February 13th, 2017
Officials recognized and named 13 new oil fields across Kansas during a meeting of the nomenclature committee of the Kansas Geological Society February 8. These included the Koopman North field in Barton County, and the Post Rock South field in Ellis County. The annual total of new oil and gas fields recognized in Kansas in 2016 was 44, less than half the total from the year before.
Baker Hughes reported an increase of eight oil rigs and four gas rigs for a total of 741 active drilling rigs across the U.S. last week. Canada had 352, up nine for the week. Independent Oil & Gas Service reported nine active rigs in eastern Kansas, up one, and 22 in western Kansas, down one. Drilling is expected to commence soon at one site in BartonCounty and one site in Russell County.
There were 30 new permits filed for drilling new locations across Kansas last week, that’s 144 so far this year. There were 14 new permits east of Wichita and 16 in western Kansas, including one in Barton County and two in Ellis County. There were 112 new drilling permits filed across the state for the month of January, an increase from the 74 permits filed a year ago at this time.
Independent Oil & Gas Service repoerts 23 new well completions across Kansas last week, 187 so far this year. There were 12 well completions in eastern Kansas and 11 west of Wichita, including twonew well completions in Ellis County. Monthly numbers from Independent showed 117 total completions across Kansas during January, including three in Barton County, three in Ellis County, one in Russell County and three in Stafford County.
Out of 117 total completions in Kansas in January, there were 26 dry holes reported, including one each in Barton and Russell counties.
Construction of the Dakota Access pipeline under a North Dakota reservoir has begun and the developer says the full pipeline should be operational within three months, even as a Native American tribe filed another legal challenge to block the work and protect its water supply. The Army Corps of Engineers granted Energy Transfer Partners formal permission to lay pipe under Lake Oahe, clearing the way for completion of the 1,200-mile, $3.8 billion pipeline. Workers had already drilled entry and exit holes for the crossing, and oil had been put in the pipeline leading up to the lake in anticipation of finishing the project.
For the first time in more than a year and a half, Oklahoma’s monthly state tax receipts grew in January as the state’s economy emerged from recession. State Treasurer Ken Miller credited rising oil prices and production, and said several indicators give reason for cautious optimism, including rising state GDP, rig counts, business conditions and employment. The Daily Oklahoman reports that January tax receipts grew by more than five million dollars or half a percent compared to a year earlier for the first such increase in 20 months. The state’s monthly energy production collections were up 31% to $33.1 million.
Majority-party Democrats in the Alaska House are proposing changes to the production incentives approved last year, which critics say are too expensive amid a multibillion-dollar state deficit. Minority Republicans don’t even want their names on the bill introduced on behalf of the House Resources Committee. The measure would, among other things, raise the minimum oil production tax and eliminate cash payments for future credits earned by small producers and explorers. Committee co-chair Geran Tarr told reporters the state has an overly generous system of credits and sees the bill as a starting point for discussions.
BP CEO Bob Dudley says the company’s Deepwater Horizon financial liabilities are now “substantially behind them,” and BP is fully focused on the future. The company reported fourth-quarter earnings of just over $51 billion, up 3.7% from a year earlier, but short of the consensus estimate. Dudley says his company needs oil prices of $60 per barrel in order to break even. He says they’ve adapted by cutting costs by $7 billion from 2014, increasing natural gas interests, renewing long-term low-cost oil production, and expanding retail operations.
After all the recent bankruptcies and the huge increase in demand for services, oil productrion in the Permian Basin of Texas is getting a lot more expensive. Reuters says one land deal in December priced at more than $63,000 an acre, double the price paid in similar deal earlier last year. And CNBC reports contractors are jacking up prices as drillers pile into the region. In one case, in just two months, the price for a drilling contractor for one rig jumped from $13,900 per day to more than $16,000 a day.