Natural Gas Intelligence reported today that at the Interstate Oil and Gas Compact Commission’s annual conference in Columbus, OH, Lynn Helms of the North Dakota Department of Mineral Resources presented on North Dakota’s rapid growth in oil production. Rick Simmers, of the Ohio Department of Natural Resources, stated that he chose Helms to speak in order to illustrate to attendees how fast the Utica shale could, and is, growing.
The number of active oil rigs in states like North Dakota and Ohio have grown rapidly. In 2009, these states accounted for less than 13 percent of all U.S onshore rigs. Now they account for up to 23 percent of production. The Utica shale began to shift from its exploratory to development stage in 2012.
Simmers looked to North Dakota’s example for how to handle rapid growth of this industry. Helms stated that the discovery phase for the Bakken began in 2006 and lasted for around 3 years until 2009 when development began. He explained that the most hectic part of the process was the land holdings and lease expiration. North Dakota has come a long way since the beginning of its ‘harvest stage’ and will not be slowing down any time soon.
Multi-pad wells are one of the biggest factors surrounding North Dakota’s high production growth, according to Helms, who expects to permit 3,000 wells by the end of the year.
Tim Baker of Oklahoma’s OGD also spoke on Oklahoma’s projected growth at the conference.