WILLISTON, N.D. – Lynda Knutson-Hill made a big career change this year – from early childhood education to the oil industry.

The Williston woman most recently worked as a Head Start teacher, but a salary of $19,000 a year became impossible in the boomtown with high living expenses.

“I used up all of my 401(k) just trying to live,” Knutson-Hill said.

In January, she left teaching and by mid-February a staffing agency had placed her to work in the office of FMC Technologies, an oilfield services company. She is now in the process of being hired permanently by the company for office administration work.

“I miss the kiddos, but I had to move on,” Knutson-Hill said.

She works for a division of FMC Technologies that inspects and refurbishes iron that companies use for hydraulic fracturing.

Even though Knutson-Hill has been around the oil industry – she’s a native of Sidney, Mont., and her father worked as a motorman on drilling rigs during a previous oil boom – she still had a learning curve when she took the job.

“When they first said they had a missile coming in, I was like missile? What do they do here?” Knutson-Hill recalled. “Then I realized it was a fracking apparatus.”

Knutson-Hill assists with whatever needs the office has, from working with customers to paying bills to tech support.

“You name it, I do it,” she said.

Knutson-Hill, who is going through a divorce, had been staying with friends in Fairview, Mont., and commuting an hour to Williston every day with her daughter, a high school junior.

Even with an oil industry job, she can’t afford a two-bedroom apartment in Williston, which typically rents for $2,500 a month. But she was able to save enough money and get help from family to get into a rent-to-own house in Williston.

The career change allows her to work primarily 8 a.m. to 5 p.m., compared to the many 12-hour days she put in while teaching. She is also paid by the hour now, rather than receiving a salary, and gets overtime when she works extra.

“I’m just really fortunate that I got placed here at FMC,” she said. “I really enjoy it here. It’s a good place to work.”

Returning to teaching likely won’t be an option as long as she stays in Williston, said Knutson-Hill, who previously worked in infant development.

“Maybe if I move away and go somewhere else where I could afford to do that,” she said. “Here, no, I can’t.”

Tags: newsoilupdates

 
 
U.S. crude oil production will approach a record by 2016, climbing to the highest level in 46 years as rising output from shale formations lifts domestic supplies, reducing the nation’s need for foreign oil.

Domestic output will grow annually by about 800,000 barrels a day to 9.5 million in 2016, nearing the record level of 1970, according to the U.S. Energy Information Administration’s Annual Energy Outlook for 2014. Natural gas production will grow 56 percent to 37.6 trillion cubic feet by 2040, boosting liquefied natural gas exports to 3.5 trillion, the EIA said today.

“The production growth we’ve seen is exceeding what anyone would’ve predicted a few years ago,”John Auers, senior vice president of Tuner Mason & Co., a consulting firm in Dallas, said by phone today. “It’s surprised everyone. We’ll be reaching even higher production very quickly because of breakthroughs in technology.”

U.S. oil production grew 18 percent to a 25-year high in the past 12 months, according to the EIA, as the combination of horizontal drilling and hydraulic fracturing, or fracking, unlocked supplies in shale formations including the Eagle Ford in Texas and the Bakken in North Dakota. Burgeoning output has reduced domestic demand for foreign oil and spurred record exports of fuel from U.S. refineries.

Higher ProductionThe U.S. pumped 8.075 million barrels a day of oil in the week ended Dec. 6, the most since October 1988, while the nation’s refiners operated at 92.6 percent of capacity, the highest level for the time of year since 2004, the EIA said in a report released Dec. 11. Exports of gasoline, diesel and other fuels reached a high of 3.79 million barrels a day in July, EIA data show.

The EIA last year forecast production would rise to 7.5 million barrels a day in 2019 before gradually declining to 6.1 million in 2040. U.S. output reached an all-time high 9.6 million in 1970.

The 2014 Annual Outlook “shows that advanced technologies for crude oil and natural gas production are continuing to increase domestic supply and reshape the U.S. energy economy, as well as expand the potential for natural gas exports,” EIA Administrator Adam Sieminski said in a statement.

The boom, which has reduced the nation’s reliance on imports, will make the country the world’s largest producer by 2015, five years sooner than last year’s forecast, the International Energy Agency in Paris said last month.

Lower ImportsAs a result of rising oil and natural gas output, U.S. energy production increases to 102.1 quadrillion British thermal units in 2040 from 79.1 quadrillion Btu in 2012, according to the EIA’s forecast. The net use of imported energy sources will fall to 4 percent in 2040 from 16 percent in 2012.

The imported share of U.S. petroleum and liquid fuels supply is expected to drop to 25 percent in 2016 before growing to 32 percent in 2040, compared with 37 percent in a 2013 forecast. Domestic crude output is expected to drop after 2019, the agency said.

Natural gas production is forecast to rise through 2040 as higher spot prices through 2037 at Henry Hub in Louisiana, the U.S. benchmark pricing point, encourage higher output. The EIA forecasts gas will settle at about $4.38 per million British thermal units by 2020 and climb to more than $7.50 in 2040, according to today’s report.

Slower GrowthU.S. natural gas output growth slowed after prices dropped to as low as $1.902 per million Btu in April 2012 and rigs were diverted to seek more-valuable crude oil. Production is forecast to rise 1.8 percent in 2013, the slowest pace since 2005, before easing to 1.4 percent in 2014, according to EIA data compiled by Bloomberg.

Rigs targeting oil in the U.S. jumped 14 to 1,411 on Dec. 13, the highest level since June, as activity climbed in North Dakota’s Williston Basin and Texas’s Permian, Baker Hughes Inc., a Houston-based field services company, reported on its website. The gas count dropped six to 369, about 57 percent below the five-year average for the time of year.

“We’re directing less and less drilling toward gas and as long as that continues, we’re going to have an increasingly difficult time maintaining our natural gas production,” Arthur Berman, director of Labyrinth Consulting Services in Houston, said in a phone interview today. “It’s concerning that we’re assuming gas production will carry on forever.”

Futures PricesNatural gas for January delivery slipped 7.2 cents today to $4.279 per million Btu on the New YorkMercantile Exchange. Prices have averaged $3.704 so far in 2013. January-delivery West Texas Intermediate crude oil, the U.S. benchmark, rose 88 cents to $97.48 a barrel.

Taking into account all energy sources, including natural gas, petroleum, nuclear and renewables, the U.S. met 86 percent of its needs in the first eight months of 2013, on pace to be the highest annual rate since 1986, EIA data show.

Miles traveled by light-duty vehicles in the U.S. is forecast to average annual growth of 0.9 percent through 2040, compared with 1.2 percent per year in the 2013 forecast, due to accelerated improvement in vehicle efficiency.

Energy consumption of light-duty vehicles, meaning cars and trucks, will fall to 12.1 quadrillion Btu in 2040 compared with 13 quadrillion projected in the 2013 report, EIA said. The rising fuel economy of light-duty vehicles “more than offsets” growth in miles traveled, according to the report.

Other key findings:

* Brent crude oil spot prices are seen falling to $92 a barrel in 2017 from $112 in 2012, before increasing to $141 barrel, measured in 2012 dollars, in 2040 due to growing demand that requires development of more costly resources.

* Total U.S. primary energy consumption grows by 12 percent between 2012 and 2040. Fossil fuel share of demand falls to 80 percent from 82 percent in 2012.

* Pipeline exports of U.S. natural gas to Mexico will grow by 6 percent a year to 3.1 trillion cubic feet in 2040 and those to Canada by 1.2 percent to 1.4 trillion. Pipeline imports from Canada will fall 30 percent to 2.1 trillion cubic feet in 2040 from 3 trillion in 2012.

* In 2040, natural gas will account for 35 percent of total electricity generation, while coal’s share will be 32 percent.

* Total U.S. energy-related CO2 emissions to reach 5.6 billion metric tons in 2040 compared with 6 billion metric tons in 2005. They will remain below 2005 levels through the period.

 
 
The happy paradox of U.S. energy markets is that the domestic fossil-fuels boom has been overwhelming destructive federal government policy. The latest example of emerging common sense is Energy Secretary Ernest Moniz's suggestion last week that the U.S. may need to reconsider its 40-year ban on most oil exports.

"Those restrictions on exports were born, as was the Department of Energy and the Strategic Petroleum Reserve, on oil disruptions," Mr. Moniz told reporters at the Platts Global Energy Outlook Forum in New York. "There are lots of issues in the energy space that deserve some new analysis and examination in the context of what is now an energy world that is no longer like the 1970s."

Thank you, Mr. Secretary. The oil export ban was one result of the oil-price political panic of the 1970s, which created the worst energy policy in U.S. history until the Pelosi Congress arrived in 2007 to repeat some of the same mistakes. Mr. Moniz is right to raise the issue, and we hope his comments will spur Congress into action.

The U.S. oil boom driven by private investment and ingenuity has transformed North American oil markets, and the International Energy Agency estimates America will surpass Saudi Arabia and Russia as the world's largest oil producer by 2015. Yet with a few exceptions, U.S. producers are barred from exporting crude oil without a license from the Commerce Department.

Commerce has been granting more licenses, albeit fitfully, and the U.S. has been exporting a little less than 100,000 barrels a day on average, mainly to Canada. But this is far less than oil producers would be able to export if they didn't have to submit to such ad hoc bureaucratic review.

Oil exports would help with the U.S. trade balance, but far more important is that they would allow energy markets to operate more efficiently. Surging domestic production has led to a mismatch between the oil produced in U.S. fields and the types needed by U.S. refiners. The booming new U.S. fields often produce lighter crude that doesn't match the heavier, lower-quality crude from abroad that U.S. refiners typically handle. Without being able to export oil, U.S. drillers have a more restricted market for their high-quality crude and less incentive to expand production.

Opponents of exporting oil claim that lifting the ban would raise U.S. gasoline prices, but that misunderstands that oil is a global market. U.S. pump prices would continue to rise or fall with world oil prices regardless of exports. But lifting the ban would lead t
 
 
Transaction Increases Proved Reserves by 79% and Production by 53%

MINNETONKA, Minn., Nov. 20, 2013 /PRNewswire/ -- Black Ridge Oil & Gas, Inc. (the "Company") (OTCQB: ANFC), a well-positioned exploration and production (E&P) company focused on non-operated Bakken and Three Forks properties, today announced that it has signed a definitive purchase and sale agreement ("PSA") with a private party to acquire certain producing oil and gas wells and development acreage in the Williston Basin for $20.5 million, subject to certain purchase price adjustments as defined in the PSA.

Transaction Details:

-- Acquired net production of approximately 165 barrel of oil equivalents per day ("BOE/d"), based on internal operating reports, representing a 53% increase over Black Ridge's third quarter average of 308 BOE/d -- Acquired proved reserves of 1.9 million barrel of oil equivalents ("MMBOE") representing a 79% increase over the Company's year-end 2012 proved reserves of 2.4 MMBOE * -- Total PV10 of the acquired proved reserves equals $37.2 million with proved developed producing representing 34%, or $12.7 million, and proved undeveloped reserves (PUD) of $24.5 million.* -- Properties currently operated by Burlington Resources Oil and Gas Company LP., Marathon Oil Company and Hunt Oil Company. -- Approximately 2,046 net acres acquired at an 87.5% net revenue interest (NRI). -- 741 net acres located in northern Dunn County, North Dakota are held by production. -- 1,305 net acres located in Golden Valley County, ND are currently undeveloped with lease expirations in 2019.

*Note, reserve values of acquired assets are based on internal estimates.

Black Ridge expects the acquisition to close on or before December 13, 2013 with an effective date of October 1, 2013. The agreement is subject to customary due diligence and adjustments to be calculated as of the closing date.

Ken DeCubellis, Black Ridge's Chief Executive Officer, said: "This transaction demonstrates management's ability to utilize our platform to aggregate high return, quality assets in the heart of the Bakken / Three Forks development fairway to grow our drilling inventory, production and proved reserves in a meaningful way. While the immediate increase in production and cash flow are a benefit to the Company, the real long term value of this acquisition is in the high return development projects and drilling inventory."

Financing the Acquisition

Black Ridge will finance the acquisition with availability from our senior secured credit facility with Cadence Bank, N.A., our second lien credit facility with Chambers Energy Management, L.P., and cash on hand. In conjunction with the closing of the transaction, Cadence has agreed to increase the Company's borrowing base from $7.0 million to $18.0 million. The Cadence borrowing base is subject to periodic redeterminations based on changes to the Company's reserve base. The Company expects the availability under both facilities to grow as it continues to acquire and develop new, high value leaseholds in the heart of the Bakken and Three Forks development fairway. As of November 20, 2013, the Company had not drawn from the Cadence facility and had an additional $10.0 million of availability under its Chambers facility.

Wells Acquired

The following table sets forth Bakken and Three Forks wells in which Black Ridge is acquiring a participating interest, effective as of October 1, 2013:

Well Operator Status as of 10/1/2013 WI(1) ---------------------- ---------------------- ----------------------- ----- BURLINGTON RESOURCES GORHMAN 14-31TFH OIL & GAS COMPANY LP Producing 0.193 BURLINGTON RESOURCES GORHMAN 24-31MBH OIL & GAS COMPANY LP Producing 0.193 LINCOLN USA 16-1H MARATHON OIL COMPANY Producing 0.064 HALLIDAY 3-11-2H HUNT OIL COMPANY Producing 0.031 HALLIDAY 2-11-2H HUNT OIL COMPANY Producing 0.031 HALLIDAY 1-11-2H 1 HUNT OIL COMPANY Producing 0.031 HANSEN RANCH 34-10TFH MARATHON OIL COMPANY Producing 0.031 HANSEN RANCH USA 44-10TFH MARATHON OIL COMPANY Producing 0.031 HANSEN RANCH USA 44-10H MARATHON OIL COMPANY Producing 0.031 HANSEN RANCH 14-10H MARATHON OIL COMPANY Producing 0.031 CORRAL CREEK-BAKKEN BURLINGTON RESOURCES UNIT(2) OIL & GAS COMPANY LP Producing 0.008 ---------------------- ---------------------- ----------------------- ----- (1) The working interests are based on Black Ridge's internal records and may be subject to change by the operators' third-party legal counsel in preparing final division order title opinions for each well. (2) Black Ridge is acquiring a 0.77376% WI across the 30,844 acre Corral Creek-Bakken Unit operated by Burlington Resources. As of October 1, 2013, there were 33 producing wells and 18 wells drilling or awaiting completion.

Cautionary Statement as to Forward-Looking Statements

Certain statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties not known or disclosed herein that could cause actual results to differ materially from those expressed herein. These statements may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect the Company's current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, volatility in commodity prices for crude oil and natural gas, environmental risks, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital or have access to debt financing, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, increases in operator costs, acquisition and investment opportunities available to the Company, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices and other risks inherent in the Company's business that are detailed in the Company's Securities and Exchange Commission ("SEC") filings. Readers are encouraged to review these risks in the Company's SEC filings.

About the Company

Black Ridge Oil & Gas, Inc. is an oil and gas exploration and production company based in Minnetonka, Minnesota. Black Ridge's focus is exclusive to the Williston Basin Bakken and Three Forks trend in North Dakota and Montana. For additional information, visit the Company's website at www.blackridgeoil.com.

Make sure you are first to receive timely information on the Company when it hits the newswire. Sign up for Black Ridge's email news alert system today at http://ir.stockpr.com/blackridgeoil/email-alerts

Contact

Black Ridge Oil & Gas, Inc.

Ken DeCubellis, Chief Executive Officer

952-426-1241

www.blackridgeoil.com

SOURCE Black Ridge Oil & Gas, Inc.

/Web site: http://www.blackridgeoil.com

 
 
Oneok Partners LP, Tulsa, will invest $650-780 million between now and second-quarter 2016 in more Williston basin projects.

Specifically, Oneok will:

• Build a 200-MMcfd Lonesome Creek gas processing plant and related infrastructure in McKenzie County, ND, in the Bakken shale. The plant will be Oneok’s sixth new natural gas processing plant in the region since 2010 and seventh plant overall.

• Complete a second expansion of the Bakken NGL pipeline, increase its capacity to 160,000 b/d from 135,000 b/d (OGJ Online, Apr. 10, 2013).

Terry K. Spencer, president of Oneok Partners, said the expansion of the Bakken NGL pipeline will move additional NGLs from the Lonesome Creek plant to Oneok’s Midcontinent NGL infrastructure.

The new Lonesome Creek plant will cost $320-390 million, the company said. When complete, the plant will be Oneok’s largest gas processing plant in North Dakota and will increase its total gas processing capacity in the state to about 800 MMcfd.

In addition to the new plant, Oneok expects to invest $230-290 million for related expansions and upgrades to existing gas gathering and compression. The Lonesome Creek plant and related infrastructure will be completed by yearend 2015 and be supported by acreage dedications from producers.

To accommodate NGL volumes produced from the new plant, Oneok will invest an additional $100 million to increase capacity on its Bakken NGL pipeline, a 600-mile pipeline completed in April that transports unfractionated NGLs produced in the Williston basin to the Oneok’s 50%-owned Overland Pass pipeline.

This second expansion of the Bakken NGL pipeline, which is to be complete during first-half 2016, will increase its capacity to 160,000 b/d to accommodate NGL volumes from the new Lonesome Creek plant.

The Bakken NGL pipeline is currently being expanded to 135,000 b/d from an original capacity of 60,000 b/d. This previously announced initial expansion is to be complete in third-quarter 2014.

 

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