NORX..The Bakken Project:
THE BAKKEN FORMATION
The Bakken Shale Formation was entirely undeveloped until the oil and gas industry developed new technologies for horizontal drilling and fracking. Since then, development of this formation throughout Montana, North Dakota, Saskatchewan and Alberta has been unprecedented. The Bakken is America’s most immediate opportunity for a path to energy independence.
In the past 5 years the Bakken Shale has already doubled the proven oil reserves of the USA, with growing estimates of over 40 billion barrels of oil, compared to 21 billion for the rest of the country. On November 3rd, 2011, a new production record was set for a Bakken well when the Whiting Petroleum Tarpon Federal # 21-4H posted an IP of 7,009 BO in a 24 hour period. Wells with IP’s over 5,000 BOPD in the Williston Basin are no longer unusual. Currently, North Dakota has over 450,000 BO monthly production and is expected to top 1,000,000 BO by 2015. Industry experts predict that drilling will not slow until 2030, and that Bakken production will continue until 2100.
“The U.S. Geological Survey (USGS) has called the Bakken Formation the largest continuous oil accumulation it has ever assessed…….as much as 500 billion barrels of oil sitting untapped beneath Montana, North Dakota… a potential supply of oil four times as large as that held in Saudi Arabia’s massive Ghawar region.”
In 2004, production was 278,540 barrels, and in 2007 the yield jumped to just shy of 5 million barrels. In 2011, over 180 million barrels were produced. With more and more companies buying and developing Bakken Formation land, this trend is unlikely to stop in the coming years.
In January, 2012, Whiting Petroleum announced a $1.6 billion budget that allocates $851 million for 218 Bakken wells. Whiting Petroleum is generally credited for the advances in fracking technology that has resulted in the huge increase oil production from Bakken wells. Whiting Petroleum produced 24.8 million BO in 2011.
Likewise, Kodiak Oil & Gas announced a 2012 budget of $550 million to drill 73 Bakken wells. Magnum Hunter will spend $200 million in 2012 on Bakken wells and expects to increase their production by 85-90%. Continental Resources invested $1.36 billion in Bakken activity 2011, has over 900,000 leased mineral acres, and completed 26 Bakken wells in the 4th quarter of 2011.
A large reason for the increase in production has been the effectiveness of drilling and extraction techniques. Below is an example of the increasing efficiency of Bakken production.
THE BAKKEN FORMATION
The Bakken Shale Formation was entirely undeveloped until the oil and gas industry developed new technologies for horizontal drilling and fracking. Since then, development of this formation throughout Montana, North Dakota, Saskatchewan and Alberta has been unprecedented. The Bakken is America’s most immediate opportunity for a path to energy independence.
In the past 5 years the Bakken Shale has already doubled the proven oil reserves of the USA, with growing estimates of over 40 billion barrels of oil, compared to 21 billion for the rest of the country. On November 3rd, 2011, a new production record was set for a Bakken well when the Whiting Petroleum Tarpon Federal # 21-4H posted an IP of 7,009 BO in a 24 hour period. Wells with IP’s over 5,000 BOPD in the Williston Basin are no longer unusual. Currently, North Dakota has over 450,000 BO monthly production and is expected to top 1,000,000 BO by 2015. Industry experts predict that drilling will not slow until 2030, and that Bakken production will continue until 2100.
“The U.S. Geological Survey (USGS) has called the Bakken Formation the largest continuous oil accumulation it has ever assessed…….as much as 500 billion barrels of oil sitting untapped beneath Montana, North Dakota… a potential supply of oil four times as large as that held in Saudi Arabia’s massive Ghawar region.”
In 2004, production was 278,540 barrels, and in 2007 the yield jumped to just shy of 5 million barrels. In 2011, over 180 million barrels were produced. With more and more companies buying and developing Bakken Formation land, this trend is unlikely to stop in the coming years.
In January, 2012, Whiting Petroleum announced a $1.6 billion budget that allocates $851 million for 218 Bakken wells. Whiting Petroleum is generally credited for the advances in fracking technology that has resulted in the huge increase oil production from Bakken wells. Whiting Petroleum produced 24.8 million BO in 2011.
Likewise, Kodiak Oil & Gas announced a 2012 budget of $550 million to drill 73 Bakken wells. Magnum Hunter will spend $200 million in 2012 on Bakken wells and expects to increase their production by 85-90%. Continental Resources invested $1.36 billion in Bakken activity 2011, has over 900,000 leased mineral acres, and completed 26 Bakken wells in the 4th quarter of 2011.
A large reason for the increase in production has been the effectiveness of drilling and extraction techniques. Below is an example of the increasing efficiency of Bakken production.
