Sunday, August 31, 2014

ND Bakken Oil Production, Jan 2013-June 2014

by David Rachovich

Bakken* Monthly Oil Production January 2013-June 2014

Year
Month
Production (barrels per day)

Number of Producing Wells

Daily Production per Well
2013
Jan.
674,531
5,166
131
Feb.
717,071
5,318
135
Mar.
722,141
5,470
132
Apr.
727,467
5,621
129
.
May
746,635
5,738
130
June
759,236
5,899
129
July
810,031
6,108
133
Aug.
847,752
6,308
134
.
Sept.
869,334
6,455
135
Oct.
880,275
6,656
132
Nov.
912,942
6,790
134
Dec.
867,939
6,838
127
2014
Jan.
874,488
6,942
126
Feb.
889,977
7,061
126
Mar.
913,127
7,247
126
Apr.
938,033
7,467
126
May
975,190
7,685
127
June
1,028,352
7,870
131

*Including Bakken, Spanish, Three Forks, and Bakken/Three Forks Pools.
Source: North Dakota, North Dakota State Government, Department of Mineral Resources, North Dakota Drilling and Production Statistics, Historical monthly Bakken oil production statistics, August 12, 2014


U.S. crude exports to Canada see significant increases

by Patrick C. Miller, The Bakken Magazine, August 27, 2014 via API SmartBrief

The export of United States crude to Canada has skyrocketed in recent years, thanks to dramatic increases in the production of sweet, light crude from the Bakken [please see remarks below -- D.R.] and other shale plays in the U.S. [...]

Presidential approval is usually required to export U.S. crude—except for Canada as long as it’s used within the country. The small volumes of crude exported to Canada over the years have increased dramatically from 32 (thousand barrels per day) in December 2010 to 350 MBPD in June 2014 [my emhasis - D.R.].

According to the TM&C report, “The U.S. has passed OPEC (Organization of Petroleum Exporting Countries) member Ecuador in total crude exports (which averaged 272 MBPD in 2013) and have become the principal feedstock for Canada’s Atlantic Coast refineries.”

U.S. crude imports over the past several years have declined while domestic production rose. U.S. production has increased from 5 million barrels per day (MMBPD) a few years ago to 8.5 MMBPD and continues to increase.

“This growth has been an important ‘relief valve’ for U.S. producers as the ability of domestic refiners to absorb more light barrels approaches its limits, and exports to other countries are restricted,” the report said.

Despite this, the U.S. continues to import significant volumes of light and medium quality crude from Canada.

“Infrastructure limitations, regulations (export policy, Jones Act, etc.) and differing regional refinery capabilities all influence these movements. [...]

Factors outlined in the report that could impact the trend of increased crude exports to Canada in the coming months include:

* The reversal of Enbridge’s Line 9, which transports imported crude west from Montreal to Sarnia in southwestern Ontario. This flow is being reversed to give the eastern Canadian refineries access to western Canadian crudes, potentially cutting into U.S. crude exports.

* Increasing Canadian production combined with the U.S. lack of approval for TransCanada’s Keystone XL pipeline and Enbridge’s Alberta Clipper expansion has made producers more desperate to find a market for their crude.

* Price disparities caused by increased U.S. crude production and restricted exports could enable Canada to use Montreal as a hub for the exchange of heavy crude for light. Using cheaper, foreign flagged transport vessels, Canada could ship heavy oil sand crude to the U.S. Gulf Coast and have them return with light, sweet crudes.

The report concludes: “As North America continues toward energy independence, a reshuffling of crude flows will take place to balance crude qualities with refinery demands. The increase in U.S. production will continue to flow north as long as the economics drive it in that direction. With the pending reversal of Line 9, there will be a shift in those economics, although the impact is yet unknown.” [Read full story]

(Bakken oil production -- including Bakken, Spanish, Three Forks and Bakken/Three Forks Pools -- increased from 273,809 barrels a day in December 2010 to 1,028,352 barrels a day in June 2014 - D.R.)   

Thursday, December 26, 2013

World's Top 23 Proven Oil Reserves Holders, Jan 1, 2014 -- OGJ

by David Rachovich
Estimated Proved Oil" Reserves 2011-2014
Rank
Country
Proved reserves
(billion barrels), Jan 1, 2014
Proved reserves
(billion barrels), Jan 1, 2013
Proved reserves (billion  barrels), Jan 1, 2012
Proved reserves
(billion barrels), Jan 1, 2011
Share of total, Jan 1, 2014
1.
Venezuela^
297.7
297.6
211.2
211.2
18.1%
2.
Saudi Arabia*^
265.9
265.4
264.5
260.1
16.2%
3.
Canada
173.2
173.1
173.6
175.2
10.5%
4.
Iran^
157.3
154.6
151.2
137.0
9.6%
5.
Iraq^
140.3
141.4
143.1
115.0
8.5%
6.
Kuwait*^
101.5
101.5
101.5
101.5
6.2%
7.
United Arab Emirates^~
97.8
97.8
97.8
97.8
5.9%
8.
Russia
80.0
80.0
60.0
60.0
4.9%
9.
Libya^
48.5
48.0
47.1
46.4
2.9%
10.
Nigeria^
37.1
37.2
37.2
37.2
2.3%
11.
United States
31.8
28.95#
20.7
19.1
1.9%
12.
Kazakhstan
30.0
30.0
30.0
30.0
1.8%
13.
Qatar^
25.2
25.4
25.4
25.4
1.5%
12.
China
24.4
23.7#
20.4
20.4
1.5%
15.
Brazil
13.22
13.15
14.0
12.9
0.8%
16.
Algeria^
12.2
12.2
12.2
12.2
0.7%
17.
Norway
11.3
 10.9#
5.32
5.7
0.7%
18.
Mexico
10.1
10.3
10.4#
10.4
0.6%
19.
Angola^
9.1
10.5
9.5
9.5
0.6%
20.
Ecuador^
8.2
8.2
7.2
6.5
0.5%
21.
Azerbaijan
7.0
7.0
7.0
7.0
0.4%
22.
India
5.65
5.48
  5.6#
5.7
0.3%
23.
Oman
5.5
  5.5
5.5
5.5
0.3%
World total
1,644.5
1,639.4#
  1,520.1#
1,469.6
100.0
Total OPEC**
1,200.8
1,199.7#
1,112.9
1,064.8
73.0%

Notes: The published reserves figures rely on survey responses and official updates released by individual countries, which are not provided every year in many cases. OGJ changes its estimate for a particular country only when it receives evidence that a change is in order. Therefore, in a given reserves summary, a year-to-year change may not necessarily reflect a change that applies to the calendar year alone. By yearend 2011, the US had 29 billion bbl of proved oil reserves, a 15% increase from the 25 billion bbl in 2010, according to the US Energy Information Administration. Proved reserves of US gas rose by 31.2 tcf in 2011 to a new record high of 348.8 tcf. According to the EIA, record increases in proved oil and gas reserves in 2011 were attributable to horizontal drilling and hydraulic fracturing in shale and other tight formations, as well as higher oil prices. In 2011, Texas had the largest increase of 1.8 billion bbl, resulting mostly from ongoing development in the Permian and Western Gulf basins in the western and south-central parts of the state. North Dakota registered the second-largest increase, 771 million bbl, driven by development activity in the Williston basin. Combined, North Dakota and Texas contributed to two thirds of the net increase in total US proved oil reserves in 2011.  Please read Conglin Xu and Laura Bell, "Worldwide reserves, oil production post modern rise", OGJ, Dec. 2, 2013. Proved/proven oil reserves - Generally taken to be those quantities that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operating conditions.
"Crude oil and condensate.  
*Excluding one-half of the reserves in the Neutral Zone.
^OPEC member.
~Including Abu Dhabi – 92.2, Dubai – 4.0, Sharjah – 1.5 and Ras al-Khaimah – 0.1.
**OPEC has a total of 12 member countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. The OPEC total excludes reserves of 5 billion bbl from the Kuwait-Saudi Arabia's Neutral Zone.
#Revised figure.

Sources: "Worldwide Look at Reserves and Production [Table]," Oil & Gas Journal, Dec. 2, 2013; and previous reports.http://img2.blogblog.com/img/icon18_edit_allbkg.gif