Here are the top five stories from Bakken.com for the week of May 9th through May 15th. Enjoy!
5. Amidst an oil boom, North Dakota produces premium caviar
North Dakota is known globally not just for prolific oil production, but also, it turns out, for caviar.
A distinctly American version of the salty delicacy prized for centuries by Russian czars gets its start each May in the cool waters where the Missouri and Yellowstone rivers converge, the same spot where explorers Lewis and Clark camped two centuries ago.
As paddlefish, one of North America’s largest freshwater fish, make their way north to spawn, their eggs, or roe, are processed at the water’s edge to make more than 2,000 pounds of caviar prized by clients from Tokyo to Toronto to New York. To read the full article, click here.
4. U.S. set to get more accurate oil production data: Kemp
LONDON – “The data must be wrong,” according to veteran oil analyst Phil Verleger, who wrote in a blistering note that the Energy Information Administration is probably overestimating U.S. oil production by 1.6 million barrels per day.
Verleger argues substantially lower U.S. production is the most likely explanation for why global stocks are not rising as fast as predicted and discounts for storing barrels are narrowing (“Notes at the margin” May 11).
Other reasons why the stock build is smaller and the forward price structure is firmer could be stronger demand and/or more oil stockpiling in developing countries. To read the full article, click here.
3. Latest ‘bomb train’ incident predictable
BNSF Railway carried the Hess Corp.-owned rail car, which carried highly volatile Bakken crude oil from North Dakota and appears to have followed the law.
President Barack Obama weighed and rejected using executive authority to curb the transport of this explosive crude oil, rich in butane and propane, because he decided North Dakota state law should be the controlling authority. But the law North Dakota passed in December and went into effect just last month, only requires less than 13.7 pounds-per-square-inch vapor pressure inside the tanker, despite explosions at lower pressures.
That’s almost 40 percent more than the average vapor pressure among the 63 tanker cars that exploded July 6, 2013, at Lac-Megantic, Quebec. That disaster killed 47 people, some of whom could not be found because they were vaporized, and is driving recent federal and state rail car regulations. To read the full article, click here.
2. Oil falls towards $65 on signs of U.S. shale oil recovery
LONDON – Oil slipped towards $65 a barrel on Monday as signs that U.S. shale oil production was recovering after a recent price rally renewed concerns of a growing global supply glut.
China’s latest move to bolster its economy offset some of the losses as it raised hopes that the world’s top energy consumer would help absorb supplies.
Brent crude for June was down 30 cents at $65.09 a barrel by 1225 GMT after dropping 1.6 percent last week. June U.S. light crude was up 15 cents to $59.54 a barrel after rising for eight straight weeks, the longest winning stretch since early 2013. To read the full article, click here.
1. The silver lining in the Heimdal derailment
Earlier this week another oil train derailed, this time near Heimdal in central North Dakota.
Anti-oil activists could almost be heard panting in their excitement, rushing to the media with talking points about “bomb trains” and lax regulation of oil shipped on America’s rail lines. Rep. Ron Guggisberg, a North Dakota Democrat from Fargo, went on MSNBC to make political hay claiming that the state’s first responders aren’t prepared for these derailments.
But let’s cut through the miasma of anti-oil politics which surrounds these incidents. We learned a couple of very positive things which fly in the face of the narrative pushed by the activists and partisan opportunists like Guggisberg. To read the full article, click here.