Oil exploration could last two decades

April 28, 2008 

Press Release from: 

Williston Economic Development Partnership 

The Williston Basin will benefit from increased oil exploration over a period that could last nearly two decades, according to information released Monday by North Dakota's Department of Mineral Resources.

"It will take us almost 19  years to drill up the thermally mature area of the Bakken," said Lynn Helms, DMR director, based on the number of rigs currently operating.

 "That was, to me, the catch of the day," said Williston Mayor Ward Koeser, who was among the estimated 1,200 people in attendance at the annual Williston Basin Petroleum Conference and Expo in Minot, where the announcement was made.

The new state estimate, Koeser said, puts a whole new perspective on the need for increased housing development and worker recruitment.

Helms said the amount of oil recoverable from the Bakken in North Dakota is

2.1 billion barrels, but the total of oil in place could be closer to 150 billion barrels of oil.

Ten days ago, the U.S. Geological Survey released a study estimating the total of recoverable oil in the Bakken field, including portions of Montana, at as much as 4 billion barrels of oil.

According to a summary of the report, of which Helms is a co-author, the projections are based on "a wealth of public geology and engineering data generated since 2004," and differs from previous studies that focused on the potential of the Bakken as a source rock only.

Helms said, the estimated recovery amount is based on current drilling and completion practices within the thermally mature portion of the formation.

An area not thermally mature could hold another 18 billion barrels of oil.

District 1 Rep. Pat Hatlestad (R-Williston), said it sounds to him like there could be even more oil recovered in the future.

"You've got to believe, with technology, they're going to increase the recoverable amounts," Hatlestad said. "For Williston, it's going to be great."

Vicky Steiner, executive director of the North Dakota Association of Oil and Gas Producing Counties, said the impacts of the Bakken will reach far beyond the Williston Basin.

"North Dakota is poised to help out the rest of the nation," she said, by easing the country's reliance on foreign oil and ultimately, enhancing the national security of the United States.

Beyond the Bakken, she said, there are other formations that could be developed, keeping the current play going even longer than currently projected.

People involved in local projects aimed at servicing both the existing oil activity and the new people oil activity brings are prepared for even more growth ahead.

A company working on plans for a transloading facility on the east edge of Williston sees the potential for loading rail cars for years to come.

"For the short term, we'll use it to haul crude and natural gasoline condensate," said Tad Butt, president of Pioneer Oil, but in the long term, there's a big demand for bringing in the materials the oil industry needs to complete and service wells.

He said Williston was chosen for the facility after considering a variety of locations.

"We do feel like that's going to be the center of the activity," Butt said.

John Deneen, vice president of property management for The Marcil Group, a development company with 144 units already either under construction or in planning, said more development will follow.

"We're going to keep building," Deneen said. The group is already purchasing more land and buildings in Williston.

"It's going to take some investment on our part to serve the industry," said Chris Brostuen, business development manager for Mountrail Williams Electric Cooperative.

Monday's announcement, he said, "supports the investment we need to make."

Koeser said there should be plenty of prosperity to share across the whole region.

"It's exciting, yet tremendously challenging," Koeser added, as cities and small towns try to meet the growing demand for workers and housing.

"We've been trying to react and work diligently, but they keep setting the bar higher."

Koeser said the biggest question he faces everyday from people in the area is how long will the "boom" last?

Monday's announcement should go a long way toward answering that question.

"You're not just building for a boom, but a whole new future," Koeser said.

The information released by the state includes projections by county.

Williams County is estimated to have 26 billion barrels of oil in place and

474 million barrels of oil recoverable with current technology.

Mountrail County is estimated to have 424 million barrels of recoverable oil and McKenzie County, 382.

Counties to the north don't fare quite as well in the study, but they, too, have billions of barrels of oil in place and millions of barrels recoverable.

Divide and Burke counties together are estimated to have 30 billion barrels of oil, with 187 million barrels recoverable in Burke and 123 million in Divide.