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Thursday, July 19, 2012

Energy Fact of the Day: No Dry Holes in the Bakken

Associated Press -- "Despite widespread hope that North Dakota's oil rush will spread across the border, some say it's doubtful South Dakota will experience much of it. South Dakota state geologist Derric Iles says drillers are virtually assured of a profitable well in North Dakota. He says they have little time to bother with unknown prospects across the border.

Iles believes South Dakota is underexplored and may hold untapped reserves that could be exploited using know-how gained from North Dakota's Bakken formation. The formation is not present in South Dakota.

State and industry officials say dry holes are a rarity for drillers in the Bakken. Ninety-nine percent of the rigs hit oil, and nine out of 10 wells make money."

9 comments:

  1. The prospect of oil in South Dakota is exciting, too.

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  2. This is after wildcat prospector spend the last 15 years in the wilderness drilling and refining their technique. There's a serious shortage of workers in North Dakota, so I can understand why they're hesitant on going to newer unexplored area right now.

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  3. In before VangelIV tells us that it's all a pipe dream!

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  4. it's all a pipe dream!

    haha nice pun!

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  5. As the man said, you can make all the claims you want. But if you want to convince a prudent investors just show them the cash flows. Until you can it is all just noise.

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  6. To be sure, individual Bakken wells vary wildly in their economics.

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  7. To be sure, individual Bakken wells vary wildly in their economics.

    True, but if the Bakken were economic we would see the producers showing positive cash flows and a stable debt level on their balance sheets. I own companies that get some of their revenue from the Bakken and am not impressed very much.

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  8. North Dakota is dealing with labor shortages caused by the rapid development of the Bakken Shale. Thousands of new fracking wells in this state have increased the population to record-breaking figures and reduced the unemployment rate to nearly 3 percent – the lowest in the nation.
    Within a year, North Dakota’s financial reserves are expected to top $2 billion due to a sharp increase in sales and income taxes from oil revenues. Budget director Pam Sharp estimates that the state’s surplus has climbed by roughly 43 percent in only three months. Furthermore, individual income taxes are reportedly 60 percent higher than expected. Tax collections from car and truck sales are also 38 percent higher than previous state projections.
    The United States is home to some of the richest known shale formations on the planet and has an abundance of natural resources. By modeling the comprehensive energy plan that North Dakota officials established over a decade ago, TAP Management and other oil-producers in the United States can help the nation successfully recover from the recession.

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