It would have to be moved on US flagged tankers due to the Jones Act and there just aren't any US flagged tankers out there. look at ARII for rail tanker cars
all that really matters is cash flow positive. it will be sooner rather than later. the rest is accounting gimmicks fun to trade around and yes the lower prices will reduce the write downs from the derivatives
rockpile and caliper cannot / should not be spun of until they meet/exceed their anticipated revenues for 3 - 4 quarters in a row. Their cash flow can then be documented and the MLP properly priced. That event combined with Montana drilling is what will propel this stock to the next level.
Rockpile will have a third spread running by early summer and will need to run the 3 spreads for a period of time before the revenue stream is documented. Caliper is just beginning to realize flow and related income. let them mature.
they must choke their wells down pretty hard. any idea what EUR's have been assigned to latest wells that crossed that threshold?
if the downspacing does show communication I guess we can always shoot nat gas down one side and see what comes up the other.
the way I see it, we are still in the third inning of a 9 inning game here. as they increase the % recoverable with better tech, that is like free money. and when they think they ran out of drilling, they can go back and recomplete those earliest of wells with best available tech
Carbon dioxide isn't the only gas that producers are testing. Canada's Lightstream Resources has been testing the injection of natural gas to increase its recoveries in the Bakken. The company has conducted laboratory analysis, computer simulations, and early field experiments that suggest natural gas is the key to unlocking more oil out of the Bakken. In fact, the company sees its recovery factor improving from 15% to 25% by using natural gas as a flooding agent.
If natural gas does prove to be the key, it could be a real coup for the industry. Currently, 29% of natural gas produced in the Bakken is flared away because the industry lacks the pipelines and associated infrastructure to market the gas. It's pretty shocking to see so much gas being flared off. Kodiak Oil & Gas (NYSE: KOG ) , for example, flared half of its natural-gas production in the Bakken last year. So, if the industry does find that gas is the key to unlocking more oil, it would stop flaring in a hurry as producers would reinject the gas in order to produce more oil.
article at the Fool today
Continental Resources is much more optimistic. The company estimates producers will be able to recover about 20 billion barrels of oil using current technology. But CEO Harold Hamm has said that with improved technology, producers could eventually pull more than 45 billion barrels of oil out of the play. That's a remarkable number considering current estimates of proved U.S. oil reserves are just 29 billion barrels.
One of the keys to unlocking more oil could be using gas to enhance its recovery. Both carbon dioxide and natural gas are being considered for the chore. Only time will tell if either holds the key to unlocking more oil from the Bakken and other tight shale resource plays.
The case for carbon dioxide
American oil producers have been using carbon dioxide to enhance the recovery of conventional oil wells since the 1970s. Today, companies like Denbury Resources (NYSE: DNR ) see the greenhouse gas as the key to unlocking more than 10 billion barrels of oil in the Rockies and Gulf Coast alone. While most of the carbon dioxide Denbury uses is from natural sources, the company is starting to use carbon dioxide that has been captured from industrial sources. Through enhanced oil recovery it can then sequester it underground. If carbon is the key to unlocking oil that's hidden in shale plays, that process could play a vital role in reducing the nation's carbon emissions.
Currently Marathon Oil (NYSE: MRO ) is working with the U.S. Department of Energy and the North Dakota Industrial Commission on a carbon-based enhanced-oil-recovery-research program. Because recovery factors in the Bakken are currently just 3%-10% of the original oil in place, small improvements could yield billions of barrels and vastly improve the play's already strong economics. For example, if carbon dioxide could improve recoveries by just 1.1% it would yield an additional 1.87 billion barrels of oil, which is more than $175 billion worth.
the iranian supreme leader opened his mouth and blew up any chance that Iran would be able to sucker 0 into letting them pump more oil out into the world market. thankfully the frenchies are smart enough to realize that Iran is not interested in doing anything except recovering their frozen assets and boosting ther revenue stream so they can accelerate their nuclear development and sponsor more terrorism around the world.
there has been a momentary increase in supplies as refineries have been switching blends. the spread between bakken and wti will come back down as the refiners get back up to higher utilization
all that matters is the EUR's they get assigned. anything north of 600k per will be very profitable. the depletion rate is being managed by choking the well down to try and create the type curves they want to levelize their flows and related income as they grow
funny how the market is unable to look down the road and understand how this will be positive for ARII but prefer instead to read one article with a biased approach and overreact. good point to add before tutes shift more capital into ARII
refiners retooling for winter blends caused stockpiles to grow more than expected. as they ramp up the stockpiles will be pulled down and the differentials will decrease.