Currently viewing the category: "Gas/Natural Gas"

Probably only four comments to make concerning this months airline boardings:
First, Jamestown and Devils Lake are again getting airline service, and this is the first time that all of the eight commercial airports in North Dakota have jet service. Does that make a difference? Well, the destination may have something to do with it, but look at the numbers. For June 2014 compared to June 2013 Devils Lake increased nearly 22 percent, and Jamestown over 53 percent.
Second, the increase in the oil patch is still substantial. A lot of it may be secondary spending coming from the growth. Things like new retail coming in, or hotels, etc. Whatever, Dickinson, the hot spot in exploration, is up 153 percent for the year. Williston, the mature boomtown is only up 25 percent.
Third, and most surprising, and probably disappointing, Grand Forks is down nearly 10 percent for the month, and that is enough to make them down slightly for the year to date comparison. I haven’t heard of any reason for it. Their building permits are heading towards another record. Their city sales taxes are still positive and a good increase. While Canadian crossings at Pembina are down for the year, the motel taxes and restaurant and lounge taxes are up suggesting good retail sales. Maybe there is a decrease in the UAV traffic, but it is hard to imagine that would be down a 1000 people in a month. 10 percent is a lot.
I hope someone is studying this. After so many disappointing years Grand Forks aviation was experiencing substantial growth. Is Fargo “buying” those seats? What caused that city’s substantial increase, especially compared to the Grand Forks traffic.
Finally, when ever I read about the oil boom it seems there is always something about state permits, or hearings. It has always made me wonder why Bismarck appears to grow so little, especially this year with all the activity in Dickinson.

 

First, be sure to look at the report below this one. It was also just posted and covers the city sales taxes for July as well as the First Quarter 2014 state sales taxes.

As for this report, it is the most recent report about North Dakota oil and gas production. Another million barrels a day report. Even a little better than when North Dakota finally broke through that milestone last month. With more and more wells being completed we can expect that figure to continue increasing. Of course as more and more wells move into that post twenty month age that will lead to a daily decline, but we should have enough wells by then to stay in that category for many years for now.

Now the next interesting thing is what will happen to the natural gas production. We should see that become a major business in the state.

At this point it is just watching the market maturing.

 

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First, this is the third post I have made to the website today. Below this you will find a posting on U.S./Canadian border crossings, and below that a posting on the city sales taxes in selected North Dakota cities.

NOW, after that terrible winter, after all those announcements from those who couldn’t wait for the fact to occur before they reported it, now it has happened. North Dakota, in April averaged producing over one million barrels of oil per day. Only three other states have ever done that, Texas, California, and Alaska.
Today it is only North Dakota and Texas.

Right now the production in Texas is significantly greater than in North Dakota. Some think that North Dakota can eventually pass Texas in total production. That will take a lot. In 2013 Texas produced in excess of two and one-half million barrels a day.

In the meantime, we will not worry about who is first. Instead, we need to make sure North Dakota production continues to drill new wells on a business like basis, and most importantly that the United States continues to apply new technology in all the oil patches for the good of our economy and for the safety of our armed service members who then will not have to go in places we are not wanted. Let those places sell those barrels to others, or even shut their wells off.

 

Close but no gold ring yet. Some of the press are putting out stories about reaching the million barrel mark, and realizing it is just a number, that it doesn’t make that much difference really, but the reality is North Dakota still isn’t there.

Why? Hard to say for sure without a valid review, but really, that review isn’t worth the cost. In all likelihood it is simply given the continuing weather problems it hasn’t been worth the cost of making that mark. Now, if this was WW II and we needed that oil for the war we would be there and well beyond. Today, however, it simply as I said, not worth the cost, not worth the effort in terms of the economic costs, and probably the human costs. Oil drilling is dangerous enough, but it is not worth the chance of serious injury, or even death to reach a particular number.

Anyway, we are nearly there and probably will be next month unless this weather is still with us. As the data from the other oil patches shows, the Bakken continues to be America’s largest oil field. It will continue to be the largest unless there is some human interference.

Those who want to celebrate can probably do so soon. Very soon. We will see next month.

By the way, I have added the gas flaring information so we can watch that continuing reduction

 

We are not there yet. At least we weren’t in February. Of course in the depths of winter, one of the worst winters in a long time what do you expect, but boy is this country lucky. Just think of all the American men and women who are alive today because of The Bakken, oil and gas.

I just read recently that America will reach a point of being a net exporter of oil. Just think of those long lines at the gas pump. Think of all the articles, the dire articles that were written about our future. Yes, others will gain as well, and some of them are not too nice, but with the proper leadership, well things are looking good again for America.

That doesn’t mean we can not be concerned about global warming, or at least studying the science to see if it is true. That doesn’t mean we shouldn’t design safe pipelines, or tank cars. But just think of how much better the American economy is today because of fracking. All those railcars, all those pipes, all those people employed. All that money including in our taxes. Especially what we are setting aside for our children and grandchildren, even great grandchildren.

What will they write about us in the books a hundred and two hundred years from now.

So, here is the current data. Now it will get interesting as we go into the summer.