Daily Reports

News From The Oil Patch 8/17/2015

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Last week, the price for Kansas Common Crude at NCRA reached it's lowest level in 6.5 years, $32.25/bbl on August 13.  We had to go back to March 2, 2009 to find it cheaper than that.  The average price so far this month is $33.37/bbl.
 
Baker Hughes reported 884 oil and gas rigs actively drilling last week, which was unchanged from a week earlier.  The count in Canada was up three at 211 active drilling rigs.  Kansas gained two at 12 rigs.   Independent Oil & Gas Service reports 17 active drilling rigs east of Wichita, down three, and 38 in western Kansas, down one.  There are 50 rigs listed as pending their next location assignment, and 117 rigs were stacked or otherwise shut down.  There was one rig drilling in Ellis County, drilling is coming soon to one well in Ellis and one in Barton County, and there were seven rigs moving in completion tools in Barton, Ellis and Stafford counties.
 
There were 43 permits issued for drilling in new locations across Kansas last week, or 1,576 year-to-date.  There were 30 new permits east of Wichita and 13 in western Kansas, including one in Barton County and two in Ellis County.
 
Independent Oil & Gas Service reports 46 well completions last week, 2,814 so far this year, with 14 in eastern Kansas and 32 west of Wichita.  12 of those were dry holes.  There were four well completions in Barton County, one in Ellis County, one in Russell County and five in Stafford County
 
Monthly completion numbers provide context for risk.  There were nine dry holes completed in eastern Kansas last month, out of 92 total well completions.  Independent Oil & Gas Service tells us there have been 92 dry holes completed east of Wichita so far this year.  West of Wichita, the 130 completions last month included 34 dry holes...bringing the total number of dry holes in western Kansas so far this year to 294.
 
The percentage of North Dakota oil shipped by rail has dropped below 50 percent for the first time in several years.  North Dakota Pipeline Authority Director Justin Kringstad says rail shipments accounted for 47 percent of the 1.2 million barrels of oil produced in June. That's down from a high of 75 percent two years ago.  Recently-completed pipelines and additional refining capacity in the state have caused the rail shipments to drop. Kringstad says the bulk of the state's oil by rail is being shipped to refineries on the East Coast, followed by shipments to the West and Gulf coasts.
 
North Dakota's oil industry hit a new milestone in June, drilling the 10,000th shale-oil well since the latest boom started. The Bismarck Tribune quotes officials saying they "could sustain 1.2 million barrels per day for two years."
 
The Kansas Geological Survey tells us there were 48,136 active oil wells in Kansas, producing 15.9 million barrels of oil through the end of April.
 
The U.S. Commerce Department last week granted a request from Mexican energy company Pemex to swap US light crude for heavier Mexican grades. Trade groups call the move another step toward a full repeal of a U.S. crude oil export ban enacted in the 1970s.
 
World oil demand is growing at its fastest pace in five years thanks to rebounding economic growth and low prices, but global oversupply is so great that the glut, will last through 2016.  That's the word from the West's energy watchdog Wednesday.  The International Energy Agency said in a monthly report that it was steeply raising its demand growth outlook for this year and next year.  IEA says said global oil supplies are still growing at “breakneck speed” and outstripped consumption in the second quarter by three million barrels a day, the most since 1998.
 
An Associated Press review of every cross-border pipeline application since 2004 shows that the long-delayed Keystone XL approval process has been anything but ordinary. The company hoping to build Keystone has been waiting for nearly 7 years — or more than five times the average since 2004, when then-President Bush signed an executive order requiring a presidential permit. Climate change has been a backdrop for the battle over the pipeline. The Obama administration has declined to say what's taking so long.

News From The Oil Patch 8/11/2015

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AAA says the national average price for regular unleaded gasoline has fallen for 27 consecutive days.  Tuesday's average was $2.579. This is the longest streak of consecutive declines since January, with pump prices dropping 19 cents over the period.
 
China devalued its currency, with side-effects from Wall Street to the oil patch, even as OPEC admitted it's pumping more oil than announced.  The cartel said this week its production rose to a three-year high this summer, 31.5 million barrels per day in July.  
 
For only the third time this year, Baker Hughes reported an increase in the weekly drilling rig count.  The US total was 884 active oil and gas drilling rigs on Friday (8/7), up ten.  US energy firms added six oil rigs this week, for the third weekly increase in a row, the longest stretch since last September. There were 208 in Canada, down seven rigs.  The company says there were ten in Kansas, up three.  
 
Independent Oil & Gas Service reports 20 active rigs in eastern Kansas, up one, and 39 west of Wichita, up two.  There's one rig drilling in Russell County, and one each with drilling set to start soon in Russell and Barton counties.  There are 42 rigs in Kansas awaiting their next location assignment, and a total of 120 rigs listed as shutdown or stacked.
 
There were 76 drilling permits issued for new locations in Kansas last week, 1,535 so far this year.  There were 50 east of Wichita and 26 in western Kansas, including three in Barton County.
 
Independent Oil & Gas Service Inc reported 54 new well completions across the state last week, 2,768 so far this year.  There were 36 in eastern Kansas, including five dry holes.  There were 18 new well completions reported west of Wichita, including five dry holes.
 
The Kansas Corporation Commission reports 257 intent-to-drill notices filed during the month of July.  In July of last year, the state of Kansas recorded more than 700 new intents.  There were nine new intent notices filed in Barton County last month, seven in Ellis County, four in Russell County and two in Stafford County.
 
One of the largest oil and gas producers in the state of Kansas reported a loss of $17.8 million in the second quarter.  Revenues at SandRidge Energy declined 37 percent compared to the same period a year ago. 
 
Year-end numbers from US government sources places Russia as the top oil producing country in the world, regaining its top position over Saudi Arabia and the US.  Last year, Russia exported 4.7 million barrels of oil a day to Europe and Asia. Russia’s status as the world’s top producer of oil and condensate comes as the country’s economy is being hampered by low oil prices and sanctions from the U.S. and its allies over the conflict in Ukraine. 
 
Saudi Aramco reports the launch of a carbon capture and storage project for Enhanced Oil Recovery and to reduce CO2 emissions.  Aramco hopes the pilot project, which it is calling the largest of its kind in the Middle East, will demonstrate enhanced oil recovery beyond the more common method of water flooding.  It entails the capture of carbon dioxide at a gas recovery plant to be piped to another field where it will be injected into flooded oil reservoirs under high pressure.  A monitoring system is in place to measure how much CO2 remains sequestered underground.
 
Royal Dutch Shell on Friday made an announcement you may not have seen coming. The oil company will end its membership with the American Legislative Exchange Council (ALEC), over its position on climate change.  In a statement Shell said ALEC's stance on climate change is clearly inconsistent with the company's view.  Shell has previously acknowledged the existence of climate change and called for policy changes to confront it. In the statement, Shell said they have long recognized both the importance of the climate challenge and the critical role energy has in determining quality of life.  ALEC has pushed state policies against renewable fuels and questioning the science behind climate change.
 
The Texas company that operates that pipeline that ruptured this spring near Santa Barbara has been referred to California’s attorney general for potential civil penalties.  Water quality regulators asked Attorney General Kamala Harris to go after Plains All American Pipeline in connection with the May 19 oil spill, the largest petroleum accident along the California coast in 25 years.  The AG could seek fines of up to $25,000 per day of violation and $25 per gallon of oil spilled.  The company says it is cooperating with the investigation.

News From The Oil Patch 8/3/2015

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Kansas Common crude prices ended the month of July at $38.50/bbl at NCRA, but the refinery posted a price for Saturday August 1st that's $1.50 lower at $37.  In late trading Monday, the Nymex benchmark crude contract was down $1.72 at $45.40/bbl.  London Brent dipped below $50, down $2.31 at $49.90/bbl.
 
There were 49 drilling permits issued for new locations across Kansas last week, or 1,459 year-to-date.  There were 16 new permits east of Wichita and 33 in western Kansas, including three in Ellis County and one in Russell County.
 
Independent Oil & Gas Service reports 59 newly-completed wells across Kansas last week, which is 2,714 so far this year.  There were 32 in eastern Kansas and 27 west of Wichita, including eight dry holes.  There was one completion each in Barton and Ellis County.
 
Baker Hughes reported 874 active oil and gas drilling rigs across the US Friday, which is two lower than last week.  The count in Canada was up 15 rigs at 215, while in Kansas, the company reported just seven active rigs, down four. Independent Oil & Gas Service reports 19 active drilling rigs east of Wichita, up one, and 37 in western Kansas, up five.  There were 45 rigs listed as pending their next location assignment, and 120 rigs shutdown or stacked.  There were three rigs actively drilling in Ellis County last week and two in Barton County.
 
Authorities used boats, personal watercraft, poles and their bare hands to remove protesters in kayaks and hanging from bridges who had tried to block a Royal Dutch Shell icebreaker bound for an Arctic drilling operation. The Fennica left dry dock Thursday afternoon and made its way down the Willamette River toward the Pacific Ocean soon after authorities forced the demonstrators from the river and the St. Johns Bridge. Shell spokesman Curtis Smith said it's on its way to the Chukchi Sea where they started initial drilling operations Thursday night.  The Fennica is capable of deploying a "capping stack" in the event of a spill, a key requirement in the company's drilling license.
 
For the first time this year, international oil companies working in Iraqi Kurdistan will begin receive monthly payments from September for the crude oil they produce and export.  Some producers were gtenerating upwards of 300,000 bpd without payment.  The Wall Street Journal says they are owed more than one billion dollars.
 
The Houston Chronicle reports Texas remains on track to produce a record amount of crude this year, a whopping 1.28 billion barrels.  That's despite the lingering downturn that’s shut down rigs and spurred oil companies to lay off tens of thousands of workers. The record 1.26 billion barrels was set in 1972.  Preliminary estimates show crude oil production in the state increased just over 13 percent in May compared to May of last year.
 
We received dozens of reports of that earthquake in northern Oklahoma last week (7/27) that rattled windows in Wichita.  A pair of operators agreed to shut down two wastewater injection wells on Tuesday and reduce operations at a third after several earthquakes centered in the town of Crescent in northern Oklahoma.  Stephens Production and Devon Energy each voluntarily closed one well, and Stephens reduced operations at another well by 50 percent according to Oklahoma Corporation Commissioner Matt Skinner. There were no immediate reports of injuries or damage in the area, but people reported feeling the 4.5 magnitude quake as far as 650 miles away in Indiana and Minnesota, according to the US Geological Survey.
 
The refinery in El Dorado and its parent company ALMOST because a subsidiary of Tesoro.  Reuters reports Tesoro held talkds during the first quarter of this year to buy its smaller rival HollyFrontier, which owns the El Dorado facility.  But HollyFrontier's board of directors balked at the terms of the deal, including the price, which was not revealed.  Holly Frontier has a market capitalization of about nine billion dollars.  Officials are not commenting, because sources say the talks could continue.
 
A Senate panel has approved energy legislation that would lift the 40-year-old ban on crude oil exports and open some areas of the Outer Continental Shelf to oil and gas exploration. Republican Lisa Murkowski of Alaska chairs the Senate Energy and Natural Resources Committee, and championed the plan to lift the restrictions. It passed by a party-line vote of 12-10. House Speaker John Boehner says he supports the push to lift the decades-long relic of the 1970s, when an OPEC oil embargo led to fuel rationing, high prices and iconic images of long lines of cars waiting to fuel up.  Mr Boehner said Wednesday those days are long gone. He said a "scarcity mindset" has been replaced by an energy boom.
 
A judge in Holt County, Nebraska has scheduled an October trial in a lawsuit aimed at keeping TransCanada Corp. from seizing land to build the new leg of the Keystone oil pipeline.  At a hearing in on Monday, District Judge Mark Kozisek set the nonjury trial date of Oct. 19.  Seven Nebraska landowners refiled their lawsuits after the state Supreme Court tossed an earlier , similar action.
 
Last month, Saudi Arabia pumped a whopping 10.56 million barrels of crude oil per day, a record. They're producing that oil cheaply, in a glutted market.  That helps explain another move by the Saudi kingdom, which is now the fourth largest refiner in the world.  Analysts say their so-called "gross refining margins" will be massive. They're facing resistance.  By offering almost 2.8 million barrels of low-sulphur diesel fuel to Asian and European markets, the Saudis are directly competing with Asian refiners, potentially sparking a price war.

News From The Oil Patch 7/27/2015

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Baker Hughes reported an increase in its weekly count of active drilling rigs in the US.  There were 876 across the country, up 19 from last week. There were 200 in Canada, up eight, and eleven in Kansas, unchanged.  Independent Oil & Gas Service reported 18 active rigs east of Wichita and 32 in Western Kansas.  Independent listed 120 inactive rigs across Kansas, 12 of them shut down awaiting drilling contracts, and 108 listed as stacked.  There were two rigs actively drilling in Ellis County, two in Barton County and one in Stafford County. One rig is moving into a drilling site in Ellis County, and another was relocating in Barton County.
 
There were 54 drilling permits issued last week for new locations across Kansas, and just 1,410 so far this year.  There were 24 east of Wichita, and 30 in western Kansas, including two in Barton County, two in Ellis County and one in Russell County.
 
Independent Oil & Gas Service reported 24 new well completions statewide.  That 2,655 completions so far this year.  There were two in eastern Kansas, one in Barton County, and out of the 22 completions west of Wichita last week, eight were dry holes.
 
The Kansas Geological Society recognized and named four new oil and gas fields in Kansas, making the total so far this year 62 new fields, down 15 from the same period last year.  They were located in Cheyenne, Logan, Pawnee and Rooks counties.
 
Independent oil and gas ranked to top operators and top drillings in Kansas for the first half of the year.  Sandridge led the top operators list drilling 19 new horizontal wells.  They were followed by Merit Energy, Palomino Petroleum and Murfin Drilling, all using conventional vertial drilling.  Tapstone Energy reported 123 horizontal wells through June. WW Drilling was the top drilliner in the state with 82 wells under its belt during the first two quarters. They were followed by Murfin Drilling, Discovery Drilling, Lariat Services and Duke Drilling.
 
The Kansas Geological Survey reports first-quarter Kansas oil production of 12.1 million barrels.  If that holds up for the year, total production for 2015 would total 48.4 million barrels, less than last year, but more than any other year since at lest 1995. There were just 45,932 active wells, compared to more than 53,000 at the end of last year.  Harper County was the top producer with 946,646 barrels of crude oil produced in the first three months of 2015.  Ellis County had produced more than 774-thousand barrels.  Barton County output was 522-thousand barrels.    Russell County production was nearly 482-thousand barrels, and Stafford County output was just over 320-thousand barrels.
 
Utility regulators in North Dakota say a Texas company appears to have adequately addressed some of the biggest environmental issues facing its $3.8 billion pipeline from western North Dakota to Illinois. North Dakota's Public Service Commission held an informal work session on Dallas-based Energy Transfer Partners' Dakota Access project, the biggest-capacity pipeline proposed to date to move North Dakota crude across South Dakota and Iowa on its way to Illinois, where crude would be shipped to Midwest and Gulf Coast refineries.
 
Nebraska landowners challenging the law that allowed the new route for the Keystone Pipeline expansion get their day in court.  The company says 90% of the landowners in Nebraska have agreed to easements needed to build it.  On Monday, a hearing was scheduled for opponents who challenged the law.  Over the weekend, it came to light that the judge hearing the suit was part of an investment club that bought and sold shares in TransCanada, the company that operates the pipeline.
 
Lawmakers in Stillwater approved new rules this week for oil and gas drilling within the city to the disappointment of industry representatives.  The vice president of regulatory affairs at the Oklahoma Independent Petroleum Association says the city council's approval on Monday of a new ordinance is "essentially a ban" on oil and gas drilling in the city.  The measure applies only to new wells. It imposes a 660-foot setback from the property line of "protected use" properties, which includes homes, churches, parks and schools.  The ordinance also sets noise limits, requiring that ambient noise from drilling operations at the setback boundary be limited to 69 decibels, which is about the same noise level as a vacuum cleaner.  The limits approved by city leaders appears to fall within the restrictions allowed under a new state law.  That law prevents cities and counties from banning specific oil and gas operations, including drilling, fracking, water disposal, recovery operations and pipeline infrastructure.
 
The government gives Royal Dutch Shell a green light to drill for oil in the Chukchi Sea off the coast of Alaska.  For now, the company is only allowed to drill "top holes" to a depth of about 1300 feet.  Shell will need to file new paperwork for drilling to the deeper pay zones in the play once it has a ship cvapable of capping the well within 24 hours.  Shell will need to get permission for deeper drilling once it has a vessel capable of deploying a “capping stack,” a safety device for preventing oil spills.  
 
The oil and gas industry in Oklahoma is on the offensive about the growing regulations of saltwater disposal there.  The Daily Oklahoman quotes industry representatives saying a moratorium on wastewater injection wells could create economic and environmental problems throughout the state. Energy In Depth, a project of the Independent Petroleum Association of America, released a report explaining why "banning wastewater injections is not an effective solution for Oklahoma's earthquakes."  IPAA warns that a moratorium effectively would ban drilling throughout the area, including wells not linked to the earthquakes.
 
Should the government sell oil from the Strategic Petroleum Reserve to fund unrelated programs? Lawmakers are hoping to fund everything from the highway trust fund to government drug approvals and research funding.  But both proposals have drawn opposition. The Senate Energy Committee chairman, the U.S. energy secretary and oil industry analysts all criticize the move as shortsighted. According to the Wall Street Journal, the reserve is close to its 713.5-million-barrel capacity.

News From The Oil Patch 7/20/2015

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Baker Hughes reported 857 active drilling rigs across the US Friday, down six from a week earlier. There were 192 in Canada, up 23.  The company reported eleven active rigs in Kansas, up one. The broad count from Independent Oil & Gas Service showed 21 active rigs east of Wichita, up two, and 35 in western Kansas, down four.  There was one rig drilling in Barton and one in Ellis County.  Three more rigs are moving into sites in Ellis, Stafford and Barton counties.
 
There were 34 drilling permits issued across Kansas last week, for a year-to-date total of 1,356. There were 13 east of Wichita and 21 in western Kansas, includingt two in Barton County, one in Ellis County and two in Stafford County.
 
Independent Oil & Gas Service reports 53 newly completed wells last week statewide.  That's 2,631 so far this year.  Of the 32 west of Wichita, five were dry holes.  There was one completion each in Barton, Ellis and Russell counties.  There were 21 completions reported in eastern Kansas.
 
Last month Independent Oil & Gas Service reported 115 completions west of Wichita, and of those 22 were dry holes.  That makes 1,108 completions in the western half of the state for the first six months of the year, and 260 or 23 percent of those didn't pay off. 
 
The operator of the Keystone pipeline is taking bids to move more oil through the existing line, but a spokesman says that has nothing to do with the delayed expansion of the project.  TransCanada spokesman Mark Cooper said the overall capacity of the original Keystone pipeline hasn’t changed, and they never operate at capacity.  But Cooper says technological advances allow for an increase of daily volume, and they're hoping to book an additional 10 to 15,000 barrels of crude oil per day.
 
Delays in passenger and commodity rail traffic have eased across the Upper Midwest in part because weak oil prices have prompted a drilling slowdown in North Dakota.  Recent track upgrades, a new pipeline and a new refinery in North Dakota reduced the number of oil trains using those rail lines.
 
Iraqi Kurdistan is bypassing the government in Baghdad and independently selling all the crude oil exported from the region for the first time as they take greater control of their own affairs.  The Kurds are shipping as much as 600,000 barrels of oil a day from their fields and haven’t sold any oil through the national marketing agency since June. In another step toward financial independence, the Kurdish parliament has approved a plan to sell as much as $5 billion in bonds to pay for infrastructure projects.
 
Seventy-seven years after Mexico seized foreign energy assets within its borders, the nation is trying to entice renewed foreign investment.  Exxon Mobil, Chevron and Total all opted out of the first-ever Gulf lease sale in Mexico, a group of shallow-water oil blocks.  Only one of Mexico’s first five oil blocks received a qualifying bid.
 
Suncor Energy, Canada's largest oil and gas producer, is looking to replace high-pressure steam with radio waves to extract bitumen from oil sands. The technology could help the industry reduce costs, greenhouse gas emissions and water usage. The process consists of heating bitumen with radio wave energy coming from a surface generator.   The initial physical testing began in 2012, and full scale reservoir testing is set to begin.  That phase of the project will last about two years.
 
Earthquakes greater than magnitude 3.0 have rattled the State of Oklahoma ten times since July 10, so they are now expanding restrictions on saltwater disposal.  This time around they're placing limits on the depth of those disposal wells.  On Friday the Oklahoma Corporation Commission issued a new rule expanding the "areas of interest" worst hit by quakes.  They also added restrictions for 211 disposal wells in those areas.  In 21 of the state's 77 counties, operators must show they rae no injrecting water below specific depths, which the experts say is particularly likely to cause the temblors.  In March the OCC limited injection volumes in 347 disposal wells, and now those operators must also dispose of the brine at shallower depths.
 
The U.S. Energy Information Administration is trying to make its oil production estimates faster and more accurate. According to the Houston Chronicle, that will mean going around Texas’ top industry regulator and straight to the producers to get the numbers.  EIA says using producer submissions to state regulators, which the feds say leaves out some reports that are incomplete or which contain errors.  The difference may seem small, but it isn't. The state regulator, the Texas Railroad Commission, reported 2.3 million barrels per day of Texas production in March, but the EIA says the actual total is more like 3.78 million barrels.  Those missing barrels are eventually added to the state totals, but sometimes that can take months.

News From The Oil Patch 7/13/2015

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Baker Hughes reported the third consecutive weekly increase in the company's US drilling rig count, up one Friday to 863.  The count in Canada was up 30 rigs at 169.  In Kansas, the company reports ten rigs actively drilling, down two.  The broad count from Independent Oil & Gas shows 19 active rigs east of Wichita, down two, and 39 in western Kansas, unchanged.  There were 45 rigs listed as pending their next location assignment, and 124 inactive rigs that were shutdown or stacked.  There were two rigs actively drilling in Ellis County, two in Barton County, and one was rigging up in Stafford County.
 
There were 34 new drilling permits filed through the first six months of this year in Barton County, 15 in Ellis County, eight in Russell County and 17 in Stafford County.  For the first six months of the year, there were 1,260 new drilling permits filed across the state.  By way of comparison, the total at the end of June of last year was 3,801 new permits filed. 
 
There were 73 well completions reported through June in Barton County, 36 in Ellis County, 30 in Russell County and 35 in Stafford County.  So, halfway through 2015 and we can report 2,492 well completions, compared to 3,058 by the end of June last year.   
 
To start the third quarter, there were 62 new drilling permits issued across Kansas last week.  There were 40 east of Wichita and 22 in western Kansas, including three in Barton County.   
 
Independent Oil & Gas Service reported 16 newly completed wells across the state last week, nine in eastern Kansas and seven west of Wichita, including two dry holes.
 
The Oklahoma Supreme Court rejected industry efforts to block lawsuits over earthquakes, ruling that homeowners who have sustained injuries or property damage can sue for damages in state trial courts.  Plaintiffs lawyers are hoping to get class-action status covering nine counties for damages relating to earthquakes in Prague, Oklahoma in November, 2011.  They're suing two Oklahoma companies, claiming their disposal wells are responsible for a quake that injured one of the plaintiffs. The Oklahoma Emergency Management Agency said six houses were destroyed and 172 others were damaged when three quakes of 5.0 magnitude or greater struck the Prague area from Nov. 5 to 8, 2011.  
 
The government now says US output peaked in April, at 9.7 million barrels per day, or about 300,000 barrels more than previously estimated. EIA says oil production will average 9.5 million barrels this year and just 9.3 million barrels per day next year.  In its short-term outlook, the agency predicted Brent crude prices would average $60/bbl this year, and rise to $67/bbl next year, with WTI about five dollars cheaper.
 
The federal government and Gulf Coast states announced the largest environmental settlement ever, an $18.7 billion deal with BP that resolves years of litigation over the Gulf oil spill.  The settlement announcement came as a US judge was preparing to rule on how much the company owed in federal Clean Water Act penalties for its role in the spill.  According to an outline filed in federal court, the settlement would also resolve the states' natural resources damage claims and settle economic claims involving state and local governments in Florida, Alabama, Mississippi, Louisiana and Texas.
 
Oil production in North Dakota topped 1.2 million barrels per day in May, for only the second time in the state's history.  That news comes despite a drop in the active rig count.  The state's Department of Mineral Resources reported total production for the month of 37.2 million barrels.  Director of Mineral Resources Lynn Helms said although the number of drilling rigs operating in the state is down to its lowest level in nearly six years, the rigs that remain are twice as efficient as they were two years ago.
 
Two subsidiaries of Chesapeake Energy are selling oil and gas properties to a Colorado-based producer for $840 million, one of the largest asset acquisitions in the patch this year: 250,000 net acres in western Oklahoma near the Texas Panhandle, about 1,500 wells already pumping oil and gas at abpit 21,500 barrels of oil equivalent per day.  The purchase more than doubles FourPoint Energy’s footprint over the western portion of the Anadarko Basin. 
 
A trade group in Oklahoma is forming two new committees to look at pipeline issues as well as health and safety concerns.  The Oklahoma Oil & Gas Association's Midstream Committee will meet Aug. 20. It will include member company lobbyists, technical and legal experts who will discuss legislation and regulations relating to pipelines, gathering and processing and storage.  The Health & Safety Committee met Thursday to discuss organizational issues and share information about best practices to address concerns about tank gauging and other potentially hazardous activities.
 
The US House Oversight and Government Reform Committee issued a subpoena to US Secretary of State John Kerry for reports, recommendations, letters, and comments that the State Department received from federal agencies regarding the Keystone XL pipeline’s cross-border permit application.  The committee's chairman, Republican Jason Chaffetz of Utah, says the State Department has not been cooperative in the committee’s efforts to conduct oversight of the Keystone XL permitting process.  And he says Foggy Bottom has shown an unwillingness to recognize the committee’s legitimate interest in getting the information.