Oil production in Saudi Arabia rose to 9.923M bbl/day in March, from 9.853M bbl/day in February, overtaking Russia (9.920M) as the world's largest producer for the first time in six years. The U.S., at 5.889M, ranks third. (database since 2002) [View news story]
I am basically saying 6-8 is the cost to drill and frac the well and get it ready for production. I think the costs you are mentioning are more related to production and transportation of produced fluids (e.g. water disposal), and those costs are present in any oil or gas field, conventional or otherwise. Granted ND prices my be slightly inflated relative to the rest of the country, but I would still think it much cheaper than shipping crude from overseas, especially if it is from an unstable region with a corrupt government. Additionally, I think they will be revising a lot of those total recovery estimates down the road as we find ways to squeeze more oil from each well. So I believe it will remain profitable.
Also, you are right that labor is at a premium up there right now, my company pays my room, board and travel, plus a good paycheck, so I know firsthand. The thing is, our salaries are a drop in the bucket compared to the profits they are making.
Oil production in Saudi Arabia rose to 9.923M bbl/day in March, from 9.853M bbl/day in February, overtaking Russia (9.920M) as the world's largest producer for the first time in six years. The U.S., at 5.889M, ranks third. (database since 2002) [View news story]
It's not that expensive, roughly $6-8 million per well in ND. And they are estimating total recovery around 500k+ barrels per well. So that is $50 million at 100/bbl. $25 million even if oil prices get cut in half, and personally I don't see that happening.
Forget peak oil, and think peak water. Fracking uses an average 4.5M gallons of water per well, and Cody Willard thinks it's inevitable that water will become a traded and bundled commodity like crude oil. Remember ethanol and corn prices? "The same thing is about to happen to water. And water inflation is way more insidious than food inflation because it will drive up the costs of everything we eat." [View news story]
Seems like the price would run into a wall when it reaches a point that makes desalination practical....
JPMorgan upgrades Weatherford (WFT +2.8%) to "overweight" from "neutral," citing the oilfield services company strong presence in artificial lift services, for which there is high demand. However, JPM cuts Baker Hughes (BHI -0.7%) to "neutral" from "overweight" and its price target to $50 from $53 on execution fears about the firm's revamp. [View news story]
Hey at least we didn't lose $2B on day trading....
It all makes perfect sense now, the government should just print $1.5T per year and hire every unemployed person to dig ditches at $100k per year. Full employment overnight, and all high paying jobs!!
Well I would imagine that they will find ways to delay payments and fines over many years so that they will not be faced with a massive one time payment of $37B. As they generate cash they can use it to pay down the liabilities.
Interesting question of the day: Don Bilson asks on Twitter if people aren't buying beds (Earlier: Tempur-Pedic) or furniture (Earlier: Ethan Allen) - how are we supposed to believe they are buying homes?
[View news story]
Kinder Morgan Energy Partners (KMP): Q1 EPS of $0.61 misses by $0.02. Revenue of $1.8B (-3% Y/Y) misses by $0.5B. Shares -0.7% AH. (PR) [View news story]
Oneok Partners (OKS +0.2%) says it plans to spend an additional $140M - $160M to construct a 270-mile natural-gas gathering system and infrastructure to deliver natural gas from producers in the Bakken Shale. The new system - part of a broader expansion program expected to be completed in the second half of 2013 - is expected to significantly reduce the amount of natural gas currently being flared in the region due to delivery constraints. [View news story]
Does a CEO have to be a jerk to be successful, asks David Weidner after reading Walter Isaacson's biography of Steve Jobs. The answer seems to be no, with Weidner holding up Bill Gates, Daniel Vasella at Novartis and A.G. Laffley at P&G as CEOs who succeeded using a friendlier and more accommodating style. [View news story]
I guess only if he wants to be the most successful CEO in history....
They might hold the keys to the purse strings, but female CFOs - all other things being equal - earn around 16% less than their male counterparts, a new study from consulting firm GMI shows. The survey took in 1,900 CFOs, of whom only 150 were women. "It’s a pretty strong argument that men and women are not being treated the same," says GMI. [View news story]
Maybe men are just more likely to exaggerate their salary....
Baker Hughes (BHI) is "looking hard at internal costs" and hopes to "carve out" up to $120M of savings on the supply side this year, CEO Martin Craighead says. It's also reducing activity in the Haynesville and Eagle Ford basins in Texas and the Marcellus shale in the Northeast. Shares -2.1% after getting hammered following last week's profit warning. [View news story]
As gasoline prices soar, the Interior Department will again issue a request for drilling interest in potential development leases in Cook Inlet off the Alaskan coast. While the department reckons the area could contain over 1B barrels of oil and 1.2T cubic feet of natural gas, a federal lease sale a year ago failed. [View news story]
Oil production in Saudi Arabia rose to 9.923M bbl/day in March, from 9.853M bbl/day in February, overtaking Russia (9.920M) as the world's largest producer for the first time in six years. The U.S., at 5.889M, ranks third. (database since 2002) [View news story]
Also, you are right that labor is at a premium up there right now, my company pays my room, board and travel, plus a good paycheck, so I know firsthand. The thing is, our salaries are a drop in the bucket compared to the profits they are making.
Oil production in Saudi Arabia rose to 9.923M bbl/day in March, from 9.853M bbl/day in February, overtaking Russia (9.920M) as the world's largest producer for the first time in six years. The U.S., at 5.889M, ranks third. (database since 2002) [View news story]
Forget peak oil, and think peak water. Fracking uses an average 4.5M gallons of water per well, and Cody Willard thinks it's inevitable that water will become a traded and bundled commodity like crude oil. Remember ethanol and corn prices? "The same thing is about to happen to water. And water inflation is way more insidious than food inflation because it will drive up the costs of everything we eat." [View news story]
JPMorgan upgrades Weatherford (WFT +2.8%) to "overweight" from "neutral," citing the oilfield services company strong presence in artificial lift services, for which there is high demand. However, JPM cuts Baker Hughes (BHI -0.7%) to "neutral" from "overweight" and its price target to $50 from $53 on execution fears about the firm's revamp. [View news story]
One reason the unemployment rate may have remained persistently high: the sharp cuts in state and local government spending, and the layoffs those cuts wrought. If there were as many people working in government as there were in Dec. 2008, the unemployment rate in April would have been 7.1%, not 8.1%. [View news story]
Cummins Is At The Top Of The Mountain; Where Can It Go Next? [View article]
BP: Why It's Headed To $60 [View article]
Interesting question of the day: Don Bilson asks on Twitter if people aren't buying beds (Earlier: Tempur-Pedic) or furniture (Earlier: Ethan Allen) - how are we supposed to believe they are buying homes? [View news story]
Kinder Morgan Energy Partners (KMP): Q1 EPS of $0.61 misses by $0.02. Revenue of $1.8B (-3% Y/Y) misses by $0.5B. Shares -0.7% AH. (PR) [View news story]
Oneok Partners (OKS +0.2%) says it plans to spend an additional $140M - $160M to construct a 270-mile natural-gas gathering system and infrastructure to deliver natural gas from producers in the Bakken Shale. The new system - part of a broader expansion program expected to be completed in the second half of 2013 - is expected to significantly reduce the amount of natural gas currently being flared in the region due to delivery constraints. [View news story]
Does a CEO have to be a jerk to be successful, asks David Weidner after reading Walter Isaacson's biography of Steve Jobs. The answer seems to be no, with Weidner holding up Bill Gates, Daniel Vasella at Novartis and A.G. Laffley at P&G as CEOs who succeeded using a friendlier and more accommodating style. [View news story]
(disclaimer: not an apple fan, just sayin')
They might hold the keys to the purse strings, but female CFOs - all other things being equal - earn around 16% less than their male counterparts, a new study from consulting firm GMI shows. The survey took in 1,900 CFOs, of whom only 150 were women. "It’s a pretty strong argument that men and women are not being treated the same," says GMI. [View news story]
Baker Hughes (BHI) is "looking hard at internal costs" and hopes to "carve out" up to $120M of savings on the supply side this year, CEO Martin Craighead says. It's also reducing activity in the Haynesville and Eagle Ford basins in Texas and the Marcellus shale in the Northeast. Shares -2.1% after getting hammered following last week's profit warning. [View news story]
Why I'm Praying For A Market Pullback [View article]
Excellent article and I really agree with you, but why is every time the pullback comes I lose my nerve???
As gasoline prices soar, the Interior Department will again issue a request for drilling interest in potential development leases in Cook Inlet off the Alaskan coast. While the department reckons the area could contain over 1B barrels of oil and 1.2T cubic feet of natural gas, a federal lease sale a year ago failed. [View news story]