soon finalize agreements for the remaining capacity.

...........

EEP expects Bakken Expansion, announced August 2010, to add 145,000 b/d of takeaway capacity from the Bakken and Three Forks formations in Montana, North Dakota, and southeast Saskatchewan, 25,000 b/d of which is already available."

===========

A key take away from this is that Enbridge unit trains: flexible product - can be either light or heavy oil; plus flexible destinations.

They are looking at staging 3 trains of 100 cars at any given time.

Should there be a pipeline spill and shutdown, these trains are an important option.

===========

Folks, Williston Basin Oil is headed to the Gulf.

Light and sweet for now.

TedNugget
01-08-2012, 09:39 PM
How Long Will North Dakota Bakken Boom Last?

http://modeshift.org/419/how-long-will-north-dakota-bakken-boom-last-decades-due-to-china/

Decades Due To China

................

In 2000, China imported 1.4 million barrels per day, or 29 percent of the 4.8 million barrels it consumed each day that year. In 2011, China imported 5.4 million barrels a day, or 58 percent of the 9.2 million barrels it consumed daily. In the last decade, in other words, China’s oil imports more than tripled and its overall oil consumption nearly doubled.

The Energy Information Administration said that the growth in China’s consumption in 2010 and 2011 represented almost 40 percent of the increase in world oil demand during the two-year period.

=============

Let's not forget that Most Iranian oil exported goes to China.

also:

http://www.nytimes.com/2012/01/07/world/middleeast/amid-pressure-on-oil-iran-plans-new-round-of-military-exercises.html

"The decision by South Korea and Japan to try to accommodate Washington’s demands follows reports that China has already reduced its purchase of Iranian crude in the past month in a pricing dispute with Tehran. Whatever the motives, the combined loss of sales threatens an economy already reeling, where the currency has plummeted in value, inflation has surged and the general public has expressed growing anxiety about the prospect of war."

TedNugget
01-09-2012, 10:16 PM
http://finance.yahoo.com/news/goldman-sees-china-becoming-biggest-161706801.html

Goldman sees China becoming biggest oil importer within a year and a half.

TedNugget
01-10-2012, 11:20 PM
http://milliondollarway.blogspot.com/2012/01/congratulations-to-all-oil-workers-and.html

November Production: 509,000 BOPD -- The Bakken, North Dakota, USA

================

There is open talk of North Dakota passing not just California and Texas this year but also Alaska.

Going from #4 to #1.

-------------------------------

Who would have thought that a few years ago?

This sort of things happen when you drill 200 wells a year.

TedNugget
01-16-2012, 05:55 PM
http://www.adachigroup.com/oil_well_drilling_gelling_agent.html

"Guar Gum when used in oil well drilling muds, gives a better colloid thereby reducing water losses. It regulates the viscosity of mud solution, stabilizes and regulates the flow properties of the drilling muds.

Guar Gum uses to increase the production rate of oil and gas. The use of guar gum increases the oil recovery. Guar gum is also used as a surfactant, synthetic polymer and defoamer ideally synthetic polymer and defoamer ideally suited for all rheological requirements of water-based and brine-based drilling fluids."

====================

Guar gum is also used in the paper industry and in ice cream products and many other things.

Fracking has boosted the price of guar gum from 50 cents to $3.00/pound.

I just posted this because its another ingredient in the fracking process.

Not because it comes from Pakistan and India.

TedNugget
01-16-2012, 05:58 PM
Gallic Energy Spuds The First Of Two Back-To-Back Wells In Southern France
Gallic Energy has spudded its first well in France, just missing its end- 2011 timetable. Still, given the delays encountered by many operators working onshore Europe, a slippage of a couple of weeks can be forgiven.
The Ossun-2 well on the Ger permit in the Aquitaine Basin of Southern France is actually a re-entry of a wellbore drilled in the late 1960s by Total predecessor SNPA, which found natural gas shows in the 200 metre-thick Cretaceous Flysch Carbonate. Calgary-headquartered Gallic plans to re-enter the well and drill down to 3,000 metres to test three target formations, including the Flysch Carbonate. The C$4 million drill could take anywhere from 20 to 60 days, depending on wellbore conditions.

TedNugget
01-16-2012, 06:03 PM
http://www.theoildrum.com/node/8799


America's corn farmers have been benefiting from annual federal subsidies of around $6 billion in recent years, all in the name of ethanol used as an additive for the nation's vehicles.

That ends on Jan. 1, when the companies making ethanol will lose a tax credit of 46 cents per gallon, and even the ethanol industry is OK with it -- thanks in part to high oil prices that make ethanol competitive.

Subsidized since 1979 as a homegrown fuel cleaner than gasoline, corn ethanol had plenty of opponents, environmentalists among them.

Environmentalists question the cleaner energy premise -- adding factors like tractor diesel emissions and fertilizer runoff make it dirtier, they say.

"Corn ethanol is extremely dirty," Michal Rosenoer, biofuels manager for Friends of the Earth, said in heralding the tax credit's demise. "It leads to more climate pollution than conventional gasoline, and it causes deforestation as well as agricultural runoff that pollutes our water."

Opponents also see corn ethanol, which now takes a larger share of the U.S. corn crop than cattle, hogs and poultry, as a factor in driving food prices higher.

"The end of this giant subsidy for dirty corn ethanol is a win for taxpayers, the environment and people struggling to put food on their tables," Rosenoer added.

But there's a nearer-term battle brewing over corn-based ethanol. A 2005 law requires that 7.5 billion gallons of renewable fuel be produced by 2012 -- 6.25 billion gallons were produced in 2011. A 2007 revision gradually increases that to 36 billion gallons by 2022.

TedNugget
01-17-2012, 03:04 AM
NUGENT: God bless BP
Oil company has made amends for Gulf oil spill

http://www.washingtontimes.com/news/2012/jan/13/god-bless-bp-oil-company-has-made-amends-for-gulf-/

======

"BP has spent well in excess of $20 billion cleaning up the Gulf and compensating its residents for the damage of the spill. BP undoubtedly will spend billions more in the coming years. The corporation’s stewardship and successful efforts to restore the Gulf make one of the greatest stories not being told.

In less than two years from the spill, the seafood from the Gulf is safe to eat, the majority of beaches are pristine, tourism is on the rebound, wildlife is flourishing, health hazards have been reduced dramatically, and small businesses are recovering."

God bless Ted

http://www.youtube.com/watch?v=0c3d7QgZr7g

- - - - - - - - - - -

TedNugget
01-17-2012, 08:53 PM
http://seekingalpha.com/article/319166-north-american-oil-production-on-the-rise?source=yahoo


North American Oil Production On The Rise

"Canadian oil production has been surging for years. American production is undergoing a renaissance. As prices rise due to falling production elsewhere in the world, rising demand, and any consequences of the Iran situation, companies operating in the United States and Canada — especially in rich new shale finds — will be the main beneficiaries.

Companies like Northern Oil and Gas (NYSE: NOG), Oasis Petroleum (NYSE: OAS), Continental Resources (NYSE: CLR), Whiting Petroleum (NYSE: WLL), Petrobakken, and more are already showing how the strength of new North American oil production is translating into financial wealth.

Even as the Dow has tacked on 2,000 points since October, it can't keep pace with shale oil stocks."

Krank
01-18-2012, 11:53 AM
The word in Ottawa this morning is the Obama Administration will reject the Keystone Pipeline. It's getting major news coverage.

TedNugget
01-19-2012, 02:41 PM
Obama, through the state department, did reject Keystone.

There is a pretty good thread going on this in the general discussions:

https://www.kitcomm.com/showthread.php?t=99635

=========

Put me down as this is an incredibly stupid move.

I do not blame Canada for moving towards a China pipeline/tanker scenario.

Man are we dumb.

yellowsnow
01-19-2012, 02:55 PM
Obama, through the state department, did reject Keystone.

There is a pretty good thread going on this in the general discussions:

https://www.kitcomm.com/showthread.php?t=99635

=========

Put me down as this is an incredibly stupid move.

I do not blame Canada for moving towards a China pipeline/tanker scenario.

Man are we dumb.it is a smart political move by obama, let the next president with 4 year term deal with this hot potato. Right now, he got an election to win :D it also goes to show the green lobbists are much influential than oil lobbists. It is much safer to play the green card going into an election

TedNugget
01-19-2012, 03:57 PM
it is a smart political move by obama, let the next president with 4 year term deal with this hot potato. Right now, he got an election to win :D it also goes to show the green lobbists are much influential than oil lobbists. It is much safer to play the green card going into an election

I think jobs and the economy are bigger issues.

Also, not being able to react to Iran is a sign of weakness and will be treated as such.

I know this means a lot of money in campaign contributions but it also means a lot of lost votes.

TedNugget
01-20-2012, 06:07 PM
http://www.washingtontimes.com/news/2012/jan/19/china-gets-jump-on-us-for-brazils-oil/

"BUENOS AIRES — Off the coast of Rio de Janeiro — below a mile of water and two miles of shifting rock, sand and salt — is an ultradeep sea of oil that could turn Brazil into the world’s fourth-largest oil producer, behind Russia, Saudi Arabia and the United States.

The country’s state-controlled oil company, Petrobras, expects to pump 4.9 million barrels a day from the country’s oil fields by 2020, with 40 percent of that coming from the seabed. One and a half million barrels will be bound for export markets.

The United States wants it, but China is getting it.

Less than a month after President Obama visited Brazil in March to make a pitch for oil, Brazilian President Dilma Rousseff was off to Beijing to sign oil contracts with two huge state-owned Chinese companies."

TedNugget
01-22-2012, 08:54 PM
https://media.scoopreprintsource.com/CondeNast/5729CN_WillistonEcoDev_072512.pdf

KUWAIT ON THE PRAIRIE
Can North Dakota solve the energy problem?

The second picture shows a fracing operation at night.
The well head is front center.
Then a variety of pumps and possibly generators.
(They require 3 phase power BTW)

It doesn't appear as if there are as many water trailers as normal today.
This could be from a time where they were doing either fewer fracs / well or using less material / frack.

TedNugget
01-22-2012, 08:58 PM
North Dakota’s coal industry

North Dakota’s four lignite mines produce about 30 million tons of coal every year. About 80 percent is used to generate electricity and the other 20 percent is used to make synthetic natural gas and other valuable byproducts such as fertilizer. The electricity serves about two million customers in North Dakota and surrounding states. More than 50 percent of the electricity generated in North Dakota is used in Minnesota.

The state of North Dakota is one of 11 "clean air" states, which means it meets all of the federal government's clean air standards. The state receives more than $90 million in tax revenues every year from the lignite industry, and the mines and plants represent some of the best paying jobs in the state with salaries averaging about $80,000.

“Both the mines and the power plants are constantly working at being cleaner and more efficient. For the mines, this means improving production levels based on employee levels,” states Steve Van Dyke, Vice President – Communications for the Lignite Energy Council. “Some of the lignite today is buried deeper than lignite that was mined 10 or 20 years ago, so the mines need to increase their efficiency to keep production and reclamation levels equal to or better than in years past.”

One major challenge is that the lignite industry is heavily regulated by a number of different federal, state and local entities. “Keeping up with changing regulations is a major challenge. Regulations are a cost of doing business so the mines work to ensure that all the regulations are met as a regular part of everyday mining activities,” Van Dyke explains.

The state of North Dakota and the lignite industry formed a research and development partnership in the late 1980s that is helping the industry operate more cleanly, efficiently and economically. The state money comes from a tax on each ton of coal produced. This money is leveraged with investments from other sources, including the utilities and mining companies, to solve challenges facing the industry. Since 1987, the state has invested more than $60 million in lignite research funds. Total industry investment for the 150-plus R&D projects is in excess of $570 million. The continuation of the R&D partnership is critical as the industry faces new regulatory challenges.

The lignite industry also continues to provide an annual teachers seminar every June that provides educators in North Dakota and surrounding states with information about the industry that can be taken back into the classroom to provide real life educational opportunities for their students. Approximately 130 teachers take part in the seminars every year.

“The lignite industry has helped diversify the state's economy. The industry provides direct employment to about 4,000 people and indirect employment to about 23,000,” Van Dyke says. “Generation and Transmission Cooperatives (Basin Electric Power Cooperative, Minnkota Power Cooperative and Great River Energy) account for about 90 percent of the lignite-based generation in the state. So the vast majority of the electricity generated by lignite is used by rural electric cooperatives who serve farms and ranches in the Upper Midwest.”

Van Dyke notes that compared to the vagaries of agriculture and oil and gas production, the lignite industry has been the "Old Faithful" of the North Dakota economy. “The coal production has been fairly stable since 1988. The number of jobs and the wages has boosted the state's economy along with annual taxes paid by the mines and plants,” he says. “Finally, the industry continues to produce affordable and reliable electricity in an environmentally compatible manner. The reclamation at the mines has won several national awards and the plants meet all federal ambient air quality standards.”

TedNugget
01-22-2012, 11:51 PM
http://shale.typepad.com/bakkenshale/roosevelt-county/

just change the name of the county and more info:

http://shale.typepad.com/bakkenshale/williams-county/

The first link got you to roosevelt county in Montana. The second link Williams Co in North Dakota.

==============

Then, at either link, you could select a link to say:
http://niobrarashale.typepad.com/
which is a link to the Niobrara Shale with related articles.

============

This isn't by any means a complete look at investment but may be of interest to some.

TedNugget
01-23-2012, 11:20 PM
http://www.thedickinsonpress.com/event/article/id/54867/

Oil to flow in pipeline near Belfield in February

"North Dakota Public Service Commission members unanimously gave the $3.36 million crude oil pipeline project a unanimous green light in October. The pipeline could replace 273 trucks a day on area highways, according to a previous Press article."

============

Think about all the smaller shorter pipelines that are going in throughout these newer oil fields. There are so many wells producing that the discussion is; are the truck loads more environmentally unfriendly than the occasional oil spill from a pipeline into a river with the last of an endangered fish species?
Most local folks would vote against the trucks.

=============

I saw where some huge company that does mega truck stops was putting in one in Williston ND. Even though they usually do these on interstate freeways Williston was getting one on their overused four lane.

"Williston Mayor Ward Koeser says an industrial park being built four miles north of the city will be a major truck hub in the western North Dakota Oil Patch.

The project being put together by Wyoming-based Granite Peak Development will have a truck stop, a truck wash, a water truck depot and parking space for 400 trucks.

The 650-acre Bakken Industrial Park off U.S. Highway 85 also will have electricity, wireless Internet and cable TV. City water and sewer service already has been installed. Officials say the park will include space for commercial, industrial and work force housing development."

TedNugget
01-23-2012, 11:25 PM
http://milliondollarway.blogspot.com/2012/01/williston-makes-forbes-fastest-growing.html

or

http://www.forbes.com/sites/bethgreenfield/2012/01/23/fastest-growing-small-towns/


The Villages, Florida, #1.
Pecos, Texas, #2.
Fort Leonard Wood, Missouri, #3.
Boone, North Carolina, #4.
Heber, Utah, #5.
Williston, ND, #6.
Gillette, Wyoming, #7.
Laramie, Wyoming, #8.
Andrews, Texas, #9.
Elk City, Oklahoma, #10.
Vernal, Utah, #11.
Hobbs, New Mexico, #12.
Rock Springs, Wyoming, #13.
Jackson, Wyoming, #14.
Oxford, Mississippi, #15.

#s 1, 4 and 15 are not associated with oil or NG.

COMMON DENOMINATOR in growth.

????????

TedNugget
01-23-2012, 11:27 PM
Congress has the authority to vote for approval of the controversial Keystone XL pipeline project, according to a nonpartisan legal analysis released last week.

Read more: http://bismarcktribune.com/news/local/govt-and-politics/hoeven-explains-legislation-to-get-pipeline-approved/article_4de7715e-460e-11e1-bc87-001871e3ce6c.html#ixzz1kLY0hoyG

==============

"Essentially what we did was ask the Congressional Research Service to analyze whether Congress has the authority to permit the project under the Commerce Clause," Hoeven said.
Hoeven said the request to the CRS had been submitted a few weeks ago while legislation was being drafted by his staff in anticipation of a possible rejection by the White House.

This could get political.

TedNugget
01-23-2012, 11:34 PM
Exxon Mobil agrees to $1.6M penalty

http://www.thedickinsonpress.com/event/article/id/54788/

"An oil spill crew worker for Oil Mop Emergency Response steps out of a ring of absorbent pads July 11 along a flood plain of the Yellowstone River where oil was found collected near Laurel, Mont. Exxon Mobil agreed Thursday to pay the state of Montana $1.6 million in penalties over water pollution caused by this pipeline break last summer that fouled dozens of miles of shoreline along the scenic Yellowstone River, a state official said."

TedNugget
01-24-2012, 03:53 AM
At one location on Highway 85 south of Williston, a traffic count was conducted in October of 2011.
In one 24-hour period there where 29,000 vehicles through the intersection, with 60% of the
traffic being semi trailer trucks.

Williams County allows three campers per farmstead, the farmers almost all have three campers
on their property and are charging $800 per camper per month for rent.

The Walmart in Williston no longer stocks shelves, they bring out pallets of merchandise at night,
and set them in the aisles, and customer shop from the pallets.

On January 1, the Williston Walmart had 148 campers overnight in their parking lot.

The Williston McDonalds just announced that they will pay new workers $15 an hour, a $500
immediate signing bonus and full medical benefits.

The local restaurants are full and with limited staffing, they usually just have the drive through
open. The restaurants that have inside seating are now experiencing an hour wait at all times.

The local Motel 6 in Williston now rents rooms for $130 per night.

Trinity Hospital in Minot has just hired 115 nurses from the Philippines, because they
cannot get enough local nurses to apply.

The Williams County jail has increased bookings by 150%, with a 100% increase in the inmate
population. Bonds of $5,000 to $10,000 are typically paid with cash out of pocket. The Williams
County Sheriff stated that a couple of weeks ago he received a $63,000 bond in cash carried
into the jail in a plastic Walmart bag.

TedNugget
01-24-2012, 04:03 AM
Nobody is talking about this.

Where the guys worked that are suspects in the murder and disappearance of School Teacher Sherry Arnold.

They talk about their criminal records finally but I get the impression that their workplace is being covered up.

Sidney Montana is under an hour drive time from Williston.

"Sidney, a small town of roughly 5,000 people, has experienced an influx of out-of-town oil workers following the Bakken oil boom in North Dakota. Crime rates in the area have also swelled, with a rise in bar fights, domestic violence and drunk driving."

http://abcnews.go.com/US/missing-montana-teacher-sherry-arnold-suspects-criminal-records/story?id=15377707#.Tx5yUZhpe-Y

The Teacher was a wife and a mother of two.
From a community that used to not lock its doors.

TedNugget
01-24-2012, 05:15 AM
Monterey/Santos oil field in California

"The Monterey/Santos oil field in California is estimated to four times the technically recoverable oil as the Bakken Oil Field in North Dakota.

The Monterey field is also estimated to have 500 billion barrels of oil in place The Bakken oil field oil in place estimates range from 271 billion to 503 billion barrels (average estimate of 413 billion barrels).

Harold Hamm (billionaire owner of Continental oil) estimates the Bakken oil field will produce six times (24 billion barrels) the oil of the EIA estimate. Harold Hamm also believes that the San Joaquin Monterey California fields are the next big horizontal drilling play."

TedNugget
01-24-2012, 05:18 AM
ttp://nextbigfuture.com/2012/01/movable-sleeves-could-reduce-cost-of.html

Baker Hughes has set its sights on creating “super cracks,” a method of blasting deeper into dense rock to create wider channels. The aim of the technology, branded as DirectConnect, is to better concentrate the pressure of fracking fluids to reach oil or gas farther from the well bore, which existing methods fail to do as effectively.

The growing use of movable sleeves, a tubelike device with holes that fits inside a well bore, lets drillers target multiple spots to dislodge entrapped oil. This technique can reduce the $2.5 million startup cost of a fracking well near the Canadian border by up to two-thirds, according to a recent analysis by JPMorgan Chase.

Halliburton (HAL), the No. 1 provider of fracking services, also based in Houston, is trying to reduce the amount of materials and labor used on each well. It’s rolled out RapidFrac, a series of sliding sleeves that open throughout the horizontal well bore to isolate zones for fracking. Fracking fluid is then injected at high pressure through multiple holes exposed by the sliding sleeve, cracking the surrounding rock. The process can be faster and cheaper than the most popular fracking method, which involves sending an explosive charge down the well to blast one hole at a time.

TedNugget
01-24-2012, 12:23 PM
I kind of doubt that Monterey will be developed in the near term.

With concerns about earthquakes from fracking and the fact that it is in California.

TedNugget
01-24-2012, 12:26 PM
On Googleearth do a search for Epping, ND

Now picture a 70 million dollar crude oil terminal and rail loading facility on a 274-acre site in Epping, ND, along with a 20-mile pipeline.

It is supposed to be finished this month.

http://www.rgldenergy.com/sites/default/files/news_0511oilpatchhotline.pdf

TedNugget
01-24-2012, 12:32 PM
http://oph.hotlineprinting.com/

The term oil patch is commonly used throughout the lower 48 for an area that is being/has been drilled.

This is one of those subscription internet letters that puts out some good articles trying to get you to pay for the better ones.

==========

On the upper right there is a handy current price chart for oil.

Note how much less the Bakken oil gets than the WTI.

This even though it is slightly lighter and sweeter.

============

Click on the graph and it'll take you to a page that will guide you on installing an oil price widget.

TedNugget
01-24-2012, 02:29 PM
Al Jazeera Plans North Dakota Visit

http://www.kfgo.com/regional-news.php?ID=13543

NEW TOWN, N.D. (AP) - North Dakota's oil boom is drawing the
interest of the international broadcaster Al Jazeera English.

A producer, reporter and cameraman plan to travel from
Washington, D.C., and New York to New Town late this week. They
plan to explore how the Fort Berthold Reservation community and the
Three Affiliated Tribes are dealing with the oil boom. They'll meet
with Tribal Chairman Tex Hall and also get the views of tribal
elders.

TedNugget
01-24-2012, 04:15 PM
EIA projects strong crude oil, natural gas production through 2035

http://www.ogj.com/articles/2012/01/eia-projects-strong-crude-oil-natural-gas-production-through-2035.html?cmpid=EnlDailyJanuary242012

Over the next 10 years, continued development of tight oil and ongoing development of offshore resources in the Gulf of Mexico will push US crude oil production to 6.7 million b/d in 2020

Shale gas production in the US is forecast to climb

=========

Who knows ??

TedNugget
01-24-2012, 10:04 PM
http://blogs.epmag.com/guests/2012/01/10/the-bigger-problem-with-shale/

China Petroleum Corp. struck a multi-billion dollar deal with Devon Energy for five major shale oil and gas plays. This is the third billion-dollar-plus investment in U.S. oil fields by a foreign oil company in the last three weeks

Spain’s Repsol YPF (REP.MC) entered into a $1 billion pact with SandRidge Energy Inc. (SD) to jointly develop oil fields in Kansas and Oklahoma,

and France’s Total SA (TOT) paid $2.32 billion to Chesapeake Energy for a stake in its Utica shale discovery in Ohio.

==================
==================

the Chinese government has categorized shale gas as a separate natural mineral resource, as opposed to including it in the general oil and gas category. In June 2011, the government held its first auction for shale plays and a second one will soon follow.

TedNugget
01-24-2012, 10:08 PM
http://blogs.epmag.com/guests/2011/11/29/is-oil-fueling-the-rise-in-political-partisanship/

also at;

http://Oil-Price.net/en/articles/is-oil-fueling-rise-in-political-partisanship.php

- -- -

By Tom Therramus for Oil-Price.net

In 2009, I published a chart in an article at Oil-Price.net that showed volatility in the price of oil had risen and fallen in a series of seven spikes during the prior decade. The turbulent year of 2008, when oil jumped to over $140 a barrel, was part of this series. But what was unexpected was just how early in the 2000s the signature of spiking volatility in oil price had gotten under way.

Further digging led to other surprises. It was found that each of the seven spikes in oil-price volatility had been followed by knock-on impacts in the stock market, the price of gold and other economic indicators. Moreover, the relationship was not just confined to the 2000s. It was shown that oil volatility spikes had closely preceded every U.S. recession and market crash of the last 50 years.

Indeed, even the mysterious 1987 “Black Monday” crash, the largest one-day decline in stock market history, appeared to fall in line with the pattern. Charting historical data, it stood out like a “sore thumb” that Black Monday had occurred in the wake of a price shock sparked by a collapse of the OPEC cartel in 1986.

TedNugget
01-26-2012, 04:59 PM
http://www.pressconnects.com/article/20120125/NEWS01/201250373/Drilling-supporters-hail-Obama-s-State-Union-comments?odyssey=nav%7Chead

Drilling supporters hail Obama's State of Union comments

Obama also announced Tuesday he will require drillers to disclose the chemicals they inject into well, a demand made by environmentalists.

Democratic Rep. Maurice Hinchey of Ulster County said he supports Obama's decision.

"The American people will know exactly what chemicals are being pumped into the ground, making it easier to hold drillers accountable if those chemicals end up in someone's well or our water supply," he said in a statement.

etc.

Fracking on Federal Land is a go.

TedNugget
01-26-2012, 08:05 PM
http://www.cnn.com/2012/01/26/us/us-gulf-oil/index.html?hpt=hp_t3

U.S. to open up remaining Gulf oil leases
Thu January 26, 2012

The federal government Thursday announced plans to sell off oil and gas leases on 38 million acres of the Gulf of Mexico seafloor in a new domestic energy push by the Obama administration.

The leases could yield as much as 1 billion barrels of oil and 4 trillion cubic feet of natural gas, the Interior Department estimates. The scheduled sale in June will be the second since the Deepwater Horizon disaster of 2010 when nearly 5 million barrels of crude spewed into the Gulf.

TedNugget
01-26-2012, 08:23 PM
http://www.aljazeera.com/indepth/features/2012/01/201212320420444446.html

Now why would al jazeera be interested in unconventional oil techniques?

There is a map showing recent world wide protests.

One thing I wasn't aware of is the recent quakes in the UK.

"Similar seismic events have hit the UK, where government regulators have been accused of "appalling complacency" by opposition politicians after earthquakes linked to fracking shook the city of Blackpool."

==========

Still not aware of any earthquakes in North Dakota and this is where a lot of the fracking has happened.

TedNugget
01-31-2012, 10:37 PM
http://milliondollarway.blogspot.com/2012/01/net-acreage-in-bakken-by-producer.html

Got this from Milliondollarway, subject to errors and omissions.

These are the acres tied up by each company.
Its only part of the data you need but it could be important when Syria fires missiles on Israel in two days.

CLR 923,270
Hess 900,000
Whiting 680,137
EOG 580,000
COP 460,000
XOM 410,000
MRO 391,000
BEXP 375,800 was bought out by Statoil of Norway so ignore
CHK 320,000
Oasis 307,430
Denbury 266,000
ERF 215,000
SM 204,000
OXY USA 200,000
NOG 160,000
KOG 155,000
Newfield 140,000
Baytex 126,400
Ursa 110,000
QEP 89,000
Williams 85,800
Triangle 83,500
Magnum 78,000
MDU 66,000
Sequel 65,000
GEOI 46,000
GMXR 35,524
Resolute 33,415
VOG 32,000
USEG 25,200
Renegade 23,673
Abraxas20,853
Unit 12,750
LINN 11,193
Mountainview 11,000
Open Range 7,700
CREDO 6,000
Surge 6,000
Samson 3,033

TedNugget
02-06-2012, 05:06 PM
CNBC is graciously airing a program at 9:00 eastern tonight on the troubles in the Williston area.

In Print for those that may not catch it:
http://www.cnbc.com/id/46205381/
The Downside of N. Dakota's Oil Boom

==============

"Coming to this town, I never pictured going into bar fights that involved a hundred-plus people.”

Travis Martinson
Williston Police Officer

TedNugget
02-06-2012, 05:15 PM
BP begins east-west crude pipeline shipments across Panama

http://www.ogj.com/articles/2012/02/bp-begins-east-west-crude-pipeline-shipments-across-panama.html?cmpid=EnlDailyFebruary62012

They aren't just starting to use this pipeline.

They are reversing its flow to move Bakken oil to the West Coast.

==========

"BP Products North America Inc. has started shipping crude oil to the US West Coast through Petroterminal de Panama (PTP)’s 600,000 b/d trans-Panama pipeline. Under the terms of a 7-year agreement, BP has leased a total of 5.4 million bbl of PTP’s storage on the Caribbean and Pacific coasts of Panama and committed to east-to-west crude oil shipments averaging 100,000 b/d through the pipeline.
BP-chartered very large crude carriers will offload crude at the Caribbean port of Chiriqui Grande where the oil will be stored and piped to the Pacific Coast port of Charco Azul before being loaded onto tankers bound for the West Coast. BP emphasized that the storage would help reduce demurrage costs by ensuring crude would always be available for pick-up.
The 81-mile Trans-Panama Pipeline opened in 1982 to transport oil from Alaska’s North Slope to Caribbean and US Gulf Coast refineries. The pipeline shut down in 1996 as Alaskan crude shipments declined and reopened in 2003 to transport Ecuadorian crude to the Gulf Coast."

=================

Instead of getting Bakken Oil straight from Western North Dakota to California they will be piping that oil to the Gulf, Tankers to Panama, across this re-routed pipeline, then tankers to California and Washington refineries.
(Remember the recent articles about that Cushing OK to TX pipeline being reversed?)

When you look at those pipeline maps, note the gap between ND and California/Washington.

TedNugget
02-06-2012, 05:43 PM
Why did Warren Buffet invest in Burlington Northern??????????????

TedNugget
02-06-2012, 06:00 PM
Good news energy independent super heros.

North Dakota just set a new record with 205 drilling rigs drilling in one day.

This is partly due to the gentle winter they are having compared to last year.

TedNugget
02-06-2012, 09:41 PM
I watched the CNBC program and it did focus on the negatives of the oil boom in Williston.

Understood, there are a lot of negatives to loosing your community.

==========

In regard to Americas future I'm going to suggest that the Bakken is different than the other plays, particularly the Natural Gas plays.
I'm unaware of any ground water contamination in ND.

- - - - - -

The CNBC program only briefly mentioned the earthquake problem.

That, I don't think anyone has a clue about how it is going to play out.