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100% more recoverable Oil at Bakken & 3 Forks formation says North Dakota Department of Minerals & Resources "8 Billion Barrels of Oil are now recoverable"

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January 12, 2011 – Comments (3) | RELATED TICKERS: BEXP.DL , NOG , GEOI.DL

Jan 12, 2011 2:41 PM | about stocks: BEXP, NOG, GEOI, CRED, TPLM

Double the oil production?

Locals react to predictions of more recoverable oil

By Nick Smith
Williston Herald
Published/Last Modified on Saturday, January 8, 2011 6:22 PM CST
Link to Article

  Local leaders are expressing excitement and nervousness over recent news of industry officials' projections that oil production may double within the next decade.

The Associated Press quoted North Dakota Department of Mineral Resources Director Lynn Helms last week saying production could double to nearly 700,000 barrels of oil per day "in the next four to seven years."

Industry officials are also projecting that the total recoverable oil in the Bakken and Three Forks formations may be more than twice the current estimates of 4 billion barrels.

If such projections were to play out, North Dakota could become the second highest oil producing state in the country, trailing only Texas.

LOCAL REACTION Currently, North Dakota is ranked fourth behind Texas, Alaska and California.

"It makes us a bit nervous, to be honest. We're a bit nervous about how we'd be able to handle such an increase. We're really being challenged already," said Williston Mayor Ward Koeser.

Production was at more than 342,000 barrels per day in October.

Koeser said in recent months he was confident that the city may be able to catch up on housing in the coming year.

He said the new projections, if accurate, would make efforts to provide housing and infrastructure even more difficult.

"It makes it very difficult to plan. With the (AP) story, that changes the whole ballgame," said Koeser.

Williston Economic Development Director Tom Rolfstad said the newer industry projections are a lofty goal.

He agreed that such numbers are exciting yet enough to make anyone nervous and concerned.

"Obviously 700,000 is a huge number. If we're going to double our activity, it's hard to fathom," said Rolfstad.

Rolfstad added that the increase in activity shows the need for state assistance. He said it may also attract more developers to the area.

Rolfstad noted that Continental Resources CEO Harold Hamm told UND students in December there may be as many as 24 billion barrels of recoverable oil in the Bakken and Three Forks.

He also pointed out that outgoing U.S. Sen. Byron Dorgan, D-ND, called on the United States Geological Survey to start an updated study on the Bakken.

No matter what the long-term expectations, Rolfstad said this year is going to be memorable.

"Next year should be the experience of a lifetime for Williston. We're going to see things happen that we've never seen before." Stocks: BEXP, NOG, GEOI, CRED, TPLM

 

3 Comments – Post Your Own

#1) On January 12, 2011 at 3:00 PM, EPS100Momentum (72.49) wrote:

Bakken Source System: Bakken Assessment
On April 28, 2008, three years after the discovery of the Parshall
Field, the North Dakota Department of Mineral Resources released
an assessment of the oil potential of the Bakken Formation
within the North Dakota portion of the Williston Basin (Bohrer
et al., 2008). The assessment concluded there were 149 billion
barrels of oil
in place within the Bakken Formation of which 2.1
billion barrels could be expected to be produced using available
technologies (expected ultimate recovery). We anticipated
that the expected ultimate recovery would significantly increase
with time beyond our estimate of 1.4% due to advances in well
completion techniques.

New data in late 2010 says 8 billion barrels will be recoverable not the 2 billion that was originally estimated)

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#2) On January 12, 2011 at 3:19 PM, EPS100Momentum (72.49) wrote:

While even more upbeat estimates say 24 billion :Continental Resources CEO Harold Hamm told UND students in December there may be as many as 24 billion barrels of recoverable oil in the Bakken and Three Forks.

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#3) On January 12, 2011 at 4:02 PM, SockMarket (41.96) wrote:

there are a couple problems here:

1) just because you can get more out does NOT mean that you can double production. If the oil is in the same spot another well, needed to increase production could lower the pressure quickly and make both wells useless. (as such they would have to stick with just the one well

2) I am not sure how you meant this, it won't change anything on a global scale (the world would use all that oil in 94 days) and it probably won't change a ton for each of these companies, unless this is their primary income stream. 

 

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