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WHITING-OASIS OUTLINES BAKKEN BATTLE PLANS: Whiting and Oasis had its first earnings call as the newly named Chord energy, and outlines an ambitious game plan for the Bakken. They plan to run a three-rig program here, with 1.5 hydraulic fracturing crews. While that's a reduction in rigs, it's not a reduction in lateral miles, signaling a shift to more three-mile laterals.
CEO Danny Brown during the conference call with investors said that the companies integration process is being seen as an opportunity to challenge the status quo, and improve how it's doing everything up and down the line. The result of that is $100 million per year in "synergies" that the company will implement over time. These range from a shift to more modular buildings to using less sand down the wellbore. While none of the changes is earth-shattering, the combination of them is adding up.
As for whether there's an appetite for adding more acreage to its already 10 years worth of inventory that's economic at $60 per barrel WTI, there is absolutely is, Brown said. It will have to be the right opportunity, though, as the company will continue to guard against having high debts. The merger of equals between Whiting and Oasis has created the Bakken's second largest producer, just behind Continental. The company is essentially debt free, putting it in an enviable position in the Bakken.

EAST-WEST PIPELINE IDEA CONTINUES TO STRUGGLE: North Dakota's efforts to build an east-west pipeline that would take its abundant natural gas from west to east are so far running up against market uncertainty. The state received no takers for the line by the Aug. 15 deadline, which represented an extension over the previous May 1 deadline. Another deadline extension is likely. It's also likely the state legislature will have to consider sweetening up the grant pot for the project in the next legislative session.

NORTH DAKOTA IN ON OIL, LEASE SALES SUIT: North Dakota will be allowed to
Imageintervene in a federal suit that seeks to shut down oil and gas lease sales, as well as to vacate any sales that have already taken place. The Bureau of Land Management had approved 173 oil and gas lease parcels across 144,000 acres of land located in the West. Those sales included Montana and North Dakota's sale, which took place in June. Vacating that sale would cost North Dakota $186 million in lost oil production, extraction taxes, royalties, lost sales and personal income taxes.

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BAKKEN PRODUCTION UP, IRA IN AND MORE THINGS TO KNOW
: North Dakota's oil production continued to trend upward in June, and will likely do so again in July. But August will throw a curve ball with an outage on the Northern Border pipeline, which provides a majority of natural gas takeaway for the Bakken. Meanwhile, President Joe Biden has signed the Inflation Reduction Act into law, which includes carbon credits Montana and North Dakota need. We've got all that and more in this week's Energy Quick Takes.

WAIT THAT'S NOT ALL :
Keep scrolling down for an excellent editorial from Basin Safety Consulting's Jon Greiner. This week's rundown of energy matters is 100 percent free, including all linked articles thanks to Basin Safety Consulting. You can help keep oil and gas news free in the Bakken by recruiting a friend to sign up for this free newsletter today!

ImageAs always, reach out if you've got more story ideas for me or you have feedback for me on this newsletter. I can be reached at rjean@willistonherald.com. I love hearing from you!

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The Safety Stinks (not really) series

An Honest Look at Safety's Role in the Industry


by Jonathon Greiner • Basin Safety Consulting

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Let me begin by clarifying the premise of my editorial article, safety does not stink. However, as a safety professional I can testify that for many this is the attitude towards safety directives in the field. Many operations personnel in our industry assume that safety people are either actively working against them, or at best, “just doing their jobs.” Candidly, we haven’t figured out how to get out of this two dimensional box and in many cases have built its structure ourselves. One of my goals is to clarify where we’re failing and strategies to leverage these failures into a new paradigm. One where our workers see safety leaders as coaches and partners, not police and tattletales.

As a fourth generation energy worker, I grew up with stories of valor and pickles my grandfathers and their coffee shop crews (as I call them) endured when they were still young enough to throw a chain. These guys were tough, and a lot of them got hurt. At the time, it was part of the culture. They grew up as farm kids working around machinery and driving grain or beet trucks at the age of seven. They breathed risk and chemicals, and pretty much every other particulate or gas that went airborne. Times were different then and a lot of our systems, data, and education have improved our workers longevity and quality of life, but the way these initiatives have been managed hasn’t always built trust with the people we ask to implement them.


Read the rest of this excellent editorial online
here.
 
 

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