Director, NDIC, Updates Conferees on North Dakota Oil Potential

Data points from a speech given by Lynn Helms, Director, NDIC, to the 19th Williston Basin Petroleum Conference, Regina, Saskatchewan. Link here (regional links break often and break early). The article was published/last modified May 5, 2011.

• "We're going to give Texas and Alaska a run for their money."
• The success of the Bakken is well-known and other formations could eventually add substantial growth.
• The Three Forks has come into its own in 2010.
• The first well targeting the "third formation," the Tyler Formation, will be drilled later this year.
• The first phase of drilling in the Bakken could lead to approximately 28,000 Bakken wells. So far, only 2,200 have been drilled, most in the past few years. [Note the phrase: "the first phase."]
• Total pipeline capacity is not expected to be reached until 2015.
• NDIC expects $3.5 billion to be spent in 2011 for natural gas and pipeline investments in North Dakota.
• Each well should produce an averageof 575,000 bblsof oil, resulting in an average of $7 million in royalties paid to those owning mineral rights.
• The state collects about $4 million in tax revenue from each well.
• Wells cost about $7 million each to drill and complete.