Martha, very interesting info you wrote about heavy oil vs sweet wti - do you foresee any possibility that US refineries would adapt to handle sweet wti or is that complicated/expensive? I read the other day that a good deal of the sluggish demand is from China’s slowdown and who knows what they’re situation will be in the future since the government controls everything.
Anyway thanks again for the in depth reporting & I wish you and all the forum members a wonderful Christmas & a great 2016
Bob, Here’s an article on the Houston 660,000 bbls oil export. http://fuelfix.com/blog/2015/12/31/heres-the-vessel-carrying-the-fi…
Happy New Year! And, happy 1st US crude export in 40 years! Nustar is loading Conoco’s Phillips export sale of TX Eagle Ford light crude onto ships docked at Corpus Christi right now. Nustar can load on all four docks simultaneously at max rate of 90,000 bbls per hour.
I read in the Paper that a Tanker was loading 660,000 barrels of oil, in Houston Harbor, unk where it is going, probably 10 miles out and sit there till the price goes up…Happy New Year Everyone…
Jimmy, Hang on, 2016 is going to be a screaming wild ride. I’m buying Powerball which @ $400 mil is the best game to play today. Wed is the next drawing. If I win, you won’t hear from me again. LOL!
One hour later…well that didn’t last long 
The Saudi-Iran squabble seems to be having a positive (read upward) affect on WTI prices this morning.
Correction: the Lake Arcadia story was not in the Tulsa World it was reported by Ok Energy Today
Steve, It’s complicated. Recharging an aquifer can dramatically increase oil and gas production and injecting into the Arbuckle Limestone aquifer, which acts like a sponge, can recharge it. But, to much water on top of an aquifer that’s not fully recharged could cause stress loads on faults and to much water below can rush into faults and down into the crystalline basement rocks causing drastic fault slippage and huge quakes. So, it’s my understanding that they need to inject into the Arbuckle and not above or below it. The problem seems to be keeping a balance of pressures and underground water movement, which of course is hard to do, but not impossible. Proximity of the injection wells to the epicenter of the quakes seems to be the key to the problem. If they can identify the wells in question and plug them or reduce the injection rates they should be able to control the induced fault slippage.
Newspaper stories about OK quakes always get my attention - one appeared today in the Tulsa World regarding a retired PE who wonders if the level of water in Arcadia Lake near Edmond might be a cause of seismic activity in the area…interesting reading.
http://okenergytoday.com/2016/01/some-suspect-lake-arcadia-is-behin…
Another O & G 101 question: Do you think the plan is to continue reducing pressure/quantity of injection wells in certain areas or will we be looking at plugging back wells until they’re above the Arbuckle (['m assuming the wells don’t have to go as deep as the Arbuckle)? Would plugging back ensure that water wouldn’t reach the Arbuckle anyway? I’ve read various articles but still don’t quite know the big picture. Thanks
Steve, The article is siting an upward migration of groundwater into Lake Arcadia before the earthquake which suggests a “tectonic disturbance of the underlying limestone aquifer.” The Edmond area salt water disposal wells inject into the Arbuckle Limestone Aquifer. A more violent but similar event occurred October 1983 in east-central Idaho. http://scholarworks.boisestate.edu/td/415/
I didn’t know it was such a delicate balancing act. I think I’ve seen reports of seismic activity near where they’ve already plugged/cut pressure/quantity and in some cases stopped production. One explanation was the “damage has already been done”. On the other hand AEP & others are still completing wells & seeking permits in Payne. Thank you for the thorough explanation
Good morning Martha. Think I got some good news this morning. According to Oklahoma Mineral Owners Registry, AEW started drilling in Payne Section 9 last Friday. Although the PPB stinks right now, last Friday would have been my mom’s 94th birthday. And the well is named Madelyn 1, which will be my great grand daughter’s name next month. Not scientific but still some nice coincidences. Jimmy
Jimmy, What you are experiencing is AEW’s long term outlook towards US energy independence. Saudi’s are going to refine oil and sell it to China and industrialize their country while China is industrializing too. However, the US has been dependent on Saudi oil for decades, so we must produce our own oil now. In addition, the Saudi’s can’t sell oil to China forever, because they will run out. In fact, a Citigroup report forecasts that Saudi Arabia will become a net oil importer by 2030. So, at some time in the future China will have to start producing much more oil and gas. In the meantime, US will export to China also, but we will probably start exporting more to Latin American counties. All we have do is be patient, sit back and watch the developing countries start mass consuming oil causing shortages that demand higher priced oil. Some analyst believe we will see $140-$150 or more in 5 to 10 years.
Jimmy, I’m glad you are getting your first well. We probably won’t see oil price increase much until the Saudi’s list shares of a new holding company for Aramco 's downstream business (refineries) that will provide their country another means of income other than strictly oil income. Aramco’s CEO thinks it will help stabilize the price of oil in 2016 and start the industrialization of Saudi Arabia. Aramco plans on spending 300 bil over the next 10 years to do just that.
Thanks again Martha. I would be lost in this game without your expertise!!! Jimmy
A couple of months ago a female attorney posted that she was available to help with titles and ownership in Payne County for a very reasonable price. Does anyone have info on this individual or others?
Anne Dews
Thanks Martha. Questions: Is it normal for a company, at least AEW, to start drilling when prices have been going down so much? They started quite a few all through December and now section 9 in January? Is this type drilling less costly than the old method? Are they betting that prices will start heading north by the time drilling complete? Thanks for any insight. Jimmy
Jimmy, The best way to maintain a stable oil price is to keep the OPEC cartel weak and the rest of the world ambitious.