600 East Boulevard Ave. - Dept 405

Bismarck, ND 58505-0840

(701) 328-8020 (701) 328-8000

North Dakota Department of Mineral Resources

Government Finance Interim Committee 12/12/2013

10:10 a.m.

Presentation by a representative of the Department of Mineral Resources of 

an update on the status of oil and gas development in the state.

11:10 a.m.

http://www.oilgas.nd.gov http://www.state.nd.us/ndgs
5,939 unconventional wells

6,447 total Bakken/Three 

forks wells

10,874 total wells
North Dakota Industrial Commission Cases Heard

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North Dakota New Well Permits Issued

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North Dakota Average Monthly Rig Count

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1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015

Rigs

Rig Count ND Sweet Oil Price
• 1,100 to 2,700 wells/year = 2,000 expected

– 2014 drilling = 1,552 permits to drill approved & 736 pending approval

• 185-195 rigs for 9-12 months or 

– 2015-2019 drilling = 1,012 orders approved for 5,247 more wells

• 3 orders for 18 wells / 1280

• 1 order for 17 wells / 640

• 2 orders for 16 wells / 1280

• 1 order for 15 wells / 1280

• 40 orders for 14 wells / 1280

• 1 order for 13 wells / 1280

• 10 orders for 12 wells / 1280

• 3 orders for 11 wells / 1280

• 21 orders for 10 wells / 1280

• 4 orders for 9 wells / 1280

• 147 orders for 8 wells / 1280

• 202 orders for 7 wells / 1280

• 97 orders for 6 wells / 1280

• 77 orders for 5 wells / 1280

• 403 orders for 4 wells / 1280

• 267 orders for approximately 2,000 increased density wells pending approval
North Dakota Spacing Units and well pads are designed for multiple wells

8–20 wells per 1,280 acres proposed

= 4 wells per layer X 2–5 layers

1/2 area

1/4 area

1/8 area

Phase 3 - Production

Increased well density

Phase 4 EOR?

100% area

3/4 area
Western North Dakota

• 1,100 to 2,700 wells/year = 2,000 expected

– 185 rigs = 2,000 wells per year

– 218 rigs in May 2012 completed first phase of drilling by mid 2012

– 195 rigs will complete the second phase of drilling in 6-12 months

– 195 rigs will require about 20 years to complete phase 3 drilling

– 40,000 / 60,000 / 70,000 new wells
North Dakota Oil Production

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2,000,000

197019751980198519901995200020052010201520202025203020352040204520502055

Barrels per Day

History Bakken - Three Forks P10 Bakken - Three Forks P50 Bakken - Three Forks P90
North Dakota Oil Price

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$ / Barrels

$/Barrel History & DOE-EIA Projected $/Barrel P50
The future looks promising for 

sustained Bakken/Three Forks 

development

BLM Hydraulic 

Fracturing rule could 

more than double permit 

approval time.

EPA guidance on diesel 

fuel in hydraulic fracturing 

could more than triple 

permit approval time.

Current administration 

budget changes could 

reduce drilling capital 

35-50%

World economy stall out, 

restrictions on shipping by 

rail, or light sweet refinery 

capacity max-out.