Continental's CEO Harold Hamm Wants No Part of Harms' "Moderated Approach"

January 9, 2014 R.T. Dukes

Harold Hamm spoke out against Robert Harms' recent comments regarding a "moderated approach" to oil and gas development in North Dakota in an interview with Forum News Service.

Hamm makes the case that the industry has already slowed down quite a bit from the frantic pace of exploration and is now developing leases in a more orderly fashion.

One example is the Bakken rig count. It's down almost 20% from the peak.Multiple wells are being drilled from a single pad and operators are using what they've learned through exploration to drive down drill times.

“We shouldn’t overreact. We’re doing something that’s not only the best thing for North Dakota and for that area up there, but also for our entire nation,” Hamm said. “The world has been changed by the fact that we can produce energy of this quantity in America today.”

A further slow down could have unforeseen ramifications for a industry that has turned North Dakota into an economic powerhouse.

Is Bakken Oil More Flammable?

January 8, 2014 R.T. Dukes

Bakken oil is produced at a high quality that makes it easier to refine into commercial products and makes it easier to ignite.

There is nothing new about oil being flammable. The science has been the same for well....forever. At a point a few decades ago, light-sweet crude (WTI) was the dominate oil quality in the U.S.

Light oil production growth in the Bakken, Eagle Ford, and Permian isn't something the industry has never seen or handled, but it is an unforeseen boom bigger than anyone expected.

Now that trains are moving the oil on a larger scale, it's important the terminals and rail companies meet high standards to ensure safety.

The flash point or lowest possible temperature at which the oil can be ignited is lower for Bakken oil than it is for tar sands coming out of Canada. That fact led the DOT to issue a Bakken Shale Oil Shipping Safety Alert last week.

What's Important to Ensuring Safety in the Bakken?

In short, the answer is YES. Bakken crude is of high quality and more flammable than lower grade crude oil, but that's nothing new and shouldn't be a shock. Emphasis needs to be placed on classifying the crude correctly (which it hasn't been shown that there is a problem there) and making sure the railroads are as safe as possible.

Additional safety measures need to be taken when hydrogen-sulfide or other flammable gases are dissolved in the oil. The oil needs to be degasified before transportation.

The other thing we can do as voters - Make sure pipelines can be built where needed without undue obstacles. The track record speaks for itself - pipelines are the safest and most efficient way to move hydrocarbons.

Please share your thoughts, comments, or questions below:

Department of Transportation's PHMSA Issues Bakken Shale Oil Shipping Safety Alert

January 3, 2014 R.T. Dukes

The Department of Transportation's (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) has issued a safety alert for Bakken crude.

PHMSA issued the alert to reinforce the need to test, characterize, classify, and where appropriate de-gassify the crude oil before transportation.

PHMSA also wants to remind first responders of that light sweet crude is assigned a packing group of I or II. Those packing groups mean the flash point is below 73 degrees Farenheit and the boiling point for packing group I is below 95 degrees Farenheit.

"Operation Classification" will be an ongoing effort, and PHMSA will continue to collect samples and measure the characteristics of Bakken crude as well as oil from other locations.

Read the full releast at phmsa.dot.gov

Bakken Job Market Expected to Boom in 2014 - Again

January 2, 2014 R.T. Dukes

Oil and gas operators in the Bakken are on a hiring frenzy as they look to fill long-term positions. Investments have shifted from exploration to development and that means more full-time positions are coming open with the major operators and service companies. That means even more Bakken Jobs in 2014 - Search HERE.

“We’re excited to significantly boost our employee base in response to the growing demand among energy industry customers for our services. ”

— Mark Johnsrud, Nuverra's CEO

A few of the businesses hiring include:

Power Fuels - Nuverra
BNSF
Pumpers
Rig contractors
Completion crews

Abraxas Will Run One Bakken Rig and Spend $54 Million in 2014

December 26, 2013 R.T. Dukes

Abraxas Petroleum will run one rig in and spend $53.8 million in the Bakken in 2014. The company plans to drill 7.2 net wells and complete 6.4 net wells.

“Abraxas enters 2014 with a pristine balance sheet and far more profitable and focused asset base. We continue to identify additional opportunities in the Bakken and Eagle Ford and will announce the results of these efforts when it is prudent. We look forward to what promises to be an active 2014 Bakken and Eagle Ford drilling program.”

— Bob Watson, CEO