Hess boosts its Bakken 1Q net production
Hess Corp. increased its net production from the Bakken formation by 70% to 108,000 boed for first-quarter 2015 compared with the same period for 2014, which it attributed to continued drilling and to constrained production in early 2014 while Tioga gas plant was shut to complete an expansion project.
During the first-quarter 2015, Hess brought 70 gross operated wells. Drilling and completion costs per operated well averaged $6.8 million in the first quarter of 2015, down from $7.5 million in the year-ago quarter.
Hess operated an average of 12 rigs for first-quarter 2015 compared with 17 rigs at yearend 2014. As of Apr. 29, Hess operated 8 Bakken rigs, and executives planned to maintain that level throughout 2015.
WBI Energy names vice-president
WBI Energy Inc., Bismarck, ND, named Jeff Rust vice-president of operations, succeeding Scott Fradenburgh, who plans to retire in July. Rust started working for WBI Energy on May 4.
Previously, Rust worked at Bilfinger-Westcon and was lead project director for the 20,000-b/d Dakota Prairie Refinery under construction near Dickson, ND (OGJ Online, Jan. 9, 2015).
The diesel refinery is a joint venture of WBI Energy parent, MDU Resources Group Inc., and Calumet Specialty Products Partners.
In his WBI job, Rust will provide leadership for the company's transmission and midstream operations that span throughout the Rocky Mountain region.
WBI Energy provides oil and gas gathering services as well as gas transportation, underground storage, and processing.
ND Conference Committee approves railroad fund
The North Dakota Legislature approved financing for a state-run rail safety pilot after a House-Senate conference committee resolved differences that kept the committee deadlocked for several days in April.
The rail safety pilot proposal went to conference committee after the House of Representatives previously rejected a minority report that sought financing for it.
The Public Service Commission had requested $972,000 to finance a 2-year program that would have involved two rail safety inspectors and a rail safety manager. PSC Commissioner Julie Fedorchak suggested a state program to supplement federal inspection efforts.
The Senate had approved the pilot in the PSC's budget in February. But House budget writers removed the funding. However, the conference committee recommended a $523,000 program that includes two rail safety inspectors. The Legislature agreed to that recommendation as part of the Public Service Commission's $22.2 million budget.
Pilot ND project would recycle drilling waste
North Dakota lawmakers approved a pilot project to treat and recycle oil drilling waste materials for use in road building and other purposes. Officials estimate produces more than 1 million tons/year of drilling waste in the state.
Lynn Helms, director of the state Department of Mineral Resources, said operators working the Bakken formation are left with about 24 semi-trailer truck loads of drill cuttings for each well drilled. That material has to be stored on site or dumped in a special waste landfill.
Rep. Todd Porter, R-Mandan, one of the bill's sponsors, said most road-building material used in western North Dakota is brought by truck from other parts of the state.
The measure calls for setting aside $65,000 for the state Health Department to monitor an independent pilot project and develop standards. The legislation requires a third-party contractor to review the process selected for the pilot project.