"... the Bakken has become the laboratory in which new drilling techniques were tested. It is amazing how far "we" have come from 1-stage fracking back in 2007 to 40-stage fracking now."I have posted similar notes several times over the past two years about the importance of the Bakken as more than just another local boom, and it seems I am posting similar reminders with increasing frequency.
Earlier today I received the following from a reader, with slight editing:
I am starting to grasp the justification for referring to the role of horizontal drilling/fracking in the Bakken as the start of an INDUSTRIAL REVOLUTION, as has been reported a number of places, more recently by Clay Jenkins in his 7/14/12 radio program, reporting on your blog this last week, and in the Bismarck Tribune this past week.
Earlier this week I read in Forbes magazine article about STATOIL buying out Brigham, that one of the key reasons this Brigham purchase took place was to enable STATOIL to gain expertise in developing oil shale energy plays, so that STATOIL would have more opportunity to participate in development of RUSSIAN shale plays.So it seems that one justification for referring to this as an industrial revolution, is that fact that this is more than just another oil boom (which prior oil booms tended to be restricted to one smaller segment of the globe – Alaska – Gulf Coast – Eagle Ford – Bakken – Marcellus, for example).By contrast the spread of horizontal drilling / oil shale fracking – is apparently leading to an explosion of energy development around the world (earning the characterization of being an “industrial revolution”).Just sharing the “light bulb” that has finally gone on in my mind about about the pending oil/gas industrial revolution.Most likely others had already grasped this concept long before I did.
In fact, based on the number of naysayers that still exist, I don't think this "light bulb" has been turned on for as many you might think.
This note really made my day and that's why I wanted to post it. Yes, this -- the Bakken laboratory -- is really a very big deal.
In addition to the local boom and the laboratory noted above, a third component is often overlooked: how much economic activity is being generated outside North Dakota to support this boom: steel, railroad, larger rigs (built out of state), larger and newer pipeline; fracking sand; oil service companies; utilities; etc. A
Anyway, you get the point.
North Dakota has always been an agrarian state. The industrial Midwest stops at Minneapolis and Grand Rapids further north in the Mn Iron Range, with occasional splotches more recent further west (like Warroad, Roseau, Thief River Falls in Mn ).
ReplyDeleteNow, the Bakken is providing practically the whole state of ND the option of manufacturing based not on low wages, but on inexpensive energy (nat gas) ,proximity to a world class oil field, low taxes, and availability of finances (both internally and from outsiders watching in amazement at the growth and profits.)
Yes, for me this is very, very exciting. I think we will see if ND can move to the next level by bringing in new industry that builds off the current boom.
DeleteThe proposed fertilizer plant using natural gas is a good example. A new plant is being proposed for MN, SD, or ND. Minnesota has the cachet for such industry, and "movers and shakers" may want it there, perhaps the southwest corner of the state, but business climate and taxes make SD / ND a much better choice. My hunch: somewhere along the Fargo to Sioux Falls I-29 corridor.