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BHI: US land drilling down 35 units in most recent rig count

HOUSTON, Dec. 29 12/29/2014 The US drilling rig count dropped 35 units to settle at 1,840 units working during the week ended Dec. 26, pushed down entirely by losses on land, Baker Hughes Inc. reported. During the week, US land rigs fell 35 units to 1,770. Offshore rigs held steady at 58 units. Rigs drilling in inland waters also held steady at 12 units last week. Oil rigs lost 37 units to 1,499. Gas rigs gained 2 units to 340. Rigs considered unclassified remained at 1 unit working. Horizontal drilling rigs declined 6 units to 1,350. Directional drilling rigs dropped 14 units to 181. Canada now has 256 rigs working, 7 fewer than this week a year ago. Of the 135 units lost this past week, 96 were oil rigs and 39 were gas rigs, which respectively total 94 and 162. Major states, basins California took a 17-rig hit […]

Posted On : Published By : Tom Whipple
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Oil Rigs in U.S. Drop by 37 to Lowest Level Since April

U.S. oil drillers, facing the lowest crude prices in five years and rising competition from suppliers abroad, idled the most rigs since 2012. Rigs targeting oil declined by 37 to 1,499 in the week ended Dec. 26, the lowest since April, Baker Hughes Inc. (BHI) said on its website today, extending the three-week decline to 76. Those drilling for natural gas increased by two to 340, the Houston-based field services company said. The total rig count, which includes one miscellaneous rig, dropped 35 to 1,840, also an eight-month low. The number of rigs targeting U.S. oil is down from a record 1,609 following a $55-a-barrel drop in global prices since June, threatening to slow the shale-drilling boom that’s propelled domestic production to the highest in three decades. As the Organization of Petroleum Exporting Countries resists calls to cut output, U.S. producers including Continental Resources Inc. and ConocoPhillips plan to […]

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Texans Discover Oil Grows on Olive Trees as Crude Drops

As crude prices tumble, landowners across Texas are accelerating production of a different kind of oil — olive oil. “I love the trees, and I love watching them grow,” Steve Coffman Jr. said of his 40 acres (16 hectares) of budding olive trees, which he planted two years ago on his red dirt ranch just outside Cotulla, Texas, the epicenter of the state’s Eagle Ford shale-oil boom. Nowadays he doesn’t have the same affection for his oil wells , which sit just down the road from his olive trees. “I can’t look, it’s depressing,” Coffman said as he pulled out his smartphone to check the latest energy prices. He shook his head. West Texas Intermediate crude had fallen again. Five years after one of the biggest oil booms in decades boosted royalty checks, a steep decline in oil prices has Texans seeking new ways to stay ahead. About 70 […]

Posted On : Published By : Tom Whipple
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Bakken, A Tale of Two Counties

North Dakota publishes their  Historical Barrels of Oil Production by County  which gives county by county production back to 1951. The data here does not include confidential wells but they publish the last couple of months production data that does include confidential wells here: Oil and Gas Production Report . Looking over this data I found something very strange. In October Bakken production was down by 1,598 barrels per day and all North Dakota was down by 5,4054 barrels per day. All data is in barrels per day with the last data point October 2014 . McKenzie County was up 19,609 barrels per day or 4.88 percent. In October McKenzie was up even more than it was in September when the Bakken was up 52.5 thousand barrels per day. Mountrail Countywas down 18,728 barrels per day or 6.42 percent. There is  more on this story below. Dunn County was down […]

Posted On : Published By : Tom Whipple
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Continental Resources announces even deeper 2015 cuts

(AP PhotoKevin Cederstrom) HOUSTON — Oklahoma City-based Continental Resources continues to cut its 2015 budget in response to falling oil prices. The exploration and production company said Monday that it plans to spend $2.7 billion on capital expenditures next year . That’s down from the $4.6 billion budget it announced last month , which itself was a cut from a from its original $5.2 billion target. The company also dramatically reduced its planned production growth. Last month, it told investors to expect 23 percent to 29 percent production growth in 2015. It’s pared that expectation back to projected growth of 16 percent to 20 percent. Continental Chief Executive Harold Hamm said the revised budget “prudently aligns our capital expenditures to lower commodity prices.” Crude oil prices have fallen nearly by half since their 2014 peak of $107.26 on June 20. Continental also reduced its expected average rig count for the year from from […]

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Norway’s Statoil dumps U.S. shale acreage

Norwegian energy company Statoil sells off a portion of its holdings in Marcellus shale basin in the United States. Photo by Calin Tatu/Shutterstock STAVANGER, Norway, Dec. 23 (UPI) — After suspending some rig work to save capital, Norwegian energy company Statoil said Tuesday it sold acreage in a key U.S. shale play for $394 million. Statoil said it sold a 6 percent stake in the Marcellus shale play to U.S. company Southwestern Energy, leaving the Norwegian company with a non-operated 23 percent interest in the region. Statoil in 2008 entered Marcellus through a joint venture with Chesapeake Energy and now says the divestment is part of its optimization strategy. "I am delighted that we have concluded this important transaction with Southwestern despite the turbulence in today’s energy markets," John Knight, executive vice president for global business development at Statoil, said in a statement. Statoil in early December suspended contracts […]

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North Dakota Proposes New Bakken Waste Rules

ANL Study Suggests Greater Radioactive Material is Safe Radioactive Waste Levels May be Raised On December 12th, the ND Department of Health (DoH) proposed new limits for oil waste disposal that would drastically alter the way the industry does business in the Bakken region. This comes after a study conducted by Argonne National Laboratory concluded that the level of radioactive material (TENORM) found in waste can actually be much higher than current rates and still be safe for oil and landfill workers. Amounts of radioactivity are measured in units called picocuries, and the new proposal would multiply the amount allowed in waste material by ten times. Landfills choose to accept the higher TENORM material will be required to go through a new permit modification process, which will provide better accountability for the tracking of the radioactive waste. “Currently, approved landfills can accept waste of up to 5 picocuries per gram, […]

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Oil Firms’ Predicament: Who Should Cut Output?

ENLARGE For the U.S., reducing oil production by a million barrels a day would require an enormous shift. Dozens of small U.S. companies could close in all their oil wells at once without really making a dent. Bloomberg News If the global glut of oil that has sent crude prices plunging has come largely from the U.S., why aren’t American energy companies turning off the tap? The answer can largely be explained by simple game theory. In short, even though it’s in the collective interest of the country’s oil producers to cut production, the interests of any of those producers is the opposite. Each one of them is waiting for a rival to make the change. This behavior—hoping someone else will cut production so you don’t have to—is a classic example of the “prisoner’s dilemma,” says Roger McCain, a professor in Drexel University’s economics department. “If you can’t coordinate, […]

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State:Texas Oil and Gas Drilling Permits Fall 50 Percent in November

HOUSTON, Dec 23 (Reuters) – Texas, the top oil-producing U.S. state, issued roughly half as many drilling permits in November as in October, as oil and gas producers scaled back with the steep decline in crude prices since summer. The Texas Railroad Commission, the state’s industry regulator, said on Tuesday that new permits for oil wells fell 57 percent to 376, while those for new oil and gas wells retreated 46 percent to 977. Overall, the state issued 1,508 original drilling permits for all types of wells in November, compared with 3,046 in October. U.S. crude futures prices closed on Tuesday at $57.12, up more than $2 a barrel after data showing the fastest U.S. economic growth in 11 years boosted expectations that crude demand would rise. However, Tuesday’s settlement was down 47 percent from $107.95 in late June. Lower oil prices took time to translate into fewer permits. […]

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Whiting’s Proven Oil-Equivalent Reserves Up About a Third in 2014

Dec 22 (Reuters) – Whiting Petroleum Corp said on Monday its proven reserves of oil equivalent have jumped nearly a third over the past year, thanks largely to its buyout earlier this month of rival Kodiak Oil & Gas. The deal, which made Whiting the largest North Dakota oil producer, lifted the company’s proven reserves to 780 million barrels of oil equivalent, more than two-thirds of which is comprised of crude oil. The numbers for both years factor in Kodiak’s reserves, Whiting said in a statement. As part of the deal, Whiting acquired Kodiak’s proven reserves of roughly 167 million barrels of oil equivalent for $23.77 per barrel. That is far below the current benchmark price for American crude oil, about $56 per barrel, boosting the economics of the deal. Whiting also boosted a revolving credit facility to $3.5 billion from $2.5 billion. The increase is likely designed to […]

Posted On : Published By : Tom Whipple