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North Dakota commission approves crude conditioning order

Washington (Platts)–9Dec2014/524 pm EST/2224 GMT North Dakota’s Industrial Commission on Tuesday approved an order requiring Bakken crude oil to be conditioned before it is shipped by rail. The order, which had been delayed for a month, was approved unanimously by the commission, which includes Governor Jack Dalrymple, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring. Under the order, crude oil cannot have a vapor pressure that exceeds 13.7 psi, 1 psi below the national standard of 14.7. The order, which was delayed for a month as the commission collected additional public comment and made technical corrections, faced opposition from the state’s oil and gas operators, including Hess, Marathon Oil and Continental Resources. These companies claimed the order could cost them millions of dollars, impact infrastructure projects and set up jurisdictional clashes with federal officials. Corrections to the previous order included lowering temperature requirements when companies claimed earlier temperature […]

Posted On : Published By : Tom Whipple
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Kemp: Watching For A Drilling Slowdown In North Dakota

URL: http://www.rigzone.com/news/oil_gas/a/136273/Kemp_Watching_For_A_Drilling_Slowdown_In_North_Dakota In the next few months, everyone in the oil market will be intently watching the volume of new drilling activity in the US shale plays, says analyst John Kemp. John Kemp is a Reuters market analyst. The views expressed are his own LONDON, Dec 8 (Reuters) – In the next few months, everyone in the oil market will be intently watching the volume of new drilling activity in the shale plays of the United States for any signs of a slowdown in response to the fall in oil prices. There are more than a dozen major shale plays in production. But just three account for almost all the rise in oil output since 2009 and nearly two thirds of all rigs in operation: the combined Bakken/Three Forks in North Dakota and the Eagle Ford and Permian in Texas. These three are the most mature plays and least […]

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U.S. shale output still surges, to add 103,000 bpd by Jan-EIA

NEW YORK (Reuters) – Oil production from the United States’ biggest shale plays is poised to keep expanding at the same breakneck pace into early next year, according to new U.S. projections released on Monday that highlighted a slow response to tumbling prices. Oil production from the three main plays – the Bakken, Eagle Ford and Permian Basin – is set to rise by some 103,000 barrels per day (bpd) in January from December, the U.S. Energy Information Administration said. That’s just a hair below December’s 105,000 bpd rise, and a faster rate than most months this year. Well productivity continues to grow, as drillers get better at squeezing more barrels of crude out of each well – and out of each dollar. Each new Bakken well is set to produce some 550 barrels a day in January, up from under 500 bpd as recently as June, the data […]

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Bakken Shale Rig Count Decreases by Three to 188

Falling Oil Prices: How Low is Too Low for Bakken Producers Falling Oil Price The  Bakken-Three Forks rig count  decreased by three t0 188 rigs running across our coverage area by the end of last week. The NDIC notes 190 rigs are active in North Dakota, but around 15 of those are in the process of moving in and rigging up. In recent Bakken news, analysts and industry leaders are worried about the effects low oil prices will have on the booming shale industry, including investment and drilling interests in the Bakken play. Since extracting shale oil is currently a more expensive process than conventional production methods, Bakken producers may be more vulnerable to lower crude prices. The U.S. rig count decreased by 3 to 1,920 rigs running by the end of last week. A total of 344 rigs were targeting natural gas (flat from  the previous week) and 1,575 were targeting oil in […]

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U.S. rig count steady, Baker Hughes finds

Baker Hughes rig counts shows activity not yet slowed by slumping oil prices. UPI/Shutterstock/Calin Tatu DALLAS, Dec. 5 (UPI) — While oil prices are moving near the point at which drilling may be too expensive, oil services company Baker Hughes said Friday the U.S. rig count was static. Baker Hughes published its monthly rig count report , which reflects the number of rigs actively engaged in exploration or production. The average U.S. rig count for November was unchanged from the previous month at 1,925 and up 169 year-on-year. Analysts are searching for the floor price where exploration in U.S. shale is no longer economical. Energy consultant group Wood Mackenzie finds most U.S. producers should be able to adapt to a lower price environment . It finds prices near $70 for West Texas Intermediate, the U.S. crude oil benchmark price, are a threshold level for shale, though the slump is […]

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Falling Oil Prices: How Low is Too Low for Bakken Producers?

Price per Barrel: How low is too low? In light of falling crude oil prices, there is growing speculation about how low will be too low for U.S. producers. In just a few short months, prices have plummeted from $100 a barrel to around $70 today. This has left analysts and industry leaders worried about the effects this will have on the booming shale industry, including investment and drilling interests in the Bakken play. Since extracting shale oil is currently a more expensive process than conventional production methods, Bakken producers may be more vulnerable to lower crude prices. OPEC turned up the heat on Thanksgiving Day and sparked what some are calling an ‘oil war’, by announcing that it will hold steady on current production. This has garnered worldwide attention and assured that this downward trend in price will continue. (Read more: OPEC Challenges Bakken Shale Drillers ) Certainly, […]

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Eagle Ford Produces 1 Billionth Barrel of Oil

The Eagle Ford shale play produces its one billion barrel of cumulative oil production, and the play’s potential remains strong despite lower oil prices. The Eagle Ford shale play in South Texas achieved a significant milestone last month with the production of its one billionth barrel of crude and condensate. Over 70 percent of this oil production has been produced in the past two years, according to a recent update by Wood Mackenzie. Today, the Eagle Ford accounts for approximately 16 percent of total U.S. daily oil production. In 2015, 2.8 million barrels of oil equivalent per day of production is expected from the Eagle Ford, and the largest share of U.S. Lower 48 spending next year will be in the Eagle Ford with $30.8 billion. A couple of factors have allowed operators to reach one billion barrels in cumulative production over the past seven years, said Cody Rice, […]

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Small Oil Drillers Feel Brunt of Crude’s Decline

ENLARGE The selloff in crude prices has bruised energy companies big and small, but none have felt the pain worse than the nation’s heavily indebted oil drillers. Shares of small, North America-based oil and gas producers that loaded up on debt during times of high oil prices have plunged in the past month, in some cases losing half their market value or more. Shares of Goodrich Petroleum Corp. have plunged 87% from their peak in June and 49% in the past month. Energy XXI Ltd. ’s stock is down 51% in a month. Halcon Resources Corp. has fallen 36% in that time. In the years before 2014’s oil-price crash, these and other companies sold bonds and took out loans to fuel rapid growth in new and often costly fields across the U.S. That borrowing was easier to stomach when oil prices were $100 a barrel, but with U.S. crude […]

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Shale Liquidations Begin? Sub-$50 Oil Appears In North Dakota

When ISIS dared to steal and sell oil at below market rates, they were dire pirates that needed to be destroyed (and anyone who dared to buy it was pariah). So when, as Bloomberg reports , crude sold at the wellhead in the Bakken shale region in North Dakota fell to $49.69 a barrel on Nov. 28 (according to the marketing arm of Plains All American Pipeline), you know there is an issue in the US Shale industry. As one analyst notes, “ to a producer in Wyoming, if Brent’s $70 then I’m at $50, then I have to start asking does it economically make sense to keep drilling, they might start reallocating capital, you might see projects slowed or shut down. ” Oil market analysts are debating if oil will fall to $50. In North Dakota, prices are already there. … The cheaper price for North Dakota crude […]

Posted On : Published By : Tom Whipple