Post on 02-Dec-2021
DUG Bakken and Niobrara North Dakota Pipeline Authority
Justin J. Kringstad May 30, 2013 – Denver, CO
March 8, 2013 1
2 JJ Kringstad - North Dakota Pipeline Authority
May 27, 2013 – 186 Drilling Rigs
3 JJ Kringstad - North Dakota Pipeline Authority
ND Drilling Stats
4 4 JJ Kringstad - North Dakota Pipeline Authority
Forecasted Drilling Rigs
5 5 JJ Kringstad - North Dakota Pipeline Authority
Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning.
Forecasted New Wells
6 6 JJ Kringstad - North Dakota Pipeline Authority
Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning.
North Dakota Pipeline Miles
2,353 miles of new pipe in 2011
Roughly Distance from Seattle to Washington DC
2012 Data Available Q3 2013
7 7 JJ Kringstad - North Dakota Pipeline Authority
Understanding production potential
Understanding current transportation dynamics and potential transportation constraints
Understanding current and future market conditions
8
Crude Oil
8 JJ Kringstad - North Dakota Pipeline Authority
Understanding production potential
Understanding current transportation dynamics and potential transportation constraints
Understanding current and future market conditions
9
Crude Oil
9 JJ Kringstad - North Dakota Pipeline Authority
Forecasting Williston Basin Oil Production, BOPD
Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning.
Today
10 10 JJ Kringstad - North Dakota Pipeline Authority
Forecasted Remaining Reserves (ND Only) Assuming 11 Billion Barrels Recoverable
11 11 JJ Kringstad - North Dakota Pipeline Authority
Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning.
North Dakota Type Curves*
*Typical Type Curve Based on the July 2012 BENTEK Natural Gas Study
12 JJ Kringstad - North Dakota Pipeline Authority
Crude Oil
Understanding production potential
Understanding current transportation dynamics and potential transportation constraints
Understanding current and future market conditions
13 13 JJ Kringstad - North Dakota Pipeline Authority
Challenges* 1) Moving oil out of the
Williston Basin 2) Moving oil within the
Williston Basin
*Modified from Bridger and Belle Fourche Pipelines
2
1
14
North Dakota Crude Oil Pipelines
14 JJ Kringstad - North Dakota Pipeline Authority
210,000 BOPD
68,000 BOPD
160,000 BOPD
145,000 BOPD
15
North Dakota Crude Oil Pipelines
15 JJ Kringstad - North Dakota Pipeline Authority
Oil Loading Rail Facilities
16 JJ Kringstad - North Dakota Pipeline Authority
Estimated ND Rail Export Volumes
17 JJ Kringstad - North Dakota Pipeline Authority 17
March 2013
Estimated Williston Basin Oil Transportation
18
18 18 JJ Kringstad - North Dakota Pipeline Authority
*Some data based on estimates or assumptions
19 19 19
US Williston Basin Oil Transport*
19 JJ Kringstad - North Dakota Pipeline Authority
Williston Basin Oil Production & Export Capacity, BOPD
Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning.
Today
20 20 JJ Kringstad - North Dakota Pipeline Authority
21 JJ Kringstad - North Dakota Pipeline Authority
22
Crude Oil Gathering
Challenges* 1) Moving oil out of the
Williston Basin 2) Moving oil within the
Williston Basin
*Modified from Bridger and Belle Fourche Pipelines
2
1
23
North Dakota Crude Oil Pipelines
23 JJ Kringstad - North Dakota Pipeline Authority
Red – Trucked Blue – Pipeline
Sep 2012 Estimates – Some data incomplete or unavailable
All ND Production
ND Crude Oil Gathering
24 24 JJ Kringstad - North Dakota Pipeline Authority
Red – Trucked Blue – Pipeline
Sep 2012 Estimates – Some data incomplete or unavailable
All ND Production
ND Crude Oil Gathering
25 25 JJ Kringstad - North Dakota Pipeline Authority
Crude Oil
Understanding production potential
Understanding current transportation dynamics and potential transportation constraints
Understanding current and future market conditions (EPRINC & Others)
26 26 JJ Kringstad - North Dakota Pipeline Authority
27 JJ Kringstad - North Dakota Pipeline Authority
ND Oil Pricing: ND-WTI Differential
Source: EIA DATA
28
US Shale Plays and Refineries
Source: EIA Data
28 JJ Kringstad - North Dakota Pipeline Authority
29
Hydrogen Sulfide
29 JJ Kringstad - North Dakota Pipeline Authority
S
H H
Natural Gas
30
1. Economics Must Work
2. Understanding Production Potential
3. New Gas Gathering Pipelines
4. Enhancing Existing Gathering Pipelines
5. Adequate Gas Processing Capacity
6. Adequate Interstate Pipeline Capacity
7. Flaring Alternatives (Short & Long Term)
31
Keys to Reducing Flaring
31 JJ Kringstad - North Dakota Pipeline Authority
Raw Natural Gas
(1500+ BTU) Processing Plant
Consumer Quality Dry Natural Gas
Methane
($3.49 MMBTU)
NGL’S (8-12 gpm)
Y-Grade or Fractionated
Ethane
41.64%
Propane
28.33%
Butane
16.53%
Natural Gasoline
13.51%
32
*Using NGL breakdown from the July 2012 BENTEK Natural Gas Study
Rich Natural Gas
32 JJ Kringstad - North Dakota Pipeline Authority
North Dakota Type Curves*
*Typical Type Curve Based on the July 2012 BENTEK Natural Gas Study
33 JJ Kringstad - North Dakota Pipeline Authority
High Reservoir Pressure
Low Reservoir Pressure
Bubble Point
Pressure
Horizontal Well Completed in Target Reservoir
Gas – Oil Ratio (GOR) Increasing Over Time
34 JJ Kringstad - North Dakota Pipeline Authority
Youngest - Original Reservoir Pressure
Oldest – Entire Reservoir Below Bubble Point
Gas – Oil Ratio (GOR) Increasing Over Time
High Reservoir Pressure
Low Reservoir Pressure
Bubble Point
Pressure
35 JJ Kringstad - North Dakota Pipeline Authority
Production curve for the Bakken and Three Forks, US Williston Basin. Source: BENTEK Energy July 2012 Report
36 JJ Kringstad - North Dakota Pipeline Authority
Only horizontal wells shown on map
37 JJ Kringstad - North Dakota Pipeline Authority
1980’s-90’s Bakken Development
38 JJ Kringstad - North Dakota Pipeline Authority
GOR 1,000 CUFT/BBL
GOR 3,000 CUFT/BBL
39 JJ Kringstad - North Dakota Pipeline Authority
Forecasting Williston Basin Gas Production
Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning.
Today
40 40 JJ Kringstad - North Dakota Pipeline Authority
Simple Terms Red – Challenges on existing infrastructure Blue – Lack of pipelines
GREEN – % of gas captured and sold Red – % flared from wells with at least one mcf sold. Blue – % flared from zero sales wells
March 2013 Data – Non-Confidential Wells Statewide
Solving the Flaring Challenge
41 JJ Kringstad - North Dakota Pipeline Authority
Capturing the 17% Faster Well Connections
First Time Gas Sales Per Month
42 42 JJ Kringstad - North Dakota Pipeline Authority
43
ND Gas Gathering Statistics
43 JJ Kringstad - North Dakota Pipeline Authority
Older, lower pressure wells connected to plant
New, high pressure well causes older wells to flare
Capturing the 11% Additional Compression
44 44 JJ Kringstad - North Dakota Pipeline Authority
Capturing the 11% Looping Existing Pipelines
45 45 JJ Kringstad - North Dakota Pipeline Authority
NGL buildup in gathering pipelines reduces area for gas to flow
Capturing the 11% Frequent Pigging
More of an issue in winter months due to lower ground temperature causing
more liquids to drop out
46 46 JJ Kringstad - North Dakota Pipeline Authority
5 New or Expanding Gas Plants 2013-2015
(See Website for Details)
47
Natural Gas Processing & Transmission
47 JJ Kringstad - North Dakota Pipeline Authority
48
ND Gas Plant Capacity
48 JJ Kringstad - North Dakota Pipeline Authority
Natural Gas Study
49
50
Source: BENTEK Energy July 2012 Report
Flaring Alternatives
November 5, 2012 – EERC Associated Gas Use Study December 18, 2012 – Natural Gas Flaring Alternatives (Company Presentations) February 27, 2013 – EERC Use of Associated Gas to Power Drilling Rigs
52 JJ Kringstad - North Dakota Pipeline Authority
Raw Natural Gas
(1500+ BTU) Processing Plant
Consumer Quality Dry Natural Gas
Methane
($3.49 MMBTU)
NGL’S (8-12 gpm)
Y-Grade or Fractionated
Ethane
41.64%
Propane
28.33%
Butane
16.53%
Natural Gasoline
13.51%
53
*Using NGL breakdown from the July 2012 BENTEK Natural Gas Study
Rich Natural Gas
53 JJ Kringstad - North Dakota Pipeline Authority
54
ND NGL Production, BPD
54 JJ Kringstad - North Dakota Pipeline Authority
Assumptions
• No Flaring
• 8 Gal/MCF
• All liquids extracted
55
ND NGL Production Potential
55 JJ Kringstad - North Dakota Pipeline Authority
ND NGL Production & Pipelines
56 JJ Kringstad - North Dakota Pipeline Authority
Produced Water Infrastructure
57 JJ Kringstad - North Dakota Pipeline Authority
Red – Producer Owned SWD
Green – Independent SWD
Blue Circle – SWD Volume
Justin J. Kringstad, Director North Dakota Pipeline Authority
600 E. Boulevard Ave. Dept. 405 Bismarck, ND 58505-0840
Phone: (701)220-6227
Fax: (701)328-2820 E-mail: jjkringstad@ndpipelines.com
Websites:
www.pipeline.nd.gov www.northdakotapipelines.com
58
Contact Information
58 JJ Kringstad - North Dakota Pipeline Authority