The U.S. Geological Survey estimates in a report released Thursday that the Bakken Formation in western North Dakota and Montana holds an estimated 3 billion to 4.3 billion barrels of undiscovered, technically recoverable oil.
Sen. Byron Dorgan, D-N.D., said Thursday that the report should give a significant boost to North Dakota’s already booming oil industry.
As of Thursday, 64 rigs were actively drilling in the North Dakota oil field.
The U.S. Geological Survey’s assessment shows a 25-fold increase in the amount of oil that can be recovered compared to the agency’s 1995 estimate of 151 million barrels of oil.
The Bakken Formation is the largest “continuous” oil accumulation the agency has ever assessed, the study said. The Bakken Formation estimate is larger than all other current U.S. Geological Survey oil assessments in the lower 48 states. The next largest “continuous” oil accumulation in the U.S. is in the Austin Chalk in Texas and Louisiana, with an undiscovered estimate of 1 billion barrels of technically recoverable oil.
According to the study, the U.S. Geological Survey estimate of 3 billion to 4.3 billion barrels of technically recoverable oil has a mean value of 3.65 billion barrels.
At Dorgan’s request, the U.S. Geological Survey did the study to get a reliable estimate of the amount of oil that could be produced in the Bakken Shale using technology available today. Dorgan said the authoritative estimate of the region’s geology should help spark even more investment in North Dakota’s oil industry.
A previous U.S. Geological Survey study in 1999 by Leigh Price, a geologist, was never released because Price died before it could be peer-reviewed. Dorgan asked the U.S. Geological Survey to complete a new study that would give the oil industry and the public a good estimate of the technically recoverable oil resources that exist in the Bakken Shale.
In 1995, the U.S. Geological Survey assessment of technically recoverable oil resources in the Bakken was 151 million barrels.
Dorgan said the 25-fold increase from that estimate is a testament to the power of investment in research and development, improvements in technology, and better understanding of geology.
The study, available on the Internet, also provides some details about specific areas in the Bakken Formation in North Dakota and Montana.
For the study, the U.S. Geological Survey worked with the North Dakota Geological Survey, a number of petroleum industry companies and independents, universities and other experts to develop a geological understanding of the Bakken Formation
Study supports company’s initiative
Mike Mahoney, Englewood, Colo., operations manager for Pure Energy USA, said Pure Energy USA is committed to North Dakota. He said the U.S. Geological Survey just-released study supports the company’s initiative to North Dakota.
Pure Energy USA has a presence in Minot and is working with the Minot Area Development Corp. to expand its operation.
Richard Bolkan, mayor of Parshall, who owns the Parshall Food Pride store, said that area already has seen some of the impact. He said oil development in that area right now is focused within a mile to 10 miles north of Parshall. “I think by fall or next year there will be a huge impact for us,” he said.
Marcus Wells Jr., chairman of the Three Affiliated Tribes on the Fort Berthold Reservation, said a study such as this helps show the marketability of the Three Affiliated Tribes ... “and this just reinforces it.” He said the interest is already here but this will help with the development of oil and gas for the tribe, western North Dakota and the state of North Dakota.
Ward Koeser, mayor of Williston, said, “This is exciting news that will be heard all around the country.”
He said he thinks Bakken oil will play a key role in the U.S.’s quest for energy independence. “And with the city of Williston being at the center of this Bakken play, it should bode well for future growth and development,” he said.
Koeser also said the city of Williston is declaring May 21 as Build Williston Day when developers from around the country will be invited there for briefings.
Dorgan said the oil industry in North Dakota has already seen substantial growth, but the new report is important because it gives oil companies another set of eyes.
“The substantial amount of oil that it estimates is in the Bakken Shale should attract significant new investment to this region,” Dorgan said.
“This is an exciting time for North Dakota’s oil industry. We’re going to see new growth that will boost our economy and help our country shed its dependence on foreign oil,” Dorgan said.
The full U.S. Geological Survey report can be found at (http://pubs.usgs.gov/fs/2008/3021/).
