Halliburton Reports That Increased Frac Volumes from Niobrara Well Design Activities are Creating Logistical Bottlenecks

Halliburton LogoAt Barclays CEO Energy-Power Conference held on September 2, 2014, Halliburton’s management reported that the service company was experiencing increased frac volumes due to the intensity of Niobrara and Bakken well design enhancements.

The increased frac volumes had the effect of soaking up excess fracking crew capacity, as well as presenting logistical challenges in delivering enough frac sand to sites with the existing rail infrastructure.  Halliburton’s slides from the conference implied that well redesign had increased frac sand consumption from 20 rail cars to 75 rail cars per well in the Niobrara and Bakken plays.

Sand Sorting Tower

Sand Sorting Tower

In order to address the rail infrastructure challenges, the company said that is was “expanding our transloading facility” to address “bottlenecks in rail going into the Bakken and Niobrara.”

Management explained that they have added about 25 to 30 new trucking companies that they are working with to better move supplies from the transloading facilities to the wellhead itself.

Management is “very excited about North America. Things are going very, very well. And we continue to hold to our projections about what’s happening on the revenue front, and from the profitability front as well, when we look at on an overall basis.”

Frac Fact: 1 Railcar can carry 100 Metric Tons of frac sandSource RBN Energy

Read the full transcript of Halliburton Management’s transcript from the Barclays CEO Energy-Power Conference at Seeking Alpha

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Colorado fracking ban scorecard: 3 ruled illegal, 2 remain

Hydraulic Fracturing Illustration - Idealized

Hydraulic Fracturing Illustration – Idealized

 – Reporter-Denver Business Journal -August 29, 2014

Three out of five Front Range cities’ bans on hydraulic fracturing in the last few years have been struck down by district court judges in recent weeks, and two others still stand.

Both Boulder and Broomfield still have fracking bans in place.

The city of Lafayette’s ban, which was approved by voters in November 2013, was struck down Thursday by Boulder District Court Judge D.D. Mallard.

She’s the same judge that in late July who ruled the city of Longmont’s ban on fracking, approved by voters in 2012, also violated state law. Continue reading “Colorado fracking ban scorecard: 3 ruled illegal, 2 remain” »

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Synergy Resources Offers Strong Production Growth And Drilling Upside

Synergy_Resources_Corporation_LogoStephen Simpson, CFA Kratisto Investing – Seeking Alpha – Aug. 25, 2014

Summary

  • Synergy continues to generate solid IPs from wells in its core Wattenberg acreage targeting the Niobrara and Codell formations.
  • The company is about to start testing its acreage in the Wattenberg extension and may start drilling test wells in its Nebraska acreage as well.
  • PDC Energy and Bonanza Creek are likely less risky than Synergy, but Synergy still has considerable risked value that can be unlocked through its drilling program.

Wattenberg operators have done pretty well this year, and results from the Niobrara and Codell formations continue to support solid IRRs on these wells. Since I wrote about Synergy Resources (NYSEMKT:SYRG) in late January, the shares are up about Continue reading “Synergy Resources Offers Strong Production Growth And Drilling Upside” »

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Big Colorado landowners have traction in negotiating oil, gas siting

DJ Basin Oil Drilling Rig - Image Credit - Encana Inc.

DJ Basin Oil Drilling Rig – Image Credit – Encana Inc.

By Mark Jaffe – The Denver Post – Aug 24, 2014

It was a clash between suburbanites and an oil and gas company. Why, the homeowners wanted to know, couldn’t the driller’s planned wells be located farther from homes? The answer, offered by Calgary-based Encana Corp. at the Aug. 12 Erie town board meeting, was that the wells were located where the property owner wanted them. As oil and gas drilling on the Front Range has moved closer to development and homes, there has been a clash over competing uses of the land.

Gov. John Hickenlooper is set to name a 20-person commission to recommend to the legislature ways to “minimize land-use conflicts.”

But large landowners who own their mineral rights, as well as small landowners who own their rights and band together, already have some clout in dealing with oil and gas operators. Continue reading “Big Colorado landowners have traction in negotiating oil, gas siting” »

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Lakewood company working to capture flared natural gas at oil well sites

Oilfield Separator - Click to Enlarge

Oilfield Separator – Click to Enlarge

By Austin Briggs – YourHub Reporter – August 25, 2014

LAKEWOOD — A Lakewood company has found a way to capture a byproduct of the booming energy economy — natural gas flared at remote oil well sites.

Robert Zubrin, the founder and president of Lakewood-based Pioneer Energy, has guided a team in designing the Mobile Alkane Gas Separator. The unit captures the waste byproduct of drilling with hopes of putting a dent in the 270-290 million tons of CO2 emissions produced worldwide every year from gas flaring while also turning a profit. Continue reading “Lakewood company working to capture flared natural gas at oil well sites” »

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Niobrara and Codell Drilling Interest Spikes in Colorado’s Adams County

Colorado Oil and Gas Commission

Colorado Oil and Gas Commission

According to the September 2014 docket of the Colorado Oil and Gas Conservation Commission (COGCC) there are petitions to approve spacing units to drill up to 24 Niobrara and/or Codell wells in 640 and 1280 acre spacing units.  The companies petitioning for new spacing orders are Ward Petroleum Corporation and ConocoPhillips Company.

Slide showing Niobrara Land position from Conoco Phillips Feb 2013 Analyst Presentation – Click to Enlarge

Slide showing Niobrara Land position from Conoco Phillips Feb 2013 Analyst Presentation – Click to Enlarge

ConocoPhillips’s purchase of leases on the Lowry Bombing Range from the Colorado State Land Board is among some of highest prices ever paid for leases in the Niobrara Play.  Since the purchase of leases, ConocoPhillps has been conducting a meticulous  exploratory drill program operating one to two drilling rigs to determine the best way to drill the sweet spot they have identified.  The true potential of Conoco’s drill results have remained elusive to date, even with their required production reporting to the COGCC.

Ward_Petroluem_Corporation_LogoThe other activity in Adams county comes from Ward Petroleum Corporation (listed as one of the top 100 fastest growing American companies by Inc. magazine) which has recently entered this section of the Niobrara Play with requests for spacing orders to drill up to 12 wells in the Niobrara and Codell formations.

While most of the Niobrara drilling activity to date has been centered in the Wattenberg Field to the north, the petition for new orders to drill outside the Wattenberg in Adams County, is proof that the Niobrara Play has great potential outside of the Wattenberg Field.

Click here to view the September 2014 COGCC docket

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Refracking brings ‘vintage’ oil and gas wells to life

Horizontal Drilling Rig in Weld County Colorado - Credit Niobrara News

Horizontal Drilling Rig in Weld County Colorado – Credit Niobrara News

By Anna Driver and Ernest Scheyder – Reuters – Wed Aug 20, 2014

NORTH DAKOTA Aug 20 (Reuters) – A fracking boom isn’t enough for U.S. oil and gas producers – they’re now starting the re-fracking boom.

Wells sunk as little as three years ago are being fracked again, the latest innovation in the technology-driven shale oil revolution. Hydraulic fracturing, which has upended global energy markets by lifting U.S. crude oil output to a 25-year high, has been troubled by quick declines in oil and gas output.

The development highlights how producers must constantly invest and tinker, both to raise overall oil recovery rates that can be as low as 5 percent and to limit steep drops in production suffered by wells drilled into tight oil deposits. (Related: See Decline Curves of the Niobrara) Continue reading “Refracking brings ‘vintage’ oil and gas wells to life” »

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Petroleum Engineers are Tops in Geosciences Compensation

AGI Median Geosciences Salaries 2013 - Source: American Geosciences Institute

AGI Median Geosciences Salaries 2013 – Source: American Geosciences Institute

According to a survey from the American Geosciences Institute (AGI), Petroleum Engineers receive the highest median salary 0f $132K when compared to all other geoscience related disciplines.  For comparison, the median of all other professions was $35K.  Coming in at a close second were Engineering and Natural Science Managers at $128K and $117K respectively.

Download the AGI Geosciences Salary report

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