Tag: Bakken

Upside possibilities of refracking and different ideas on what Saudi Arabia is doing

Initial reports hint that refracking an existing well might pay off big time. Also, what is Saudi Arabia after?

7/12 – Million Dollar Way – Random Update Of a Recently Re-Fracked MRO Well in Killdeer Oil Field – Re-fracking is going to be the next big thing, based on articles I have read. Here is an illustration of the concept –

This well had been producing about 1,100 barrels of oil a month from June 2014 through November. Re-fracking took place in December or January. February production was almost 14,000 barrels. The next three months were about 10,000 in each month.

Continue reading “Upside possibilities of refracking and different ideas on what Saudi Arabia is doing”

About those photos showing the North Dakota oil fields as bright as Minneapolis…

…they are bogus.

Massaged.

6/10 – Say Anything Blog – UND Researchers Debunk “Inaccurately Derived” Satellite Images of North Dakota Flaring – Remember that satellite photo about two years ago showing the Bakken oil fields almost as bright as Minneapolis and spread over a larger area than the twin cities metro?

Now that the researchers point this out, I’ll mention that if you have been in Western North Dakota anytime in the last five years you will never mistake it for an urban area where there is a streetlight every 50 feet with a strip shopping center every half mile.

Continue reading “About those photos showing the North Dakota oil fields as bright as Minneapolis…”

A few more tidbits on rising oil production in North Dakota – 5/15

Each month after the statistics are released for North Dakota oil production, I run a few graphs showing the story of what is going on there.

Here are a few more for May 2015.

Average number of producing wells by year. This is the number of producing wells in the statistics, here and here, with my calculation of the average of the monthly amounts. You can see a breakout in 2010 and 2011. The huge increases are in ’12, 13, and ’14. Even with the slump in prices, which led to a drastic drop in the number of drilling rigs, the average number rigs in ’15 has increased more than any year prior to ’12. Continue reading “A few more tidbits on rising oil production in North Dakota – 5/15”

North Dakota oil production hits second highest level ever in May 2015

Production state-wide rose 2.75% to average of 1,201,159 barrels per day. That is the second highest ever, only behind December 2014 which was 1,227,529 bopd. Keep in mind this is with a slump in drilling.  I’m guessing that flat production is not what the OPEC ministers were expecting when opened the spigots of their production.

Here is what the average production looks like in Bakken field only and state-wide: Continue reading “North Dakota oil production hits second highest level ever in May 2015”

Thoughts about the Director’s Cut from The Overnighters documentary – part 2

This continues my pondering about the Overnighters program after watching the director’s cut of a documentary by the same name.

Your worldview controls how you view everything in the world

Your worldview filters everything you see and think.  It drives how you interpret everything around you.

You take your worldview with you into every conversation.

Mr. Jesse Moss, who created, filmed, and directed the documentary, has stated several times in articles I have read that he is not a Christian. If I understood his comments correctly he is not a follower of any faith tradition. I do not state that to be critical in any way; I merely wish to identify his worldview.

In case it was not previously obvious, I will share with you that I am a Christian. In particular I worship in a denomination that is a part of the Protestant community. I do not hesitate to say that my worldview filters everything I see and how interpret everything around me.

Back to the documentary.

What was the pastor’s motivation?

Continue reading “Thoughts about the Director’s Cut from The Overnighters documentary – part 2”

What do the economics of one Bakken well look like?

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Two traditional pump jacks aside two of Chinese design. Photo by James Ulvog. I see two or three million barrels of oil from that pad over the next few decades.

 

Prof. Mark Perry pulled together some estimates on the economics of a Bakken well in North Dakota in his post Top ten things I learned on my summer trip to the Bakken oil fields, Part II. Previously discussed Part I and Part II.

Here was his data:

Average cost to drill, frack and complete a Bakken oil well: $9 million

Expected production life of a Bakken oil well: 45 years

Lifetime oil production per well: 615,000 barrels

Expected lifetime revenue generated per well: $46.125 million at $75 per barrel

Total operating expenses per well: $2.3 million

Royalty payments to mineral owners per well over 45 years: $7.3 million

Taxes Paid per well: $4.325 million total ($2.1 million gross production taxes, $1.8 million extraction tax and $425,000 in sales taxes)

Total employee salaries and wages per well: $2.125 million

Average Profits Generated per Bakken well: $20 million net of costs and taxes

Let me rework those numbers –

This is a really rough guess of what the lifetime income statement might look like for one well: Continue reading “What do the economics of one Bakken well look like?”

More great things to learn about Bakken – part 2

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Four pumps pulling up oil that was untouchable 20 years ago. Photos by James Ulvog.

Prof. Mark Perry did a heap of learnin’ on his trip to Williston in May. He wraps up comments at his post, Top ten things I learned on my summer trip to the Bakken oil fields, Part II

My comments on part I here.

If you are looking for a primer on the oil revolution or Bakken or fracking, check out his articles.

A few highlights from his 3,000+ word post and a few of my thoughts. Continue reading “More great things to learn about Bakken – part 2”

Peak Oil doctrine is still dead. #40

Previously discussed an amazing article by Mark Perry at Carpe Diem. Post provides yet another reminder that Peak Oil is a failed concept.

Check out the June 23 post from Carpe Diem at American Enterprise Institute:  Bakken updates: 1) Williston as ground zero for the American spirit and 2) Here comes Shale 2.0!

Recoverable oil

The post quotes a correspondent who works for a drilling company and has deep knowledge. This correspondent says the expectation at the beginning of the boom was 3.5% of the original oil in place would be recovered. Industry estimates today suggest the recovery rate is 15-18%. With additional technological developments, the correspondent’s guess is there could be another 5% of the oil recovered.

Get a fresh cup of coffee and journey with me as my little brain processes through what this means.

Continue reading “Peak Oil doctrine is still dead. #40”

Individual drive of workers in Bakken

Amazing article by Mark Perry at Carpe Diem. Brings to mind lots of ideas, such as the amazing attitude of people working in the oil patch and yet another reminder that Peak Oil is a failed concept. Here is the first of my reactions to his post.

American Spirit on display in Bakken field

6/23 – Carpe Diem at American Enterprise Institute – Bakken updates: 1) Williston as ground zero for the American spirit and 2) Here comes Shale 2.0! – Article quotes a correspondent amazed at the people working in Williston. Everyone is there to earn a living. Not looking for handouts. Wanting to work.

Two sentences from the person: Continue reading “Individual drive of workers in Bakken”

Don’t bet against shale oil

So many articles are pointing toward the idea that shale will be a major player for a long time.

What do you suppose would happen to new and used car dealers if automobile prices dropped by 50% in the next 6 months with no indication when (or even if) the prices will recover? What would happen to retail bookstores if prices of books dropped by half?

How many new car lots, used car dealers, or bookstores would be open after 6 months?

A few articles on shale in general and Williston in particular:

Continue reading “Don’t bet against shale oil”

Details from June ’15 Director’s Cut

The monthly report from Lynn Helms of the Department of Mineral Resources has lots of info about oil production.

Things I find interesting are highlighted in the following graphs:

  • Fracklog increasing. This is the count of wells that have been completed but not fracked. Thus, no production. Bruce Oksol has characterized this as storing oil in the ground. Idea is to wait until prices recover, then bring the oil out of ‘storage.’
  • Oil prices are recovering. Quite a noticeable change.
  • Rig count continues to drop. Graph suggests a reduction in the rate of drop.

Here are the graphs.

Fracklog, or in-ground storage:

fracklog 6-15

Recovery in average price: Continue reading “Details from June ’15 Director’s Cut”

Great things to learn about Bakken – part 1

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All photos by James Ulvog. Rough estimate: 4 wells x 500K barrels = around 2 million barrels of oil over the next few decades. Oil drawn from solid rock.

Prof. Mark Perry provides his first report on the few days he was able to spend in Williston at the end of May. From Carpe Diem on June 16: Top ten things I learned on my summer trip to the Bakken oil fields, Part I

I was there for a few days last month also. I however, did not get a two-day personal tour of Continental’s drilling sites. What a blessing for him!

If you need a primer on Bakken, I heartily recommend his post.

Here are the first five of his points with my comments:

Continue reading “Great things to learn about Bakken – part 1”

Guess on how long Bakken oil will be pumped

A few thoughts on the upside of oil production in North Dakota.

6/14 – Million Dollar Way – A Long Rambling Note on a Bunch of Things Regarding the Bakken – If you are still wondering why I am so powerfully positive on the Bakken, check out Mr. Oksol’s post.

My overly compressed summary:

Continue reading “Guess on how long Bakken oil will be pumped”

More good stuff on Bakken – 6/8

Great summary of news in the last week, “big trigger” oil tax reduction won’t get pulled, and lots of new housing in Williston available in ’15.

If you want a brief, superb summary of news last week on energy, Bakken, North Dakota, and cooking temperature numbers, you gotta’ check out:

6/6 – Million Dollar Way – Weekend update, Part I – June 6, 2015 – Mr. Oksol calls OPEC ‘dead.’ What we refer to as OPEC is now essentially a venue for Saudi Arabia. Continue reading “More good stuff on Bakken – 6/8”