On November 6th 2013, Eagles Landing hosted an International Trade Mission in the Bakken Energy Basin of Sidney, Montana. The event was a joint effort of the World Trade Centre Winnipeg and the Montana World Trade Center. With over 200 business and government leaders from across Western Canada and the state of Montana attending, the event was a huge success!

Here is a short video link to recap the day’s events: http://vimeo.com/79463005
###
For more information, please contact:
Troy R. Selland, 5.19 Sales and Marketing
Founder and Chief Executive
+1-321.614.1907 (work)
+1-855.758.1797 (toll -free)
troy@five-nineteen.com

By:  Bob van der Valk

Since October 16, 2013 West Texas Intermediate (WTI) crude oil decreased in price from $102.49 to $94.11 a barrel, for an 8.2 percent loss, with more to come on the horizon.  Good news for consumers with oil companies having enough on hand in cash reserves to make it through yet another pricing adjustment as happened in July 2008.

The question on the Oil Producing Export Countries (OPEC) controlling the world’s energy market has been resolved.  It has been exactly 40 years since Saudi Arabia and other members of OPEC imposed an embargo on exports of crude oil.  Since 1973 US consumers have seen gasoline prices go from $.369 to almost $5 per gallon.

Crude oil has rallied back up over to $100 a barrel since the early days of 2009 when West Texas Intermediate crude oil bottomed out at $32 a barrel.  Since then the price has been influenced by wars and rumors of wars as well as being threatened by domestic terrorist attacks such as the Boston Marathon bombing earlier this year.

More downside should be expected for crude oil and the dive is just beginning now. Major technical support lies at $60-$62, and oil may not bottom until it falls to as low as $40

The weekly Department of Energy inventory report shows a rise for seven straight weeks.  Last week, they rose 5.2 million barrels. Over the past four weeks, inventories have risen by 22 million barrels, the second largest increase since February 2009.

DOE Statistics for the Week Ending November 1, 2013:

Table covers crude oil and principal products.  Other products, including residual fuel oil and “other oils” are not shown, and changes in the stocks of these products are reflected in “Total Petroleum Products”. Statistics Source: Energy Information Administration “Weekly Petroleum Status Report” available at www.eia.doe.gov

With domestic oil production on the rise, the good news is North America will become energy secure by the end of 2014. OPEC has slowly been losing control on pricing the world’s crude oil requirements.

Bob van der Valk lives in Terry, Montana and is the Senior Editor of the Bakken Oil Business Journal as well as Fuel-pricing Analyst for US petroleum distributors and retail station owners. He can be contacted at:  editor@bakkenoilbiz.com

Foul Play Suspected in Valentine’s Day Disappearance

HELENA – On February 14, 2013, Nicole Waller left Fairview, Montana to return home to her three young children in Kalispell.  When Waller, 32, didn’t return, family members reported her missing; Waller’s vehicle, a maroon 1999 Ford Expedition, was eventually found on the side of Highway 2 outside of Poplar.  Although an extensive search was conducted, Waller was never found.  Nearly ten months later, Waller has still not been located, and investigators are asking anyone with information to contact them.

“Mothers traditionally don’t abandon their children,” noted Agent Mark Hilyard of the Montana Department of Justice’s Division of Criminal Investigation.  “This is clearly not normal behavior and has every indication of a homicide.”

Although law enforcement won’t go into details of the investigation, a number of factors point to foul play.  Agent Hilyard references Waller’s abandoned car as an example.  “Someone witnessed suspicious activity taking place. It also appeared odd that her children’s pet guinea pigs were still in the vehicle when it was recovered,” Agent Hilyard said.  He urged the public for assistance with the missing woman’s disappearance, pointing out that often a single observation that someone may consider unimportant can break a case open.

Agent Hilyard added, “There are three children and a family looking for some closure to their loved one’s disappearance.  And there’s someone out there who knows the truth.”

Anyone with information regarding Nicole Waller’s disappearance may anonymously contact Agent Mark Hilyard in the Division of Criminal Investigation at the Montana Department of Justice by calling (406) 791-2709 or the Flathead County Sheriff’s Office at (406) 758-5600.

-END-

Contact:  Anastasia Burton
406-444-9869 | aburton@mt.gov

Current slate of locations skips coal country altogether

HELENA – Today, Montana Attorney General Tim Fox asked U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy to add Montana to the agency’s listening sessions on coal regulations. Yesterday, the EPA began its series of listening sessions scheduled to take place in large urban centers: New York City, Atlanta, Denver, Kansas City, Boston, San Francisco, Washington DC, Dallas, Seattle, Philadelphia, and Chicago.

“Montanans care about proposed federal regulations impacting their livelihood, their public schools, their utility rates, their communities, and their environment, and they deserve to be heard on this,” Attorney General Tim Fox said. “It’s mind boggling that the EPA isn’t holding a single session in a state that relies directly on coal for affordable energy, family-wage jobs, and economic development. It’s as if the regulators don’t want to hear from the hardworking folks who will suffer most under the onerous regulations they’re considering. The EPA needs to come here to Montana – to a place like Colstrip or Billings – and listen to what our citizens have to say.”

The listening sessions are designed to gather public input on the agency’s implementation of Rule 111(d) of the Clean Air Act to regulate emissions from power plants. The proposed regulations are targeted at the very coal-fired power generation that provides Montanans with reliable, affordable electricity. Since Montana has more recoverable coal reserves than any other state, the regulations could be all the more devastating.

“The EPA shouldn’t be afraid of listening to viewpoints they won’t hear in New York City,” Fox said.

In his letter to EPA Administrator McCarthy, Attorney General Fox echoed President Obama and members of his administration in calling for an “all of the above” approach to energy policy. “EPA’s recently announced proposals run contrary to a balanced energy approach,” Fox told McCarthy.

Read Attorney General Fox’s letter to EPA Administrator McCarthy here.

-END-
Contact: John Barnes
406-444-2031 | johnbarnes@mt.gov

Industry representatives will work to find solutions to infrastructure needs

Bismarck, N.D. – The North Dakota Petroleum Council (NDPC) members have formed a task force to spearhead the industry’s efforts to significantly reduce natural gas flaring in the state’s Bakken oilfields.

“We recognize that natural gas is an efficient, clean and valuable resource, and that’s why the industry has invested more than $6 billion in new pipelines, processing plants and other infrastructure to move it from the wellhead to the marketplace,” said Terry Kovacevich, NDPC chairman and regional vice president for Marathon Oil. “This is a significant investment, but we are committed to making North Dakota the model of a modern, efficient and technology-driven oilfield.”

Since 2007, when the Bakken was confirmed to be a prolific and world-class resource, gas plant capacity has increased by 340 percent from 227 million cubic feet per day to more than 1 billion cubic feet per day. Despite this significant growth, production continues to outpace capacity due partly to challenges in building appropriate infrastructure and partly because it was not until recently that experts began to fully comprehend the volume and composition of natural gas trapped in the Bakken.

“We have to remember that the Bakken is still a very young play, and this is just one factor in why production has outpaced our ability to build the infrastructure needed. Furthermore, the Bakken is unlike any other play in the world and requires solutions specifically tailored to its geology, climate, landscape and resources,” said Kovacevich.

Members of the task force will pool the knowledge and experience of companies operating in the Bakken and identify solutions to better optimize the resource at the wellhead and increase and improve existing infrastructure to transport gas for processing elsewhere. The group will also focus on educating the public and working collaboratively across stakeholder groups, including government agencies, the Three Affiliated Tribes, researchers, landowners and key industry players.

The Flaring Task Force will address the North Dakota Industry Commission (NDIC) at 1:15 p.m. on Oct. 22, 2013, and will present a report to the NDIC later this year with recommendations for a collaborative effort to reduce flaring.

“This is a very complex issue without any single simple solution,” said John Paganis, commercial director for Murex Petroleum and co-chair for the Task Force. “Our task force will offer balanced, effective solutions for policy makers and regulators to ensure we keep oil development on pace while making the investments in infrastructure and new technologies to capture more of our natural gas.”

“The member companies of the NDPC want to responsibly develop the natural resources in North Dakota and America.  We also want to optimize the development of our oil and natural gas resources in North Dakota, but this will take significant investments of time and money and will require collaborative efforts between the industry, landowners, government agencies and a number of other key stakeholders,” said Kovacevich. “North Dakotans have a long history of sitting down and working together to find solutions that will meet the needs of all. We are confident that with time, all of the key stakeholders can work together to reach our goals of reducing flaring.”

Since 1952, the Petroleum Council has been the primary voice of the oil and gas industry in North Dakota. The Petroleum Council represents more than 500 companies involved in all aspects of the oil and gas industry, including oil and gas production, refining, pipeline, mineral leasing, consulting, legal work, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain Region. For more information, go to www.ndoil.org.

Contact:  Tessa Sandstrom, Communications Manager, North Dakota Petroleum Council
– ### –

North Dakota has pumped up its crude production in August to 914,617 b/d, about 1.1% higher than the revised July output of 904,927 b/d, according to the North Dakota Industrial Commission.

The preliminary July crude output published last month was at 871,459 b/d.

June output was 821,596 b/d, and May production was at 811,262 b/d.

The Bakken crude output makes up more than 90% of North Dakota’s total oil production.

The number of producing wells in August rose to 9,452 from 9,324 in July and 9,096 in June.

North Dakota is the second-largest oil producer in the U.S., with Texas holding on to the No. 1 spot and Alaska third. Bakken crude is playing a growing role in the U.S. coastal refineries’ crude slate as pipelines, rail and ships offer delivery solutions to the once-landlocked crude output.

–Edgar Ang, eang@opisnet.com, www.opisnet.com
Originally published by Oil Price Information Service (OPIS), Gaithersburg, MD. Additional reproduction is strictly prohibited. For more information on other news, contact Scott Berhang, +1 301.287.2332.

The recent “discovery” of the giant Bakken oil field, described as the “largest continuous oil accumulation ever assessed by the US Geological Survey,” bodes fundamental changes for western North Dakota and eastern Montana. Lots of people are coming! Western North Dakota now faces a daunting challenge: building infrastructure that supports a new way of life and culture.

Just ask Don Nickell, president and COO of Nakota Development, LLC. The morning Nakota opened their two Value Place extended-stay hotels in Williston in September 2012, “we had people sitting in their cars in the parking lot, waiting for us to open the doors,” said Nickell.

Since then, Williston Value Place hotels have achieved enviable occupancy rates (>95 percent in August). They have also exceeded their competitors’ occupancy % for the past four months, which is a significant achievement given they have 248 rooms versus their competitor’s properties which average only 90-100 rooms.

Nickell is confident more customers are waiting. He’s in good company. Lynn Helms, director of North Dakota’s Department of Mineral Resources, told an audience at the 2012 North Dakota Association of Oil and Gas Producing Counties that western North Dakota can expect about 250,000 additional people settling west of Highway 83 to help produce oil and natural gas.

It’s more than just about oil and gas, however.  Housing and lodging are of particular concern. Mike Anderson, director of the North Dakota Housing Finance Agency expects population growth to continue in the state for at least the next 15 to 20 years.

While many thousands of men are today living in temporary man camps, a gaping supply hole remains for those seeking lodging for the many two-to-four-month assignments typical in the Bakken and other shale oil regions.  There are thousands of geologists, landsmen, technicians, engineers, field and construction workers and service personnel in need of housing and lodging.

Nakota Development is already two steps ahead in the game; they acquired the Value Place franchise territory rights for North Dakota, Montana, and Wyoming.  They promptly built two hotels in Williston and recently completed a third in July in Dickinson.  Nakota has also purchased, or acquired options on additional land for future construction. Their construction of another Value Place recently began in Watford City and is expected to open in spring of 2014.

The master plan, according to Nakota CEO Art Cahoon, is to invest an estimated $200 million over the next five years in the development of twenty new extended stay hotels in the Bakken and other developing US shale oil regions. Nakota’s willingness to take the early equity risks and invest millions of their own money to build their first two hotels and complete them on schedule brought Nakota a rare commodity in the Bakken: CREDIBILITY.

Even today, with credit availability increasing, Nakota continues to invest significant equity in each of its hotels.  Despite the Bakken’s significant construction and operating challenges, including the scarcity of materials and high labor costs, Nakota has established itself as the gold standard developer and operator in the Bakken. “Current investors, which include all of Nakota’s senior management team, are enjoying very attractive returns on their investment,” said Cahoon.

Click to see Value Place in the Oct/Nov Issue of the Bakken Oil Business Journal.

Value Place is the largest economy extended stay franchise in America. The Value Place Brand comes from the management team that created and developed lodging brands such as Residence Inn (now owned by Marriott), Summerfield Suites (Hyatt) and Candlewood Suites (Intercontinental). In 2011, Value Place was recognized again as a Top 50 Franchise by the Franchise Business Review’s 2011 Franchisee Satisfaction Awards.  Value Place was also recognized in USA Today in 2010 as a recession-proof business.

By:  Bob van der Valk

Crude oil prices will continue to weaken regardless on whether the US raises the debt ceiling.  The connection between the value of dollar on the world market had become less of a consequence on commodity prices after the US oil production has been increasing at a fast rate.  WCS Canadian sour crude is being discounted between $25 and & $27 a barrel FOB Alberta as of today.

The importance of the EIA data is like the Federal government shutting down the NSA and not have the intelligence data gathering ability to keep us secure.  The same applies in the petroleum industry with the EIA-DOE report serving as our weekly intelligence report on which important oil and finished products trading and production decisions are made.  Without it we are back in the dark ages on gathering this type of information.  The API report has been a guide but not used in the same way at the weekly EIA-DOE report with the API report being mostly ignored by the big traders.

The weekly EIA-DOE inventory report has been very important and proven the API inventory numbers wrong numerous times.   The difference is in the methodology on gathering the data between the two reports.  The API is Garbage In; Garbage Out (GIGO) with the major oil companies “voluntarily” supplying data whereas the EIA-DOE requires and spells out mandatory figures to be submitted making it more accurate.  API also does not distribute the report without a paid subscription whereas EIA-DOE distributes theirs on their: http://www.eia.gov/ web site.

Traders use the EIA-DOE inventory report as the “Tale of the Tape” with any changes being taking into account by commodity traders in making their decisions.  They will now be dealing in the dark in making deals.  Any major refinery or pipeline glitches may result in price spikes with traders playing it safe by holding onto barrels they would otherwise be willing to sell.

Oil companies use the report to keep an eye in each other and the EIA-DOE report reveals important data about their competitors they would otherwise not be able to attain legally.  The EIA-DOE report is therefore the guide presenting facts putting rumors to rest on which some of the trades are made.  “Buy on rumors, sell on facts” is the oldest cliché in the trading circle and is alive and well.

During any extended government shutdown we will have more rumors circling around in the petroleum industry without our usual Wednesday morning verification.  Meanwhile the reporting entities are still required to submit their data and we may have an interim report once the shutdown ends.

Bob van der Valk is the Senior Editor of the Bakken Oil Business Journal and can be contacted at: editor@bakkenoilbiz.com

WILLISTON, N.D. – Dakota Landing, a unique residence hotel designed to meet the growing needs of the Bakken Shale housing market, began welcoming guests September 3

“Dakota Landing is proud to support one of the fastest growing cities in the nation by providing extended-stay housing accommodations for our guests that have a welcoming home-away-from-home feel,” said Trevor Gayler, General Manager for Dakota Landing.

Click to see Dakota Landing in the Oct/Nov Issue of the Bakken Oil Business Journal.

The hotel hosts 240 generously-sized single and double rooms, providing all-inclusive amenities for the diverse needs of guests, such as:

▪  Food Services:  Two Hot Meals a Day, Packed Bag Meals, Hot Breakfast, Lunch Program, Dinner Buffet, Vending Machines
▪  Business Services:  Dedicated Business Center, Meeting Spaces, Wireless Internet Access
▪  Recreational Services:  Fitness Center, Pool and Poker Tables, Televisions, Lounge Area with TV
▪  Convenience Services:  Laundry Services, Ample Parking with Block Heater Hookups, On-Site Security, Indoor Boot Room

Dakota Landing, owned by Bakken Properties, LLC, is located at 5813 Jefferson Lane, Williston, ND 58801.  For more information, reservations, or long-term stay options for Dakota Landing, please call 701-433-1800 or visit http://www.dakotalanding.com.

Trust Hospitality, LLC (www.trusthospitality.com) is the sales and marketing arm for Dakota Landing.  Inventory spans the globe with a base of properties in North America, the Caribbean and Latin America.  At our core, each hotel is as original as a fingerprint but our values and approach are unwavering: the development of each hotel’s identity includes developer and design input, with the destination in mind that is never contrived.

Written by Janelle Holden

In December 2012, 5.19 Sales & Marketing connected communities in Eastern Montana with business leaders looking to launch a first-of-its-kind housing project for oil and gas workers in the Bakken region.

With the guidance of the Eastern Montana Impact Coalition (EMIC) and the commitment of IAP Worldwide Services (IAP), the Eagles Landing Housing Community Project was born.

Just nine months later Sidney, Montana is now home to phase one of Eagles Landing, a state-of-the-art housing facility that includes 339 beds, private rooms, chef-prepared meals, free daily breakfast, a commercial grade laundry facility, housekeeping services, fitness center, 24-hour security and ample parking.

In this interview, Troy Selland of 5.19 Sales & Marketing shares lessons learned from the project and the secret to creating successful business ventures in the Bakken region.

Janelle: “So Troy, how did this project get started?”
Last December, I flew into Wolf Point, Montana with senior leaders from IAP to meet with EMIC executives. With over 60 years of expertise in remote site operations, IAP was looking for a community in the Bakken region in which to build and operate a multi-million dollar workforce housing community.

We toured six sites across Montana and North Dakota. All of them were potentially a good fit for a large-scale project, but the company was impressed by the opportunities that existed in Montana and how the EMIC represented the region.

Janelle: “Who is IAP Worldwide Services and why were they interested in building?”
IAP specializes in providing temporary housing solutions in remote locations around the world. It’s a company that has the capability to build specialized housing solutions in virtually any environment around the world. In the past, they have worked primarily with government agencies and were looking to expand into the private sector.

Janelle: “I’ve heard that Montana has had trouble in the past winning contracts like these. Is that true and if so, what made the difference here?
Montana has historically lost out on similar opportunities to other oil states such as North Dakota and Texas and the field was open to IAP to build anywhere in the world.

In early 2012, EMIC formed to address community challenges in the Bakken region and they welcomed IAP into the community. The coalition wanted to help solve a regional housing shortage that was persistent, challenging and frustrating.

When they met, the coalition members spoke with one clear voice about their visions, challenges and hopes for a region that is roughly the size of the state of New York.  This made the difference with IAP as it was clear that an opportunity truly did exist for them in Montana.

Janelle: This project was built in record time and it seems like everyone in the community has been happy with the result. How did that happen?
Good communication and great partners. The coalition worked with the company to ensure that every phase of design, planning and construction would address and resolve the community’s concerns and fit with Montana culture.

As a result, Eagles Landing has become home to more than just oil and gas industry personnel. Current and future residents include county employees, policemen, electricians, and even families.

Janelle: What have you learned about doing business from this project?
When I look at the history of this project, I’m proud of Montana for finding a creative way to work with businesses and solve community challenges in the Bakken. The real secret to the success of the project was combining the visionaries of IAP with the local members of the EMIC. Including community input via the coalition and building local support is the secret for businesses looking for long-term success in Montana’s Bakken region.

Troy Selland is the Founder of 5.19 Sales & Marketing, based in Livingston, Montana. He has over fifteen years of leadership and consulting experience in the commercial airline, ground logistics, and oil and gas sectors. 5.19 Sales and Marketing helps firms of vision find their place, and ultimate success, in today’s unconventional energy industry.

For More Information: 5.19 Sales & Marketing: www.five-nineteen.com
Eagles Landing Project: www.iapeagleslanding.com
EMIC: www.gndc.org/EMIC%20page.htm