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WSJ: Oil Booms in North Dakota

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19 hours ago, SiouxVolley said:

Midland and Odessa each had about 1000 people before the Permian Basin oil was discovered.  The shale drilling gave it new life as reserves are now almost t h e largest in the world.

You are taking over a half century ago, big difference in the booms today. The Permian play will always be much bigger than the Bakken. Williston will never grow to the size of Midland or Odessa. Never going to happen...... You lose more credibility every time you open your mouth.

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On 6/8/2019 at 11:10 PM, SiouxVolley said:

McKenzie County is huge and the largest oil producer in that US and the oil prolific zone extends beyond Killdeer in Dunn County.  Too bad if you have a problem with facts.  Nat gas plants have been built near there.

Killdeer is only 30 miles from Dickinson.  If they really started to grow, I think that would benefit Dickinson's market more than Williston's.

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On 5/16/2019 at 12:33 PM, SiouxVolley said:

You have flunked Y-grade NGL science.  OneOK’s Y-grade NGL’s from the Bakken don’t have appreciable ethane in them because OneOK doesn’t have cryogenic units in their natural gas plants  to get cold enough to remove ethane.  Ethane must see below -127 F before it separates out as a liquid..  Hess does have cryogenic units.  OneOk nat gas plants in Texas and Oklahoma have those units so it’s a different Y-grade.

You are simply not worth the time to talk about it because you simply don’t know enough.

But pretend that you’re an expert here.  I’m not even in the industry, but have followed OneOK and Hess and Targa  for investment reasons.

Since you are not an expert maybe you should quit spreading fake news on this site. You have no facts and only speculation.

The Oneok Bakken NGL pipeline moves 30,000 bbl of ethane per day out of the total capacity of 140,000bbl/day. This is without cryogenic processing which is needed to take out ALL of the ethane. The rest of the ethane is rejected into natural gas. The new Oneok pipeline will add 240,000bbl/day of NGL capacity so that will be another big outlet for ethane. I think Bakken Midstream and Oneok will be in competition to where the NGL is shipped from/in ND.

If you don’t believe me call up the Oneok Public relations and you can hear it first hand for yourself!

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5 hours ago, NeutralObserver said:

Killdeer is only 30 miles from Dickinson.  If they really started to grow, I think that would benefit Dickinson's market more than Williston's.

Does Killdeer High School stay Class B or make the jump to D1?

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11 hours ago, Sioux>Bison said:

You are taking over a half century ago, big difference in the booms today. The Permian play will always be much bigger than the Bakken. Williston will never grow to the size of Midland or Odessa. Never going to happen...... You lose more credibility every time you open your mouth.

The Bakken is just in the early innings.  3 million barrels / day is predicted over time and that just as much as all of Canada.  The average drilling time has gone down dramtically from like three months to like under 20 days, so the rig numbers don’t need to be so many and much less help is needed that in 2010.

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7 hours ago, NeutralObserver said:

Killdeer is only 30 miles from Dickinson.  If they really started to grow, I think that would benefit Dickinson's market more than Williston's.

Killdeer doesn’t have a rail line as their line from Zap was abandoned.  The Dickinson area is a major rail port for the SE Bakken and for people that don’t want to live in Killdeer, and Starke and Billings County have low intensity Bakken Wells.  The approximate center of high Bakken activity is like Keene, Johnson’s Corner or even Mandaree, so their isn’t railroads or even a county seat near it.

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5 hours ago, Sioux>Bison said:

Since you are not an expert maybe you should quit spreading fake news on this site. You have no facts and only speculation.

The Oneok Bakken NGL pipeline moves 30,000 bbl of ethane per day out of the total capacity of 140,000bbl/day. This is without cryogenic processing which is needed to take out ALL of the ethane. The rest of the ethane is rejected into natural gas. The new Oneok pipeline will add 240,000bbl/day of NGL capacity so that will be another big outlet for ethane. I think Bakken Midstream and Oneok will be in competition to where the NGL is shipped from/in ND.

If you don’t believe me call up the Oneok Public relations and you can hear it first hand for yourself!

Hope you realize the including the full volume of ethane in OneOk’s pipeline would increase the volume by up to 10 times.  As one goes higher in the NGL carbon chain, the order the constituents decreases by almost 10 times.  That’s why methane is so overwhelming even to ethane in the original gas stream.

OneOK removes the mainly the propane, butane and pentane because they are so much more valuable than ethane.  Ideally, ethane needs a user in the Bakken because the transport cost is daunting.  Even the pipeline developer that built the ethane line from Tioga to Alberta sold it soon after it started.

For being an oil person, next to no knowledge of nat gas liquids. You went on and on that I was wrong for saying a plastics plant could be placed in the Bakken, and then a major Alberta developer agrees with me.  If OneOk had a true nat gas separation finishing system in ND, there wouldn’t be any ethane in that pipeline.

 

 

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18 hours ago, SiouxVolley said:

Hope you realize the including the full volume of ethane in OneOk’s pipeline would increase the volume by up to 10 times.  As one goes higher in the NGL carbon chain, the order the constituents decreases by almost 10 times.  That’s why methane is so overwhelming even to ethane in the original gas stream.

OneOK removes the mainly the propane, butane and pentane because they are so much more valuable than ethane.  Ideally, ethane needs a user in the Bakken because the transport cost is daunting.  Even the pipeline developer that built the ethane line from Tioga to Alberta sold it soon after it started.

For being an oil person, next to no knowledge of nat gas liquids. You went on and on that I was wrong for saying a plastics plant could be placed in the Bakken, and then a major Alberta developer agrees with me.  If OneOk had a true nat gas separation finishing system in ND, there wouldn’t be any ethane in that pipeline.

 

 

I never said we should separate all the ethane and ship it out as y grade on Oneok pipelines. You ademately said that ZERO ethane was being shipped out on Oneok pipelines which is completely false. Pipeline are the only solution needed to take care of the ethane abundance in ND. It can be rejected or  shipped out as a dense gas on Alliance which are both economical ways to transport ethane out of the state. Yes we could build a plastics plant in ND to utilize the ethane, but it is not necessary critical to the oil and gas industry to operate.

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18 hours ago, SiouxVolley said:

The Bakken is just in the early innings.  3 million barrels / day is predicted over time and that just as much as all of Canada.  The average drilling time has gone down dramtically from like three months to like under 20 days, so the rig numbers don’t need to be so many and much less help is needed that in 2010.

For those exact reasons Williston will never boom to the size of Fargo. To get to 3 million it won’t take double the work force of what we have now at 1.4 million. That top projection may never be achieved at the slow drilling pace we are at now.

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On 6/11/2019 at 11:48 AM, Sioux>Bison said:

I never said we should separate all the ethane and ship it out as y grade on Oneok pipelines. You ademately said that ZERO ethane was being shipped out on Oneok pipelines which is completely false. Pipeline are the only solution needed to take care of the ethane abundance in ND. It can be rejected or  shipped out as a dense gas on Alliance which are both economical ways to transport ethane out of the state. Yes we could build a plastics plant in ND to utilize the ethane, but it is not necessary critical to the oil and gas industry to operate.

Reminds me of eighth grade when the smart aleck kids that flunked a test would lecture everyone else about the “truth”.

But another $1.6 billion oil pipeline is proposed to run from the Bakken to Oklahoma.  Guess the Bakken will continue to grow.

https://spectrumlocalnews.com/nc/charlotte/ap-top-news/2019/06/11/16b-pipeline-proposed-to-move-north-dakota-crude-oil

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4 hours ago, SiouxVolley said:

Reminds me of eighth grade when the smart aleck kids that flunked a test would lecture everyone else about the “truth”.

But another $1.6 billion oil pipeline is proposed to run from the Bakken to Oklahoma.  Guess the Bakken will continue to grow.

https://spectrumlocalnews.com/nc/charlotte/ap-top-news/2019/06/11/16b-pipeline-proposed-to-move-north-dakota-crude-oil

It’s worth noting that it will only be moving 180,000bbl per day from the Bakken so it still isn’t enough to replace all of the oil volumes moving out on rail. There are some projections that the state will have a tough time going over 2 million bbl per day especially if the producers are going to try to make flaring targets. Producers are not flaring because of ethane which is a falsehood Bakken Midstream is pushing.

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2 million barrels a day could be reach in a few short years.  But probably not because of the price of oil.  ND has about a 1000 wells drilled but not producing because of the low price.  For producers to reach flaring targets, more gas plants need to come online and more pipeline to capture gas from wells and move to the plants.   

The plastic development is needed along with the infrastructure of gas plants and wellsite pipeline to reach ND 2 million barrels and flare targets.   When this is accomplished it will be a big pay day for ND.  

 

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1 hour ago, Nodak78 said:

This editorial in the Minot Daily News sums up what is going on in the oil and gas industry in ND.  The develop of plastic, fertilizer, etc from gas will be the next wealth and revenue for ND.  

https://www.minotdailynews.com/opinion/editorials/2019/06/waiting-for-return-of-oil-and-gas-makes-little-economic-sense/

 

I think ND is maxed out on fertilizer plants after Basin Electric built their urea plant in Beulah. There is only so much available demand in the region to warrant building these plants locally. CHS canceled their plant in Spiritwood because it was not going to be economical without a affordable source of water. They decided to invest in CF industries instead to supply their dry fertilizer distribution plants. Northern Plains Nitrogen in grand forks also seems dead in the water since they haven’t been able to secure enough funding. Urea plants were a great idea for ND since we have cheap gas available locally and the product produced would be consumed locally. Unfortunately there is only so much demand locally for urea. The logistics like this are critical to plant profitability.

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26 minutes ago, Sioux>Bison said:

I think ND is maxed out on fertilizer plants after Basin Electric built their urea plant in Beulah. There is only so much available demand in the region to warrant building these plants locally. CHS canceled their plant in Spiritwood because it was not going to be economical without a affordable source of water. They decided to invest in CF industries instead to supply their dry fertilizer distribution plants. Northern Plains Nitrogen in grand forks also seems dead in the water since they haven’t been able to secure enough funding. Urea plants were a great idea for ND since we have cheap gas available locally and the product produced would be consumed locally. Unfortunately there is only so much demand locally for urea. The logistics like this are critical to plant profitability.

That is probably true.  I just heard it was suggested.  The plastic is on a huge growth spurt and the pellets could be shipped to Asia through the west coast.  I'm guessing the Columbia gorge route most economical.

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21 minutes ago, Nodak78 said:

That is probably true.  I just heard it was suggested.  The plastic is on a huge growth spurt and the pellets could be shipped to Asia through the west coast.  I'm guessing the Columbia gorge route most economical.

That’s the big question I have. Will it be economical to rail the plastic pellets to the coasts or possibly a domestic consumer in the USA? Will the plant be big enough to take advantage of the world scale efficiencies? They will need to compete with the big plants in the gulf and around the world. Will cheap ethane be enough to make it over the economic hurdle? Time will tell.

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Time will tell.  I'm thinking the long game.  Production closer for sure but develop markets overseas.  I'm think potential investor in the plant could be also customers overseas.  South Korea might be a place to work. 

Our closest competitor will be plants from Canada.

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On 6/18/2019 at 8:05 AM, Sioux>Bison said:

I think ND is maxed out on fertilizer plants after Basin Electric built their urea plant in Beulah. There is only so much available demand in the region to warrant building these plants locally. CHS canceled their plant in Spiritwood because it was not going to be economical without a affordable source of water. They decided to invest in CF industries instead to supply their dry fertilizer distribution plants. Northern Plains Nitrogen in grand forks also seems dead in the water since they haven’t been able to secure enough funding. Urea plants were a great idea for ND since we have cheap gas available locally and the product produced would be consumed locally. Unfortunately there is only so much demand locally for urea. The logistics like this are critical to plant profitability.

It may be that there is a cheaper method to get Nitrogen converted to ammonia than burning to form Nitrous oxides.  People may be researching that, like at EERC.  Sioux City has an huge ammonia plant, and a Grand Forks could supply a huge area independently.   Basin Electric just provides a pittance of regional needs.

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15 minutes ago, SiouxVolley said:

It may be that there is a cheaper method to get Nitrogen converted to ammonia than burning to form Nitrous oxides.  People may be researching that, like at EERC.  Sioux City has an huge ammonia plant, and a Grand Forks could supply a huge area independently.   Basin Electric just provides a pittance of regional needs.

Darn nitrous oxides or whatever 

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