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.
OVERVIEW Energy & Environmental Research Center North Dakota Energy Bakken Energy Bakken Innovation The Future 3
OUR VISION TO LEAD THE WORLD IN DEVELOPING SOLUTIONS TO ENERGY AND ENVIRONMENTAL CHALLENGES. 4
DIVERSE EXPERTISE AND CAPABILITIES TO IMPACT THE WORLD 5
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
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
NORTH DAKOTA ENERGY PRODUCTION Biofuels and Other Renewables Coal North Dakota produced ~3.65 quads of energy in 2015. 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
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
Quads NORTH DAKOTA ENERGY OVER TIME 3 2.5 Crude Oil 2 1.5 1 0.5 0 Natural Gas Coal Biofuels and Other Renewables 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Data sourced from U.S. Energy Information Administration 10
WIDESPREAD IMPACTS North Dakota s young population grew at a higher rate than any other state from 2012 to 2015. U.S. News, March 2017 11 More than 80,000 jobs were created in North Dakota from 2011 to 2015 March 2017 11 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 2014 14 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
INNOVATION The Bakken doesn t just contribute oil, it provides the drive to innovate. Image Credit gatesnotes 16 12
BETTER CHARACTERIZATION 13
SMARTER PRODUCTION 14
SAFER OPERATIONS Image Credit PTJ 17 15
HOW MUCH OIL IS IN THE BAKKEN?
ONLY A SMALL FRACTION IS RECOVERABLE TODAY!
REFRACTURING Refracking Is the New Fracking July 2015 18 New Technology Could Recover More Oil from Early Bakken Wells June 2017 19 Image Credit North Dakota Department of Mineral Resources
ENHANCED RECOVERY
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
Thank You! 21
REFERENCES 1. Used with permission from Steven Shook; https://www.flickr.com/photos/shookphotos/8011517546 2. Witzel, J., Measuring Energy Rules of Thumb, IEEE Instrumentation & Measurement Magazine, Vol 7, Issue 4, Dec. 2004 3. https://www.unitjuggler.com/convert-energy-from-quad-to-boe.html 4. Pixabay, https://pixabay.com/p-2473994/?no_redirect 5. Bunkerist Trading and Brokering, http://www.bunkerist.com/en/wp-content/uploads/2016/11/barrels-of-oil-1200x900-1024x768.jpeg 6. U.S. Energy Information Administration, https://www.eia.gov/state/?sid=nd#tabs-3 7. 1 bbl = 5,717,000 BTU, U.S. Energy Information Administration, https://www.eia.gov/energyexplained/index.cfm?page=about_energy_units 8. North Dakota Department of Mineral Resources, https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf 9. U.S. Energy Information Administration, August 2017 Monthly Energy Review, https://www.eia.gov/totalenergy/data/monthly/#summary 10. U.S. Energy Information Administration, State Energy Data System, https://www.eia.gov/state/seds/seds-data-complete.php?sid=nd#production 11. U.S. News, https://www.usnews.com/news/best-states/articles/2017-03-03/north-dakotas-oil-boom-fuels-economic-growth 12. U.S. Department of Labor, Bureau of Labor Statistics, https://www.bls.gov/eag/eag.nd.htm 13. U.S. Department of Labor, Bureau of Labor Statistics, https://data.bls.gov/timeseries/lns14000000 14. CNN Money, http://money.cnn.com/2014/06/11/news/economy/north-dakota-economy/ 15. America s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy, Volume 3, IHS, September 2013, http://www.api.org/~/media/files/policy/american-energy/americas_new_energy_future_mfg_renaissance_main_report_4sept13.pdf 16. https://www.gatesnotes.com/about-bill-gates/accelerating-innovation 17. Pipeline Technology Journal (PTJ), https://www.pipeline-journal.net/news/angola-and-zambia-resume-negotiations-multi-product-pipeline-project 18. Bloomberg, https://www.bloomberg.com/news/articles/2015-07-06/refracking-fever-sweeps-across-shale-industry-after-oil-collapse 19. The Bismarck Tribune, http://bismarcktribune.com/news/state-and-regional/new-technology-could-recover-more-oil-from-early-bakkenwells/article_13e7bb72-0e71-51dc-a503-f71e69f60d40.html 22
CONTACT INFORMATION Energy & Environmental Research Center University of North Dakota 15 North 23rd Street, Stop 9018 Grand Forks, ND 58202-9018 www.undeerc.org 701.777.5355 (phone) 701.777.5181 (fax) Charles Gorecki Director of Subsurface R&D cgorecki@undeerc.org 23