AN INTERVIEW WITH RALPH A. HILL, PRESIDENT AND CEO OF WPX ENERGY

Liquids production (oil, condensate, and natural gas liquids) from North American shale formations (includes tight oil plays) will most likely reach 8 million barrels per day by 2020, assuming current activity levels will remain constant and only minor changes will occur to the latest reported performance of wells and fleets.

The United States Geological Survey (USGS) released an updated oil and gas resource assessment for the Bakken Formation and a new assessment for the Three Forks Formation in North Dakota, South Dakota and Montana.

Natural gas liquids production from the Bakken has increased from only 20 Mb/d two years ago to almost 50 Mb/d today. And that is with nearly one-third of the natural gas in the region being flared and no outlet for ethane. For years gathering, processing and pipeline constraints have held back production growth. But that’s all changing. ONEOK has completed their NGL pipeline and plant expansion project and more outlets are on the way. Production could rise to more than 300 Mb/d by 2018.  In today’s blog, we examine the Bakken NGL situation.

In the short term midstream companies with crude-by-rail unloading terminals at the Gulf Coast can deliver cheaper light sweet crudes from the Midwest and West Texas. Once new pipelines come online to deliver that crude direct to Houston that price advantage will disappear. At that point rail terminal operators need to diversify their business to survive. Today we look at the fate of Texas Gulf Coast rail terminal operators.

Subject to market conditions, Continental Resources Inc. (NYSE: CLR) intends to offer $1.0 billion in aggregate principal amount of new senior notes in a private placement to eligible purchasers.

Canadian crude prices are expected to remain volatile for the rest of this decade according to a recent report by Wood Mackenzie. Even considering new infrastructure build, export capacity will remain tight as production from both Canada's oil sands and North Dakota's Bakken continues to increase.

The Energy & Environmental Research Center at the University of North Dakota, in partnership with the North Dakota Pipeline Authority and the North Dakota Industrial Commission (NDIC), will hold a free webinar entitled “Utilization of Associated Petroleum Gas (APG) to Power Drilling Rigs -- A Demonstration in the Bakken,” on Wednesday, Feb. 27, beginning at 10 am CST. To attend the webinar, visit https://northdakotapiplines.webex.com. Click on "Gas Powered Rig Demo," and follow the registration instructions.

The latest crude production estimates from North Dakota show continued growth to a new record of nearly 770 Mb/d in December 2012. The North Dakota Pipeline Authority estimates that 64 percent of that crude was transported to market by rail in December – up from 58 percent in November. Today we continue our survey of North Dakota crude rail loading terminals with an in-depth look at three facilities that between them can load 250 Mb/d of crude.

MDU Resources Group Inc. (NYSE: MDU) and Calumet Specialty Products Partners LP (NASDAQ: CLMT) have formed a joint venture to develop, build and operate a diesel refinery in southwestern North Dakota to process Bakken crude oil.

PBF Energy Inc. announced Feb. 4 the completion of the second crude-oil unloading facility at its subsidiary’s refinery in Delaware City, Delaware. The construction of the 70,000-barrel-per-day (bpd) rail facility was announced in mid-2012 and was completed on schedule and on budget.

Global Partners LP announced Feb. 4 the completion of its previously announced acquisition of a 60% membership interest in Basin Transload LLC, which operates two crude-oil transloading facilities in Columbus and Beulah, North Dakota, with a combined rail-loading capacity of 160,000 barrels per day.

PLS Inc. notes that late-year 2012 global upstream M&A activity reached a frenzied pace as buyers and sellers rushed to complete deals, announcing $38 billion in deals in 86 transactions during December 2012.

Hess Corp. has announced a 2013 exploration and production budget of $6.7 billion, of which 40% will be dedicated to unconventional oil and gas plays.