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  • 2 weeks later...
  • 1 month later...
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Posted

A new cryogenic Nat gas plant that intends to feed ethane for industrial users will be built west of Williston.  Most existing gas plants do not have that capability unless expensive operation additions are made.

Leads one to ask what other plants will be built? 

https://www.kfyrtv.com/content/news/New-cryogenic-gas-processing-plant-70-mile-pipeline-to-be-constructed-in-Williams-County-566781741.html

This new gas plant will be one of the largest in the state.  No word on its cost.  OneOk accepts minimal ethane for its NGL pipeline.  This new plant will be a propane source.

https://www.businesswire.com/news/home/20200107005252/en/Outrigger-Energy-II-Enters-Williston-Basin-Significant

Posted
9 hours ago, SiouxVolley said:

A new cryogenic Nat gas plant that intends to feed ethane for industrial users will be built west of Williston.  Most existing gas plants do not have that capability unless expensive operation additions are made.

Leads one to ask what other plants will be built? 

https://www.kfyrtv.com/content/news/New-cryogenic-gas-processing-plant-70-mile-pipeline-to-be-constructed-in-Williams-County-566781741.html

This new gas plant will be one of the largest in the state.  No word on its cost.  OneOk accepts minimal ethane for its NGL pipeline.  This new plant will be a propane source.

https://www.businesswire.com/news/home/20200107005252/en/Outrigger-Energy-II-Enters-Williston-Basin-Significant

Sounds like the plant will deliver NGLs to Oneok and natural gas to the Northern Border. What is unclear is why they would have a cryogenic system built if they don’t intend to deliver more Ethane to either a pipeline or other industrial user. I think Oneok can ship more ethane than you think.

Posted
5 hours ago, Sioux>Bison said:

Sounds like the plant will deliver NGLs to Oneok and natural gas to the Northern Border. What is unclear is why they would have a cryogenic system built if they don’t intend to deliver more Ethane to either a pipeline or other industrial user. I think Oneok can ship more ethane than you think.

Ethane going to Texas is simply uneconomical.  The less than 20% already there can be eliminated by another cryogenic unit installed by OneOK.  Their simply isn’t anywhere that it can go except industry.  The Northern Border pipeline is running out of space for more ethane.  The Canadian flow of gas is way down so it has mostly Bakken gas now.  The NGL pipeline economics are for propane and butane as ethane has such a low price.

An answer could be get an ethane to ethene plant and send the ethene to Texas too.  Ethene is much more expensive and there are exports from Texas now too.  Ethane is so low cost it is analogous to nitrogen,

Posted
On 1/8/2020 at 3:46 PM, SiouxVolley said:

Ethane going to Texas is simply uneconomical.  The less than 20% already there can be eliminated by another cryogenic unit installed by OneOK.  Their simply isn’t anywhere that it can go except industry.  The Northern Border pipeline is running out of space for more ethane.  The Canadian flow of gas is way down so it has mostly Bakken gas now.  The NGL pipeline economics are for propane and butane as ethane has such a low price.

An answer could be get an ethane to ethene plant and send the ethene to Texas too.  Ethene is much more expensive and there are exports from Texas now too.  Ethane is so low cost it is analogous to nitrogen,

The same company has a cryogenic plant in WY and there is no local user if ethane there. Some of the ethane is separated out and shipped by Oneok with the other NGLs. They may be losing money separating out more ethane but they may not have a choice but to lose money to get rid of it if their ethane levels are too high for Northern Border. Yes having a local user would be nice for the local producers but that plant would be even farther out from being constructed than this gas plant. Whether it is short term or long term this plant will be shipping more ethane down Oneok’s NGL pipeline.

Posted
On 1/10/2020 at 8:29 AM, Sioux>Bison said:

The same company has a cryogenic plant in WY and there is no local user if ethane there. Some of the ethane is separated out and shipped by Oneok with the other NGLs. They may be losing money separating out more ethane but they may not have a choice but to lose money to get rid of it if their ethane levels are too high for Northern Border. Yes having a local user would be nice for the local producers but that plant would be even farther out from being constructed than this gas plant. Whether it is short term or long term this plant will be shipping more ethane down Oneok’s NGL pipeline.

Creating ethene (ethylene) from all the ethane is a creative solution.  Ethene does not decompose, is a much value product that ethane so OneOK would make substantial profit transporting it, and now there are ethene exporting facilities in Texas because other countries can make polyethylene cheaper from ethene than regular hydrocarbons.  Not saying it would happen, but the incentives can’t be denied.

Posted
1 hour ago, SiouxVolley said:

A plastics plant last year presented Tioga or Stanley to be possible choices.

https://bismarckstate.edu/master-news/Plasticsplantcouldbring200jobstoTioga/

  • 2 months later...
Posted

https://www.marketwatch.com/story/whiting-petroleum-files-for-bankruptcy-has-enough-liquidity-to-keep-operating-its-business-2020-04-01

Quote

Whiting Petroleum Corp. WLL, -44.421% said Wednesday that it has filed for bankruptcy, as the company concluded that given a "severe downturn" in oil and gas prices resulting from the Saudi Arabia-Russia oil price war and COVID-19-related impact on demand a financial restructuring was the "best path forward." The stock was down 12% in premarket trading toward a record low prior to a trading halt for news. The company said it has "sufficient liquidity," including $585 million in cash, to keep operating its business and to meet financial obligations during the restructuring withou the need for additional financing.

 

  • UNDBIZ changed the title to Oil Booms in North Dakota
Posted
28 minutes ago, UNDBIZ said:

Interesting how fast they fell from the major player in Bakken to bankruptcy. Can someone smarter than me explain despite having enough operating capital, they are declaring bankruptcy? Is the $585 million just enough to get them through the liquidation process?

 

FYI: https://www.bloomberg.com/news/articles/2020-04-01/whiting-executives-got-14-6-million-bonuses-before-bankruptcy?sref=5F8Ao01j

Posted
32 minutes ago, northernraider said:

Interesting how fast they fell from the major player in Bakken to bankruptcy. Can someone smarter than me explain despite having enough operating capital, they are declaring bankruptcy? Is the $585 million just enough to get them through the liquidation process?

 

FYI: https://www.bloomberg.com/news/articles/2020-04-01/whiting-executives-got-14-6-million-bonuses-before-bankruptcy?sref=5F8Ao01j

Sounds like they'll try to reorganize rather than liquidate.

From your article:

Quote

As part of the deal, the senior executives agreed to forfeit equity awards they were in line to receive this year.

And from mine:

Quote

exising stockholders to receive 3% of the new equity in the reorganized company

Nice of the senior execs to forfeit receipt of essentially worthless stock.  Unless I'm reading it wrong.

Posted
3 hours ago, northernraider said:

Interesting how fast they fell from the major player in Bakken to bankruptcy. Can someone smarter than me explain despite having enough operating capital, they are declaring bankruptcy? Is the $585 million just enough to get them through the liquidation process?

 

FYI: https://www.bloomberg.com/news/articles/2020-04-01/whiting-executives-got-14-6-million-bonuses-before-bankruptcy?sref=5F8Ao01j

Their debt load has just been so unbearable since they bought out Kodiak at noon prices right before the downturn by essentially borrowing for most of the purchase. Then during the downturn they were forced to sell their oil at huge discounted prices because of pressure from the financial and investment  community. If they would have saved their barrels and waited to pay their expensive production costs they may have been able to make it through. They just could never recover from their debt. Hopefully they make it through for the workers and their livelihoods.

Sadly Chesapeake and Oasis are also on the verge of insolvency.....

  • 2 weeks later...
Posted

Man it’s getting ugly in the patch with not much end in sight. A couple buddies already laid off and more cuts coming. This will start to trickle down to midstreams and consulting firms. Jobs once thought to be secure are no longer. Let’s pray we get the economy opened up for many of these families.

Posted
2 minutes ago, Sioux>Bison said:

Man it’s getting ugly in the patch with not much end in sight. A couple buddies already laid off and more cuts coming. This will start to trickle down to midstreams and consulting firms. Jobs once thought to be secure are no longer. Let’s pray we get the economy opened up for many of these families.

My BIL has worked for a company for 20 years. His job was to place workers on rigs according to specialty etc etc. He was just furloughed for 4 months.

Posted
38 minutes ago, bison73 said:

My BIL has worked for a company for 20 years. His job was to place workers on rigs according to specialty etc etc. He was just furloughed for 4 months

A relative was just reduced to part time for four months.  He still needs to show up but the time is reduced by half.  The company that is still profitable because of foreign Nat gas holdings and smart hedging.

 

Posted
8 minutes ago, Vegas_Sioux said:

West Texas Intermediate has trading halted today. With a price between 1.03 and 1.38 per barrel. 

Canadian crude is paying the buyer 15 cents/barrel(I assume CDN) to take it off their hands.

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