Upper Rocky Mountain
Spot Crude Oil Prices
Colorado Western: $84.12
CO North Central: $86.86
WB Mixed Sweet: $85.24
ND Light Sweet: $88.11
Wyoming Sweet: $87.53
N Wyo. / S Mont.: $85.84
Spot prices updated July 29
Daily Cash Market
Spot Natural Gas Prices
Watford City, ND: $3.31
NGPL South TX: $3.68
Malin, OR: $3.81
PG & E City Gate, CA: $4.47
Northwest WY: $3.67
Opal, SW WY: $3.73
Ventura, IA: $3.75
U.S. Rig Count
+12 from 7/18/2014
+107 from 7/25/2013
Judge Backs COGA On Frac Ban
Colorado Judge Dolores Mallard ruled July 24 in favor of the Colorado Oil and Gas Association’s contention that a ban on hydraulic fracturing imposed by the City of Longmont was illegal.
“Longmont does not have the authority, in a matter of mixed state and local concern, to negate the authority of the commission [Colorado Oil and Gas Conservation Commission],” the judge said.
The judge’s decision will be appealed by environmental groups.
COGA has contended that Longmont and five other towns that have voted to restrict oil and gas drilling in their communities have overstepped their authority because the COGCC already regulates the industry.
Petitions are being circulated to gain 86,105 signatures by Aug. 4 to place an initiative on the November ballot to give more communities control over where drilling takes place in their communities. The initiative would require wells to be set back 2,000 feet from structures.
A coalition of oil companies that have multi-million dollar drilling programs in the state, including Anadarko Petroleum Corp., Whiting Petroleum Corp., and Encana Corp., announced earlier this month they will spend $50 million to fight the measure.
They have been joined by Gov. John Hickenlooper and other business leaders.
NDPC and API Refute New Bakken Volatility Claim
Two leading industry groups strongly refuted a new contention by the Federal Government that Bakken crude oil is more volatile “than most other types of crude oil”.
“Bakken crude oil is not more dangerous to transport by rail than other crude oils or other flammable liquids,” said Kari Cutting, vice president of the ND Petroleum Council.
OXY Seeks Expanded
Dunn County Drilling
OXY USA, Inc. sought approval to drill 14 horizontal wells on 1280-acre spacing in Dunn County, where it has already drilled 42 wells in the Manning field, during a July 23 hearing before the ND Industrial Commission.
The company expects its estimated ultimate recovery (EUR) to be 488,000 barrels of oil from each of the wells, which would be drilled at a cost of $8 million. They would be located in overlapping 2560-acre spacing units, in sections 3, 4, 9, 10 and in sections 15, 16, 21, and 22, T142N-R96W.
In addition, OXY asked permission to flare associated gas from oil wells in Billings, Dunn, McKenzie, and Burke counties until they are connected to gathering pipelines.
In other business, Whiting Oil and Gas Corp. of Denver asked the commission to approve two overlapping 2560-acre spacing units in McKenzie County, where it plans to drill 11 wells. They would be located in sections 16, 17, 20, and 21, T153N-R96W; sections 13 and 24, T153N-R97W; and sections 18 and 19, T153N-R96W.
The company anticipates a EUR of 334,000 barrels, with net revenue of $17.5 million from each well, and drilling costs are pegged at $8.5 million.
MonDak Tank Purchased
MonDak Tank, Inc. of Williston, which had $7.1 million in sales last year, was sold to National Automation Services of Las Vegas.
MonDak installs oilfield pipelines, tanks, pumps, and automation equipment in the Williston Basin.
“Our goal is to add diversity in products and services to our current and future clients as we develop new relationships through our acquisition plan as it develops,” said Sean Sego, independent director of NAS.
Aug. 19 – 20: The annual meeting of the Petroleum Assn. of Wyoming will be held at the Parkway Plaza Hotel in Casper. Registration for the meeting and golf tournament can be done online at www.pawyo.org, or by calling 307-234-5333.
Aug. 26 – 27: The Montana Petroleum Council will hold its annual meeting at the Crowne Plaza Hotel in Billings and incudes a barbecue and golf tournament. Alex Epstein, founder of Center for Industrial Progress, will give the luncheon keynote speech, “Moral Case For Fossil Fuels”. For more information, click here.
Sept. 23 – 25: The ND Petroleum Council will hold its annual meeting at the Astoria Dickinson Hotel and Event Center in Dickinson, ND. Registration opens July 29, and can be done through the NDPC website at: www.ndoil.org.
Aug. 4 – 7: Rocky Mountain Energy Summit at the Colorado Convention Center, Denver, CO.
This event is hosted by the Colorado Oil and Gas Association. Among other topics, the summit will assess the state of the industry and the issues that must be addressed to gain public support. Also on the agenda is a discussion which will explore the technology revolution and the accompanying cultural shift requiring a long-range view of community engagement.
For complete information about the summit, click here.
Sept. 29 – Oct. 1: 4th Annual Natural Gas Liquids Conference at the Hilton Houston Post Oak Hotel, Houston, TX.
The conference offers high-caliber speakers and excellent information, with the latest NGL project updates and market outlook.
For complete information about the conference, click here.
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Many copy our stories, but you will read them first in Oil Patch Hotline. We cover news to keep you informed on what is going on in the Williston Basin and the upper Rocky Mountain region. We supply rig locations and the latest drilling permits issued by state commissions in North Dakota, South Dakota, Montana, Wyoming, and Colorado.
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