Each month respectmyplanet (RMP) recaps the past 30 days of oil & gas activity in the Michigan Basin. We cover new applications & permits to drill oil, gas, disposal, and storage wells and anything else hydrocarbon related. We recap oil & gas activity that happens in Michigan and publish this Michigan Oil & Gas Monthly (MOGM) magazine right here at the end of each month. You can follow us on Twitter by clicking here, or like us on facebook by clicking here and you won’t miss a publication. Our publications are free and always will be. Have a tip for us about a leaking tank or a spill near your house? Or, are you curious about something oil & gas related you see that you want us to dig into? Let us know by leaving a comment at the bottom of this article.
This month a group calling themselves the MICATS staged a protest at Attorney General Bill Schuette’s home in Midland, Michigan. The Detroit News has a story here.
For the record, I have never supported extremist groups or individuals like those in MICATS and neither has respectmyplanet.org. I don’t know them, affiliate with them, or in any way condone what they did. RMP supports as part of our stated mission the migration away from oil as an energy source. RMP supports ending oil pipelines that traverse our Continue reading Michigan Oil & Gas Monthly – July 2016→
In this month’s cover photo a buzzard flies past the flare stack at the Wessel et Al 2-6A oil well in Hillsdale, Michigan (PN#58992). Buzzards seem to love to congregate around oil wells as they await their next meal’s demise. A buzzard circling a Michigan oil well is a fitting analogy for the June 2016 edition of RMP’s MOGM as we have seen few vital signs in Michigan’s oil economy so far this year. RMP wrote throughout the year in 2015 how it turned out to be the slowest year in Michigan’s history for oil & gas well permitting. RMP also wrote in 2014 that the forecast of activity in the coming years for oil production in Michigan was bleak; and that’s when prices were over $100/bbl. As it turns out, the numbers continue to Continue reading Michigan Oil & Gas Monthly – June 2016→
The big news in oil & gas this month was the Chapter 11 bankruptcy filings of Houston, Texas based Linn Energy and Los Angeles, California based Breitburn Energy Partners. Linn energy was the 3rd largest hydrocarbon producer in Michigan in 2015 bringing in approximately $45.1 million worth of Michigan petroleum revenue. Breitburn was Michigan’s 5th biggest producer in 2015 bringing in approximately $44.0 million. Now, the questions will come about how the Chapter 11 bankruptcy restructurings will impact these companies along with their Michigan assets. RMP published a summary of the 2015 top 25 producers in the Michigan Basin last month, you can read it here. Less than a month after publishing the top 25 producers, we learn that two of Michigan’s top five producers are bankrupt.
2015 Michigan petroleum production numbers are approximately 98% reported as of today. RMP has always focused on the numbers as they are often greater than adjectives. Opinions are overrated. People want to hear the numbers and then decide for themselves. This is RMP’s fifth year studying, parsing, organizing, compiling, and reporting numbers related to Michigan petroleum production. The information RMP publishes will always be free access to the public. RMP has always followed three fundamental tenets as a research and reporting philosophy:
It’s all about the rock. Always respect the geology.
Follow the money. Money talks.
Follow the wastewater. Waste means inefficiency and problems. Inefficiency and problems mean additional costs. With regard to costs, see point #2.
Crickets. New oil & gas activity in the Michigan Basin is so slow through the first quarter of 2016 that the only thing you can hear at the OOGM permitting department is crickets. 2015 was the slowest year in Michigan oil & gas history for new permitting activity breaking the old record set in 1931. In the first three months of 2015, the slowest year in Michigan history, the Office of Oil, Gas, & Minerals (OOGM) had received 24 applications and had issued 28 permits. As of today, through the first three months of 2016, Michigan’s OOGM has received only two applications and issued only six permits. New oil & gas permitting activity in 2016 is on pace to set the bar substantially lower than last year’s record as the slowest year ever.
The Detroit Free Press published an article March 10, 2016 written by Keith Matheny that raises awareness about groundwater contamination at Wurtsmith Air Force Base (WAFB) in Oscoda, Michigan. You can read the Freep article by clicking here. Keith’s article has current information and details about an upcoming “open house” being held by the MDEQ & US Air Force on March 23, 2016 in Oscoda in order to brief the public about groundwater contamination at WAFB. Each day thousands of gallons of Pure Michigan freshwater soak through Landfill #27 and become contaminated water that flows south through Clark’s Marsh to the Au Sable River and then out to Lake Huron. The extent of the contamination plume around WAFB is not fully understood but ongoing studies are underway to delineate the pollution. A “do not eat” fish advisory was issued immediately after data first became available on May 2, 2012 that showed contamination levels at WAFB above GSI criteria. It’s great to see Freep covering issues that raise awareness about important contamination “hot spots” in the Michigan Basin. RMP has been working on a list of contaminated hot spots in Michigan and WAFB is on our top 10 list. In this post, I will write a little bit about Continue reading Landfill #27 At Wurtsmith Air Force Base→
Each month, RMP publishes a detailed recap of oil & gas activity in the Michigan Basin. This edition marks our 14th since our inaugural monthly edition was published in January of 2015. It’s time to follow up on a couple things we reported in 2015. One of the hot topics in our hometown Detroit newspapers and on our Detroit radio stations is the application for the Word of Faith 16-27 well targeting Michigan’s Silurian age Niagaran Reef. Jordan Development out of Traverse City, Michigan filed the application in October of 2015.
What makes the Word of Faith 16-27 oil well different than many other potential Michigan wells is that it’s within the city limits of Southfield, which has a population of nearly 75,000 people. Often times when an application is received for a well in a heavily populated Metro Detroit city, the MDEQ’s OOGM will extend the application review process to hear comments from the public. The MDEQ has sole legal authority to permit any Michigan oil well regardless of symbolic gestures like a moratorium enacted by the Southfield City Council in effect until April 28, 2016. Only a court ordered injunction via lawsuit can Continue reading Michigan Oil & Gas Monthly – February 2016→
The December issue of RMP’s Michigan Oil & Gas Monthly (MOGM) marks our 12th edition, our first full year of publications, and the final edition for 2015. The story for 2015 was this: oil & gas exploration in Michigan is at its slowest ever. It was the all-time slowest year in Michigan’s oil & gas exploration history beating the record set in 1931 for lowest permitting & drilling activity. While the predictions RMP made last year were spot on target for Michigan in 2015, some unexpected things happened also.
Half-way around the world, Saudi Arabia’s 2015 actions to increase their own crude oil production to stave off US shale production have had a deep cutting effect on American oil & gas producers across the nation as well as right here at home. As long as we rely on crude oil as an energy source, the King of Saudi Arabia can significantly impact a large segment of our energy economy which effects our national security and causes Americans to lose jobs. Switching from internal combustion engines to fuel cells would fundamentally change the balance of world power as it relates to energy. America can end its reliance on Saudi Arabia & other OPEC countries by responsibly migrating away from crude oil as an energy source. We have seen American oil producing companies lose major percentages of their net financial worth and layoff tens of thousands of American workers in 2015 because of Saudi actions.