Halcón Resources Corporation to sell Bakken Assets

July 14, 2017 Elizabeth Alford

Halcón Resources Corporation announced this week that it plans to sell Bakken assets.

Houston-based Halcón will sell a major part of its North Dakota operations in order to shift focus to the Permian Basin. The sale included operated assets in the Williston Basin to an affiliate of Bruin E&P Partners for $1.4 billion

“The sale of our Williston Basin operated assets transforms Halcón into a single-basin company focused on the Delaware Basin where we have more than 41,000 net acres in Ward and Pecos Counties representing decades of highly economic drilling inventory. The cash proceeds from this transaction and related debt reduction provide us with a strong balance sheet and liquidity to execute our growth plans.”

— Floyd Wilson, Halcón's Chairman, CEO, and President

Halcón shares jumped more than 35% at the news of the deal.

Halcón emerged from bankruptcy last fall, where it was able to eliminate approximately $1.8 billion in debt. Soon after, company executives announced it wouldl sell its Eagle Ford assets (“El Halcón”) to Hawkwood Energy for $500 million.

Fracking Benefits Local Economies

July 5, 2017 Elizabeth Alford

The University of Chicago’s Energy Policy Institute has issued the results of a study that shows the economic benefits of fracking on local economies outweigh undesirable side effects.

Between 2000 and 2013, researchers conducted a study of the communities near the nation’s most prominent shale formations. The results stated that the economic benefits to citizens during the boom years overshadowed the negative effects of crime, traffic, and pollution.

“This study makes it clear that on net there are benefits to local economies – which we believe is useful information for leaders in the United States and abroad who are deciding whether to allow fracking in their communities.”

— Co-author Chris Knittel, Professor at the MIT

Economic Benefits of Fracking to Local Communities

According to the study, the shale boom produced benefits valued at as much as $1,900 a year for the average household in nearby communities. Other impacts included:

Income climbed 7 percent
10% employment rate
Home prices increased by 6% (20% in ND)
Net benefits of around $300 a year for the typical household

Unpleasant Side Effects of Shale Boom

Higher crime rates
More traffic
More pollution
General anxiety over the environmental dangers
20% increase in spending for police and public safety.

Bakken Shale Counties Losing People

June 17, 2017 Elizabeth Alford

There are fewer people living in individual Bakken Shale counties, according to the U.S. Census Bureau.

The U.S. Census Bureau released new data last week showing every county in the Bakken Shale region experienced a decrease in population between 2015 and 2016.

The total population decline in these counties was 5283 people.

Dunn County in North Dakota lost the greatest percentage if it's population (6%) between 2015 and 2016. Dunn has consistently had some of the highest rig counts in the region for the past few years.

The biggest loss in total population numbers was Ward County in North Dakota, which dropped by 1065 in one year's time.

The state population has seen a slight increase, with the agency reporting Montana's population increased from 1,032,949 in 2015 to 1,042,520 in 2016. North Dakota had a population of 757,952 in 2016, an increase over 756,927 in 2015.

The decrease in population is in stark contrast to the rush that came when the shale boom exploded in 2009, when the number of men in North Dakota jumped 14% (46,000), according to the U.S. Census Bureau. During that time, the state's population grew 12% with men accounting for two-thirds of that growth. The population of women grew 9% (30,000).

In 2015, we reported that Williston, N.D., experienced population growth ten times the normal rate, according to a recent study commissioned by the city. But the latest figures from the Census Bureu is showing a decline from 26,977 in 2015 to 26,426 a year later.

Bakken Oil Now Flowing through Dakota Access Pipeline

June 8, 2017 Elizabeth Alford

Energy Transfer Partners, L.P. has announced that the Dakota Access Pipeline is now pumping Bakken crude oil.

In a recent press release, the Dallas-based company said that the 1,200-mile line carrying Bakken oil to distribution points in Illinois began service on June 1st.

The highly controversial, 1,172 mile pipeline project cost an estimated $3.8 billion and will serve the North Dakota counties of Mountrail, Williams and McKenzie.

The Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline from Illinois to the Gulf Coast together make up the $4.8 billion Bakken Pipeline system.

Dakota Access Quick Facts

Construction of the pipeline has created roughly 12,000 jobs
Spurred hundreds of millions of dollars investment in heavy equipment and thousands of construction jobs to the state.
Over $3.54 billion spent on construction
Will continue to invest hundreds of millions a month into the U.S. economy
Once in operation, it will transport 470 000 bpd
Has generated an estimated $156 million in sales and income taxes during construction, and $55 million in property taxes annually

“Transporting crude from North Dakota to multiple major U.S. markets in a more direct, cost-effective, safer and more environmentally responsible manner than either rail or truck.”

— Energy Transfer Partners

With production in the region expected to rise, some analysts predict that the DALP will reach 75 percent of capacity by year-end 2017. ESAI Energy is one source predicting that Bakken will continue to experience production growth through next year.

Read the company announcement here

Dakota Access Pipeline to Begin Operations

May 26, 2017 Elizabeth Alford

After three years, dozens of town hall meetings, thousands of public comments and numerous violent protests, the Dakota Access Pipeline (DAPL) is scheduled to begin operations on June 1st.

Energy Transfer Partners announced plans to build the pipeline project back in 2014. Originally expected to be completed by the end of 2016, completion was delayed when major protests and legal wranglings disrupted the construction schedule.

The $3.8 billion project includes a 1,172-mile underground pipeline that extends from the Bakken/Three Forks production area in North Dakota to Patoka, Illinois. The DAPL will transport 470 000 bpdof light crude oil from North Dakota across the region.

“Until oil prices get closer to $60 producers will continue to target the Bakken core where well performance is very high. We also expect a further drawdown in the DUC inventory for the remainder of 2017 since most DUCs provide adequate rates of return at prices around $50 per barrel.”

— Elisabeth Murphy, analyst at ESAI Energy

Dakota Access Quick Facts

Construction of the pipeline has created roughly 12,000 jobs
Spurred hundreds of millions of dollars investment in heavy equipment and thousands of construction jobs to the state.
Over $3.54 billion spent on construction
Will continue to invest hundreds of millions a month into the U.S. economy
Once in operation, it will transport 470 000 bpd
Has generated an estimated $156 million in sales and income taxes during construction, and $55 million in property taxes annually

Pipeline Protests Cost Taxpayers

Officials of Morton County, where thousands gathered for the longstanding protest against the pipeline construction, have reported that protests will cost North Dakota taxpayers nearly $40 million in property damage and personnel. Since the cleanup began, the U.S. Army Corps of Engineers reportedly hauled out close to 1,000 dumpsters filled with trash, personal items and old building material and spent $1.1 million