North Dakota Energy Spotlight – Oil/Gas Production
• State officials estimate that more than 95 percent of oil drilling activity is occurring in the Bakken/Three Forks formation, located in the Williston Basin.
• Industry officials estimate that each active rig represents roughly 120 direct and indirect jobs.
• North Dakota ranks third nationally in oil production as of March 2012, accounting for approximately 7.2 percent of total U.S. production.
• Horizontal (directional) drilling accounted for nearly 85 percent of the state’s oil production in 2011.
• More than 200 oil rigs are operating in the state.
• North Dakota Geological Survey released an assessment in 2010 that the Three Forks Formation contains 20 billion barrels of oil.
• Using current technology, about 1.9 billion barrels or 9.5 percent are recoverable.
Bakken well facts:
A typical 2012 North Dakota Bakken well will produce for 29 years, and enhanced oil recovery efforts can extend the life of the well even longer. Over the course of 29 years the average Bakken well:
• Produces approximately 580,000 barrels of oil
• Generates over $22 million net profit
• Pays royalties of $7,925,000 to mineral owners
• Pays salaries and wages of $1,500,000
• Pays operating expenses of $2,300,000
• Costs $8,500,000 to drill and complete
• Pays approximately $4,610,000 in taxes
– $2,300,000 gross production taxes
– $2,000,000 extraction tax
– $410,000 sales tax
Read the full report of Great Plains Energy Corridor Spotlight on North Dakota Energy and request a hard copy here.
You may be interested in:
North Dakota Petroleum Council
North Dakota Industrial Commission
North Dakota Pipeline Authority
North Dakota Geological Survey
North Dakota Department of Mineral Resources
U.S. Energy Information Administration – Petroleum & other liquids