American Oil and Gas Reporter - November 2015 - 131

ConventionCoverage: North Dakota Petroleum Council
29 percent transported brine, 7 percent
were for freshwater, and 6 percent were
for mixed fluids. Steel is the preferred
material for crude oil gathering lines,
while high-density polyethylene and reinforced pipe are found in most brine,
freshwater and mixed fluid lines, he
added.
Almlie said the first phase of the study,
due for release in November, was developed to improve the safety and reliability
of North Dakota's gathering infrastructure
while recognizing the "challenges of an
evaluation within the context of the ben-

efits they provide."
"Gathering lines reduce truck traffic,
congestion, dust and traffic accidents,"
Almlie observed. "Overall, we found that
leaks and spills from gathering systems
were much less frequent, compared with
truck transport, by number and volume
spilled."
Phase two of the EERC study involves
field demonstration projects that examine
applicability and cost of leak detection
systems. Almlie noted a final report was
due to the state legislature in January
2017.
❒

TABLE 1
Gathering Systems Installed
Fluid

Miles

Crude oil

2,436

Brine

1,176

Mixed fluid

209

Freshwater

281

Source: ND DMR

Bakken Resilient In Face Of Slowdown
FARGO, N.D.-The remarkable growth
and abundant reserves of the Bakken
play mean the slowdown in industry activity is "not the new normal by a long
shot," according to Lynn Helms, director
of the North Dakota Department of Mineral Resources.
In his remarks wrapping up the North
Dakota Petroleum Council's annual meeting, Sept. 21-23 in Fargo, Helms noted
that with increased well density and 90
percent of leases being held by production,
Bakken development was "well into harvest mode."
Despite a decline in the number of
rigs drilling wells, efficiency has increased
notably, Helms said. As of mid-September,
he reported, the state's rig count stood at
69, down from 74 in August and approximately equal to the average count in
2009. Statewide rig count peaked at 218
in May 2012.
"In 2009, the typical rig drilled 8-10
wells a year," Helms observed. "This
year, most rigs are capable of drilling
20-24, so we no longer need 200 rigs to
develop the field."
Even as drilling efficiency has increased, the pace of well completions
has slowed, Helms said. Previously, uncompleted wells were just waiting their
turn for pump trucks and fracture crews.
But lately, he suggested, operators have
been choosing to delay completions as
a way to manage budgets and cash
flows. In June, DMR estimated 149
wells were completed while 844 were
uncompleted, and a preliminary count
showed 119 wells completed in July
with 914 uncompleted, Helms reported.
He said preliminary figures for July

put North Dakota oil production at 1.2
million barrels a day, with 95 percent
coming from the Bakken and Three Forks
formations. Preliminary July natural gas
production was 1.66 billion cubic feet a
day, a record high, he added.
Helms said DMR estimated the typical
unconventional well showed a 20 percent
increase in initial production and estimated
ultimate recovery, while new well costs
were down 11 percent and operating costs
had been reduced by 14 percent, compared
with 2014.

State Regulation
Helms commented that he supported
efforts to maintain state control of oil
and gas regulation.
"The enormous, growing pressure from
the Bureau of Land Management, the
Endangered Species Act and the Environmental Protection Agency is driven
by people who want to determine where
your energy comes from, how much you
can use, and who gets to use it," he
stated. "The state of North Dakota plans
to work with industry to maintain state
control."
While discussing North Dakota's oil
conditioning rules, which became effective
April 1, Helms said the goal was to produce a consistent product that didn't exceed a vapor pressure of 13.7 pounds per
square inch. He added that adherence to
prescribed vapor pressure limits, temperatures and pressures had resulted in safer,
stable crude oil shipments.
Helms directed those interested in detailed information about the state's oil
conditioning regulations to a "frequently
asked questions" document posted on the
DMR website at www.dmr.nd.gov. ❒

Coming In December

Increased efficiency has resulted in an
average 20 percent increase in both
Bakken Shale wells' initial production
and estimated ultimate recoveries, while
new well costs have dropped 11 percent
compared with a year ago, Lynn Helms,
director of the North Dakota Department
of Mineral Resources, advises the North
Dakota Petroleum Council annual meeting, Sept. 21-23 in Fargo.

The Pennsylvania Independent
Oil & Gas Association held its Eastern Oil & Gas Conference and Trade
Show Oct. 27-28 at the Monroeville,
Pa., Convention Center. See complete conference coverage in the December issue of The American Oil &
Gas Reporter.
NOVEMBER 2015 131

American Oil and Gas Reporter - November 2015

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