Bakken Shale News http://bakkenshale.com Bakken Shale News, MarketPlace, Jobs Sat, 23 May 2015 12:47:15 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.1 Bakken Rigs Decrease to 77 http://bakkenshale.com/drilling-rig-count/bakken-rigs-decrease-to-77/ http://bakkenshale.com/drilling-rig-count/bakken-rigs-decrease-to-77/#respond Sat, 23 May 2015 12:47:15 +0000 http://bakkenshale.com/?p=7354 Rig Count Falls by Two

Rig Count Falls by Two

The Bakken-Three Forks rig count fell two more this week to 77 rigs running across our coverage area by midday Friday.

In recent Bakken news, An energy poll by the University of Texas found that less than half of the 2000 people surveyed were even familiar with the Keystone XL Pipeline, the controversial pipeline that would carry millions of barrels of crude from Canada to Texas.

Read more: Most Americans Aren’t Familiar with Keystone

The U.S. rig count fell by three, ending with 885 rigs running by midday Friday.  A total of 222 rigs were targeting natural gas (a decrease of one from the previous week) and 659 were targeting oil in the U.S. (one less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)   78 rigs are running in the Williston Basin across MT, ND, and SD. 77 are in ND alone.

Bakken Oil & Gas Rigs

The Bakken oil rigs stayed at 77 rigs this week with Bloomberg reporting WTI oil prices trading at $59.72/bbl on Friday afternoon, a $.21 increase from the previous week. WTI-Brent decreased $1.33, landing at $65.37. The Bakken has zero natural active gas rig in the area this week with futures trading dipping to $2.89/mmbtu by midday.

McKenzie County continues to lead development this week at 33 running rigs. Williams (19) and Mountrail (13) counties are the next closest producers. View the full list below under the Bakken Drilling by County section.

Activity continues to be dominated by horizontal drilling:

  • 77 rigs are drilling horizontal wells
  • 0 rigs are drilling directional wells
  • 0 rigs are drilling vertical wells

Be sure to visit our Bakken Job Listings to search openings and come back weekly for updates or sign up for alerts – Daily or Weekly Email Alerts

Bakken Drilling by County

County State Previous Week Current Week County State Previous Week Current Week
MCKENZIE ND 34 33 WIBAUX MT 0 0
WILLIAMS ND 19 19 BILLINGS ND 0 0
MOUNTRAIL ND 13 13 BOTTINEAU ND 0 0
DUNN ND 10 8 BURKE ND 0 0
DIVIDE ND 3 3 GOLDEN VALLEY ND 0 0
MCLEAN ND 0 1 MERCER ND 0 0
DANIELS MT 0 0 RENVILLE ND 0 0
DAWSON MT 0 0 STARK ND 0 0
FALLON MT 0 0 WARD ND 0 0
RICHLAND MT 0 0 MCHENRY ND 0 0
ROOSEVELT MT 0 0 MCHENRY ND 0 0
SHERIDAN MT 0 0 WARD ND 0 0
VALLEY MT 0 0 MCHENRY ND 0 0

Bakken Oil & Gas News

New Bakken Pipeline in the Works

BNSF Railway Abandons Plans to Buy Tanker Cars

What is the Rig Count?

The Bakken Shale Rig Count is an index of the total number of oil & gas drilling rigs running across Montana and North Dakota. The rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Bakken formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Read more at bakerhughes.com

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New Bakken Pipeline in the Works http://bakkenshale.com/news/new-bakken-pipeline-in-the-works/ http://bakkenshale.com/news/new-bakken-pipeline-in-the-works/#respond Thu, 21 May 2015 14:56:53 +0000 http://bakkenshale.com/?p=7348 Bakken Oilfield StorageTanks

Bakken Oilfield Storage Tanks | Click to Enlarge

American Midstream Partner announced a strong first quarter and that they are on target to finish a new Bakken oil gathering system by the second quarter of 2015.

Related: New Bakken Crude Oil Gathering System

In a press release this week, American Midstream Partners reported an increase of nearly 50% over the prior year quarter, with gross margin of $33.8 million and adjusted EBITDA of $15.6 million.

The company’s forecasted growth capital expenditures includes construction of the Bakken crude oil gathering system that consists of a 39-mile pipeline with the capacity to transport up to 40,000 Bbls/d crude oil. This pipeline will serve to provide producers in North Dakota with access to refinery, rail, and pipeline markets.

sws_blue_box box_size=”630″]Steve Bergstrom, Executive Chairman, President & CEO said that “Commissioning of the fee-based Bakken crude gathering system is underway with startup expected by the end of the second quarter. The project has remained on track despite weather challenges slowing the construction process. We’re in advanced negotiations with several producers to add meaningful truck volumes to the system which will provide producers with access to premium refinery, pipeline and rail markets. Throughput volumes are expected to ramp up to 20,000 barrels per day in the second half of the year.”[/sws_blue_box]

Read more at americanmidstream.com

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New Resources for Bakken Producers http://bakkenshale.com/news/new-resources-for-bakken-producers/ http://bakkenshale.com/news/new-resources-for-bakken-producers/#respond Wed, 20 May 2015 12:36:17 +0000 http://bakkenshale.com/?p=7349 Bakken Oilfield StorageTanks

Bakken Oilfield Storage Tanks | Click to Enlarge

American Midstream Partners announced a strong first quarter and revealed they are in process and on budget to finish a new Bakken oil gathering system by the second quarter of 2015.

Related: New Bakken Crude Oil Gathering System

In a press release this week, American Midstream Partners reported increases of nearly 50% over the prior year quarter, with gross margin of $33.8 million and adjusted EBITDA of $15.6 million.

The company’s forecasted growth capital expenditures includes construction of the Bakken crude oil gathering system that consists of a 39-mile pipeline with the capacity to transport up to 40,000 Bbls/d crude oil. This pipeline will serve to provide producers in North Dakota with  access to refinery, rail, and pipeline markets.

Steve Bergstrom, Executive Chairman, President & CEO  said “Commissioning of the fee-based Bakken crude gathering system is underway with startup expected by the end of the second quarter. The project has remained on track despite weather challenges slowing the construction process. We’re in advanced negotiations with several producers to add meaningful truck volumes to the system which will provide producers with access to premium refinery, pipeline and rail markets. Throughput volumes are expected to ramp up to 20,000 barrels per day in the second half of the year.”

Read more at americanmidstream.com

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Most Americans Aren’t Familiar with Keystone http://bakkenshale.com/news/most-americans-arent-familiar-with-keystone/ http://bakkenshale.com/news/most-americans-arent-familiar-with-keystone/#respond Tue, 19 May 2015 17:59:22 +0000 http://bakkenshale.com/?p=7346 Keystone

Pipeline Construction

Oil pipeline safety continues to be a huge political issue in Washington, but a recent poll suggests that many Americans aren’t quite so concerned.

An energy poll by the University of Texas found that less than half of the 2000 people surveyed were even familiar with the Keystone XL Pipeline, the controversial pipeline that would carry millions of barrels of crude from Canada to Texas.

Ever since the pipeline was proposed in 2008, it has been a hot-potato topic and a litmus test for President Obama’s concerns on energy and environmental issues. Of particular importance is the issue of climate change, with many environmental groups believing that approving the construction of the pipeline would be bad news for the climate.

Related: Keystone Showdown Likely for New Year | Bakken

Related: Obama Issues Keystone Pipeline Veto

Surprisingly, the U.T poll also revealed that only 6% of the Keystone opponents listed climate change as their main cause for opposition.  This seems very low, considering that climate change has been a key part of environmental groups opposition to Keystone XL.

The Washington Post theorized that “many people may view climate change as more distant and feel that most benefits of tackling it wouldn’t arrive for many years. Issues like that may not resonate as much with people as would more direct, immediate, tangible matters like our pocketbooks and the well-being of our local communities.”

 

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BNSF Railway Abandons Plans to Buy Tanker Cars http://bakkenshale.com/news/bnsf-railway-tanker-cars/ http://bakkenshale.com/news/bnsf-railway-tanker-cars/#respond Mon, 18 May 2015 18:01:37 +0000 http://bakkenshale.com/?p=7342 Crude by Rail

Crude by Rail

Citing ‘customer complaints’, the BNSF railway has abandoned plans to buy 5,000 crude oil tankers.

Typically, leasing companies or oil companies own the tank cars that move crude along the tracks and not the railroads themselves. But last year, BNSF requested proposals from railcar manufacturers to produce cars for them that were stronger and safer cars than the current DOT standards. The company had hoped that producing cars with thicker shells, reinforced ends and thermal blankets would reduce the risks of using trains to haul oil.

Over the past two years, BNSF Railway has been involved in a number of incidents including a derailment and fiery crash that caused the evacuation of a small town in North Dakota just last week. The company confirmed that the eight cars that derailed were the unjacketed CPC-1232 models that the federal government would like phased out by 2020 due to safety concerns.

Related: Bakken Crude Train Derails

A company spokesperson commented about the company’s decision to scrap the plans by saying, “If our customers do not want us in this business, we’ll re-evaluate. We’ll do something else”

The debate over rail safety is continuing to escalate and just last month, NTSB urged stricter standards due to findings from study of recent train derailment accidents. They concluded that the current fleet of DOT-111 tank cars rupture too quickly and result in spillage and ignition.

Related: Crude by Rail Facing Tougher Standards

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Bakken Rig Count Down to 79 http://bakkenshale.com/drilling-rig-count/bakken-rig-count-down-to-79/ http://bakkenshale.com/drilling-rig-count/bakken-rig-count-down-to-79/#respond Fri, 15 May 2015 18:52:44 +0000 http://bakkenshale.com/?p=7338 Rig Count Falls by One

Rig Count Falls by One

The Bakken-Three Forks rig count fell this week to 79 rigs running across our coverage area by midday Friday.

In recent Bakken news, the SEC froze the assets of North Dakota Developments, LLC (“NDD”) and its principles, claiming they defrauded over 980 investors from 66 different countries of $62 million dollars intended to go towards Bakken man camps.

Read more: Bakken Man Camps Center of Ponzi-Type Scheme

The U.S. rig count fell by six, ending with 888 rigs running by midday Friday.  A total of 223 rigs were targeting natural gas (an increase of two from the previous week) and 660 were targeting oil in the U.S. (eight less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)   79 rigs are running in the Williston Basin across MT, ND, and SD. 79 are in ND alone.

Bakken Oil & Gas Rigs

The Bakken oil rigs stayed at 79 rigs this week and  WTI oil prices continued to climb trading at $59.51/bbl on Friday afternoon, a $.12 increase from the previous week. The WTI-Brent saw an increase of $1.31, landing at $66.70. The Bakken has zero natural active gas rig in the area this week with futures trading increasing to $3.02/mmbtu by midday.

McKenzie County continues to lead development this week at 34 running rigs. Williams (19) and Mountrail (13) counties are the next closest producers. View the full list below under the Bakken Drilling by County section.

Activity continues to be dominated by horizontal drilling:

  • 79 rigs are drilling horizontal wells
  • 0 rigs are drilling directional wells
  • 0 rigs are drilling vertical wells

Be sure to visit our Bakken Job Listings to search openings and come back weekly for updates or sign up for alerts – Daily or Weekly Email Alerts

Bakken Drilling by County

County State Previous Week Current Week County State Previous Week Current Week
MCKENZIE ND 34 34 WIBAUX MT 0 0
WILLIAMS ND 19 19 BILLINGS ND 0 0
MOUNTRAIL ND 13 13 BOTTINEAU ND 0 0
DUNN ND 11 10 BURKE ND 0 0
DIVIDE ND 3 3 GOLDEN VALLEY ND 0 0
DANIELS MT 0 0 MCLEAN ND 0 0
DAWSON MT 0 0 MERCER ND 0 0
FALLON MT 0 0 RENVILLE ND 0 0
RICHLAND MT 0 0 STARK ND 0 0
ROOSEVELT MT 0 0 WARD ND 0 0
SHERIDAN MT 0 0 MCHENRY ND 0 0
VALLEY MT 0 0 WARD ND 0 0
MCHENRY ND 0 0

Bakken Oil & Gas News

EOG Waiting Out Oil Prices

Has the Bakken Peaked?

N.D. Legislative Session Ends

What is the Rig Count?

The Bakken Shale Rig Count is an index of the total number of oil & gas drilling rigs running across Montana and North Dakota. The rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Bakken formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

 

Read more at bakerhughes.com

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EOG Waiting Out Oil Prices http://bakkenshale.com/news/eog-waiting-out-oil-prices/ http://bakkenshale.com/news/eog-waiting-out-oil-prices/#respond Thu, 14 May 2015 14:14:34 +0000 http://bakkenshale.com/?p=7327 EOG Releases 2015 Q1 Report

EOG Releases 2015 Q1 Report

EOG Resources will continue to hold off on Bakken well completions  until crude prices stabilize.

Pulling back, slowing down and waiting it out is the preferred strategy for oil producers looking for strategies during the current pricing crisis.

During an earnings call, EOG says that they are benefiting greatly from the pull-back in activity and progress is being made to lowering cost in each phase of their operations. The company announced a first quarter loss net loss of $169.7 million.

Related: EOG Reduces 2015 Capex 40 Percent

Bakken Activity

The slowdown in activity has allowed EOG to focus on three things in its Bakken operations

  1. Operational efficiencies and lowering well cost. Currently, a typical 10,000 foot lateral is now drilled in just over 10 days.
  2. Using new technical data from our integrated completion process to further adjust and tailor high density completion designs to specific formation properties.  These modifications are leading to improved results.
  3. Maintain a more stable production base with minimal downtime
“William Thomas, chairman and CEO commented that “the company has no interest in accelerating oil production at the bottom of the commodity cycle. “We continue to adjust to the lower oil price environment by reducing well costs and operating expenses and by making significant well productivity improvements through technology advancements.

Other Bakken Highlights

  • Well costs are currently 14% less than the 2014 well cost.
  • 2015 well costs will be as much as 20% below 2014 levels with a target of $7.4 million.
  • Began production on eight wells in two 500 foot space patterns in the partial area.
  • Initial per well production rates from a five-well pattern averaged 1,235 barrels of oil per day and a three-well pattern averaged 1,345 barrels of oil per day.
  • Focused activity on its Parshall Core acreage in the North Dakota Bakken where 500-foot spacing results were very encouraging.  Operational improvements continue to generate efficiency gains and lower well costs.  Average well costs in the first quarter were down 14 percent from 2014 levels.
“Billy Helms – EVP, Exploration & Production said that “For the Bakken, as we continue to experiment with our completion designs we’re seeing different areas of the field have different rock properties and we’re tailoring those completion designs to match those rock properties.”

Read more at EOGresources.com

 

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Has the Bakken Peaked? http://bakkenshale.com/news/has-the-bakken-peaked/ http://bakkenshale.com/news/has-the-bakken-peaked/#respond Wed, 13 May 2015 17:14:39 +0000 http://bakkenshale.com/?p=7316 eia map

U.S. Shale Production |Energy Information Administration

The Energy Information Administration ( EIA) is predicting that oil production in the Bakken will begin to decline in June.

Shale producers have been reducing rigs, cutting budgets and laying off workers for months to compensate for low crude prices. Over the past year, the Bakken rig count has dropped by more than half, but until now production has remained at record levels, with the EIA reported 1.2 million barrels a day in February.

Related: Record Production for Bakken

In the EIA’s monthly productivity report for May, the agency reports that oil and gas production has probably peaked and they expect a 31,000 Mbbl/d drop in oil and 30,000 MMcf/d f drop for natural gas throughout June.

 

oil

gas

The Bakken had 80 oil rigs running last week zero gas rigs. WTI oil prices continued to climb trading at $59.39/bbl on Friday afternoon, a $.63 increase from the previous week and gas futures trading increased to $2.88/mmbtu.

Read more at eia.gov

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Bakken Man Camps Center of Ponzi-Type Scheme http://bakkenshale.com/news/bakken-man-camps-center-of-ponzi-type-scheme/ http://bakkenshale.com/news/bakken-man-camps-center-of-ponzi-type-scheme/#respond Tue, 12 May 2015 17:27:49 +0000 http://bakkenshale.com/?p=7308 North Dakota Developments, LLC

SEC Files Complaint Against North Dakota Developments, LLC

$62 million dollars intended to go towards Bakken man camps were raised illegally, according to a complaint filed by The Securities and Exchange Commission.

The SEC has frozen the assets of North Dakota Developments, LLC (“NDD”) and its principles, claiming they defrauded over 980 investors from 66 different countries. Court documents accuse Robert L. Gavin and Daniel J. Hogan of raising the money to build Bakken housing projects that were never finished. The pair lured investors with promises of up to 42 percent returns in the first year. They also claimed that the NDD would jointly manage all of the units of the short-term housing facility with hotel-like amenities and that many would be operational within months.

Related: Will Bakken Man Camps Disappear?

The SEC alleges that, “despite the lack of profits, the Defendants made Ponzi-style payments to certain early investors by paying their “guaranteed” returns using funds provided by later investors. The SEC also alleges that instead of developing the projects as promised, the Defendants have misappropriated over $25 million of investor funds to pay undisclosed commissions to sales agents, make payments to Gavin and Hogan, make investments in unrelated Bakken area projects for Gavin’s and Hogan’s personal benefit, and to make the Ponzi-like payments.”

A court hearing has been scheduled for May 18, 2015, on the SEC’s motion for a preliminary injunction.

Read more at sec.gov

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N.D. Legislative Session Ends http://bakkenshale.com/news/n-d-legislative-session-ends/ http://bakkenshale.com/news/n-d-legislative-session-ends/#respond Mon, 11 May 2015 17:08:16 +0000 http://bakkenshale.com/?p=7302 State Seal of North Dakota

State Seal of North Dakota

When the North Dakota Legislative Assembly convened in January, lawmakers faced an uncertain climate caused by falling oil prices. By all accounts the session was a success, with one local news source saying it was a “solid performance by legislators”.

Legislators basically had to start over by pulling apart Gov. Jack Dalrymple’s proposed budget. They were forced to make some difficult decisions regarding spending cuts, while finding the money to fund  important projects.

The first order of business was the passage of the ‘surge’ bill that supplies $1.1 billion for state infrastructure projects. This money will go to improve highways, airport improvement projects,  school districts, law enforcement agencies and emergency medical services.

Related: Governor Dalrymple Commits to Infrastructure

Another huge item on the session’s agenda was adjusting the state’s oil tax formula. House Bill 1476 lowers the state’s 6.5 percent oil extraction tax to 5 percent effective Jan. 1, 2016, a decision that got mixed reviews from both sides of the aisle.

“I guess if you had to boil it down it would be squandered opportunities and misplaced priorities. That really is what marked the session. Cutting the oil extraction tax by 23 percent,” says Sen. Mac Schneider. But Sen. Rich Wardner (R) disagreed, saying “I think it’s going to be big for North Dakota. I think we’re going to get the industry to put more investment into the state now that they know it’s stable and steady.”

Highlights of North Dakota’s 64th Legislative Assembly:

  • A record $14.4 billion budget for the 2015-17 biennium, up from $13.7 billion for 2013-15
  • $397.2 million in tax cuts were approved
  • A record K-12 budget was passed including $3 million for expanding pre-K programs
  • Approved $3.4 million for additional staff at the Department of Mineral Resources (DMR)
  • Passage of House Bill 1358 that authorizes the NDIC to develop new rules involving the construction and operation of gathering pipelines
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