NORTH DAKOTA DEPARTMENT OF MINERAL RESOURCES: …
Transcript of NORTH DAKOTA DEPARTMENT OF MINERAL RESOURCES: …
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NORTH DAKOTA DEPARTMENT OF MINERAL RESOURCES:
OIL & GAS UPDATE January 4, 2019 | House Appropriations Committee
Visit Us: www.dmr.nd.gov
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PRODUCING WELLS ACTIVE DRILLING RIGS OIL & GAS PRODUCTION OIL PRICE ENHANCED OIL RECOVERY ACTIVITY FORECAST
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Wells Active Conventional Bakken/Three Forks
15,344 1,959 13,385
Inactive >$50 for 90 days Jan 2018
1,492 > 1,363
Waiting on Completion +$55 for 90 days Feb 2018
877 > 959
Permitted +$60 for 90 days April 2018
1,844 > 1,872
Increase Density Approved as of 12/21/18
13,451 > 13,131
Total 32,177 > 32,672 Estimated Final $60-80/BO & 60-70 rigs
40,000 - 85,000 20 - 70 years
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PRODUCING WELLS ACTIVE DRILLING RIGS OIL & GAS PRODUCTION OIL PRICE ENHANCED OIL RECOVERY ACTIVITY FORECAST
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Rigs - 65
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Record High: 218 Rigs May 2012
Current: 68 Rigs
Well/rig/Mo 3X = 204
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OIL & GAS PRODUCTIVITY FRACTURING TECHNOLOGY ENHANCED OIL RECOVERY
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OIL & GAS PRODUCTIVITY FRACTURING TECHNOLOGY ENHANCED OIL RECOVERY
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TYPICAL G1 HORIZONTAL OIL WELL
Potable Waters
98 gallons cross link gel and 149 pounds sand per foot
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TYPICAL G2 HORIZONTAL OIL WELL
Potable Waters
236 gallons cross link gel and 154 pounds sand per foot
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4.5” Frac String
Upper Bakken Shale
Lower Bakken Shale
Middle Bakken 10,000’
Potable Waters
TYPICAL G3 HORIZONTAL OIL WELL
Cement
Packer
Run in hole with: • 4.5” liner • 30-40 swell packers
• sliding sleeves
4.5” liner
• 9 5/8” surface casing • 7” production casing • 4.5” liner & frac string
• 30-40 swell packers • sliding sleeves
206 gallons slick water and 283 pounds sand per foot
2009 – 2015 went from 28 to 50 stages
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TYPICAL G4 HORIZONTAL OIL WELL
Potable Waters
1,112 gallons slick water and 977 pounds sand per foot vary with rock properties 60-80 stages, 2-6 perf clusters per stage, diverters, coarse & very fine sand
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G1 to G3 Re-Frac
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G1-G2-G3 to G4 Re-Frac
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PRODUCING WELLS ACTIVE DRILLING RIGS OIL & GAS PRODUCTION OIL PRICE ENHANCED OIL RECOVERY ACTIVITY FORECAST
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All-time high 1,391,877
barrels/day October 2018
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Oil & Gas Production
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25 25 JJ Kringstad - North Dakota Pipeline Authority 25
North Dakota Oil Production Forecast Assumes Current Technology – Enhanced Oil Recovery Not Included
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Oil & Gas Production
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Oil & Gas Production
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28 28 JJ Kringstad - North Dakota Pipeline Authority 28
NDPA North Dakota Production Forecast Summary
Assumes Current Technology – Enhanced Oil Recovery Not Included
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Solving the Flaring Challenge Assumes Current Technology – Enhanced Oil Recovery Not
Included
JJ Kringstad - North Dakota Pipeline Authority 29
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Gas Processing Plants 2.14 BCFD in 2017 > 3.36 BCFD in 2020
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PRODUCING WELLS ACTIVE DRILLING RIGS OIL & GAS PRODUCTION OIL PRICE ENHANCED OIL RECOVERY ACTIVITY FORECAST
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33 JJ Kringstad - North Dakota Pipeline Authority 33
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PRODUCING WELLS ACTIVE DRILLING RIGS OIL & GAS PRODUCTION OIL PRICE ENHANCED OIL RECOVERY ACTIVITY FORECAST
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Enhanced Oil Recovery (EOR)1
• EOG is the 1st company to say it has significantly increased oil production from an unconventional play using gas injection.
• Field tests since program started in 2013:
• The production increases on 15 wells indicated from 30-70% reserve gains.
• A 32-well test in 2016 added 300,000 bbl of oil at $6/bbl finding cost.
• Work is ongoing on 100 wells in six areas in 2017.
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Enhanced Oil Recovery (EOR)1
Inputs and Outputs
• Additional capital costs average about $1 million per well
• The process uses associated gas from its wells
• Production response is in 2-3 months
• $1 invested adds $2 to net present value
It Works if:
• The formation is able to contain high-pressure gas injection near the well.
• Wellbores contact the most productive rock.
• The completion maximizes the fractured area within a restricted zone around the wellbore.
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Cedar Hills
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PRODUCING WELLS ACTIVE DRILLING RIGS OIL & GAS PRODUCTION OIL PRICE ENHANCED OIL RECOVERY ACTIVITY FORECAST
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Abandoned Well Plugging and Site Restoration
• Current fund balance $21 million – Plugging and Reclamation
• 438 Total North Dakota wells plugged and reclaimed 2017-2019 biennium $32.3 million • 5 wells plugged and reclaimed by AWPSRF fund $369,000 • Anticipate the same for 2019-2021 biennium
– Legacy sites • $3.331 million reclamation 2017-2019 biennium • $100,000 anticipated 2019-2021 biennium
– Brine Ponds • $980,000 research 2017-2019 biennium • $200,000 pilot project 2019-2021 biennium
• 2018 bankruptcy case – $2 million in bonds – 590 wells
• 384 active, 116 abandoned, 51 inactive, 25 temp abandoned, 14 undrilled locations • $23 million liabilities • $39 million assets
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NORTH DAKOTA DEPARTMENT OF MINERAL RESOURCES
CONTACT US 600 East Boulevard Ave. – Dept. 405
Bismarck, ND 58505
Phone: 701.328.8020
Email: [email protected]
www.dmr.nd.gov