Post on 19-Jun-2015
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What does the Bakken mean for North Dakota
Upper Great Plains Transportation
• In 2010, the Oil and Gas Producing Counties Association commissioned The Upper Great Plains Institute to do a transportation infrastructure study.
• This study was chaired by Shane Goettle, of the North Dakota Commerce Commission.
Participants included:* Association of Oil & Gas Producing Counties * The ND Oil and Gas Commission * Department of Commerce * ND Department of Transportation* Oil & Gas Industry
Current Activity
The Upper Great Plains Study concluded that there are currently 5,200 active wells in North Dakota, and the North Dakota Oil and Gas Commission suggests that a total of 21,250 wells will be drilled in the next 10 to 20 years. The geological success of these well is 90% or greater.
Rig Related Movemets Per Well
Item Number of Trucks Inbound/Outbound
Sand 80 Inbound
Water (fresh) 400 Inbound
Water (Waste) 200 Outbound
Frac Tanks 100 Both
Rig Equipment 50 Both
Drilling Mud 50 Inbound
Chemical 4 Inbound
Cement 15 Inbound
Pipe 10 Inbound
Scoria/Gravel 80 Inbound
Fuel Trucks 7 Inbound
Frac/cement pumper trucks 15 Inbound
Workover Rigs 1 Inbound
Total – One Direction 1,012
Total Trucks 2,024
Trucking
• 2024 truck loads are needed per well drilled thru completion including the frac job.
Trucks Wells Total Loads Per Year
2,024 1500 3,036,000
3,036,000 / 365 days = 8,317 Truck loads per day
Or
273 billion lbs traveled on our state and county roads / day
Sand Requirements
• 3 million lbs of sand per well
• 1500 wells per year
• =4.5 billion lbs of sand per year
•Or
2,500 rail cars of sand per year
or 112,500 Truck loads of sand per year
Water (Fresh)
• 50,000 barrels of water per well
•1500 wells per year
• = 35 million barrels of water
•Or 625,000 Truck loads of water
Oil Transporation
• Approximately 200,000 barrels of oil being hauled per day
• Or 1,000 Truck loads of oil being hauled per day
Water (waste)
• Approximately 200,000 barrels of waste water being hauled per day
• Or 1,600 Truck loads of waste water being hauled per day
Truck Transportation Math –Exploration and Production
Truck Transportation Loads per yearRig Movements 3,036,000
Oil 365,000Production Water 584,000
Total 3,985,000
per day 10,917 loads
Truck Transportation Wrap-up
• As you can see truck transportation is vital to the oil and gas industry.
• There are over 10,000 trucks on the state and county road per day that are directly associated with the oil and gas industry
• The Upper Great Plains Study concluded that in the next 4 years the counties will need an additional 500 million dollars to bring their infrastructure up to a standard to able to support the oil and gas industry
Workforce
• There currently is an additional 30,000 employees in North Dakota that directly support the oil and gas industry, and with continued growth this number is only going to rise.
• At least half of these employees are in temporary housing.
• There are many challenges associated with this new growth:
• lack of workforce• lack of housing• social needs• school infrastructure• emergency services
Capital Improvement PlanWatford City
City Infrastructure Needs
• Watford City as an example, has a population of 2,500 with 1,000 of them being in temporary housing.
Capital Improvements PlanWatford City, North Dakota
Total Estimated Project Costs
$18,340,979
What Does this Mean for North Dakota
• Projected Production from the Bakken estimated at 20 billion barrels of oil X $100/barrel = 2 trillion dollars
•That will generate 180 billion in tax revenue,• less 40 billion for state projects, leaves 140 billion
•divided by 600,000 residents is $233,000 per resident.
• This Does Not Come without Change/Impacts
• We Must Re-Invest in the Bakken
• Housing, Capital improvements, Schools
• Jobs in Many Sectors
• Tremendous Wealth Creation