WPX Plans to Increase Bakken Activity

July 1, 2015 Elizabeth Alford

WPX Energy announced this week they plan to increase activity in their Williston operations during the second half of the year.

Related: Shale Oil: Sky's the Limit

WPX currently has an inventory of 14 Williston wells awaiting completion and the company will resume completions in August, starting with a four-well pad.

Since the fourth quarter of 2014, many companies pulled back oil rigs as crude prices declined. WPX will be the first to approve more rigs in the play since prices have stabilized. The company credits significant process improvements, structural changes to lower costs and successful discussions with key vendors as key to this decision to move forward.

“The combination of cost reductions and higher EURs gives us the opportunity to generate returns in excess of 30 percent in today’s commodity price environment,” says Rick Muncrief, president and chief executive officer.”

WPX Highlights:

Drilling and completion costs in the basin approaching $8 million per well (decrease of more than 30%)
A blended type curve of approximately 750 Mboe for wells in the Middle Bakken and Three Forks formations, up 25%
Completion modifications include moving toward a higher intensity slick-water design targeting the potential to increase initial production rates and EURs even further.
Total planned capital investments for full-year 2015 remain in line with the company’s previous guidance of staying within its projected operating cash flow

Montana Considers Drilling Buffer

June 29, 2015 Elizabeth Alford

Montana’s Board of Oil and Gas Conservation is considering a proposal that will require buffers zones around homes to protect them from oil and gas drilling.

The board heard almost two hours of testimony last week from farmers, environmentalists and oil companies who all wanted a say in whether setbacks are necessary. Many raised concerns about wastewater dangers, noise and trash that from active wells pads.

“Dale Nelson told local news agency that “The toxic smoke that comes out with a fire, there’s nothing you can do with it,” Nelson said. “Do you want your grandkids around something like that?”

The Northern Plains Resource Council is asking for a quarter-mile setback between well pads and inhabited buildings. This is much greater than the 500 feet required by neighboring states of North Dakota, Wyoming and Colorado.

Montana joins other local and state agencies faced with figuring out how to regulate drilling activities in light of health and environmental concerns. Recently the EPA released a controversial study saying that hydraulic fracking has very little impact on drinking water resources.

EPA Finds Little Risk to Drinking Water from Fracking

Two Saltwater Leaks in North Dakota

June 24, 2015 Elizabeth Alford

Two separate saltwater spills in North Dakota this week have health officials scrambling to assess the damage and monitor the environmental impact of nearby wetlands.

News agencies from across the state reported that 50 barrels of brine were spilled at a site in Burke County owned by Petro Harvester Operating Company in Burke County. Company officials also indicated they believe that the damage might not have been an accident.

“Karl Rockeman, head of the NDDoH division of water quality said “The company believes someone damaged the pump jack at the well head. They’re alleging that it was intentional.”

A second unrelated spill was reported by Condor Petroleum, Inc. in Divide COunty and involved one barrel of oil and 39 barrels of brine were spilled. NDDoH officials are evaluating a nearby wetland for water quality impacts. Health department officials report that a some saltwater reached a nearby wetland and they promised to work with the company to develop a remediation plan for the impacted site.

Wasterwater disposal has become a hot topic as hydraulic fracturing has increased over the last few years. After drilling, the wastewater is cleaned and then pumped deep into injection wells. The potential risks of this practice are still unknown but are commonly connected to increased earthquakes, water contamination and danger to the ecosystem.

Dakota Access Pipeline Concerns

June 22, 2015 Elizabeth Alford

Energy Transfer Pipeline is moving forward with plans to build a massive 1.134 mile pipeline that will transport crude from the Bakken through South Dakota and into Patoka, Illinois amid public concerns.

Energy Transfer Partners moved one step closer this week as officials from the McKenzie County Commission approved zoning for the first of six terminals it will need for the project. Along with permission to move ahead the company also received vigorous opposition and criticism from landowners who see the company as arrogant.

“According to the Tri-City Herald, “Commissioner Kathy Skarda that said she has received numerous phone calls from landowners upset about the company’s negotiating style.”

Last week, more than 80 people turned out for a public hearing in Killdeer to express their concerns to the Public Service Commission. This was the second of three such hearings while PSC officials decide if they will grant permits for the project. The concerns ranged from people not being offered enough money for their easements to the fear of security issues resulting from much energy infrastructure being clustered together.

Once the project is complete in late 2016, the pipeline will transport approximately 450,000 barrels per day and could potentially represent approximately half of Bakken current daily crude oil production.

Turning Drilling Waste into Roads

June 17, 2015 Elizabeth Alford

Saltwater Waste — ND Tests New Technologies to Recycle Waste

The North Dakota Department of Health has approved a pilot project to test new technologies to recycle solid drilling waste.

One of the companies involved in the project is promising to revolutionize the industry by recycling Bakken drilling waste into material for roads or other uses. Nuverra has invested more than three years and $30 million into this initiative. Its process called Terrafficient can recycle 100 percent of that waste, according to company spokesperson.

Recycling drilling waste is a common practice in other states, but the Bakken’s high salt content has made it more challenging to develop a process that protects the environment.

“Scott Radig with the North Dakota Department of Health said “Nuverra proposes to reuse the drilling waste in three ways: mix it with gravel so the gravel will compact better and not wash off the roads; reuse it as a road base material; and use it within municipal landfills as daily cover material.”

Nuverra’s testing will include using the recycled material to construct a road within their landfill facility near Arnegard and a gravel road in central McKenzie County will be used to test mixing the recycled material with gravel.