By JOHN P. TRETBAR
The Kansas Geological Survey reported oil production of just over three million barrels in January of this year, putting the state on track for a worse annual showing than last year, which was the lowest since 2007. At the county level there were some surprises. Ellis County produced 217 thousand barrels in January.
Lately we’re reported that Harper County was the number two producer, but they’ve fallen dramatically, to just over 105,000 barrels, behind six other counties for the first month of the year. Barton County produced 140,000 barrels in January, Russell County checked in with 134 thousand, and Stafford County produced 85 thousand barrels, according to KGS data published May 1st.
January 2017 Top 10 oil-producing counties (Kansas Geological Survey)
Ellis County 217K bbl
Haskell County 173K bbl
Barton County 140K bbl
Finney County 138K bbl
Russell County 134K bbl
Rooks County 129K bbl
Ness County 125K bbl
Harper County 105K bbl
Barber County 90K bbl
Stafford County 85K bbl
Independent Oil & Gas reports a nearly 24% drop in active drilling rigs across Kansas last week. There were just seven active rigs in eastern Kansas, down six from a week ago, and 33 west of Wichita, down three. They’re drilling on one lease in Russell County, and moving in rotary tools at a site in Barton County. Nationwide, Baker Hughes reports 877 active oil and gas drilling rigs, up six oil rigs and up two targeting natural gas. In Canada there are 82 active rigs, down three.
There were 22 permits filed for drilling in new locations across the state last week. That brings the year-to-date total to 487 new permits. There were eight in eastern Kansas last week and 14 west of Wichita, including two in Barton County, two in Ellis County and one in Russell County.
Independent Oil & Gas reported 21 completions across Kansas last week, 491 so far this year, including 12 in eastern Kansas and nine west of Wichita.
There were two completions reported last week in Russell County, both of them dry holes. Out of 21 total completions across the state, one in three were dry holes.
Monthly numbers from the Kansas Corporation Commission show just 96 new intent-to-drill notices filed across Kansas during the month of April, for a year to date total of just 501 intents. Compare that to last year at this time when we had 873. By the end of April of 2014 there were more than 2,500 intents filed across the state. The KCC reports four new intents filed in Barton County last month, none in Ellis County, five in Russell County and one in Stafford County.
A new study published in the journal Seismological Research Letters this week answers some pesky questions about Oklahoma’s largest-ever earthquake near the town of Pawnee last year. Geologists with the US Geological Survey now say that the quake was caused by a rapid increase in saltwater disposal three years earlier. Their conclusion is that short-term dramatic increases in such disposal increase the seismicity rate by generating more pressure and fault-line stress than steady injection rates.
An Environmental Protection Agency administrator says three oil producers may be asked to temporarily shut down near an Oklahoma creek contaminated with saltwater. The source of the saltwater on a ranch in Osage County northwest of Tulsa has not been determined. The Tulsa World newspaper reports the feds are investigating if it might be a leak from a saltwater disposal well.
Magellan Midstream Partners announced to stockholders it is evaluating a new pipeline to transport crude and condensate from the Permian Basin to Corpus Christi, Texas. Reuters reported Magellan is also evaluating another expansion of the BridgeTex pipeline from the Permian to Houston, from 300,000 bpd to 475,000. The current expansion up to 400,000 is expected to go live by the end of the second quarter.
A company that wants to build an oil refinery near Theodore Roosevelt National Park in western North Dakota is hoping a new design will reduce emissions and costs, and thus pave the way for the state’s approval of the project. The Bismarck Tribune reported that Meridian Energy Group’s new permit application includes a redesign for a smaller, sleeker refinery, and plans for new technology to eliminate a key “heater unit” using available heat sources. The state review process will take between six months to a year. The company hopes to go online in 2018, though construction has not yet begun.
Preliminary reports indicate an abandoned, but not properly shut down natural gas line contributed to the explosion of a house in Firestone, Colorado, killing two and critically injuring a third person. On Tuesday, Colorado Gov. John Hickenlooper ordered a statewide review of all existing oil and gas operations. They’ll be looking for proper marking and capping for lines that are not in use, inspecting and pressure testing flowlines close to occupied buildiongs, and ensuring that abandoned lines are cut below the surface and properly sealed.
Saudi Aramco, the kingdom’s state-owned oil company, took 100% control of the sprawling Port Arthur refinery in Texas on last week, completing a deal that was first announced last year. Port Arthur is considered the crown jewel of the US refinery system. The Gulf Coast facility can process 600,000 barrels of oil per day, making it the largest refinery in North America. Aramco previously owned 50% of Port Arthur through a joint venture co-owned with Royal Dutch Shell called Motiva Enterprises. But the two oil giants had a rocky relationship and reached a deal in March 2016 to separate their assets. According to CNN, Shell put out a statement last week confirming the “completion” of that break-up. In addition to Port Arthur, Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and most of Florida.