Lower Crude Price

This month the North Dakota Industrial Commission (NDIC) indicated they are leaning towards leniency in their treatment of operators that have drilled but not completed wells within the one-year time frame permitted. Instead of assuming such wells are abandoned, which would otherwise mean an expired drilling permit and about $200,000 in plugging costs,  – the State plans to give operators more time. That possibility opens up a whole new underground storage option for producers struggling to make ends meet. Today we explain the NDIC plan.

Our recent analysis of Houston area crude infrastructure found new pipelines running half full as more capacity comes online and storage only half utilized as midstream operators continue to plan expansions. Add the current crude production slowdown to that equation and it could spell trouble for midstream companies. Today we ponder the fate of midstream investment in Houston crude oil infrastructure.