Here are the top five stories from Bakken.com for the week of September 12th through the 18th. Enjoy!
5. North Dakota may let more oil wells be temporarily idled
WILLISTON, N.D. – North Dakota’s oil regulators said on Monday they may allow more wells to be temporarily abandoned, a step that would permit producers to delay fracking beyond the typical one-year window and prevent even more crude from flooding onto global markets.
The change would fuel massive savings for oil producers in the state who have amassed a backlog of almost 1,000 wells that have been drilled but not completed with processes needed to get the oil flowing. The delays are designed solely to ride out the roughly 50 percent drop in crude prices since last year. To read the full article, click here.
4. Construction on Bakken pipeline gathering terminals to begin this winter
Construction on six gathering terminals for the Dakota Access Pipeline in North Dakota is set to begin in January 2016, reports The Bakken Magazine.
Matrix Service Inc., the firm constructing the terminals for Dakota Access LLC, said the six projects have an estimated total value of about $330 million. The above-ground storage tanks at the gathering stations are planned for the North Dakota cities of Epping, Johnson Corner, Ramberg, Stanley, Trenton and Watford City. Once operational, each terminal will have a capacity of 300,000 to 600,000 barrels. To read the full article, click here.
3. Breaking even in the Bakken: Dunn County boasts lowest cost
Of the core counties in the Bakken, Dunn County boasts the lowest break-even costs for oil production, reports the Forum News Service (FNS).
According to figures from the North Dakota Department of Mineral Resources, producers operating in Dunn County are able to begin collecting revenue after the $24 per barrel mark. In comparison, to the northwest in McKenzie County, the break-even price came in at $27 per barrel. To the north of McKenzie in Williams County, the cut-off is $38 per barrel, and due south of Dunn in Stark County, the price is $41 per barrel. To read the full article, click here.
2. U.S. House panel passes bill to repeal oil export ban
WASHINGTON – A bill to repeal the U.S. ban on oil exports gained momentum on Thursday, when it passed a House of Representatives subcommittee, an intial step to overturn the 40-year-old trade restriction in the full chamber.
The House Energy and Power subcommittee passed the bill by a voice vote. The legislation, sponsored by Republican Representative Joe Barton of Texas, is expected to go to a vote by the full Energy and Commerce committee next week.
Passage by the full panel would set it up for a wider vote by the Republican-led House, where it is expected to pass. The measure, however, still faces an uphill battle in the U.S. Senate. To read the full article, click here.
1. Oil boom a loser for North Dakota cities, counties, study finds
WASHINGTON — While the massive Bakken oil boom drew hordes of job seekers and international attention to the remote prairies of North Dakota and Montana in recent years, it’s turned into a money loser for most cities and counties in the region.
Crime in Dunn County, N.D., in the heart of the nation’s oil boom, skyrocketed 60 percent in just three years, and the road maintenance budget soared from $1.5 million to $25 million.
The local government couldn’t keep up, with demand for services outpacing the growth in tax revenue by as much as 40 percent. The problem continues as the drop in oil prices in the past year means increasingly less money for the county to spend on projects — while drilling, the truck traffic that eats up the roads, and demand for community services haven’t stopped. To read the full article, click here.