The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: Smokin Joe on June 08, 2016, 10:46:26 pm
-
http://www.pennenergy.com/articles/pennenergy/2016/06/iowa-board-votes-to-allow-pipeline-work-to-begin-in-state.html?cmpid=EnlDailyPetroJune82016&eid=290980193&bid=1426602 (http://www.pennenergy.com/articles/pennenergy/2016/06/iowa-board-votes-to-allow-pipeline-work-to-begin-in-state.html?cmpid=EnlDailyPetroJune82016&eid=290980193&bid=1426602)
Iowa board votes to allow pipeline work to begin in state
June 7, 2016
David Pitt, Associated Press
DES MOINES, Iowa (AP) — A Texas company may begin construction on an oil pipeline in areas for which the company has approval but are not under federal jurisdiction, the Iowa Utilities Board said Monday despite opposition from environmental and citizen action organizations and landowners who are suing to stop the project.
The three-member board voted 2-1 to approve an order allowing Dakota Access LLC, a subsidiary of Dallas-based Energy Transfer Partners, to begin laying pipe in areas that aren't among 60 parcels of land for which the U.S. Army Corps of Engineers must issue. Those parcels include river crossings and a recently discovered Native American burial site in northwest Iowa.
Board members Elizabeth Jacobs and Nick Wagner voted in favor of allowing the project to begin.
Excerpt, More at:
http://www.pennenergy.com/articles/pennenergy/2016/06/iowa-board-votes-to-allow-pipeline-work-to-begin-in-state.html?cmpid=EnlDailyPetroJune82016&eid=290980193&bid=1426602 (http://www.pennenergy.com/articles/pennenergy/2016/06/iowa-board-votes-to-allow-pipeline-work-to-begin-in-state.html?cmpid=EnlDailyPetroJune82016&eid=290980193&bid=1426602)
-
Most of the Williston Basin Oil Transportation is by pipeline these days.
https://ndpipelines.files.wordpress.com/2012/04/ndpa-monthly-update-may-12-2016.pdf
Still others planning to come online
https://ndpipelines.files.wordpress.com/2012/04/wb-export-table-2-17-2016.jpg
-
Most of the Williston Basin Oil Transportation is by pipeline these days.
https://ndpipelines.files.wordpress.com/2012/04/ndpa-monthly-update-may-12-2016.pdf
Still others planning to come online
https://ndpipelines.files.wordpress.com/2012/04/wb-export-table-2-17-2016.jpg
I note how little oil production decline (<10%) is occurring since early 2015 in spite of the precipitous decline in rig count and new wells coming online.
Demonstrates the flat nature of production of all those wells drilled years ago.
This is really good news for the sustainability of unconventionals. Like an annuity.
The scare mongers would have you believe that the declines of all unconventionals is horrendous, but that only applies to the newer wells. Once those newer wells settle down, the long-life nature of production is apparent.
-
I note how little oil production decline (<10%) is occurring since early 2015 in spite of the precipitous decline in rig count and new wells coming online.
Demonstrates the flat nature of production of all those wells drilled years ago.
This is really good news for the sustainability of unconventionals. Like an annuity.
The scare mongers would have you believe that the declines of all unconventionals is horrendous, but that only applies to the newer wells. Once those newer wells settle down, the long-life nature of production is apparent.
From IP to stabilization there is a 70-80% decline in BOPD production, generally, over roughly 2 years. Considering the Montana Bakken Wells (Especially Elm Coulee Field) were past the steep initial decline, and North Dakota wells completed prior to 2014 were, too, a large part of the production is from wells which have reached the more stable part of their production history. Even with no new drilling and or completions, the decline in production would plateau fairly high because of the smaller contribution of wells in their first two years of production.
Whenever I actually spoke with the landowners (mineral rights owners) I would tell them to bank their first few royalty checks, before they bought anything. and not to leverage for payments over 10% of the second one if they were counting on oil money to pay for it. But then, I also told the roughnecks to buy a solid beater to drive to the rig and save up for their dream pickup and pay cash for it.
Some listened, and thanked me when the slump started.
The wild cards in the mix are the DUC (Drilled but UnCompleted) wells, which could be brought on line when the cost and price curves cross into favorable territory. Having the takeaway capacity to handle that production will be part of the equation.