The Bakken Shale| May 2021
Field Overview
Named after Henry Bakken, the farmer who owned the land where oil was originally discovered, the Bakken Shale is located in North Dakota, Montana, Manitoba, and Saskatchewan. The USGS estimated in 2013 that this basin has an expected ultimate recovery of 7.4 billion barrels. North Dakota Department of Natural Resources put the break even point at US$46/bbl (2020). The top formations within the region are the Three Forks and the Spanish formations.
State Drilling Statistics (End of May)
Total Rigs in North Dakota- 16
Total Rigs in United States- 457
Total U.S. Rigs up 52% YTD
Bakken Top Producers
Top Producer By BOE – XTO Energy
Basin Highlights
DAPL Lives to Transport Another Day
In mid-May, a key ruling was announced where Federal Judge James Boasberg allowed the Dakota Access Pipeline to continue transporting crude, even though the US Army Corps of Engineers continues to review its environmental impact. The judge wrote “Ever since this Court’s vacatur order in July 2020, and across two presidential administrations, the Corps has conspicuously declined to adopt a conclusive position regarding the pipeline’s continued operation, despite repeated prodding from this Court and the Court of Appeals to do so.” In the past decade, the DAPL has been ruled upon both administratively and by other courts across 3 presidential administrations. The Judge admits the American Indian Tribal plaintiffs in the case have failed to produce actual evidence of harm necessary to stop the pipeline’s operations. The Corps anticipates finishing the latest environmental study by early 2022, but for now, 400,000 barrels of oil will be transported from the Bakken daily.
Bakken Anticipating Reserve Growth
North Dakota Mineral Resources Director, Lynn Helms, has revealed approval for a staggering amount of permits – more than 12,000 new permits to add to the 16,000 already active wells. The state plans to double down on the past decade’s production using refrack and EOR techniques. By Helm’s analysis, more than half of potential sites have yet to be drilled which is great news for drillers, frackers, sand peddlers, and water resource companies all around. The current oil recovery rate is about 8%, but many claim it could double with more modern techniques. Even Canadian based Enerplus has expressed its interest in the shale play as they look to purchase half a billion dollars in assets in the coming year. Denbury Inc. CEO Chris Kendall, whose company is an EOR specialist, said, “There’s a great opportunity here with the geology we have in North Dakota.”
Top Producers By BOE (2021 cum)
| Rank | Company |
| 1 | Whiting |
| 2 | Bruin E&P |
| 3 | XTO |
| 4 | WPX Energy |
| 5 | Equinor |
Rig Count
North Dakota Production
North Dakota Natural Gas
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