[Lynn] Helms said there are currently 210 drilling rigs working the Bakken, and that companies there are drilling nearly 3,000 new wells every year. For now, there is just one well in each "spacing unit," he said. But that will change starting about 18 months from now, he said, when workers will begin drilling anywhere from 6 to 16 additional wells per spacing unit.That's not entirely correct. Perhaps in the big scheme across the state, there is "about" one well in each spacing unit, but there are already a lot of spacing units with multiple wells in them.
However, this is what caught my attention: one number and one word.
The number: 16. I knew that we would be seeing eight wells in each spacing unit (in the core Bakken), and I had imagined even more in some cases based on the dockets, but to hear the director be specific, mentioning 16 wells per spacing unit ... well, that's incredible.
The word: additional. As in, "16 additional wells per spacing unit.
It should be noted that some spacing units are 640 acres but the "standard" in the Bakken is now 1280-acres. We may be seeing a trend toward 2560-acre spacing units. I've argued that mineral owners would do better with 2560-acre spacing units, but in a poll at this site, the majority of respondents felt that 1280-acre spacing was better for mineral owners.
I can't find it now, but Helms also said something to the effect despite the decreasing number of rigs in the Bakken, we are now seeing five (or eight; I think it was five) wells being completed each day compared to only one in the past. I will see if I can find the link, the story.
**********************
It was also interesting to note that unconventional shale "favors" private land, as opposed to public or federal land. Here's the full quote:
Adam Sieminski, the head of the US Energy Information Administration, also addressed the issue at the hearing, as well as on "Platts Energy Week" on Sunday. In both venues, Sieminski said the US' major shale plays are located primarily on non-federal lands.Yup. So many story lines, but I will leave it at that.
"So it's hard for the federal government to show big oil or gas shale-production numbers on its own lands, simply because the geology favors private and state landholdings," he said on the show.
Sieminski reiterated that his agency "does not make policy judgments" on questions such as which political party deserves more credit for fostering the shale boom. But he did praise the oil industry for making investing the necessary capital.
The rock knew enough to avoid federal land.
ReplyDeleteAnon 1
As my daughter would text, "LOL."
Deleteto much is said about the bakken and TF. there are 18 different oil producing members in the WB. not all members are in every location..
ReplyDeleteThe Red River will be drilled from maybe the same drill stem hole as the Bakken or TF well once this well is no longer producing..Why not utilize it if possible, because are 3/4 the verticle way down to the Red River member
In fact, in their presentation at Enercon, CLR talked about some of the other plays, particularly in southwestern North Dakota.
DeleteMuch of the flurry of activity the past several years was getting production to hold leases, and to de-risk their acreage. A lot of that has been accomplished; now we can see if things change throughout the Basin during the "manufacturing" stage.
16 additional wells -- WOW! Now there's a fun thought.
ReplyDeleteJust think if it's a 640-acre spacing unit!
DeleteHmmm. Would that even be possible on a 640??? Just one more thought provoking reason I'm glad I read your blog.
ReplyDeleteJean
I was being a bit facetious, but one never knows.
DeleteIn the hearing dockets, two months ago, this example:
Hess Corp. for an order amending the applicable orders for the Bear Creek-Bakken Pool to authorize up to eight horizontal wells to be drilled on a 640-acre spacing unit described as Section 15, T.147N., R.96W., Dunn County, ND.
But now I'm going to be looking for even more, just to see.
Bruce-
ReplyDeleteJust want to throw in my thanks for all the work it takes to make this blog possible. My day is not complete without checking in with all you produce. I know it is something that takes a huge amount of effort. Just wanted to let you know that I appreciate your efforts. Cheers!
- Randy
Thank you for the kind words.
DeleteAs long as I'm not traveling and have wi-fi, I am in "blog heaven." I get a lot of stuff done during the day but whenever I have a free minute, I am looking for something to write about.
The numbers coming out of the Bakken are staggering. If the companies meet their production numbers and/or North Dakota continues to set production records even as the number of rigs decrease, it will be amazing.
So, anyway, say "hi" to your dad, and let him know I enjoy talking about the Bakken.
The helms interview, just kept presenting data in which every piece upped the projections of the activity in the Bakken. Two items to note, 4 billion of natural gas infrastructure currently in the works or recently built. This will double. And Phase one of the bakken is coming to an end in the next 18 months. It will than move into the manufacture phase. But realizing oil and gas companies are exploration as well as production, that means exploration will shift to other formations, but not stop in ND.
ReplyDeleteYou are absolutely correct. By their very nature, oilmen are optimists, always looking for that next big well.
DeleteThey will use new technology to go back into the legacy formations.
Good Afternoon,
ReplyDeleteBest news I've heard in a long time. We have minerals in 4 sections, this could mean 32 wells correct? As of now we have 7 producing, 4 waiting to be fracked, and 1 just permitted which will give us 9 in those 2 sections, and 3 so far in the other sections.
Any hope for oil in Bottineau sections 77 & 78?
Keep us all updated, your blog is so interesting. Thank You
When I see Bottineau, I think formations other than the Bakken:
Deletehttp://www.milliondollarwayblog.com/2011/01/nice-sagebrush-madison-well-in.html
It won't happen overnight, but hopefully and eventually....good luck.