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Wednesday, February 3, 2010

Off-Shore Drilling in North Dakota

The US Army Corps of Engineers is inviting public comment on the oil industry's request to drill under Lake Sakakawea, which in some places, stretches fourteen (14) miles across.

For folks who do not live in North Dakota, or are not familiar with North Dakota, yes, the lake is that wide in some places.

Of course, drilling under the lake (or the Missouri River, for that matter) is no different from drilling elsewhere when the wells go straight down 9,000 feet before going horizontal for another mile or two, but I'm sure others won't see it the way I do. Oh, well.

There is such a backlog of drilling that if we don't get to Lake Sakakawea for ten years it won't matter in the big scheme of things.

But to give you an idea how big a deal this is: right now the US Army Corps of Engineers can count the number of requests to drill under the lake on the hands of one or two environmentalists. There are indications that the number of requests will soar to hundreds.

Look at the initial production numbers and the total amount of oil produced in the first few months of some of the "Bakken" wells drilled in the past few months and you will understand why the interest to drill under the water.

NOTE: It is technically true that the lake is fourteen (14) miles across at some points. However, that doesn't mean there are not projections of land into the lake from which wells could not be drilled. Some of the widest parts of the lake are smack dab in the middle of the prolific Parshall field, the Big Bend Field, and the Van Hook, and in Fort Berthold Indian Reservation, but even in those areas, there are very few spots that are farther out than two sections from the coast (thus, within reach of a "long lateral").

Bottom line: except for very few locations, the area under the lake can be reached with "long laterals" from shore. I don't think we're going to be seeing "deep water" rigs on the Missouri any time soon. Ever.

Update: An editorial in the Bismarck Tribune supports my opinion. February 14, 2010. 


NOTE: According to a report in 2008, some horizontal wells have already been drilled under the lake.