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WSJ: Oil Booms in North Dakota

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Here’s a series of articles about how the ethane molecule has changed the economics of the Houston area and is suppporting the whole new emerging middle class billions of Asia.  Shale oil and gas and revolutionized plastic production, as petroleum byproducts are not used such as naphtha as much as before as they aren’t economical.  If a natural disaster ever hit Houston on a worse scale than the rains of the last hurricane, the world economy would go in a tailspin.  It makes sense for a larger producer to make ethylene and even polyethylene at an inland location so their supplies don’t get totally disrupted so badly.  Qatar and Australia have some ethane resources, but shale gas from NA is a prime source.

https://www.houstonchronicle.com/business/energy/article/Free-ethane-molecules-make-journey-from-Texas-13225122.php

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15 hours ago, SiouxVolley said:

The Dickinson refinery with MDU as a part owner was doomed to failure because MDU knows nothing about competing with firms that are adept at competing.  MDU had Bakken mineral rights and effectively sold them off for a pittance because their management is so used to government oversight and their not trained in the free market like most refining and oil companies companies.  Owning any refining or any non utility with MDU is like having an anchor tied to a sailing ship that must maneuver fast.  MDU studies actions but rarely takes them quickly with confidence..  Most firms that compete in the Bakken are renown for reacting quickly, which is the opposite of MDU’s executive actions.

The new Meridian Refinery near Belfield just signed with a Midstream company to help manage logistics.

https://www.willistonherald.com/news/meridian-acquires-midstream-partner-for-davis-refinery-in-north-dakota/article_8d83bef6-3c03-11e9-9cae-abb809b47f94.html

Sure is strange the midstream company they are partnering with doesn’t want to be publicly identified. This is very unusual because when big projects or partnerships are signed they want the media to report about it to look good in front of the investors. They must also have some doubts to whether this refinery will actually be built.

I don’t think Calumet or MDU wanted to sink anymore money into the unprofitable Dickinson refinery. They had the opportunity to spend more money to make the refinery more efficient, but decided to just cut their loses and sell out. 

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The US is now becoming a world leader in natural gas exports, thanks to the shale fields.  The Marcellus and Utica fields mostly produce gas.  This spring saw the lowest amount of stored natural (in caverns and caves) gas in some decades as there is now enormous amounts of gas that cryogenicallly cooled to make liquid methane (LNG) for export.  Of course the production rate is at a record high.  More of these export plants, which are hugely expensive, are going up in coastal cities.

https://www.fool.com/investing/2019/02/23/heres-why-2019-will-be-a-big-year-for-american-lng.aspx

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Hess Midstream:is expanding its Tioga plant to the tune of $150 mill, which will now be by far the largest in state.

https://www.businesswire.com/news/home/20190425005167/en/Hess-Midstream-Partners-Announces-Plan-Expand-Natural

Hess and OneOk are in a battle for the most nat gas processing capacity,, but since OneOK takes the  C3 and higher liquids (y-grade) out of state for further processing, Hess brings a lot more value to the ND economy.

OneOK just announced another $100 mill pipeline to take NGL out of state that will almost directly compete with Hess’s Tioga plant.

https://www.tulsaworld.com/business/oneok-to-construct-million-pipeline-in-north-dakota/article_c4f5ccfe-3f58-5b65-9c68-a8fd33fb1059.html

 

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On 4/25/2019 at 11:33 PM, SiouxVolley said:

Hess Midstream:is expanding its Tioga plant to the tune of $150 mill, which will now be by far the largest in state.

https://www.businesswire.com/news/home/20190425005167/en/Hess-Midstream-Partners-Announces-Plan-Expand-Natural

Hess and OneOk are in a battle for the most nat gas processing capacity,, but since OneOK takes the  C3 and higher liquids (y-grade) out of state for further processing, Hess brings a lot more value to the ND economy.

OneOK just announced another $100 mill pipeline to take NGL out of state that will almost directly compete with Hess’s Tioga plant.

https://www.tulsaworld.com/business/oneok-to-construct-million-pipeline-in-north-dakota/article_c4f5ccfe-3f58-5b65-9c68-a8fd33fb1059.html

 

I still don’t see any big plastics plants being proposed in ND. You finally giving up on that claim? NGL’s will be shipped out of the state and that’s it.

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7 hours ago, Sioux>Bison said:

I still don’t see any big plastics plants being proposed in ND. You finally giving up on that claim? NGL’s will be shipped out of the state and that’s it.

Ethane pipelines aren't economical for long distanes as the liquid boils at -270 F. 

The cracker built in Pittsburgh took nearly eight years of planning to get everything in order.  Some people don't have anywhere near that patience,

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5 hours ago, Blackheart said:

Awesome!  So the price of gasoline will go down?;)

Only if you live near a refinery.......like in Bis-Man. :huh:

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9 hours ago, Oxbow6 said:

Only if you live near a refinery.......like in Bis-Man. :huh:

:(:sad:???:crazy::sneaky::devil:

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3 hours ago, Nodak78 said:

Not expecting anything tomorrow, but three to four years is possible.

Hess still has a contract to sell ethane to Alberta for a couple more years and convert that pipeline into propane or reverse it for ethane,

The OneOK plants would need to put in ethane condensers and then build a combined ethane concentrator plant.  They don’t have to work together, as either one could provide feedstock.  

Both would take years.

 

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On 5/7/2019 at 6:52 PM, SiouxVolley said:

Not expecting anything tomorrow, but three to four years is possible.

Hess still has a contract to sell ethane to Alberta for a couple more years and convert that pipeline into propane or reverse it for ethane,

The OneOK plants would need to put in ethane condensers and then build a combined ethane concentrator plant.  They don’t have to work together, as either one could provide feedstock.  

Both would take years.

 

I doubt the ethane pipeline will reverse flow or switch to propane without any major changes in the plastics plants in Edmonton. They need to get their feedstock from some where. As a producer I’d ship to reliable purchaser that I can count on.

the plastics complex is still far fetched in my opinion as non of the big players have any interest in building a plant in ND. You know how desperate the legislature is when they throw around tax incentives like they just passed. As a resident of ND I don’t want a no name company building a plastics plant in ND because if it fails there will be no one left to clean up the mess or even pay for it. If a plastics plant was such a good investment then it would already be built. What would we do with raw plastics in ND? Ship it by rail across the country? To me that sounds like an expensive proposition. The reason a urea fertilizer plant was built in ND is because the economics worked out where the cheap natural gas was available locally and the product produced is consumed locally. The logistics play a big part in plant economics. For the record I’m also still skeptical about this new refinery getting built that is supposed to be economical.

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1 hour ago, Sioux>Bison said:

I doubt the ethane pipeline will reverse flow or switch to propane without any major changes in the plastics plants in Edmonton. They need to get their feedstock from some where. As a producer I’d ship to reliable purchaser that I can count on.

the plastics complex is still far fetched in my opinion as non of the big players have any interest in building a plant in ND. You know how desperate the legislature is when they throw around tax incentives like they just passed. As a resident of ND I don’t want a no name company building a plastics plant in ND because if it fails there will be no one left to clean up the mess or even pay for it. If a plastics plant was such a good investment then it would already be built. What would we do with raw plastics in ND? Ship it by rail across the country? To me that sounds like an expensive proposition. The reason a urea fertilizer plant was built in ND is because the economics worked out where the cheap natural gas was available locally and the product produced is consumed locally. The logistics play a big part in plant economics. For the record I’m also still skeptical about this new refinery getting built that is supposed to be economical.

You are so clueless purposely, without thought..  Alberta is increasing its nat gas production, which increases its NGLs, which means there isn’t so much demand ethane outsourced from the Bakken.  Propane is more limited now, and they have a propane cracker coming on line.

https://www.centellect.com/alberta-to-award-4-5-petrochemical-projects-in-coming-weeks/

The one thing that ND has above every other other site is cheap ethane, as it has mostly to be burned like methane..  Texas doesn’t as several plants compete for it and the Ohio Valley soon will.  Whether cheap ethane is enough of a driver remains to be seen,

 

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The results should be in tonight if Williams County District 8 is building new schools, including a HS.  Williston City District (District 1) turned down school buildings last month, so space is already at a minimum with Williston City saying there weren’t offfering #8 space in their HS anymore.

https://www.kxnet.com/news/minot-news/school-bond-vote-is-tuesday-for-district-8/1999619028

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17 minutes ago, SiouxVolley said:

The results should be in tonight if Williams County District 8 is building new schools, including a HS.  Williston City District (District 1) turned down school buildings last month, so space is already at a minimum with Williston City saying there weren’t offfering #8 space in their HS anymore.

https://www.kxnet.com/news/minot-news/school-bond-vote-is-tuesday-for-district-8/1999619028

Had a couple teams from Williston play in our 30 and over tourney here in Jamestown a couple weeks ago. Sounds like they are building a new main rink that will seat over 2000 and 2 other rinks attached to main one 

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1 hour ago, SiouxVolley said:

The results should be in tonight if Williams County District 8 is building new schools, including a HS.  Williston City District (District 1) turned down school buildings last month, so space is already at a minimum with Williston City saying there weren’t offfering #8 space in their HS anymore.

https://www.kxnet.com/news/minot-news/school-bond-vote-is-tuesday-for-district-8/1999619028

District 8 rejected new taxes to build three new schools. Only 46% voted for it and 60% is needed.  Both District #1 and #8 seem to want the state to step in and build the schools out of the trust funds, not them.

https://www.willistonherald.com/freeaccess/voters-reject-plan-for-new-schools-in-district/article_12145ff6-76b3-11e9-921f-b3ab3aff8222.html

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https://www.willistonherald.com/news/oil_and_energy/north-dakota-s-first-suitor-for-plastics-plant-files-for/article_e30e8810-7687-11e9-bcf9-6fcbb018e54a.html

this is why I am skeptical about no name companies proposing plastics plants in ND. Sounds like the current company proposing on has their ducks in a row better, but there are still some big hurdles to come. They might start with building an ethylene plant but what are they going to do with the ethylene in ND? Ship it out on rail costing $$$$$? I think the best way to deal with this ethane and other NGLs is to ship them out on NGL pipelines. Other big hurdles is where are they going to find a trained workforce? They have cheap ethane and natural gas as inputs, but where/ how are the products going to go to market. Plastics plants are dirty operations so I hope the state doesn’t get us into an ecological disaster.

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1 hour ago, Sioux>Bison said:

https://www.willistonherald.com/news/oil_and_energy/north-dakota-s-first-suitor-for-plastics-plant-files-for/article_e30e8810-7687-11e9-bcf9-6fcbb018e54a.html

this is why I am skeptical about no name companies proposing plastics plants in ND. Sounds like the current company proposing on has their ducks in a row better, but there are still some big hurdles to come. They might start with building an ethylene plant but what are they going to do with the ethylene in ND? Ship it out on rail costing $$$$$? I think the best way to deal with this ethane and other NGLs is to ship them out on NGL pipelines. Other big hurdles is where are they going to find a trained workforce? They have cheap ethane and natural gas as inputs, but where/ how are the products going to go to market. Plastics plants are dirty operations so I hope the state doesn’t get us into an ecological disaster.

I see opportunities.

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Ray passed a 10 million $ school addition yesterday, for was 92 % while Williston district 8 went down

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