News From The Oil Patch 2/1/2016
Baker Hughes reports 18 fewer drilling rigs actively exploring for oil and gas across the US last week, at 619. That's the lowest national count we've seen since August of 1999, at the tail end of a major downturn for Kansas crude prices. Canada reports 231 active rigs, down 19 for the week. The company reported nine rigs drilling in Kansas, down one. Independent reported nine active rigs east of Wichita, up one, and 12 in western Kansas, also up one. There were 124 rigs stacked and 165 total inactive rigs across Kansas. There was one rig actively drilling in Ellis County as of last week.
Kansas Common Crude at CHS in McPherson closed out the week Friday (1/29) at $23.75/bbl, to average $22.55/bbl for the month of January, 2016.
Producers filed just eleven drilling permits for new locations across Kansas last week. That's 61 so far this year. There were six new permits filed east of Wichita and five in western Kansas, including two in Stafford County.
Independent Oil & Gas Service reports 28 newly completed oil and gas wells across the state last week, for a year-to-date total of 116. There were six completions in eastern Kansas and 22 west of Wichita, with one of those in Ellis County and two in Stafford County.
The Kansas Corporation Commission reports just 78 intent-to-drill notices files across the state in January, the worst showing for that statistic since June of 1999. The list is down from 87 the month before and down from 459 in January of last year.
The Kansas Geological Survey released new 2015 production figures through October of last year. The Sunflower State had produced 38.6 million barrels through October. Harper County produced 2.94 million barrels to lead the list of Kansas counties. Ellis County was next with 2.53 million. Rounding out the top five were Finney County with 1.84 million barrels, Barton County with 1.66 million, and Russell County with 1.5 million. Stafford County produced just over one million barrels through last October.
Kansas is among several states sending O&G wastewater to Oklahoma for disposal. The Enid News cites OCC records noting that during the third quarter of last year, Oklahoma received more than half a million barrels of brine from out of state, most of that from Texas. The state disposed of 26 million barrels produced in Oklahoma. The state disposed of 1.5 billion barrels of produced saltwater last year.
SandRidge Energy last week borrowed almost $489 million, maxing out the credit line it secured early last year. A spokesman tells the Daily Oklahoman that in the current market, "having guaranteed liquidity provides the maximum operation and financial flexibility to the company."
Independent U.S. oil explorers were expected to report 2015 losses totaling almost $14 billion, the result of the steepest price collapse in a generation.
The Texas Railroad Commission released oil production figures for November. The Lone Star State produced an average of 2.37 million barrels of crude per day, up from 2.25 million a year earlier. The top ten Texas counties for oil production were all located within the Eagle Ford or the Permian Basin.
The AP reports that Libya lost about $68 billion in attacks on that nation's oil infrastructure. The head of the state oil company said Monday that Libya will fall farther into chaos if its factions don't quickly form a unity government. The comments came just after the internationally recognized parliament in the divided country rejected a plan to move toward a unified government. He says the power vacuum will permit other extremist groups to step in.
Colorado regulators have approved new rules intended to give local governments a limited say in the location of large oil and gas facilities. The state Oil and Gas Conservation Commission approved the rules Monday. They allow local governments to consult with energy companies on the location of big facilities in urban areas, generally 1,000 feet from clusters of occupied buildings.