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News From the Oil Patch, Sept. 19

By JOHN P. TRETBAR
Operators completed 124 wells during the month of August, the biggest monthly total since February, bringing the total statewide to 865 completions so far this year.  That compares to just 749 by this time last year, and 2,867 through August of 2015.  Barton County had four completions, Ellis County had four, Russell County checks in with three and there were two in Stafford County.
Out of 124 well completions across Kansas during the month of August, Independent Oil & Gas Service reported 30 dry holes, 24 of them in western Kansas.  There was one dry hole completed in Barton County, one in Ellis County and two in Russell County.
Last week there were 16 new well completions in Kansas.  Out of 13 in western Kansas, seven were dry holes.  There was one in Barton County, one in Russell County and two in Stafford County, all of them dry.  There were three completions east of Wichita.
The new monthly numbers from Independent Oil & Gas Service show operators filed three new drilling permits last month in Barton County, three in Ellis County and four in Stafford County, but none in Russell County.  Statewide, there were 143 permits to drill in new locations, 954 so far this year.  Compare that to the 676 permits filed by August of last year, and 1,662 through August of 2015.
Operators filed 45 permits to drill at new locations across the state last week, 1,012 so far this year.  There were 30 in eastern Kansas and 15 west of Wichita, including two in Barton County and one permit each in Ellis and Stafford counties.
Independent reports 14 active oil and gas drilling rigs in eastern Kansas, up one, and 21 west of Wichita, down one.  They’re drilling at one lease in Barton County, and report drilling ahead at one site each in Barton, Ellis and Stafford counties.  Nationwide, Baker Hughes reported 939 active drilling rigs, down seven oil rigs and one drilling for natural gas.  Canada reports 212 active rigs, up ten for the week.
For the first time since March, OPEC oil production dropped in August.  CNBC cites independent sources that monitor the cartel’s production pointing to a drop of more than 79,000 barrels per day.  OPEC and other producers are hoping to drain a global oil glut in hopes of propping up prices.  Saudi Arabia this week held discussions about extending the deal beyond March.
The Grand Forks Herald newspaper reports that the Dakota Access Pipeline has saved North Dakota producers about $4 per barrel in transportation fees.  At 500,000 barrels per day, that translates into savings of some $700 million per year.
We’ve reported before on sand shortages near the Permian Basin in Texas, where millions of pounds are used during hydraulic fracturing.  There are a lot of new sand mines starting up in the area, bringing the product closer to the well head and making it logistically simpler to procure.  Up to now, Wisconsin Northern White dominated the field, used in about two-thirds of fracked wells.  Forbes lists Vista Sand, Preferred Sands, Unimin, Black Mountain, Hi-Crush Partners, US Silica and Alpine Silica among the private and public companies with Permian Basin mines slated to be producing by the first quarter of next year.

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