The Bakken Shale| June 2020
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- 10
Total Rigs in United States- 284
Total U.S. Rigs down 73% YTD
Financial & Economic Updates
North Dakota’s Economic Armageddon
North Dakota’s oil production has grown more than 350% in the past decade which boosted the states confidence in the ability to rely on it for tax revenue purposes. North Dakota claims a little more than 50% of its state income from oil and severance taxes. Although it’s portfolio is anything but balanced, its budget has been… Up until now that is. In the face of the current pandemic, the local government is scrambling to make appropriate cuts in order to prevent fallout further down the road. Already, unemployment rates have jumped from 2% to 8.5%, and current predictions show that the state’s GDP could fall between 15%-25% in a year.
State Highlights
Potential for Oilfield Jobs
Although unemployment is on the rise, the Bakken Restart Task Force is mandating the confiscation and plugging of 350 wells (with the potential for more) in order to support the industry’s workforce. The North Dakota Industrial Commission recently approved the orders, and secured $33.2 million in federal relief funds to back the project. If all goes according to plan, this should accommodate 500-600 oil and gas service sector jobs.
Refining
North Dakota Production
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