Tornado hits OKC
A devastating tornado hit Oklahoma City midafternoon yesterday. The size was reported to be at least 2.2 miles long and move at about 300 mph. The tornado had hit Moore, and by looking at the pictures of what was left, you couldn’t even tell where you were.
killing an untold number of people, leveling at least two elementary schools, and destroying countless homes and buildings in the process. The latest word out of the Oklahoma City suburb puts the official toll at 24, a figure well below Monday's official estimates. Still, things don't look good and the tally may still climb higher. "Numerous neighborhoods were completely leveled," Sgt. Gary Knight of the Oklahoma City Police Department told the New York Times by telephone. "Neighborhoods just wiped clean."
North Dakota once again booming with oil
Once again North Dakota is booming with oil.. Could it be the next Texas? There are 7.4 billion barrels of recoverable oil in the western part of the state and extending into Montana, according to the latest estimate by the U.S. Geological Survey
“The revised totals could make the North Dakota field the greatest oil and gas find ever in the continental United States, topping the fabled East Texas field that made Texas synonymous with oil wealth. And it would put North Dakota second to Prudhoe Bay as the largest oil producer in U.S. history.”
TransCanada Keystone XL
After numerous requests from the Obama administration, TransCanada once again pushes its service date back to late 2014 or even 2015. As you can recall the Keystone XL “will be pumping around 700,000 barrels a day of crude oil from Alberta to Nebraska, where it would link to other pipelines bound for U.S. Gulf Coast refineries.”
“TransCanada said its $5.3 billion cost estimate for the project will rise, depending on the approval timing. At the end of the first quarter, it had spent $1.8 billion on the project.”
Alaska will cut taxes for the oil companies
Alaska has decided to reduce taxes for the oil production companies. Some of the companies that will benefit from the tax cut are ConocoPhillips, Exxon Mobil and BP.
“The legislation imposes a base tax rate of 35% on oil companies’ net profits in the state and makes some tax credits available. The new tax regime will replace a complex formula that started at 25% of net profits and escalated as oil prices rose.”
These new changes will create new investment opportunities as well as additional production from all the oil companies, as well as increase tourism.
ConocoPhillips deepwater discovery in the Gulf of Mexico
On March 19th, ConocoPhillips had announced that they have discovered oil at the Shenandoah well. Yesterday, they had discovered another well in the Gulf of Mexico. ( The Coronado well).
"The Coronado discovery adds to our exploration success in the prolific Lower Tertiary Trend," said Larry Archibald, senior vice president, Exploration. "The exciting results from the Coronado and Shenandoah discoveries confirm the value of our portfolio in the Gulf of Mexico and provide visibility on our future plans to grow through organic exploration."
ConocoPhillips is one of the largest leaseholders in the deepwater Gulf of Mexico with approximately two million net acres. In 2013, the company plans to drill between five and eight wells, including the Ardennes prospect, which spud earlier this quarter, and the Thorn well, scheduled to spud in the second quarter of 2013.
Denbury Resources buys ConocoPhillips fields for $1.05 Billion dollars
ConocoPhillips has agreed to sell to Denbury Resources Inc, its properties in the Cedar Creek Anticline of North Dakota and Montana for $1.05 billion dollars.
“The deal includes about 86,000 net acres with 2012 net production of 13,000 barrels of oil equivalent per day through November.” The area in the Bakken region is not included. Denbury has announced that this deal will increase their average daily production by 7,700 barrels of oil per day this year alone."
Gulf of Mexico Poised to Remain Strong in Coming Years
“The Gulf of Mexico (GOM), one of the major petroleum-producing areas of the world, is in the early stages of an extended growth cycle and is poised to remain one of the strongest offshore markets in the world in terms of deepwater activity. Overall, rig count and exploration and production (E&P) activities are at pre-Macondo levels and look tocontinue on an incline for the next couple of years.”
The Gulf of Mexico remains one of the most geologically attractive areas, It is also located in a stable region of the USA
Refineries are booming every year
“Refiners are set to beat all except three of 154 industry groups on the Standard & Poor's index for 2012, as a U.S. production glut let them buy oil at a record average of $17.46 a barrel below the global benchmark. That spread will diminish in 2013 as more than 20 new pipelines enter service and route oil to new buyers along the Gulf Coast, Deutsche Bank AG forecast.”
“While transportation projects including oil-by-rail and pipelines are booming, providing a natural diversification for refiners, some of the world's most successful investors are betting that the companies have at least another year of gains.”
With that being said, Valero Energy Corp., a San Antonio refiner that may create a crude transportation unit, was named the top energy stock pick of 2013. As well as your other larger companies such as Philips 66. They plan to earn as much from pipelines and making chemicals as refining crude.
Recycling fracking water
It was just a few years ago that fracking was introduced and the process is now being currently used. (Fracking refers to the procedure of creating fractures in rocks and rock formations by injecting fluid into cracks to force them further open. The larger fissures allow more oil and gas to flow out of the formation and into the wellbore, from where it can be extracted.)
No one ever thought twice about reusing the water until now.
“Disposal Solutions will pump well-site water from trucks, put it in retention ponds where it can be cleansed of chemicals, dirt and rocks, and send it back out to drilling operations.”
This idea is still new but companies such as Apache Corp., and Devon Energy are trying to head off any potential shortage of water to be used for fracking. Recently, a study estimated that fracking use up roughly 13 million gallons of water. With this being said, there is a need to recycle all this water being used, especially where there are places that are suffering because of droughts and they have no water.
Keystone XL protesters raid TransCanada’s Houston Office
“A group of Keystone XL protesters managed to shut down part of TransCanada’s office in Houston on Monday after storming the building and staging a “die-in” while banging drums, blowing horns and piloting a “pipeline dragon” in circles around them.”
The group complained that the pipeline will be harmful to the people who live nearby as well as the animals in the environment.
“Although TransCanada does not yet have authorization to build the northern leg of the pipeline between Canada and the U.S., the southern leg from Oklahoma to Houston has already been the source of much protest in East Texas.”