Crisis averted..for now

Posted by bakken

The market looked to be in very precarious territory earlier this week with a worry that Italy debt situation would quickly deteriorate into a full blown crisis.    The Dow was down almost 400 points and a major think tank predicted that a banking crisis was a 65% possibility in November.    Italy,  for the short term however was able to quell fears by quickly passing austerity measures and Greece put a new PM in power.   The market responded by going up about 1% yesterday and futures indicate another positive movement today.   In the Bakken region a number of developments hit the news and are listed below

• The first train with Bakken crude oil shipments embarked on Monday from the newly completed Bakken Oil Express terminal near Dickinson, North Dakota, Lario Logistics said on Wednesday.   The BNSF railway train, owned by Berkshire Hathaway, left for St. James, Louisiana, with 70,000 barrels of crude aboard, said the company, which owns the terminal.
• Bakken oil from North Dakota weakened to a discount to West Texas Intermediate for the first time in more than eight months as output rose to a record and inventories in the U.S. Midwest increased.   North Dakota production reached a record 444,142 barrels a day of oil in August, up 4.5 percent from the previous month, according to the state’s Industrial Commission.
• Denbury Resources Inc. (DNR: 15.05 -2.21%),  has reported that net income attributable to company stockholders for the third quarter ended September 30, 2011 was $275.67 million, or $0.68 per diluted share, compared to $29.1 million, or $0.07 per diluted share, for the third quarter ended September 30, 2010.  Total revenues for the third quarter of 2011 were $576.5 million, compared to $466.7 million for the corresponding period of 2010.  The Company’s prior 2011 annual production guidance remains unchanged at 31,000 Bbls/d for tertiary production, 8,400 BOE/d for Bakken production and 65,600 BOE/d for total Company production. Also, the Company’s 2011 capital expenditure budget remains unchanged at $1.35 billion, excluding acquisitions, capitalized interest and tertiary start-up costs and net of an estimated $60 million in equipment leases.
• Crescent Point Energy Corp , a  producer of oil in Canada’s Bakken region, said  it climbed back to profit in the third quarter on increased production and prices as well as a  hedging gain.  Crescent Point earned C$205 million ($204 million), or 74 Canadian cents a share, up from a year-earlier loss of C$8 million, or 3 Canadian cents a share.The result included an unrealized gain of C$303 million in the recent quarter and a hedging loss of C$81 million in the third quarter of 2010.  Crescent Point said it remains on track to meet its production target for the year of 72,500 bpd.

 

Stay tuned for more Bakken news next week!

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Tags: BEXP crisis DNR greece Italy pipeline railroad