Random Look At Flared Natural Gas By Two Bakken Operators In November, 2013

Disclaimer: the data below may have significant errors. I went through the PDF file fairly quickly and did not double check the data.

I was curious about the percent of flaring by two similar (?) operators in the Bakken.

This is November, 2013, data only.

The data is from the NDIC web page (a PDF). This is from the Bakken pool only; it does not includes wells targeting other pools such as the Madison or Red River. [If one has the time, the information in that spreadsheet is incredible. Comparing the amount/percent of natural gas flared by EOG in the Parshall field, and the amount/percent flared by Hess in the Robinson field, is enlightening. Both fields have the pipes; there is simply not enough processing capability; it takes about two years to build a natural gas processing plant. I assume there is some risk, I suppose, that natural gas will deplete faster than the Bakken oil. I've not seen discussions about natural gas depletion rates in the Bakken.]

The data does not include wells that are on the confidential list that might also be flaring.

So, with those caveats, let's look at Kodiak and Oasis in the Bakken. And again, there may be significant errors.

Number of producing wells:

• KOG: 238
• OAS: 365

Amount of natural gas sold in the month of November, 2013 (mcf):

• KOG: 866,276
• OAS: 1,117,141

Amount of natural gas produced in the month of November, 2013 (mcf):

• KOG: 1,899,653
• OAS: 1,495,564

Sold/produced in the month of November, 2013:

• KOG: 866,276 / 1,899,653 = 45.60% sold
• OAS: 1,117,141 / 1,495,564 = 74.70% sold

Percent flared in the month of November, 2013:

• KOG: 54.4%
• OAS: 25.3%

Amount flared (mcf) in the month of November, 2013:

• KOG: 1,033,377
• OAS: 378,423

In aggregate, the operators are flaring about 30% of all produced natural gas in the Williston Basin.

One can find the historical price of US natural gas at the wellhead at this link. That table, by the way, is fascinating in its own way, as one scrolls through it.