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Government Finance
Committee
Bismarck, ND August 2, 2017
Oil and gas update
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Oil and Gas Update
• Bakken Development
• Bakken Performance
• Bakken Takeaways
Bruce E. Hicks
Assistant Director
NDIC-DMR-OGD
Bismarck, ND
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Oil and Gas Update
• Bakken Development – Uniform Spacing—orderly development
– Energy Corridors
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Water-Oil Ratio
– Stimulations
• Pipelines
• Bakken Takeaways
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Six Wells on a Single Pad
Vern Whitten Photography
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Oil and Gas Update
• Bakken Development
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Stimulations
– Water-Oil Ratio
• Pipelines
• Bakken Takeaways
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NORTH DAKOTA – 190 DRILLING RIGS – Jan 2013
NORTH DAKOTA – 60 DRILLING RIGS – August 2017
Current drilling activity is focused
in Mountrail, Dunn, McKenzie, and Williams Counties
Core
area
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Well density is the big question
Source: Continental Resources
Bakken Fm
Three Forks Fm
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Well density is the big question
Source: Continental Resources
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Well density is the big question
Source: Continental Resources
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Well density is the big question
Source: Continental Resources
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Oil and Gas Update
• Bakken Development
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Stimulations
– Water-Oil Ratio
• Pipelines
• Bakken Takeaways
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Wells
13,876 active
2,057 conventional
11,819 Bakken/Three Forks
1,772 inactive
+$40 for 90 days
830 waiting on completion
+$50 for 90 days
1,919 permitted
+$60 for 90 days
NYMEX 2024+
13,141 increased density approved 6/27/17
31,538 total
55,000-65,000 estimated final
9,782 reclaimed and bond released
1,017 reclamation in progress
Core
area
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Oil and Gas Update
• Bakken Development
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Stimulations
– Water-Oil Ratio
• Pipelines
• Bakken Takeaways
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Oil and Gas Update
• Bakken Development
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Stimulations
– Water-Oil Ratio
• Pipelines
• Bakken Takeaways
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8591%
Nov 2020 8588%
Nov 2018
8585%
Nov 2016
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Oil and Gas Update
• Bakken Development
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Stimulations
– Water-Oil Ratio
• Pipelines
• Bakken Takeaways
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Oil and Gas Update
• Bakken Development
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Stimulations
– Water-Oil Ratio
• Pipelines
• Bakken Takeaways
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Oil and Gas Update
• Bakken Development
• Bakken Performance – Oil Production
– Well Count
– Gas-Oil Ratio
– Gas Capture
– Stimulations
– Water-Oil Ratio
• Pipelines
• Bakken Takeaways
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EERC—Phase I Study
• HB 1358—Effective April 20, 2015
• Recommendations to NDIC
• December 1, 2015—EERC report published
• NDIC promulgated rules—effective January 1, 2017
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EERC—Phase II Study
• HB 1358—Effective April 20, 2015
• Pipeline Leak Detection
• Field Evaluation of Liquid Gathering Pipelines
• December 30, 2016—EERC report published
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EERC—Phase III Study
• HB 1347—Effective July 1, 2017
• Leak detection and monitoring technology analysis
• Risk assessment of new + existing pipeline systems
• September 30, 2018—EERC report due
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Western North Dakota
Gathering Pipelines
Estimate 12,700 miles pre August 2011
+ 4,900 miles August 2011-December 2013
+ 2,650 miles per year 2014-mid 2017
= 26,875 miles thru mid 2017
= 36,000 miles projected to 2020
14,000+ miles within OGD database
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Bakken/Three Forks EOR Potential
• Pilot projects – CO2 injection
– water injection
– projects small-scale and usually inconclusive
– ethane injection encouraging in lab
– further testing must be conducted
• > 300 billion barrels OOIP – every 1% of EOR = 3 billion barrels
(note: cum oil prod from 1951-2016 = 3.8 bil bo)
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Bakken Takeaways
• Multi-well pads allow batch drilling
• Rig efficiency = more wells / rig
• SI + NC wells = near term prod increase
• GOR increasing = more gas issues
• Stimulation improvements = higher EUR
• WOR increase = disposal + pipeline needs
• Bakken EOR Potential
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600 East Boulevard Ave. - Dept 405
Bismarck, ND 58505-0840
(701) 328-8020 (701) 328-8000
North Dakota Department of Mineral Resources
https://www.dmr.nd.gov/ndgs/ https://www.dmr.nd.gov/oilgas/
Bruce E. Hicks
Assistant Director
NDIC-DMR-OGD
Bismarck, ND