US oil stockpiles hit record amid production boom

Discussion in 'Too Hot for Swamp Gas' started by HallGator, Apr 24, 2014.

  1. Sohogator
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    Sohogator Premium Member

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    I said Iraqi was about oil and the geopolitical machinations of the neocons. In fact one neocon's famously predicted Iraqi oil would pay for the total estimate invasion costs of $50b (LOL)
    http://watchingthewatchers.org/news/624/iraq-war-cost-little-and-iraq-oil

    Their execution was terrible..
  2. HallGator
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    HallGator Administrator VIP Member

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    THIS THREAD IS NOT ABOUT THE IRAQ WAR.

    THANK YOU!
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  3. HallGator
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    HallGator Administrator VIP Member

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    :D
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  4. Sohogator
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    Sorry for the thread drift I simply followed crocdillo's lead and others followed
  5. CHFG8R
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    CHFG8R Premium Member

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    I'm assuming this is the same one(s) who thought Iraq would resemble Paris 1944 and would become a de-facto West Germany of the Middle East. That's the scary part folks. People who are supposed to know better didn't and don't know chit.
  6. gatorman_07732
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    gatorman_07732 Well-Known Member

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    Geez, can you at least take responsibility ;)
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  7. Sohogator
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    Sohogator Premium Member

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    OTOH is thread drift not allowed? I'm still learning the norms and rules here.
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  8. gatorman_07732
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    gatorman_07732 Well-Known Member

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    DOH :rolleyes:
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  9. cocodrilo
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    cocodrilo Well-Known Member

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    Well, the thread is about oil, and the fact that the U.S. is loaded with it, so it's a legitimate question as to why we give a crap about Iraqi oil, so much so that we fought a war there, which was supposed to be paid for by that same Iraqi oil, and for which thousands upon thousands of people died.
  10. HallGator
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    Not so much it's not allowed since most threads around here would have to be chit canned if we followed that rule.

    More of a reminder of what the topic is not.
  11. HallGator
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    HallGator Administrator VIP Member

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    TH logical progression:

    Oil>>>>>Iraq oil>>>>>Iraq War>>>>>Bush sucks>>>Obama sucks worse
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  12. cocodrilo
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    cocodrilo Well-Known Member

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    Now we're getting somewhere.
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  13. G8trGr8t
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    [​IMG]

    fwiw. the guy delivering the barrel of oil to the wellhead in ND is getting between $75 and $85 per barrel depending on their hedging program and their volumes at spot price. the rest of that $20 - $30 per barrel difference is going to transport and long term oil holders who are guaranteeing the hedges (typically backed by airlines and others that want to stabilize their fuel costs

    Did you know we import oil from Russia? It is cheaper than the oil from the bakken because bakken oil costs $15 a barrel to train to California from ND. That is where we really need a pipe. ND to California.

    Marathon announced a $2.5 Billion expansion to an existing refinery in Louisiana today will proceed to permitting.
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  14. OklahomaGator
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    Would it be cheaper in the long run to build a new refinery in North Dakota? Not sure when we last built a new refinery in the US?
  15. g8orbill
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    and just what is the cause of not having enough refineries

    don't make me laugh
  16. gatorman_07732
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    gatorman_07732 Well-Known Member

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    LMAO.....I almost hurt myself laughing, the weird thing is it's true
  17. G8trGr8t
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    some of my investments go up and some go down. oil companies, frac sand mlp's, and pipelines mlp's usually go up while refineries, transports, my railroads (CSX, KSU) and airlines go down. high oil prices dampen demand, sweet spot for me personally seems to be around $100 wti.

    I do best though when improved resource recovery techniques increase total estimated ultimate recovery for a piece of ground where one of the independents has a substantial lease holding. they can then increase their proven reserves which drives their share price. When they began in the bakken, it was one well per 1280 acres. CLR is currently doing test drilling of 1280 acre sections with 30 wells. most are still trying to do 16 - 24 wells per dsu. wells cost $10M a pop so each one has to work and they still don't know how close they can get to the adjacent one without upsetting it. TPLM is at 600' on some and getting good results. That bit of information moved the needle a little bit. That spacing varies mile by mile across the horizon as the geology changes and dependent on what completion technique is being employed. The science is very young still but the advances are occurring and creating value along the way.

    I have linked three articles on TPLM if anybody is interested it is a good case study. A good recent company summary article, the 2014 earnings report, and the conference call transcript combine to give a good understanding of the small to mid cap companies that are leading the charge in some aeas. TPLM is a little bit different because they have pressure pumping (Rockpile =>fraccing), water distribution and collection infrastructure, and nat gas processing facilities and pipelines (Caliber=> midstream). The service companies (rockpile and Calibe are relatively young but highly profitable. They should be spun into separate MLP once they can document income. They will get a higher multiplier as stand alone service and midstream company than as part of vertically integrated . TPLM also has some lease holdings in Montana where others, primarily Statoil, are trying to crack the code and make a thick deep formation (Red River) economically productive. Similar to what GDP just did with Tuscaloosa Marine Shale in Louisiana, Miss border area. It is as much or more about technological advances increasing EUR's as it is about the price of oil for the companies I favor.

    http://seekingalpha.com/article/213...y-have-43-percent-upside-in-2014?v=1398173856

    [​IMG]

    http://seekingalpha.com/pr/9604433-...-for-fourth-quarter-and-full-fiscal-year-2014

    Highlights for Fiscal Year 2014 (ended January 31, 2014)

    • Increased volumes in fiscal year 2014 to 1,929 Mboe (+295% y/y, 5,286 Boepd) as compared to 488 Mboe (1,334 Boepd) in fiscal year 2013
    • Increased total estimated net proved reserves to 40,314 Mboe at fiscal year-end 2014, a 175% increase over fiscal year-end 2013 total estimated net proved reserves, with an associated increase in SEC PV-10 to approximately $678 million (+201% y/y)
    • Increased consolidated revenues in fiscal year 2014 to $258.7 million (+326% y/y) as compared to $60.7 million in fiscal year 2013
    • Increased consolidated net income in fiscal year 2014 to $73.5 million, or $1.07 basic EPS
    • The Company recognized a non-cash, pre-tax gain on its investment in Caliber Midstream Partners, L.P. ("Caliber") of approximately $39.8 million in fiscal year 2014
    http://seekingalpha.com/article/214...ses-f4q-2014-results-earnings-call-transcript

    Fiscal year 2014 production was in line with our guidance at our core E&P business, Triangle USA, with average net daily production of 5,286 barrels of oil equivalent per day, approximately 75% of which was operated. Fourth quarter fiscal year 2014 average daily production was 7,254 barrels of oil equivalent per day. We also saw a substantial reserve growth over fiscal year 2014. January 31, 2014 reserves totaled 40.3 million barrels of oil equivalent compared to 14.6 million barrels of oil equivalent one year prior. Triangle USA is currently running a four-rig drilling program. We continue to see the benefits of down spacing and the value of the vertically integrated model. As well costs dropped, we capitalized on the benefits of pad drilling and we improved completion techniques.
    Transition to cemented liners has delivered wells that are approximately 30% to 40% better than uncemented direct offsets in terms of 30-day cumulative production. Average frac designs with the slick-water tail are yielding similar to slightly improved 90-day cumulative production at a savings of $400,000 per well. We’ve reduced the amount of gel utilized on fracs by approximately 40% further cutting completion costs. We continue to reduce our drill times with latest average spud to TD times of approximately 20 days and the recent McKenzie County wells under 16 days. All of this is part of driving down AFEs and executing on our goal of being the low-cost producer on the basin. We recently set two new drilling records this past week with two wells drilled in 14 days and 12 days respectively. Industry-wide down spacing efforts continue to prove a tremendous value we and our peers see in the Williston Basin. Currently, we have seven DSUs with middle Bakken wells spaced approximately 600 feet from one another providing positive indications that eight middle Bakken wells per DSU will be needed in our core area to develop the acreage. Three Forks tests and lower Bakken dolomite exploration add to our inventory and the opportunity we see. We have lots of exciting things happening on the drilling and completion side of things, and we look forward to discussing in more detail during the Q&A.
    Last edited: Apr 24, 2014
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  18. G8trGr8t
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    another small cap with a good report today increasing proved reserves through better drilling and infill drilling. this was under $9 in Feb. Now approaching $13 as they continue to prove up new leases and improve total eur's per dsu. of that $4 increase, $3 of it was from good well results/increased reserves and maybe $1 from price of oil. makes me wish I would use margin accounts sometimes

    http://seekingalpha.com/pr/9669073-...-mid-year-proved-reserves-increase-43-percent

    PLATTEVILLE, CO -- (Marketwired) -- 04/24/14 -- Synergy Resources Corporation (SYRG), a U.S. oil and gas exploration and production company focused in the Denver-Julesburg Basin, announces that its mid-year proved reserve evaluation for the six months ending 2/28/2014 increased to 19.7mm/BOE compared to 13.8mm/BOE for the fiscal year end 8/31/2013 and the PV10 value of the proved reserves increased to $326 million from $236 million. Proved developed producing and proved developed non-producing (behind pipe) assets accounted for two thirds of the value of the reserves while the remaining third of the value is proved undeveloped reserves.
    William E. Scaff, Jr. co-CEO of Synergy commented, "The increase in our reserves is largely a result of the success of our operated horizontal drilling program with our first 11 horizontal wells being included as proved developed producing assets. Our plans call for another 20-25 horizontal wells to be included in the reserve report for our fiscal year ending August 31st , 2014. We continue to work with Ryder Scott Company, our third party reserve engineers, to account for increased density of horizontal Niobrara and Codell wells in the Wattenberg
  19. Gatorrick22
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    Gatorrick22 Well-Known Member

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    I thought it was in the 1970's.
  20. beanfield
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    beanfield Active Member

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    Oh No...The greenies would never allow that.....
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