Population Grows 20% in Williston

Williston Service Population Grew 20%
Williston Service Population Grew 20%

Williston, N.D., a city at the heart of the Bakken oil region, is experiencing population growth that is ten times the normal rate, according to a recent study commissioned by the city.

In order to determine how many people use its infrastructure and to project future needs, the city turned to Nancy Hodur, a researcher from North Dakota State University.

Hodur began the study in 2012 with the goal to project numbers through 2014. To accomplish this, she began with census data and then added the numbers from people living in hotels, crew camps, RV parks and other conditional use permitted housing. Hodur’s 2012 projections have held up well, with recent estimates indicating they are all within a 5 percent margin of error.

“We did pretty well," Hodur said. "That bodes very well and reinforces that if we do the hard work to dig out the primary data from the planning department, the city and the county, we can get a good handle on how many bodies — how many noses — are in the Williston area."

Between 2012 and 2014, Williston service population grew 20 percent from 25,915 to 31,143 and Williams County increased 19 percent from 44,308 to 52,778. This huge increase and far above average numbers of around 2 percent.

So far the city has been able to keep up with the increased service demands, but just barely. Public Works Director David Tuan said the wastewater plant is running at 2.5 million gallons a day in order to keep up with a demand of 2.4 million.

Infrastructure maintenance and improvements are a growing concern throughout the state as growing populations and oil equipment demands have taxed the current roadways and services.

Last month, Governor Dalrymple signed legislation that grants massive emergency funding to counties and cities statewide in order to bolster the lagging infrastructure. Williston will receive approximately $64 million of those dollars for improvements.

Read more at willistondevelopment.com

Bakken Inspires Television

Don Johnson to star in "Boom"
Don Johnson to star in "Boom"

The shale oil boom in North Dakota has been a major force in the United States and has revolutionized the state economy, which now boasts the lowest unemployment rate in the country and a billion dollar budget surplus.

Since 2006, the oil boom has been credited with many things including the revolutionary use of new technology, stabilizing the U.S. economy, contributing to the worldwide surplus of crude and creating a new crop of millionaires.

And now…North Dakota oil has inspired television.

ABC Studios announced on Monday that it has cast Don Johnson for the leading role in its new project Boom, which tells the story of a young couple that moves to the Bakken in search of a better life. Johnson, best known for starring in the 80's cop drama, Miami Vice, will also serve as the executive producer.

According to Variety, the drama is “set in a modern-day “Wild West,” the potential series tracks the pilgrimage of a young, ambitious couple, seeking a better life, to the oil fields of the Bakken, where they come across roughnecks, grifters, oil barons, criminals and fellow prospectors.

Other actors cast in the project include Scott Michael Foster Rebecca Rittenhouse and India De Beaufort.

This isn’t the first time the small screen has tackled the subject. Reality television has made several attempts to capture the experience of the oil patch including Black Gold (truTV) , Bayou Billionaires (CMT) and Discovery Channel’s Backyard Oil.

© Sbukley | Dreamstime.com - Don Johnson Photo

Emerald Oil Announces Huge 2014 Production

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Emerald Acreage Map

Emerald Oil announced its 2014 fourth quarter and year end financial results on Tuesday including huge increases for production and sales.

Fourth quarter production increased 7% over Q3 to average 4,101 BOEPD, with increases of 71% from the same time period in 2013. Throughout 2014, production increased 110% compared to 2013.

Related: Emerald Oil May Scale Back Bakken Drilling Program in Q1 2015

Emerald leadership attributes their strong position to the swift spending cuts made during the oil price freefall of the fourth quarter. Theses cuts and more streamlining will help them ride out a continued low price environment.

McAndrew Rudisill, Emerald’s Chief Executive Officer, stated, “2014 was a year of tremendous reserve and production growth at Emerald Oil. We have made great strides in streamlining the efficiency of our entire Bakken production base through the diligent efforts of our operations team. We feel comfortable managing the current oil price environment for a prolonged period with our low cost balance sheet and substantial liquidity.

Revenues from sales of oil and natural gas for the fourth quarter were $22.1 million compared to $17.9 million in 2013. As of December 31, 2014, Emerald had total proved reserves of approximately 26.3 MMBoe, all of which were located in the Williston Basin.

Emerald’s operations primarily targets the Middle Bakken and Three Forks formations for its development drilling. The company holds approximately 125,000 net acres in the Williston Basin in North Dakota and Montana.

Related: Emerald Oil Acquires Bakken Acreage in the Williston Basin

Read more at emeraldoil.com

Abraxas Petroleum Releases Q4 Results

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Abraxas Petroleum announced a record 2014 during its earnings call on March 4th and reported on their 2015 spending plan.

2014 Highlights include oil production that averaged 5,720 Boepd and $63.3 million in net income. Abraxas’ fourth quarter net income was $30.1 million, which is up over the same period in 2013 when they reported $27.0 million. The company’s adjusted net income for Q4  was $6.1 million, compared to $1.4 million in 2013.

Related: EOG Reduces 2015 Capex 40 Percent

Abraxas plans to cut its capital spending to $54 million for 2015, compared with $193 million in 2014. The company further expects a 26% growth in production to 7100 barrels a day as it completes the nine wells it drilled during 2014.

Bob Watson, Abraxas’ President and CEO commented, “After a tremendous 2014 for Abraxas, we now enter a very tumultuous 2015 from a commodity price perspective. We remain focused on preserving our abundant liquidity and strong balance sheet, which we endeavor to use to our advantage in a distressed environment. We are also blessed with an attractive asset base that presents numerous opportunities to expand our capital program should commodity prices and service costs dictate. We look forward to updating the market on the results of some of these efforts in the near future.

Abraxas’ operations in North Dakota spans has roughly 5,000 net acres in the Bakken, mostly in McKenzie County. The company announced that it recently drilled four wells to about 21,000 feet each on their Jore Federal West pad in record time and at a low cost. The company will defer completion on these wells as they wait for better weather and for production costs to decrease.

Find out more at abraxaspetroleum.com

Read the full call transcript at seekingalpha.com

Bakken Oil Safety

Train Derails in North Dakota
Bakken Oil Safety

Two separate accidents across the Williston region on Saturday have added to the growing concern about Bakken oil safety and is fueling the intense debate about the way oil is produced, contained and transported in the United States.

In a new series of posts, we will examine this issue and try to separate the facts from the hype and the science from the scare tactics.

Related: Bakken Oil Transport Still Not Safe

Explosions Galore

An explosion erupted at 3:00am at an oil and gas waste disposal site north of Alexander, N.D. in McKenzie County. There were no injuries reported, but the massive fire spread to eight storage tanks and was so intense that emergency crews decided to let it burn itself out. The flames subsided by mid morning just as three oil tanks operated by Marathon went up in flames another 53 miles away, near the small town of Killdeer. These incidents were only a few weeks after eight tanks were destroyed in the same area as 1500 barrels of crude blazed across the street from an Enbridge facility.

Crude by Rail

A top concern when thinking about Bakken oil safety is the transport of crude by rail.

According to one report, “there were 117 crude-by-rail spills in the United States during 2013, a near-tenfold rise since 2008 (...) and there were more such spills in 2014 than in any year since the federal government began collecting data on spill incidents in 1975.

With oil production currently at all time highs, the amount of crude traveling the country will escalate and, many fear, so may the number of accidents.

Just in the last few weeks, there have been a number of news reports of these accidents:

  • 3/8/15:Train carrying crude oil derails in northern Ontario more
  • 3//7/15 Train carrying crude oil derails in Canada more
  • 3/6/15: Oil train carrying Bakken crude explodes in Illinois more
  • 2/14/15 Train carrying crude oil derails in Canada more
  • 2/17/15: WV derailment carries Bakken crude in more

Next in the series: Is Bakken crude really more dangerous?