Friday, August 6, 2021
Red River Water Project Underway -- August 6, 2021
From Geoff Simon:
The 167-mile pipeline will eventually deliver water from the Missouri River to users in eastern North Dakota, most notably the Cities of Fargo and Grand Forks. Much of the funding for the project will come from the state and its Resources Trust Fund, which receives 20.5 percent of oil extraction tax revenue.
The initial construction involves the installation of 1.2 miles of 72-inch pipe about one mile south of Carrington, which is expected to be completed by late October. The intake is located about five miles south of Washburn, and its discharge structure is six miles south of Cooperstown, near the Sheyenne River.
In his dedication remarks, Lt. Governor Brent Sanford, noting that much of the project's funding comes from oil tax revenue, quipped that "North Dakota is the only state that can turn oil into water." Sanford said the start of the project is especially timely in a year where most of the state is experiencing drought."
Natural Gas Production Projection -- August 6, 2021
From Geoff Simon:
The ratio of natural gas to crude oil being produced from Bakken wells will continue to increase, possibly doubling the state's current natural gas output in fewer than 10 years.
That was the message of Justin Kringstad, director of the ND Pipeline Authority, to members of the ND Legislature's interim Energy Development and Transmission Committee this week. Kringstad said the ratio of natural gas to oil typically starts out close to one-to-one, meaning 1,000 cubic feet of natural gas for each barrel of crude oil. But he said the ratio has been steadily climbing as more new Bakken wells are completed.
Kringstad said the higher gas-to-oil ratios are not unexpected. He told legislators most new wells today are being drilled in areas where a "parent well" already exists, which means the pressure that holds natural gas in the reservoir has already been reduced.
Click here to listen to Kringstad's comments.
.... the high case of which could have the state's natural gas production approaching seven billion cubic feet per day. The state's output as of the month of May was just under three Bcf per day.
Graphic:
Also from Geoff Simon:
Last year's pandemic-related downturn in oil and natural gas production provided midstream companies some relief in the pace at which new natural gas processing and takeaway capacity was needed. But increasing gas-to-oil ratios mean they will need to return to construction mode quickly.
Helms said the accelerated schedule won't provide midstream companies adequate time to get new processing and takeaway capacity permitted and constructed, but he said tax incentives enacted by the 2021 Legislature will encourage innovative methods of using the additional natural gas.
SB 2328 established a credit against the oil extraction tax to incentivize use of onsite flare mitigation systems in production operations. The credit is equal to $0.75 per one million BTUs of flare mitigation that results from operating a flare mitigation system on a qualifying well. Credits are capped at a maximum of $6,000 per well per month, for as many as 12 months.Helms said he's also seeing increased interest in using natural gas and gas liquids to generate electricity.
Week 31: August 1, 2021 -- August 7, 2021
Top story of the week:
- Joe Biden is still president; says 350 million Americans have now been vaccinated, which means the US is 100% vaccinated, and then some.
- Energy story after energy story of new records.
- NDIC is back! Still working on database migration, but at least daily updates getting back on track.
- Sturgis rally begins today.
Top international non-energy story:
Top international energy story:
Top national non-energy story:
Top national energy story:
Top North Dakota non-energy story:
Top North Dakota energy story:
Geoff Simon's top North Dakota energy stories:
- Iron Oil Operating with four new permits.
- CLR to spud exploratory well in Louisiana; here; here; here.
- Enerplus in the news.
- Enerplus acquires 600 wells from Hess.
Operations:
Wells:
Fracking:
Pipelines:
Natural gas:
Bakken economy:
Commentary:
Miscellaneous:
That Pad Fire North Of Charlson -- Two Wells Still Burning -- August 6, 2021
Responders might be able to put fire out by today (Friday) or over the weekend -- Williston Herald.
Original four wells on this pad. Three burning out of control after initial blowout; responders shut down fourth well so it would not burn.
About the twelfth day, responders were able to get the fire out at one of three wells. Two wells still burning. This must be about the sixteenth day these wells have been burning. I believe the fire began on a Thursday, about two weeks ago.
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