A LOOK AT THE BAKKEN S CONTRIBUTIONS TO AMERICAN ENERGY

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2 A LOOK AT THE BAKKEN S CONTRIBUTIONS TO AMERICAN ENERGY North Dakota Petroleum Council Annual Meeting September 26, 2017 Charles Gorecki Energy & Environmental Research Center Director of Subsurface R&D 2017 University of North Dakota Energy & Environmental Research Center.

3 OVERVIEW Energy & Environmental Research Center North Dakota Energy Bakken Energy Bakken Innovation The Future 3

4 OUR VISION TO LEAD THE WORLD IN DEVELOPING SOLUTIONS TO ENERGY AND ENVIRONMENTAL CHALLENGES. 4

5 DIVERSE EXPERTISE AND CAPABILITIES TO IMPACT THE WORLD 5

6 A STATE OF ENERGY PRODUCTION Sixth in overall energy production in the United States, and second in oil production. How much of that energy comes from the Bakken? Image Credit Steve Shook1

7 BUT FIRST WHAT THE HECK IS A QUAD? One Btu = amount of thermal energy in one wooden match. 2 1 quadrillion = 1,000,000,000,000,000 1 quad = 1 quadrillion Btus Image Credit Pixabay 4 1 quad = ~180,136,000 bbl of oil 3 7 Image Credit Bunkerist Trading and Brokering 5

8 NORTH DAKOTA ENERGY PRODUCTION Biofuels and Other Renewables Coal North Dakota produced ~3.65 quads of energy in Natural Gas- Marketed Bakken oil production = ~2.35 quads that same year. Bakken Crude Oil Other Crude Oil Data sourced from U.S. Energy Information Administration 6,7 and North Dakota Department of Mineral Resources (ND DMR) 8 8

9 PUTTING IT INTO PERSPECTIVE U.S. Energy Production ~88.0 quads U.S. Oil Energy Production Crude Oil ~19.6 quads Texas 37% ND Bakken 12% Other Energy Types Other States 51% Data sourced from U.S. Energy Information Administration 9 Data sourced from U.S. Energy Information Administration 6,7,9 and North Dakota Department of Mineral Resources (ND DMR) 8 9

10 Quads NORTH DAKOTA ENERGY OVER TIME Crude Oil Natural Gas Coal Biofuels and Other Renewables Year Data sourced from U.S. Energy Information Administration 10

11 WIDESPREAD IMPACTS North Dakota s young population grew at a higher rate than any other state from 2012 to U.S. News, March More than 80,000 jobs were created in North Dakota from 2011 to 2015 March Image Credit U.S. News 11 July 2017 Unemployment Rate North Dakota = 2.3% United States = 4.3% Bureau of Labor Statistics 12,13 North Dakota s economy more than doubled in 11 years. July In 2012, the unconventional oil and gas value chain contributed $284 billion to the U.S. gross domestic product and supported more than 2.1 million jobs. IHS 15 11

12 INNOVATION The Bakken doesn t just contribute oil, it provides the drive to innovate. Image Credit gatesnotes 16 12

13 BETTER CHARACTERIZATION 13

14 SMARTER PRODUCTION 14

15 SAFER OPERATIONS Image Credit PTJ 17 15

16 HOW MUCH OIL IS IN THE BAKKEN?

17 ONLY A SMALL FRACTION IS RECOVERABLE TODAY!

18 REFRACTURING Refracking Is the New Fracking July New Technology Could Recover More Oil from Early Bakken Wells June Image Credit North Dakota Department of Mineral Resources

19 ENHANCED RECOVERY

20 THE FUTURE The next quad of North Dakota energy will come from the Bakken. Advances in technology will get us there. Increased energy production from the Bakken will help grow the country s economy, and Secure American Energy Dominance. 20

21 Thank You! 21

22 REFERENCES 1. Used with permission from Steven Shook; 2. Witzel, J., Measuring Energy Rules of Thumb, IEEE Instrumentation & Measurement Magazine, Vol 7, Issue 4, Dec Pixabay, 5. Bunkerist Trading and Brokering, 6. U.S. Energy Information Administration, bbl = 5,717,000 BTU, U.S. Energy Information Administration, 8. North Dakota Department of Mineral Resources, 9. U.S. Energy Information Administration, August 2017 Monthly Energy Review, U.S. Energy Information Administration, State Energy Data System, U.S. News, U.S. Department of Labor, Bureau of Labor Statistics, U.S. Department of Labor, Bureau of Labor Statistics, CNN Money, America s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy, Volume 3, IHS, September 2013, Pipeline Technology Journal (PTJ), Bloomberg, The Bismarck Tribune, 22

23 CONTACT INFORMATION Energy & Environmental Research Center University of North Dakota 15 North 23rd Street, Stop 9018 Grand Forks, ND (phone) (fax) Charles Gorecki Director of Subsurface R&D 23

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