American Oil and Gas Reporter - November 2015 - 127

ConventionCoverage: North Dakota Petroleum Council

Association Finds Success
During Challenging Year
By Dan Larson
Special Correspondent

FARGO, N.D.-As the North Dakota
Petroleum Council wraps up "another
challenging year," its leadership claims
the support of membership, acceptance
of the community, and the cooperation
of state government.
"We came through the legislative session without too many bruises," said
NDPC Chairman Perry Pearce at the association's annual convention, Sept. 2123 at the Ramada Plaza Hotel in Fargo.
"The $1.1 billion surge funding passed
in time to make a difference with infrastructure projects this year, and we reached
an agreement to restructure an unpredictable tax program.
"The legislature also took positive action to fund several important studies on
spill remediation, solid waste management,
technically enhanced naturally occurring
radioactive material, recycled drill cuttings,
and produced water. And despite a slowdown in development (caused by) low
prices, association membership increased
for the third year in a row. I think that
says a lot about the industry in North
Dakota and this organization," added
Pearce, manager of state government affairs, Rocky Mountain Division, for Cono-

coPhillips Co. in Denver.
NDPC President Ron Ness said membership climbed to 579 members this
year, which is nearly five times what it
was in 2011. Pearce and Ness attributed
much of the council's success to an active
committee structure led by engaged members.
"Between their ability to rally members
for important hearings to the timely filing
of comment letters on rule makings, the
committees made a difference to the benefit of the entire membership," Ness held.
In his summary of NDPC community
programs, Chairman Pearce called 2015
"another very successful year."
Among events the council hosted this
year were the annual three-day oil field
program for school teachers, a separate
field tour for college professors, the third
year of the "Pick-up the Patch" trash
cleanup event, a fishing derby that raised
$25,000 for conservation programs, and
"CookFest" events in Alexander and
South Heart, N.D. Next year's CookFests
will take place in Mandaree and Stanley,
N.D., Pearce mentioned.
He added that Al Golden Scholarships
were awarded this year to nine college
students who were pursuing training for
careers in the oil and gas industry.

Scott McNally visits with a
meeting participant following
his presentation to the North
Dakota Petroleum Council's
annual meeting, Sept. 21-23 in
Fargo. McNally, who follows
oil and gas for the Center on
Global Energy Policy at Columbia University, predicted
Bakken production would remain above 1 million barrels a
day for the next two to three
decades.

Swing Production
During a Sept. 22 session on North
Dakota's potential, Scott McNally of the
Center on Global Energy Policy at Columbia University discussed an ongoing
study of production growth in the Bakken.
"Nine years ago, North Dakota produced fewer than 120,000 barrels a day,"
McNally observed. "Today, the Bakken
produces 1.2 million. This growth is unprecedented."
McNally said that if prices remained
in the $40-$50 range, total U.S. oil production likely would fall to about 8 MMbbl/d and remain flat through 2018. "Developing the most productive areas, driving
down rig costs, and increasing operational
efficiencies mean production can remain
strong, even with only half the rigs active,"
he surmised.
While it ranks second for oil production
by state, North Dakota "will not become
the 'swing' producer," McNally suggested.
"Price movements affect only an incremental portion of Bakken production,
and that is not characteristic of a swing
play," he reasoned.
McNally concluded that Bakken production would remain strong for many
years. "Our models show that at $70 a
barrel, the Bakken can continue to produce
more than 1.0 MMbbl/d for the next two
to three decades," he revealed.
Later that day, Congressman Kevin
Cramer, R-N.D., delivered a luncheon
address that highlighted both the Obama
administration's "zealous anti-fossil-fuel
agenda" and the growing bipartisan support
in the U.S. House and Senate for lifting
the crude oil export ban.
"We can make the case for lifting the
ban as a national security issue," Cramer
told NDPC. "I would rather use the peaceful tools of energy development than the
weapons of war to hold (Russian President)
Vladimir Putin in place."
Crude Oil Transport
North Dakota producers continue to
be among the largest users of railroads
to transport crude oil. During a panel
presentation, Justin Kringstad, director
of the North Dakota Pipeline Authority,
NOVEMBER 2015 127

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