Bakken Oil Report Spring/Summer 2021

SPRING/SUMMER 2021

North Dakota responds to ESG movement The digitization of a modern oil refinery – The SMART thing to do

Energy generation enhances Bismarck-Mandan region

www.bakkenoilreport.com

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CONTENTS

Message from North Dakota Senator John Hoeven............................................ 6 North Dakota responds to ESG movement: Legislation discourages “social investments”...................................................... 8

President & CEO DAVID LANGSTAFF Managing Editor SHAYNA WIWIERSKI shayna@delcommunications.com

Bakken Development and Working Lands making an impact on the landscape.................................................................. 10

Sales Manager DAYNA OULION dayna@delcommunications.com

Be careful wishing for $100 oil............................................................................ 14

Advertising Account Executives COLIN JAMES MIC PATERSON ANTHONY ROMEO

A rose is a rose is a rose...................................................................................... 12

The digitization of a modern oil refinery - The SMART thing to do.................. 18

Energy generation enhances Bismarck-Mandan region.................................. 20 Bakken is back on track in 2021......................................................................... 21 How capital markets, not governments, are driving the ESG narrative.......... 22

Moving the Bakkenf forward............................................................................. 24

High pressure: Performance that can’t be imitated......................................... 25 How to develop EOR technologies more efficiently with a stage-gated approach............................................................. 26 Oil & gas companies increase productivity, efficiency, safety and environmental awareness through intelligent AI-driven visual monitoring.... 27 The shocking truth about poor power quality.................................................. 28

Reducing the long-term costs of your oil well pad site................................... 30

INDEX TO ADVERTISERS

Contributing Writers STEVE BAKKEN JESSE BECKERS MARK FONDA BETTE GRANDE AHSAN JAVED DAN KISH PETRO NAKUTNYY JAMES SORENSEN NICK VOLKMER Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Creative Director / Design KATHLEEN CABLE Cover photo courtesy of THE UNIVERSITY OF NORTH DAKOTA ENERGY & ENVIRONMENT RESEARCH CENTER

Bismarck Mandan Chamber EDC............................................................................................................................. 19

© Copyright 2021

Bismarck State College.............................................................................................................................................. 15

DEL Communications Inc.

Blue Cross Blue Shield of North Dakota................................................................................................................IFC Borsheim Crane Service, LLC.......................................................................................................................................3 Graham Construction...............................................................................................................................................OBC Heatec Inc......................................................................................................................................................................21 J-W Power Company.........................................................................................................................................16 & 17 KLJ......................................................................................................................................................................................7 MTE Corporation...........................................................................................................................................................29 North Dakota Recorders Information Network..................................................................................................... 19 Osperity...........................................................................................................................................................................11 Puklich Chevrolet.........................................................................................................................................................10 Riverbend Oil & Gas, LLC..........................................................................................................................................IBC SCC Inspection Services, Inc.......................................................................................................................................5 Steffes Group, Inc........................................................................................................................................................ 13 Taylor Machine Works................................................................................................................................................23 University of North Dakota / (EERC) Energy & Environmental Research Center............................................9 4

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 www.delcommunications.com

BAKKEN OIL REPORT – Spring/Summer 2021

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MESSAGE

Message from North Dakota Senator

JOHN HOEVEN

Maintaining America’s Energy Leadership Working to keep the Dakota Access Pipeline online Recently, I met at the White House with the president and made the case for the Dakota Access Pipeline (DAPL). I hand delivered to him letters from our state’s attorney general and Three Affiliated Tribes Chairman Mark Fox emphasizing the need to keep DAPL operational while the Army Corps of Engineers completes its court-ordered review. Energy infrastructure is vital to maintaining our energy leadership, which is why we’ve been working to support DAPL. In addition to meeting with the president, I’ve also repeatedly spoken to Army Corps Chief LTG Scott Spellmon to help ensure the federal court allows adequate time for tribal and state consultation and to help stave off a shutdown of DAPL. The reality is that DAPL has been safely operating for nearly four years, providing access to market for North Dakota, including substantial oil production from the Fort Berthold Reservation and the

This infrastructure will create up to 450 new construction jobs and help reduce flaring in the Bakken by providing an additional 250 million cubic feet per day of natural gas takeaway capacity. expansion project, which involves

wide range of priorities at federal, state,

connecting WBI’s Tioga Compressor

local and tribal levels.

Station with the Northern Border Pipeline Company’s mainline just southwest of Watford City, as well as building 20 miles of new pipeline in Mountrail and Burke counties. This infrastructure will create up to 450 new construction jobs and help reduce flaring in the Bakken by providing an additional 250 million cubic feet per day of natural gas takeaway capacity. I also recently led

In response, we’re advancing legislation to prohibit the administration from issuing moratoria on leasing and permitting for energy and mineral resources on federal lands. We’re also pressing Interior Secretary Deb Haaland and other administration officials to reverse this policy, as well as to explain the decision to intentionally limit public participation in a recent forum on the

a letter with several of my colleagues

moratorium. Such action undermines the

in the senate urging the commission to

legitimacy and confidence in the federal

resume timely approvals of all projects

decision-making process.

under consideration, including the North

Domestic energy production is essential

Three Affiliated Tribes. Simply put, this

Bakken Expansion Project.

vital infrastructure is a critical link for

We need projects like this to ensure we

our region’s energy producers and

security. By developing these resources

are making the best use of our energy

consumers, and that’s why we will

here at home, we have reduced our

resources, but these things don’t just

continue our efforts to ensure the Corps

dependence on oil from Russia, Saudi

happen – it takes regulatory certainty

promptly completes this additional

Arabia, and other less stable regions

and a pro-growth business environment.

review and maintains the operation of

of the world, helped lower costs

Accordingly, we’re pushing back on

this pipeline.

for consumers and businesses, and

executive actions that needlessly burden

provided good-paying jobs for our

At the same time, we are advancing

our energy producers and discourage

citizens. Despite uncertainty from the

further investment in the Bakken

investment, like the administration’s

current administration, there are good

region, like WBI Energy’s North

moratorium on oil and gas leasing.

developments happening in the Bakken.

Bakken Expansion Project. We’ve been

Energy development on federal lands

We will continue our efforts to support

pressing the Federal Energy Regulatory

is an important part of our nation’s

this critical industry and to ensure our

Commission (FERC) to approve this

domestic energy production and

nation remains a global leader in energy

proposed $260 million natural gas

provides significant revenues to fund a

development. w

6

BAKKEN OIL REPORT – Spring/Summer 2021

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ESG devotees tend to favor renewable energy, and view oil, natural gas and coal as “unsustainable,” despite the fact hydrocarbon fuels continue to provide about 80 percent of the energy used in America. Seen here is the Milton R. Young Power Plant in Hensler, North Dakota.

North Dakota responds to ESG movement: Legislation discourages “social investments” It seems to make no sense, but there is a

to avoid contracting with companies

see where we can add the most value,

movement in the U.S. financial sector to

that support ESG practices, and to

and also educate our companies – small,

reject investments in the fuel and food

consider divesting state investments

medium and large – on what they can be

industry that are essential to modern

from companies that boycott energy or

doing to not only score better, but also

society.

ag commodities. But because that task

position themselves to better handle

North Dakota’s energy sector is trying

would have been difficult, the measure

additional regulatory burdens,” Leiman

to cope with the ESG movement, which

was amended to simply prohibit the ND

said.

essentially amounts to promotion of

State Investment Board from considering

politically-correct investments. ESG

“social investments.”

criteria (Environmental, Social and

The legislation also directs the state

Governance) are standards that “socially

commerce department to study ESG,

conscious investors” use to screen

including evaluation of the level of

investments. ESG devotees tend to favor renewable energy, and view oil, natural gas and coal as “unsustainable,” despite the fact hydrocarbon fuels continue to provide about 80 percent of the energy used in America. ESG criteria are also affecting investment in some agriculture companies, with investors frowning on practices such as production of genetically-modified crops or perceived issues with workplace policies.

Regardless of whether ESG makes sense or not, energy and agriculture make up the bulk of North Dakota’s economy, so the state is doing what it can to respond.

The 2021 Legislature enacted Senate Bill 2291, which aims to send a message about the state’s investment policies.

The bill originally directed state agencies 8

BAKKEN OIL REPORT – Spring/Summer 2021

involvement the state has with companies that use ESG in their ranking when making business or investment decisions.

The study will also look at “implications for the state as it relates to the boycott of energy or production agriculture commodities by companies that intend to penalize, inflict economic harm on, or limit commercial relations.” The commerce department plans to contract with an outside firm to perform the analysis.

Commerce Director James Leiman, who calls ESG “the biggest problem the state is going to have since the Great Depression,” expects the study to examine ways the state can help businesses improve their ESG scores.

“We want to find the low-hanging fruit,

IMPLICATIONS FOR THE ENERGY INDUSTRY ESG has been a concern in the oil and gas industry for several years already, according to Ron Ness, president of the ND Petroleum Council. He characterizes it as a behind-the-scenes attack on fossil fuels intended to dry up capital investment.

“Make no mistake, this is a masked effort by well-financed obstructionists to cut off the funding,” Ness said. “They’re doing it through various mechanisms, infiltrating boards and banks, and now we may see a reversal of [Trump Administration] efforts to limit discriminatory lending practices.”

ESG has also been a key factor in sharply rising costs for the coal industry, according to Jason Bohrer, president of the Lignite Energy Council. He said ESG has made it exceedingly difficult to obtain reasonable financing for coal industry projects.

Senate Bill 2291 originally directed state agencies to avoid contracting with companies that support ESG practices, and to consider divesting state investments from companies that boycott energy or ag commodities. Seen here is the Leland Olds Power Plant in Stanton, North Dakota.

ESG has been a concern in the oil and gas industry for several years already, according to Ron Ness, president of the ND Petroleum Council. Seen here is the Coal Creek Station in Underwood, North Dakota.

“Banks and insurance companies

dollars in investment capital that are now

“Recognize the significance of this from

are increasingly applying these non-

out of reach for important investments in

North Dakota as a producing state,” he

financial factors as part of their analysis,”

oil, gas and coal.”

said. “The energy industry is up against it

Bohrer said. “As a result of a lack of understanding of the standards, practices and benefits the fossil fuel industry provides, there are currently trillions of

Ness said collectively the state and its industries can send a message about the value of their products.

and it’s not going to be any different for agriculture, and as a producing state we need to band together.” w

BAKKEN OIL REPORT – Spring/Summer 2021

9

REPORT

Bakken Development and Working Lands making an impact on the landscape

By Jesse Beckers As the deep freeze left and the weather started changing for the warmer, I overlooked a field that has been cropped for many years that probably should not have been. The landowner and I stared across the expanse of gravel and light soils and individually wondered what the best way would be to establish a native grass stand where wheat had been the norm. Should the area be planted to native grass? Maybe tame grass? Or a combination of cover crops one year and native or tame grass the next year?

The conversation then moved on to cross-fencing, water tanks, water pipelines and a rotational grazing plan. All of this can be overwhelming for a landowner who is considering changes to their operations, including how to pay for it.

The North Dakota Outdoor Heritage Fund (OHF) provides many opportunities for ranchers who raise our food on four legs and want to increase their grassland cover, put more cows on the ground, sequester carbon, improve soil health and implement infrastructure that will encourage a rotational grazing system. The Bakken Development and Working Lands Program (BDWLP), one of the opportunities funded by OHF, is now on its second round of funding and has received a total of $5,478,100 of OHF funds. The program, first funded in 2018, has made the following impacts on the landscape to date: • The establishment of 1,467 acres tame grass and 2,197 acres of native grass.

• The establishment of 1,944 acres of cover crops.

• Improved grassland management of 26,073 acres through fencing and water developments.

• Improved management of 6,341 acres adjacent to oil infrastructure.

• Improved management of 113,019 acres on western North Dakota national grasslands including juniper removal, water developments, fence developments, reclamation and grass seeding.

• A 160-acre reclamation project of Beaver Lake WPA. • Community park development in Dunn Center, including walking trails, interpretive signs, grass seeding, a pollinator garden and tree planting.

• Community parks development in Watford City, with walking trails, interpretive signs, grass seeding, a pollinator garden, a hummingbird garden and tree planting.

Through the OHF, landowners and public entities have been able to improve soil health, restore grasslands and wildlife habitat, and enhance farming and ranching on private and public lands. The BDWLP (both I and II) was developed to create opportunities for those affected by energy development and those who reside in oil producing counties. The North Dakota Grazing Lands Coalition (NDGLC), the Natural Resources Conservation Service (NRCS), local Soil Conservation Districts, along with other conservation agencies in the state assist landowners in managing these acres and adjacent grasslands while providing best management practice guidelines for livestock grazing. Fencing is used for new or enhanced rotational grazing systems, as well as for crops to enhance soil health and rest native grassland pastures. Cost share is 60/40 between the grant and landowner, and fence rates adhere to current NRCS guidelines. Grass, both native and tame, and cover crops will be designed by natural resources professionals and the landowner.

We would like to thank the ND Outdoor Heritage Fund for their leadership in providing opportunities for landowners in the energy producing counties. For more information, please

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BAKKEN OIL REPORT – Spring/Summer 2021

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REPORT

A rose is a rose is a rose

By Bette Grande

Bakken energy companies have learned

referred to as ESG, is a policy led by

policies aimed at de-carbonization. While

to be nimble in order to survive. Those

large money-center banks, Wall Street

large, multi-national energy companies

skills will be needed more than ever over

investment firms and multi-national

may adapt to a carbon tax, the impact on

the next few years. Shale producers face

insurance companies with a goal to

shale producers and on consumers is yet

threats from the Biden Administration,

achieve desired social outcomes through

another issue to watch going forward.

environmental organizations, Wall

the use of financial leverage.

Street, OPEC, and even multi-national

Essentially, a company’s cost of capital

oil companies. Think that 2020 was a

25, API’s support for the carbon tax

and insurance will be based on the ESG

challenge?

hinges on a reduction or replacement

score of the business. If the company is

of greenhouse gas regulations out of

BACK TO THE FUTURE

deemed to be a risk to the environment,

Washington, D.C. Energy companies

In many ways the next few years under

if it does not “benefit” society and various

in North Dakota will want to watch the

stakeholder groups, if its management

political debate over API’s support of a

and board policies are found to be too

carbon tax for potential impacts.

the Biden Administration will be similar to the Obama Administration as federal agencies implement policies to limit the development of oil, gas and coal. In a presentation to a North Dakota legislative committee, Lynn Helms, director of the North Dakota Department of Mineral Resources, suggested that an increase to the litigation budget to fight federal regulations will be needed. We can expect the Agency Updates section of Mr. Helm’s monthly Director’s Cut will continue to expand and be required reading for North

narrowly focused on its core business,

As reported by Bloomberg on March

then the cost of capital, insurance and

OZONE RULE

other business needs will increase – if

The March 17, 2021, the Wall Street

they are available at all.

Journal editorial titled “Biden’s ‘Backdoor’

Many find it difficult to explain exactly

Climate Plan” outlined a plan by EPA

what the ESG movement is, but the fact

and democrat attorneys general to

that the threat and impact of the ESG

force Green New Deal environmental

movement is hard to pin down is a feature

regulations on states. This Plan B, as it is

of the program, not a bug.

referred to in the editorial, acknowledges

The North Dakota Legislature addressed

the roadblocks in congress and sees

the ESG movement with Senate Bill

a creative way to use the Clean Air Act to reach the administration’s de-

Dakota’s energy producers.

2291 that was signed by the governor on March 23, 2021. The Bill, weakened

carbonization goals.

NEW CHALLENGES

during the legislative process, does direct

EPA’s proposals and actions under the

While some of the challenges facing

the state to study the impacts of the ESG

National Air Ambient Quality Standards

Bakken energy companies are familiar,

movement on the energy and agriculture

will be monitored by North Dakota’s

there are many new obstacles to be aware

sectors of North Dakota.

Industrial Commission and will likely be

of. Given the political environment in

The state’s coal industry is already feeling

another addition to the Agency Updates

Washington, D.C., the Green New Deal

the heat from the ESG movement as

in Mr. Helm’s monthly Director’s Cut.

may not pass-through congress, but

banks and investment firms are choosing

for the Bakken, the worst of the Green

to no longer finance coal development

New Deal is becoming reality whether

and insurance premiums are increasing

congress acts or not.

for the industry.

facing some new challenges. But by

ENVIRONMENTAL, SOCIAL, GOVERNANCE

CARBON TAX

that the goal of the Green New Deal, ESG,

Last month the board of the American

carbon tax, ozone rule, and the Biden

If you are not already aware of the

Petroleum Institute voted to support a

Administration is de-carbonization of our

ESG movement, you soon will be.

tax on carbon emissions. This move is

economy. It is difficult to imagine a larger

Environmental, social, governance,

positioned to address the environmental

threat to the Bakken. w

12

BAKKEN OIL REPORT – Spring/Summer 2021

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Be careful wishing for $100 oil

By Dan Kish, Senior Vice President of Policy, American Energy Alliance Bakken producers know this story well: hydraulic fracturing and

output, as companies prioritize shareholder returns above

horizontal drilling set off the shale boom in the United States,

everything else. The severe drop in activity in the U.S. and the

but it came with a price. While it put America in the global oil

pressure from the investment community to maintain discipline

driver’s seat, excess production caused oil prices to plunge to

instead of growth means that shale oil will not get back to where

about $30 a barrel in January 2016.

it was – at least not for a while.

Since OPEC was no longer unilaterally in charge, Saudi Arabia

OPEC, on the other hand, can let prices rise and add barrels

reached out to Russia and other non-OPEC producers to form

at its discretion, which provides them a great deal of control

the OPEC+ group to take back control of global oil markets.

and flexibility. And they can do it on fairly short notice if they

That didn’t work until the Coronavirus pandemic hit, reducing

believe the market is heating up again. OPEC+ has more than

oil demand and oil production. And then Joe Biden became

seven million barrels of daily oil output in reserve—about seven

president and began doing all he can to put a damper on U.S. oil

percent of global oil demand. This positions them to boost

production, thereby giving OPEC+ a free reign to control global

production much more easily than shale oil players for the first

prices.

time in years.

With less oil on the market, prices have been on the rise. In

Brent oil prices have responded, rallying about 30 percent this

the past, this enticed shale companies to ramp up production.

year to almost $68 a barrel. Without additional supply, the cartel

However, today, private companies are more likely to increase

believes that the deficit will widen significantly in April, raising

oilfield activity, but not enough to meaningfully boost U.S.

oil prices to $70 or $75 a barrel.

Source: https://fingfx.thomsonreuters.com/gfx/ce/dgkvlzylmvb/Pasted%20image%201614723864812.png 14

BAKKEN OIL REPORT – Spring/Summer 2021

IS $100 OIL POSSIBLE?

electrification of vehicles. And don’t forget, electric vehicle (EV)

Some energy analysts are forecasting $100 a barrel oil in the next six to 12 months. Time for the oil patch to celebrate, right?

Perhaps not.

subsidies are going to car buyers too. Eighty percent of EV tax credits go to buyers in households making more than $100,000 per year, and nearly 50 percent of the full federal subsidies are going to Californians. Gasoline in California recently reached four

President Biden wants to electrify everything, and he may get

dollars per gallon. Consumer angst associated with pain at the

his wish with $100 a barrel oil – especially in the transportation

pump is a powerful, crisis-like situation.

sector, which accounts for roughly 70 percent of U.S. oil consumption.

Higher oil and gasoline prices to Biden mean a quicker exit from petroleum in the transportation sector and a quicker transition to electric vehicles, and he has shown little concern for those

GASOLINE PRICES High oil prices lead to high gasoline prices which may be Biden’s ticket to force this radical change. And the president has allies

whose careers are in the industry, as evidenced by his decision to shut down the Keystone XL pipeline and freeze federal leasing.

on his side, including some auto manufacturers who continue to

We know politicians never want a crisis to go to waste, so be

hold their hand out for subsidies throughout the entire chain of

careful wishing for $100 oil. w

Dan Kish is a senior vice president for policy at the American Energy Alliance (AEA). Kish has more than 30 years of experience on congressional committees focused principally upon natural resource and energy policies. His service includes the principal resource committees in the House and Senate, including six years as chief of staff for the Republicans on the House Resources Committee and four years on the Senate Energy & Natural Resources Committee staff. His primary focus has been access to resources on government lands and in the waters of the Outer Continental Shelf, and specifically, upon the enormous conventional and unconventional energy there that waits to be allowed to add value to our nation’s well-being. Kish is a graduate of Wabash College in Crawfordsville, Indiana.

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The digitization of a modern oil refinery – The SMART thing to do

By Mark Fonda, Executive Vice President, Engineering and Chief Technical Officer, Meridian Energy Group Inc.

Meridian Energy Group Inc. is designing and building a series of small, conventional, state-of-the-art refineries starting in North Dakota, running shale oil. The first of those refineries is the fullypermitted Davis Refinery in Belfield, ND with Bakken Crude.

The Meridian vision for Davis involves applying the best available digital technology to the grassroots refinery, which immediately creates the foundation for what will become the world’s first SMART Refinery. This will also provide the blueprint for transforming the downstream industry, making it cleaner, safer and smarter.

DOWNSTREAM DIGITIZATION – NO LONGER JUST AN OPTION Digitized, modern refineries have the distinct advantage of being quick and agile in response to fluctuating market conditions, and in detecting and resolving operational issues quickly and effectively.

• Reduced future capital spending from more efficient use of capital.

The expecting payout is between one and three percent of total investment cost for project savings and early start-up (items 1-2), and one to three percent for on-going annual savings (items 3-6).

Based on this, a budget for enhanced digital technology can be established, typically standard equipment for any new project.

Intangible benefits are realized in regulatory compliance, community relations, and plant morale.

CREATING A SMART REFINERY The methodology or process to develop a digitized, smart refinery involves the following:

In terms of design, construction, operations and maintenance, the expected benefits of SMART refineries include: • Lower engineering, procurement, and construction (EPC) project costs due to more efficient execution such as data handover, less backtracking, etc.

• Faster EPC completion leading to earlier operational profits.

• Better refinery operating efficiency such as equipment availability, energy, yields, quality, etc.

• Better equipment reliability providing lower operating expense.

• Reduced unscheduled downtime from equipment failures.

• Providing a foundation utilizing specialized hardware, software and infrastructure for basic process operations.

• Building higher-level layers of data management to provide advanced process control, plant-wide data integration, ERP interface and advanced analytics.

• Providing remote monitoring capability to reduce on-site manpower needs, collaborate with business partners and to integrate multiple facilities.

• Providing initial and ongoing training for operations, maintenance, technical and any personnel involved in daily operations.

Altogether, this provides full integration to optimize the plant, the supply chain, off-take partners and more.

18

BAKKEN OIL REPORT – Spring/Summer 2021

REAL-TIME OPTIMIZATION

They can spot discrepancies in order to pinpoint issues and stay ahead of trends. Things that used to take days or weeks to analyze are now done instantaneously. When applied consistently and thoroughly across the plant, the result is real-time optimization (RTO).

SUSTAINABILITY THROUGH ADAPTABILITY The downstream industry is being challenged with demand disruptions, environmental and social initiatives, and changing governmental mandates. The facilities that survive will need to adapt in many ways… and digital technology may be the most important of all the tools available. Given that: The foundation for the network architecture requires integration among five key categories: The first three categories - Control Systems, Safety & Compliance, and Communications are the backbone of the information system with enhanced capabilities to interact up and down the line.

The remaining two categories are data processing and analytical systems… Data Collection and Analysis – Digital Twins. These are typically implemented over time in a piecemeal fashion – the key with a smart refinery is to implement this all together, integrated and optimized from the start.

Digital twins are dynamic process models operating in real time covering the full plant and all integrated together. They provide a comparison of actual performance versus expected performance.

The Fastest, Easiest, & Most Cost Effective Way To Retrieve Land Records In North Dakota • • • •

• There must be ongoing effort to maintain compatibility with industry standards and equipment designs, with particular attention to useability, training and implementation.

There must be a plan for future incremental upgradability (to be future-proof).

And always, continue to learn and enhance the use of digital technology as new products develop and become available and commonplace. The curve is steep, and we need to stay on the forefront.

In total, we believe that a grassroots refinery can utilize available, proven technology to ensure superior performance for the entire plant lifespan. Any new plant, or a significant upgrade or expansion of an existing plant must utilize digital technology in its entirety in order to adapt, survive and thrive. w

MAKE YOUR MARK IN BISMARCK-MANDAN!

Fast Convenient Cost-effective Subscribe Today

c/o High Plains Technology 1351 Page Drive, Ste. 106 Fargo, ND 58103 Phone: 701.364.1280 Fax: 701.271.1557

www.ndrin.com

BAKKEN OIL REPORT – Spring/Summer 2021

19

MESSAGE

Energy generation enhances Bismarck-Mandan region

By Steve Bakken, Mayor of Bismarck

As the largest city within close proximity, Bismarck-Mandan is ideally positioned to be the Bakken’s primary hub.

The true strength of Bismarck-Mandan’s

height of the Bakken boom), that number

hosted by the North Dakota Petroleum

economy lies in its diversity. It often

had grown to $2.2 billion.

Council throughout the year.

helps to think of the area’s economy as a pyramid, which at its base has

Similarly, the community has grown right

•A s a healthcare ‘hub’ with two large

along with its economy. Burleigh and

health systems, CHI St. Alexius and

Morton Counties’ combined population

Sanford Health, patients from the

in 2009 was estimated to be a little over

block in that pyramid’s base is energy

surrounding area come to Bismarck-

106,000. By 2014, that number had

generation, and more specifically, energy

Mandan on a regular basis for treatment.

grown to approximately 120,000 and is

sources such as coal, natural gas and of

now estimated to be nearly 127,000.

concentrations in government, healthcare and education. The fourth

course oil.

Of course, despite this evidence and

The emergence of the Bakken as a

much more, many people don’t equate

world-class oil play over a decade ago

Bismarck-Mandan with the Bakken

has meant increased economic activity

because the community is not located

across North Dakota, but particularly in

within the oil patch itself. However, as

Bismarck-Mandan.

the largest city within close proximity,

To illustrate that point, consider the fact that in 2009 (prior to the Bakken boom)

Phoenix-Mesa, Orlando and Las Vegas, travelers frequently fly in and out of the Bismarck Airport.

•A nd as a government ‘hub’ being the state capital, trade groups supporting the Bakken often choose to call Bismarck-

taxable sales and purchases were

• As a retail and restaurant ‘hub’ offering the widest variety of amenities, shoppers, diners and visitors from

BAKKEN OIL REPORT – Spring/Summer 2021

Chicago, along with near daily service to

be the Bakken’s primary ‘hub.’

For example…

20

to Minneapolis-St. Paul, Denver and

Bismarck-Mandan is ideally positioned to

Burleigh and Morton Counties combined approximately $1.5 billion. By 2014 (the

•A s a travel ‘hub’ boasting daily flights

Mandan home to take advantage of access to regulators, lawmakers and more involved in the state’s oil and gas activity.

Western North Dakota, Eastern Montana

While Bismarck-Mandan’s status as a

and Northern South Dakota flock to

regional ‘hub’ for the aforementioned

Bismarck-Mandan to take advantage.

industries and more isn’t dependent

The energy industry drives business

upon oil and gas activity, it is definitely

to the region through a spectrum of

enhanced by it. Our community embraces

avenues. The Williston Basin Petroleum

the benefits brought about by activity in

Conference is held biennially in

the Bakken and is constantly looking for

Bismarck, in addition to various events

ways to build upon it even further. w

Bakken is back on track in 2021 WILLISTON BASIN PETROLEUM CONFERENCE Left: More than 17 executives will take the stage at the WBPC to share their insights and companies’ plans in the Bakken. Seen here is a past CEO panel at the WBPC. Below: In addition to presentations and expert panels with the Bakken’s best and brightest, the WBPC is welcoming more than 230 exhibiting companies at the largest trade show focused on the Bakken, Three Forks and Williston Basin.

After a tumultuous and uncertain year, we are excited to bring

and interact with both in-person and virtual attendees. This new

the industry together again when the Williston Basin Petroleum

platform will also help match attendees with others who share

Conference (WBPC) returns to Bismarck on May 11 to 13, 2021.

common professional interests and services, making it easy to

Enthusiasm is high for what will be one of the first live and in-

network from Bismarck or home.

person conferences to be held since the pandemic began, and the WBPC will host another tremendous line-up of speakers to discuss what the future holds for the Bakken.

The past year has been challenging, but we have been working to adapt to these different times and bring new value and opportunities to our attendees, exhibitors and sponsors. The

More than 17 executives will take the stage at the WBPC

WBPC has become an international business development event

to share their insights and companies’ plans in the Bakken.

offering the latest information and trends that are valuable to

Among them will be Jack Stark, Shelley Lambertz and Bill Berry

everyone, from the multi-national corporations to our local Main

from Continental Resources; Chris Kendall, CEO of Denbury

Street businesses, and from federal government leaders to those

Resources; Bob Phillips, CEO of Crestwood Midstream; Dan

leading our local governments. We hope you will join us live or

Clark, VP of ConocoPhillips Great Plains Business Unit; Kelcy

online this May to learn more about how the Bakken can help

Warren, executive chairman of Energy Transfer LP; and Mike

you and your business in 2021 and beyond.

Sommers, president and CEO of the American Petroleum Institute.

Visit www.WBPCND.com for more information and to register. w

These and more than 40 other speakers will share insight on where our industry is headed as the economy slowly begins to open and recover and how new regulations, advancements in technology and innovation will shape the future of the Bakken.

In addition to presentations and expert panels with the Bakken’s best and brightest, the WBPC is welcoming more than 230 exhibiting companies at the largest trade show focused on the Bakken, Three Forks and Williston Basin. While exhibitors are excited to gather for this live and in-person trade show, we are excited about new features that will allow exhibitors to showcase products and services online and to also set meetings

• Thermal Fluid Heaters • Regen Gas Heaters • Bath Heaters • Electric Process Heaters • Liquid Storage Tanks

423-821-5200

www.heatec.com

BAKKEN OIL REPORT – Spring/Summer 2021

21

How capital markets, not governments, are driving the ESG narrative

By Nick Volkmer, Vice President of Intelligence, Enverus The evolution of an energy company’s environmental, social

issues into investment analysis and decision-making processes.

and governance (ESG) profile demonstrates the tremendous

This does not mean the firms will base investments solely on

power of capital markets. ESG in just a few years moved from

ESG performance, but they will consider ESG aspects alongside

a footnote on public disclosure to the forefront of investment

their traditional processes.

decisions and operators’ corporate strategies, a change largely

Investors need to understand a company’s ESG profile to predict

propelled by investors rather than governments.

its resiliency to future changes. If you know how an executive

Beginning in 2019, Enverus started fielding ESG-related

team is incentivized (governance), you can properly model

questions from our institutional clients – queries around the

how the company will react to certain shocks. Quantifying

right data to benchmark a company’s ESG performance and

a producer’s greenhouse gas footprint (environmental) will

how to think about the issue from a long-term investment

help measure how exposed it is to future regulatory changes.

standpoint. The questions come from a wide spectrum of

Analyzing a company’s demographic profile (social) can indicate

clients, including pension funds, other long-only investors,

the diversity of its thought process.

investment banks, private equity teams, credit funds and hedge funds.

Investors either want, or are mandated, to take ESG into consideration and this is spurring operators to respond. The

Driving the discussion are institutes like the Principles for

challenge is that a company’s ESG profile is largely new and can

Responsible Investment (PRI). Nearly 3,000 firms that manage

be difficult to define; there are no generally accepted accounting

more than $100 trillion in assets under management back the

principles that a company must adhere to. We’ve found the data

PRI, a U.N.-supported initiative stating firms will incorporate ESG

is available, but only if you dig hard enough. Through analyzing a

FIGURE 1 | Production-Weighted Average Direct (Scope 1) Emission Intensity of the Top U.S. Plays

Bakken

37 6

Uinta

27 18

PRB

18 27

Mississippi Lime

27

22

Granite Wash

38

13

San Juan

41

17

Source | Enverus 22

BAKKEN OIL REPORT – Spring/Summer 2021

0

Production

Gathering

San Juan

24 13

Granite Wash

Barnett

10

Mississippi Lime

14

PRB

20

Uinta

Eagle Ford

Bakken

Piceance 31 2

20

Barnett

16 15

Delaware 18 13

Eagle Ford

Midland

30

Piceance

19

Delaware

SCOOP|STACK 10

40

Midland

12

SCOOP|STACK

13 6

Arkoma Woodford 13

Arkoma Woodford

DJ

50

DJ

Pinedale 9 6

60

Pinedale

Haynesville 8 4

Haynesville

Marcellus 3 5

70

Marcellus

4 2

Utica

Production Gathering

Utica

2019 Emission Intensity (Kg CO2e/boe)

company’s corporate sustainability report (CSR), federal and state

Capital markets are working hard to solidify ESG as the third

government databases, satellite information and proprietary

pillar of the investment process alongside a company’s financials

algorithms, Enverus compiles a detailed view of a company’s ESG

and underlying asset quality. Operators are responding to the

profile.

engineering challenge by innovating on ways to reduce flaring

We are using this to help bring visibility and transparency into the conversation, for both producers and investors. For example, although the Bakken’s higher flaring emissions pushes average upstream emission intensity higher than most major plays, its

rates, limit methane leakage and improve water handling, and they are changing compensation programs to incentivize management teams for ESG improvements and to promote diversity of thought.

relatively smaller gathering emissions helps partially bridge the

The market is pushing the ESG narrative forward, and we believe

gap (Figure 1).

it will reward companies that can prove they are leaders. w

Nick Volkmer is vice president of Intelligence at Enverus where he leads Enverus’ ESG efforts by helping the energy industry navigate the evolving market landscape. He joined RS Energy Group, acquired by Enverus, in 2015 and initially focused on onshore U.S. asset valuation and optimization, leading the Gulf Coast research team. Volkmer graduated from Queen’s University with a degree in engineering chemistry and earned his CFA charter in 2019.

BAKKEN OIL REPORT – Spring/Summer 2021

23

EERC

Moving the Bakken forward

By James Sorensen, Director of Subsurface R&D at the University of North Dakota Energy & Environmental Research Center

2020 was one of the most challenging

workplace protocols to make tremendous

measurement and control technologies

years our society has faced in decades.

progress in a wide-ranging research

that could be applied to a variety of

This was especially true for the petroleum

portfolio. Focus areas included enhanced

surface infrastructure.

industry in North Dakota. In February of

oil recovery (EOR), alternative approaches

2020, North Dakota light sweet oil was

to managing associated rich gas,

$37.21/barrel (bbl), and oil production in

produced water management, advanced

the state was nearly 1.5 million bbl/day.

reservoir characterization, pipeline

Three months later, that same oil was

safety, and the application of machine

fetching just $6.75/bbl, and production

learning and artificial intelligence (ML

had dropped 43 percent to 862,000 bbl/

and AI) to data analytics and reservoir

day, a level not seen since mid-2013.

management. These activities were

In those early months of the COVID-19

supported by stakeholders that included

pandemic, it was easy to be concerned

the petroleum industry, the North Dakota

about the future of the petroleum

Industrial Commission, and the U.S.

industry and the economic well-being of

Department of Energy.

North Dakota. However, while COVID-19 had unprecedented impacts on the lives of people across the globe, our society continues to rely on petroleum products for the standards of living we have come to expect, and an uptick in Bakken production was only a matter of time.

Indeed, by January 2021, North Dakota oil production was back to nearly 1.2 million bbl/day.

The achievements of the EERC’s research program have made measurable, positive impacts to how the business of oil and gas exploration and production is accomplished in North Dakota. The EERC worked in collaboration with Liberty Resources to interpret the results of a multiwell pilot test of rich gas injection for EOR. The knowledge and insights gained from this pilot test conducted

The inevitable rebound of the Bakken

over nine months in 2018 and 2019

meant there was no pause in the need

provided stakeholders with information

for innovation and discovery. For over

on operational parameters and reservoir

a decade, the Energy & Environmental

response that will inform the next

Research Center (EERC) at the University

generation of Bakken EOR pilot tests.

of North Dakota in Grand Forks has been a leader in research efforts to address the challenges that confronted the development of the Bakken. Despite obstacles to the workplace environment posed by COVID-19, the EERC judiciously used financial resources awarded previously and operated under strict 24

BAKKEN OIL REPORT – Spring/Summer 2021

To support the reduction of flaring and improve the environmental footprint of the Bakken, advanced characterization and modeling of concepts for geologic storage of associated gas was conducted.

Issues related to fugitive emissions of associated gas were also examined, including assessment of emission

ML and AI techniques were applied to analyze reservoir performance data and conduct advanced modeling and simulations. Results were used to identify and assess reservoir and well performance metrics across the entire Bakken play in North Dakota. This information, in turn, is used by operators and the state to better predict and manage resource development.

Looking to the future, the EERC will continue to serve stakeholders by taking a comprehensive, scientific approach to confronting the challenges facing the economically and environmentally sustainable development of not only Bakken resources but fossil fuel resources of all types. The EERC will continue to provide industry and government with the information they need to make the capital investments and policy directives necessary to grow our economy and ensure that the healthy, vibrant society we all enjoy can be sustained for generations to come. w ML and AI techniques were applied to analyze reservoir performance data and conduct advanced modeling and simulations.

J-W POWER COMPANY

High pressure Performance that can’t be imitated EOR (enhanced oil recovery) is a process used after seizing all

their compression needs. Compressors rated at a discharge of

possible oil out of the ground using traditional methods. This

10,000 psig are just one of the many features in our portfolio of

procedure uses tertiary techniques to capture additional oil

compression products for the oil and gas industry.

production that would normally be left in the formation deep in the earth never to be utilized as an energy source. J-W Power Company learned how to unleash the “power to perform” like no other, developing high-pressure injection compressor equipment for enhanced oil recovery.

It all started about 10 years ago when one of our valued customers approached us with an idea on how to improve oil recovery. J-W Power Company was challenged to find a way

“J-W Power Company continues to position itself as the leader in this technology and our safety record is paramount, which is a result of our paying attention to the smallest details,” says Tom Parrow, corporate account manager. “We are the go-to packager when it comes to high-pressure compressor units being utilized for EOR and we have even received referrals by some of our competitors.”

to build an enhanced, high-pressure compressor that had the

One of J-W Power Company’s customers has coined the phrase

capability to discharge rich methane gas up to 10,000 psig to

'MOAC' (pronounced moh-ack), which stands for Mother Of All

recover more oil from unconventional wells.

Compressors, and another customer on the leading edge of

In our early years, our compression was limited to 1,200 psig pressure applications. In the early 1990’s we entered into the CNG (compressed natural gas) market, packaging compressors to discharge up to 4,500 psig. In the 2000’s we undertook a highpressure air injection project near Baker, Montana to inject air

this technology refers to J-W as “the specialty hot rod muscle car shop of the industry”. Comments like these support J-W Power Company in maintaining its solid reputation over the past 60+ years in the oil and gas industry. Adding value with the capabilities of high-pressure injection units for enhanced

at 5,000 psig for a fire flood EOR project. It has been a natural

oil recovery provide our company with that much more

progression for us to continue to pursue these higher-pressure

sustainability and growth potential.

projects by leveraging our experience and knowledge gained

To learn more about our compression products and services,

through our history.

contact us at 972-233-8191, or send an email to

The movement into the new development happened rather

sales@jwenergy.com. w

quickly and soon began Phase 1, the first Huff & Puff pilot in South Texas with great success. Our customers inject gas to reenergize the reservoir and release trapped oil from the rock, then recycle that gas and separate out the oil, then start the cycle over

J-W Power Company learned how to unleash the “power to perform” like no other, developing high-pressure injection compressor equipment for enhanced oil recovery.

again. Harnessing our prior high-pressure experience, coupled with our engineering team, we learned some hard lessons, overcame many hurdles, but we persevered and encountered some engineering marvels that have catapulted us far ahead of any competitor in this technology.

Today, we have over 100,000 HP and growing in successful 9,000 psig high-pressure compression service. Our highpressure units have met our customers’ expectations, designed to meet the toughest of applications, providing solutions to BAKKEN OIL REPORT – Spring/Summer 2021

25

SASKATCHEWAN RESEARCH COUNCIL

How to develop EOR technologies more efficiently with a stage-gated approach

By Petro Nakutnyy, Director of Operations, EOR Processes, Saskatchewan Research Council First, a comprehensive roadmap is developed that can realistically take a new technology or concept from the drawing table all the way to the field. It’s a six-step approach that SRC has applied to several new technology developments and start-ups. These six steps are, of course, tailored to the experiment goals.

The Saskatchewan Research Council (SRC) uses a stage-gated approach to help smallto-medium enterprises develop their technologies and evaluate technical, market and commercial factors.

It’s okay to fail in technology development. But it’s important to do it quickly and move on.

When industry is developing new technologies to apply in the field, there are a lot of factors that go into the process—from concept to commercialization. At different points along the way, specialized expertise can be useful to keep the process on track and reduce development costs, as well as make the most efficient use of time. This helps to de-risk the technology development process.

The Saskatchewan Research Council (SRC) uses a stage-gated approach to help small-to-medium enterprises develop their technologies and evaluate technical, market and commercial factors. This helps our clients save time and accelerate adoption.

We operate across the whole spectrum of technology readiness levels, from concept-feasibility to field commercial pilots.

Stage-gating technology development creates a roadmap for evaluating the field and the proposed technology at key points during the process. SRC has developed fast-to-fail tools that allow us to quickly test new ideas and identify any showstoppers. The review will either confirm the technology is ready to advance to the next stage or identify if further work is required, cycling the technology back through the previous stage.

This process prioritizes early evaluation of factors that are most likely to cause a technology to fail. If a technology is not likely to succeed, it can be cancelled at the lowest possible cost in time and resources.

26

BAKKEN OIL REPORT – Spring/Summer 2021

The approach starts with identifying the mechanisms and possible failure factors so that they can be addressed as soon as possible.

If it makes sense to proceed, the next step is designing and performing small and large-scale experiments. It is very important to choose the appropriate experimental design, including factors such as model size, aspect ratio, injection and production wells.

Once the experimental set up is chosen and prepared, several of the experiments are run and what is often found is that the initial idea needs significant modification for the technology to succeed.

The next step is numerical simulation and because it’s already been tested at a larger scale, now it’s a lot easier to predict field performance. After this, the field pilot is planned, which often involves selecting a location and providing monitoring to help determine how successful the technology is and/or what could be changed to make it even better.

An important part of this stage-gated approach is the use of custom, large-scale physical models in the experiments. These 3D models are designed and built by SRC’s experts and can be tailored to the process and specific application. These models provide the capacity to scale up to field conditions, which also reduces experimental uncertainty and reduces the risk of unexpected issues at site.

Of course, none of this is valuable unless it works. This approach has allowed SRC to take many technologies from basically an idea to the field in under five years—much faster than the industry average.

So, keep going—the world needs new technologies, tools and techniques to help accelerate innovation in the field. And SRC’s stage-gated approach will continue to be there to support industry in these important endeavors.

SRC’s enhanced oil recovery team has provided science-based solutions to industry since 1986. View the complete article on SRC’s blog at www.src.sk.ca/blog. w

OSPERITY

Oil & gas companies increase productivity, efficiency, safety and environmental awareness through intelligent AI-driven visual monitoring with exception-based alerting Osperity assists industrial companies in mitigating operational

Companies use intelligent visual monitoring technologies to

costs and risk through intelligent visual monitoring, which

understand anomalies around the asset, such as vehicle or

analyzes massive volumes of visual data with artificial intelligence

people activity at remote sites. By accurately detecting different

(computer vision).

types of anomalies and then sending summary reports or alerts

Osperity’s cloud-based platform distributes personalized

to remote users, companies can increase site security, monitor

actionable information to end users. In particular, the platform

lone workers, and verify contractor work by matching time on

helps clients increase productivity through virtual asset

site with invoices. In these scenarios, it is critical to ensure fewer

inspections, improve health, safety and environmental (HSE)

false positives so that the users will trust the system.

outcomes with safety monitoring and automated leak monitoring, detection of fire, smoke, and PPE, while strengthening security through proactive activity monitoring.

Osperity’s platform delivers instant awareness of situations at remote and distributed upstream, midstream, and downstream locations, either on-demand or in the case of an event. We transfer video and data from mostly remote geographical locations over an efficient low-bandwidth LTE network. Thanks to analytics on the visual sensors at the edge, we can cut down on data consumption.

Analytics in the cloud minimize false positives and provide oil and gas companies with timely accurate information at all times.

To significantly reduce false positives, Osperity uses a two-stage process where video analytics are used to detect movement, and images from the motion event are then analyzed with an algorithm to confirm the presence of a vehicle, person or other specified anomalies. This process greatly reduces the false alerts in outdoor environments. Exception-based alerts are then sent to users that have subscribed to these types of events. As such, users get alerts that are accurate and actionable.

Energy companies both big and small are realizing the necessity of emergent technology to stay relevant and

Captures data from any number of cameras and other sensors

Recognizes and analyzes critical events

profitable in a quickly changing world. Specifically, oil and gas Delivers personalized and actionable information

companies are trending toward automation and intelligent interconnected systems to improve their business processes and greatly assist with their ESG mandate.

REMOTE SITES

VICE PRESIDENT

Video analytics and visual monitoring are helping drive digitization in the oilfield today, the technology will continue to improve in performance and utility. With advances in

CONTROL CENTER

FACILITIES

connectivity, artificial intelligence, camera performance and cloud computing, intelligent visual monitoring will become

CLOUD BRIDGE

even more powerful and cost-effective, and will play a critical FIELD PERSONNEL

SENSORS

ENTERPRISE DATA SYSTEMS

LEGACY CAMERAS

role in advancing the IIoT in the oil and gas industry.

If you want to learn more about Osperity, visit them at www.osperity.com. w BAKKEN OIL REPORT – Spring/Summer 2021

27

MTE

The shocking truth about poor power quality MTE Corporation helps mitigate the hidden costs of electrical power quality in your operation

By Ahsan Javed, MTE Corp.

THE SOURCE OF THE PROBLEM The growing use of variable frequency drives (VFD) in oil extraction operations, such as electrical submersible pumps (ESP’s), is accompanied by increasing, unwanted harmonics within the electrical system. VFDs use pulse width modulation (PWM) to control electrical motors, a method that creates many impulses or edges, resulting in harmful harmonics on the power Electrical power quality is an often-overlooked contributing

and control cables. These harmonics cause “pollution” of the

factor to the uptime, safety and profitability of an oil and gas

electrical signals, commonly manifested as common-mode or

operation. Unplanned downtime due to lack of compliance with

differential mode noise.

local utilities, equipment damage or malfunction can easily cost upwards of several hundred thousand dollars per day, severely impacting the financials of an onshore rig. Maintaining power quality and implementing preventative measures can help to proactively prevent and mitigate many of these issues.

In addition, the remote nature of many extraction operations means that utility power will likely be less than ideal and require harmonic mitigation prevention on the line side in compliance with IEEE519. Environmental factors, such as storms and lightning, can also play a factor and wreak havoc with surges on

POWER QUALITY CHALLENGES

electrical systems.

The majority of well operators place little emphasis on power

SOLVING POWER QUALITY WITH MTE’S CLASSLEADING SOLUTIONS

quality, thus many of the issues can be mistakenly diagnosed as standard operation or “ghosts in the machine.” At their most benign, these can manifest themselves as nuisance tripping, or failed relays and capacitors. However, even these relatively minor issues can result in expensive maintenance and downtime. More impactful concerns can be motor and equipment failure, and downhole sensor interference which can cause errant, or unsafe operation, and result in extensive equipment damage or losttime safety incidents. Sending out a maintenance crew several hundred miles with the correct part can sometimes takes days or weeks, resulting in reduced productivity.

28

BAKKEN OIL REPORT – Spring/Summer 2021

Our newest innovation, the Sinewave NexusTM, is the most advanced power-quality solution on the market. While competitors misleadingly claim common mode reduction, Nexus is the only product that virtually eliminates common mode noise (less than 90 percent attenuation), in addition to mitigating differential mode noise and other harmonics.

Common mode noise, both voltage and current, can manifest itself in several different ways, the most damaging of which is motor-bearing fluting damage. Left unchecked, this can lead to premature motor wear and failure, resulting in expensive repairs

and downtime. MTE is so confident in the Nexus, that it has backed the technology with the industry’s only five-year motor protection guarantee.

In addition, common mode noise can corrupt sensitive downhole sensor readings like temperature, speed, and pressure, resulting in hazardous operating conditions or failures. Using the SineWave Nexus also eliminates the need for costly VFD-rated cables that add significantly to operating costs.

Other popular motor protection solutions from MTE include our high-frequency SineWave Guardian product, which is an ideal solution for permanent magnet motors (PMM) protection and prevents against overheating.

MTE also has an extensive array of line side solutions, including harmonic filters and reactors to shield your system from harmful transients and provide compliance to local utility standards.

PROTECT YOUR PEOPLE, EQUIPMENT, AND PROFITS Power quality is rarely the highest priority in an oil and gas operation, but can play an outsized role in ensuring uptime and smooth operation. Spending the time to properly diagnose and treat your power quality can lead to improved performance and ROIs. w

OVER 25 YEARS AS THE TRUSTED POWER QUALITY PARTNER FOR THE OIL & GAS MARKET. • Harmonic Filters • dv/dt Filters • Sinewave Filters

• Line/Load Reactors • Link Chokes • EMI/RFI Filters

Featured Oil & Gas Solutions Matrix® AP • •

Meets IEEE-519 requirements Improves system efficiency and reliability

High Frequency SineWave Guardian® •

Ideal solution for permanent magnet motor (PMM) protection - protects PMM’s from demagnetization due to overheating

SineWave Nexus™ •

For more information, scan QR Code or visit www.mtecorp.com

• •

Eliminates common mode and differential mode noise Combines the protection of an isolation transformer and sinewave filter in one, compact solution Includes 5-year motor bearing warranty

Menomonee Falls, WI | (800) 455-4MTE | www.mtecorp.com

BAKKEN OIL REPORT – Spring/Summer 2021

29

KLJ

Reducing the long-term costs of your oil well pad site An engineered well pad includes thoughtful design utilizing many different variables.

lands. And let’s not forget all that Mother Nature can and will routinely throw at these locations over the years.

Sounds great, right? So, what’s the catch?

An engineered well pad often costs more up front; however, the benefits often greatly outweigh the costs. Here’s why: 1. Reduced construction costs. A

impact the surrounding ecosystem.

Engineered well pads include a hydro analysis to determine if the pad should utilize perimeter ditches, valve systems or other means to safely transport water away from the well pad, adjacent wetlands or other sensitive ecosystems. Interim reclamation plans identify ideal management practices

complete set of drawings and specs/

that best suit the site and utilize site-

Oil is often found in some of the most

notes is provided so the operator can

specific grass seed selection to allow

remote and treacherous terrains in

solicit apples-to-apples bids from

for optimal vegetation establishment.

the country, and oil well pads (the

several civil contractors, encouraging

These practices greatly reduce chances

foundations which support the oil

a more competitive fixed construction

of major erosion and sediment

wells) must contend with the elements

price. Out-of-scope items are more

discharges offsite which may lead to

and landscape day in and day out. The

transparent and handled via change

fines and other adverse penalties. This

costs associated with maintaining and

order.

also helps you be a good neighbor, as

repairing oil well pads that are often not built for their surroundings can be exponential, and rapidly start to add up shortly after they are constructed.

2. Reduced long-term operating costs and maintenance. In much of the country, seasonal changes can wreak

most of the time operators are only leasing someone’s private surface.

4. Save time and hassle during

havoc on an oil well pad and its access

construction. You’ve invested in a

That’s where engineered well pads

road. Snow, mud, flooding, erosion,

fully engineered well pad, and we’re

come into play, which are a bit different

and even landslides can cripple well

here to help you ensure the pad is

than your ordinary well pad plat. An

pads until maintenance is performed,

built according to plan. We perform

engineered well pad includes thoughtful

costing time and money. With fully

construction management and

design utilizing many different variables.

engineered well pads, each pad is

inspection to keep your contractor on

Optimal site selection is achieved when

designed to adapt to its environment

the right track and to see your project

close consideration is given to cultural

and to be proactive when it comes to

through to completion. It’s peace of

and environmental factors, geotechnical

climatic conditions, thus eliminating

mind, delivered.

investigation, access feasibility,

unforeseen costs after construction

stormwater analysis, landscape variables

and keeping production moving

and use of innovative design concepts

forward.

for surfacing material and construction procedures. This is all done to construct a stable well pad and access road equipped to support drilling operations, all required auxiliary equipment, and the trials of some of America’s most rugged 30

BAKKEN OIL REPORT – Spring/Summer 2021

3. Avoid unnecessary investigations,

Fully engineered well pads save time and money in the long run and help minimize down time, maintenance and potential unforeseen costs that often come with

citations and/or forced compliance

traditional well pad plats. If you’re ready

plans. Fully engineered well pads can

to see how KLJ can help you engineer

also help you avoid potential fines and

better well pads, visit www.kljeng.com

legal concerns related to water and/or

or email Daphne Senn at daphne.senn@

sediment runoff that could potentially

kljeng.com. w

BU YERS OF NON-OPER ATED WOR K ING INTER EST • 13 Years Of Experience In The Non-Op Space • Well Capitalized And Purpose Built Team

CONTACT: SCOTT RICE - SVP ENG & BD: SRICE@RBOIL.COM / 713-874-9005 COLIN BARNETT – LAND MANAGER: CBARNETT@RBOIL.COM / 713-874-9000