In this week's news update, North Dakota's Department of Mineral Resources provides an update on wells drilled in the state, and the US Commerce Department intends to approve trade with a Mexican oil company.
U.S energy companies scored a small victory on Aug. 14 when the U.S. government said it would approve proposals to trade American oil with Mexico, in another move to ease the nation’s four-decade ban on selling its oil overseas.
The U.S. Commerce Department informed members of Congress that it intends to approve an application by Mexico’s national oil company, Petroleos Mexicanos SA, to enter into oil trade agreements with U.S. companies under which the companies would exchange U.S. and Mexican oil, according to a story by Dow Jones Newswires.
The amount of crude to be allowed wasn’t immediately known.
Over 10,000 Wells Drilled in Bakken, Many More to Go
Oil companies have drilled one-sixth of the potential Bakken and Three Forks wells in North Dakota, according to the state’s Department of Mineral Resources on Aug. 14.
The state’s oil production rose slightly in June to more than 1.2 million barrels per day, the second-highest production month behind last December. The nearly 1 percent increase in oil production was driven by companies that are aggressive in fracking and completing oil wells, the department said.
Crews completed 149 wells in June, up from 116 in May. An estimated 848 wells were drilled but waiting on fracking crews at the end of June. The state had 12,864 producing oil wells at the end of June, with 10,113 of those in the Bakken and Three Forks formations.
Fortress Environments Plans for Future with Growth
Fortress Environmental Services is taking advantage of low oil prices and service costs to build a footprint and a customer base in preparation of the inevitable rebound, the company says.
Fortress opened its first $12 million facility for disposal of salt water from fracking in Texas. The facility also includes truck washing, water recycling and frac tank cleaning services, along with hot meals and wireless internet. The facility will soon add a “mud farm” to receive and process mud used in drilling new wells.
The company says it will likely break ground in October on a similar facility elsewhere in the Eagle Ford Shale.
“I’ve been through a lot of these busts, and it always comes back and it always comes back stronger,” said Tim Buroughs, co-founder and executive vice president of Fortress Environmental Services in an interview with the Houston Chronicle. “It’s a great time to expand and be ready for when it comes back.”
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