By JOHN P. TRETBAR
Baker Hughes on Friday reported 1,013 active rigs nationwide, up five oil rigs from last week. Texas reported an increase of eight active drilling rigs. Canada reported 93 active rigs, down nine. Independent Oil & Gas Service reports drilling ahead at sites in Barton and Ellis counties and they were preparing to spud at a third site in Stafford County. They’re moving in completion tools at two leases in Barton County and five in Ellis County. For the week, there were ten active drilling rigs in eastern Kansas, up one, and 28 west of Wichita, down three.
There were 29 new permits filed for oil and gas drilling at new locations across Kansas (13 east of Wichita; 16 in western Kansas) for a year-to-date total of 457 new permits. Operators filed two drilling permits in Barton County last week.
Independent Oil & Gas Service reports 26 newly-completed wells for the week, 473 so far this year. There were 16 in eastern Kansas and 10 west of Wichita including completions in Barton, Ellis and Russell counties.
Government data show a big spike in gasoline demand, which AAA says is the highest ever for the month of April, and higher than typical summer driving-season demand. The national average price ticked up a nickel to $2.76 a gallon, about 17 cents more than a month ago. Five states saw double-digit price increases. The average in Kansas was up about half a cent on the week to $2.49/gallon. We spotted $2.47 in Great Bend, and $2.45/gallon in Hays.
Earthquakes rattles west central Oklahoma last week and regulators blamed oil-and-gas wastewater disposal. The Oklahoma Corporation Commission shut down one disposal well and ordered reduced volumes at others within ten miles of the quakes, which were reported Monday morning (4/16) near Hennessey, Oklahoma.
The production cuts by OPEC, Russia and other nations appears to be having the desired effect of reducing the global oil glut. Oil inventories in developed nations in March stood at 12 million barrels above the five-year average. The stated goal was to reduce the excess in oil stocks to that five-year average, although oil ministers have said other metrics should also be considered. As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits – and flooding Europe with a record amount of crude. Reuters reports U.S deliveries to Europe are set to reach an all-time high of roughly 550,000 bpd this month.
The Trump administration is moving forward on oil and gas drilling in Alaska’s Arctic National Wildlife Refuge, a bone of contention for decades. A notice published in the Federal Register starts a 60-day review to sell oil and gas leases.
An oil-and-gas regulator in Texas blames education, and a widespread public misunderstanding, for the shortage of workers in the Texas oil patch. Railroad Commissioner Wayne Christian told state lawmakers about what he called “…the misunderstanding of the oil and gas industry” and the acceptance of what he called “…the politically correct-driven, environmental, anti-oil and gas science.”
Oklahoma City-based SandRidge Energy shuffled its board and those directors appealed directly to shareholders, as activist investor Carl Icahn waged a proxy fight. The Daily Oklahoman reports that effective immediately, Michael Bennett will replace Chairman John V. Genova, who has retired.
The fight continues over the expansion of an oil pipeline between two provinces in Canada. The oil-rich province of Alberta is considering a legislative move to cut off fuel shipments to neighboring British Columbia, ramping up pressure on the coastal province to drop its opposition to the Trans Mountain pipeline expansion. Alberta Premier Rachel Notley made clear she doesn’t expect to have to use the new powers, but wants to make sure the province has every available tool in its fight to ensure the expansion gets built.
TransCanada is moving ahead with planning for the Keystone Pipeline expansion, despite lawsuits hoping to stop the project in Nebraska and Montana. A spokesman says TransCanada still hopes to begin construction in early 2019, with plans in the works for aerial surveys and meetings with landowners. TransCanada spokesman Matt John said company officials will offer a “construction completion bonus” as an incentive to get landowners to sign easement agreements. They also plan to award bonuses to early signers and will give landowners time to review the contracts with outside attorneys.
North Dakota regulators relaxed some rules and offered incentives they hope will further limit natural gas that’s being burned off at well sites and wasted. The amended rules extend credits from three months to six months for companies that meet or exceed flaring goals. They also gives companies credit if the natural gas is used in the state to power equipment or facilities. And the new rules allow companies that are meeting targets to forgo a gas-capturing plan with their drilling permits. Officials say that will “relieve the administrative burden” for producers meeting the flaring targets and allow regulators to focus more on those that don’t.