OPEC leaves oil output unchanged

OilPumpSaudis and their Gulf allies hope to put economic pressure on rival producers.

By George Jahn – The Associated PressNovember 28, 2014

VIENNA — Reflecting its lessening oil clout, OPEC decided Thursday to keep its output target on hold and sit out falling crude prices that likely will spiral even lower as a result.

Oil prices fell sharply on the news. Even though the decision was expected, it showed the once-powerful cartel is losing the power to push up markets to its advantage. Continue reading “OPEC leaves oil output unchanged” »

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Sonnenberg on the Greenhorn: “Its early on. Its a play of the future.”

Dr. Steve Sonnenberg at Niobrara and Well Spacing Congress, 2014

Dr. Steve Sonnenberg at Niobrara Completions and Well Spacing Congress, 2014

“Don’t forget about the Fort Hays.”  Those words were the refrain from noted Niobrara geologist and expert, Dr. Steve Sonnenberg, Professor and Charles Boettcher Distinguished Chair in Petroleum Geology at the Colorado School of Mines.

Speaking at the Niobrara Completions and Well Spacing Congress in Lakewood, Colorado on November 18, 2014, Dr Sonnenberg presented a talk titled: New Reserves in an Old Field, The Niobrara Resource Play in the Wattenberg Field, Denver Basin, Colorado. Continue reading “Sonnenberg on the Greenhorn: “Its early on. Its a play of the future.”” »

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Researchers assess emissions from Colorado oil and gas fields

Oilfield Separator - Click to Enlarge

Oilfield Separator – Click to Enlarge

By Mark Jaffe – The Denver Post – November 16, 2014

The shale drilling boom that is sweeping across the country and unlocking vast oil and gas reserves also has unleashed a wave of air pollutants. Scientific studies from research groups around the country are documenting higher emissions of volatile chemicals, including methane and air toxins, than estimated by state and federal regulators.

Scientists have been combing shale regions from Pennsylvania to Texas, Utah and Colorado, measuring leaks from tiny valves and using satellites to assay the air over entire regions. Continue reading “Researchers assess emissions from Colorado oil and gas fields” »

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Early Results from EOG Resources Niobrara Program Showing IP of 1000 BOEPD

Slide showing NIobrara Activity from November 2014 EOG Resources Investor Presentation

Slide showing NIobrara Activity from November 2014 EOG Resources Investor Presentation

EOG Resources reported on November 5th that early results from the company’s DJ basin Niobrara and Codell drilling program were on target with I.P. rates of 1000 BOEPD.  In their 3rd Qtr earnings transcript found at Seeking Alpha,  – Executive VP, Exploration and Production, Billy Helms described their results.

“In the DJ Basin, we completed our first seven-well development pattern on a multi-well pad, consisting of four Niobrara and three Codell wells. The wells were drilled with long laterals spaced at approximately 700 feet between wells in the same zone. The seven wells came on line at a combined rate in excess of 7,800 barrels of oil per day with 5.4 million cubic feet per day of rich natural gas. We have 75% working interest in these wells.

We plan to test spacing patterns in various completion tasks for the balance of the year. Early production results verify initial type curves and provide confirmation of our EUR estimates. This program is delivering consistent initial production rates of 1,000 barrels of oil per day per well. We are rapidly climbing the operational learning curve in this play and expect to achieve our well cost targets in the near-term.”

Read the full transcript at Seeking Alpha

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Special Discount on Niobrara Completions & Well Spacing Congress for Niobrara News Readers

Niobrara_Completions_Well_Spacing_Congress_Header

Niobrara News readers can now enjoy a special discount of 15% on the Niobrara Completions & Well Spacing Congress occurring on November 18-19, 2014 at the Sheraton Denver West Hotel in Lakewood, Colorado.  To receive your discount visit Niobrara Completion & Well Spacing Congress and use the code NIONEWS when registering.

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ConocoPhillips digs into Aurora drilling and fracking controversy

Picture of ConocoPhillips Drill Rig drilling in the Niobrara Play - Image Credit ConocoPhillps

Picture of ConocoPhillips Drill Rig drilling in the Niobrara Play – Image Credit ConocoPhillps

By Rachel Sapin, Staff Writer, November 6, 2014 – Aurora Sentinel

AURORA | Porscha Hicks-Plant squinted at the multiple layers of steel casing and cement that surround a drill pipe as it plunges thousands of feet below the surface.

As she started to ask a question about the display in front of her, she was interrupted by a young girl tugging impatiently at her shawl.

Hicks-Plant lives with her husband and three daughters in the Adonea subdivision near Interstate 470 and Sixth Avenue Parkway in Aurora. She attended an open house meeting at Murphy Creek Tavern hosted by ConocoPhillips in October to try to understand how a well site 1,700 feet from her neighborhood would impact the neighborhood where she’s lived for two and a half years. Continue reading “ConocoPhillips digs into Aurora drilling and fracking controversy” »

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Saudis Go Back to the Future to Take on U.S. Shale Rivals

Break-Even Thresholds for U.S. Shale Projects ($Bbl) - Image Credit:Bloomberg New Energy Finance

Break-Even Thresholds for U.S. Shale Projects ($Bbl) – Image Credit:Bloomberg New Energy Finance

Rockpick: With Niobrara Oil on average being profitable at just over $55 bbl, the Niobrara overall is still viable at current prices, however it looks like the Saudi’s are determined to demonstrate their considerable power in the marketplace to their shale oil competitors.

By Isaac Arnsdorf, Wael Mahdi and Grant Smith – Nov 4, 2014 – Bloomberg News

The Saudi oil minister’s visit to Venezuela this week is also a trip through time.

Flash back to December 1998 when Saudi Arabia looked to its fellow OPEC member for help lifting oil prices from about $10 a barrel. Continue reading “Saudis Go Back to the Future to Take on U.S. Shale Rivals” »

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Halliburton CEO Expects Shale to Reverse Oil Price Slump

Halliburton LogoBy David Wethe, November 03, 2014 – Bloomberg News

Halliburton Co. (HAL:US) Chief Executive Officer Dave Lesar is joining the chorus of oil executives who say they aren’t worried about falling oil prices, and expect them to climb next year.

“Despite what people are thinking, demand is creeping up, albeit at a lower rate than it has been,” he said. The downward pressure on prices is mostly due to an oversupply, and Lesar said that will quickly prove self-correcting, especially when it comes to U.S. shale production.

Unlike with conventional oil, shale wells peter out quickly and companies depend on constant new drilling to maintain production levels. This also makes shale more responsive to price movements. Lower prices will discourage new drilling, quickly removing the glut in crude supplies, Lesar said. Continue reading “Halliburton CEO Expects Shale to Reverse Oil Price Slump” »

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