Monday, May 24, 2010

FAQ's about Bakken Formation. From USGS. Please click lint to view answers. Thanks!

http://www.usgs.gov/faq/Subject.asp?category_id=94

Why isn't this information concerning the Bakken Formation on front page news?

In April 2008, when the USGS released the assessment of undiscovered, technically recoverable oil and gas resources of the Bakken Formation, there was a press release http://www.usgs.gov/newsroom/article.asp?ID=1911 which was distributed to the media. The individual media organizations make the decision about what stories to publish. When the USGS assessment was released, news articles were done in several news avenues including the New York Times, the Associated Press, and Oil and Gas Journal. For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

Why aren't we drilling in the Bakken Formation?
Oil has been produced from the Bakken Formation since the 1950's and, as of August 2009, cumulative oil production from the Bakken Formation totaled about 190 million barrels (up from 164 million barrels in March 2009, 149 million barrels in December 2008, and 135 million barrels in September 2008). Please see our slideshow presentation for context at: http://energy.usgs.gov/flash/Bakken_slideshow.swf.
For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What are the realistic chances to retrieve oil and gas from the Bakken Formation?
Please see the Bakken Formation fact sheet at http://pubs.usgs.gov/fs/2008/3021/. There is a table on page 2 of the fact sheet that provides 5%, 50%, 95%, and mean probabilities of oil, gas, and natural gas liquids. As of August 2009, cumulative oil production from the Bakken Formation totaled about 190 million barrels (up from 164 million barrels in March 2009, 149 million barrels in December 2008, and 135 million barrels in September 2008).
For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

Does the Bakken Formation contain more oil than Saudi Arabia?
There is no certain method to determine the exact volume of oil that is contained in the Bakken Formation or any formation. The Bakken Formation oil resource is much different than the oil resources of Saudi Arabia. The Bakken oil resource is what we refer to as a "continuous" or unconventional resource, whereas the oil resources being produced in Saudi Arabia and other Middle Eastern countries are conventional resources. Continuous or unconventional resources require more technical drilling and recovery methods that are much more costly and the oil recoveries per well are commonly much lower than in a conventional resource accumulation. However, the estimate of technically recoverable oil in the Bakken Formation is larger than all other current USGS oil assessments of the lower 48 states and is the largest "continuous" oil accumulation ever assessed by the USGS. A "continuous" oil accumulation means that the oil resource is dispersed throughout a geologic formation rather than existing as discrete, localized occurrences, such as those in conventional accumulations. The next largest "continuous" oil accumulation in the U.S is in the Austin Chalk of Texas and Louisiana, with an undiscovered estimate of 1.0 billions of barrels of technically recoverable oil.
In 2000, the USGS assessed undiscovered technically recoverable oil and gas in Saudi Arabia at 87 billion barrels (USGS 2000 World Petroleum Assessment: http://energy.cr.usgs.gov/WEcont/regions/reg2/r2saud.pdf). The Energy Information Administration records current proven oil reserves (those expected to be recovered) in Saudi Arabia as 269 billion barrels (http://www.eia.doe.gov/cabs/Saudi_Arabia/Profile.html).
Will the oil in the Bakken Formation free us from depending on foreign oil?
It is difficult to determine if oil from the Bakken Formation, or any of the formations we have done assessments on, could offset other sources of oil. A number of logistical and economic factors affect current and future production, and oil deposits are typically produced for many decades. For these reasons, the USGS does not make forecasts about the future potential of a particular resource to resolve national energy needs.
However, the USGS does assessments of undiscovered technically recoverable oil and gas resources in the U.S. and the world. We also conduct assessments involving other geologic based fuels. You can find our assessments on-line at http://energy.usgs.gov/. The USGS does this research and makes it publicly available so that policy makers, energy planners, land and resource managers, Congress, the Administration, and others, including the public, know what potential resources there are so as to be better informed concerning the energy debate.
For additional information go to http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).
How much oil does the Bakken Formation produce and how does this compare to what the United States uses?
In 2007, the Bakken Formation produced approximately 26 million barrels of oil. As of August 2009, cumulative oil production from the Bakken Formation totaled about 190 million barrels (up from 164 million barrels in March 2009, 149 million barrels in December 2008, and 135 million barrels in September 2008). In 2008, approximately 7,117 million barrels (19.5 million barrels/day) of crude oil and petroleum products were consumed in the United States. (Energy Information Administration (EIA) estimate at http://www.eia.doe.gov/). For additional Petroleum Basic Statistics, please see the EIA webpage http://www.eia.doe.gov/basics/quickoil.html.
For additional information go to http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What are some of the problems with drilling in the Bakken Formation?
Oil is produced from the Bakken Formation shale in a manner that is a refinement of traditional oil field practice. Traditional oil fields produce from rocks with relatively high porosity and permeability, so oil flows out fairly easily. In contrast, the Bakken Formation is a relatively tight formation consisting of low porosity and permeability rock, from which oil flows only with difficulty. To overcome this problem, wells are drilled horizontally, at depth, into the Bakken and then water and other materials (like sand) are pumped downhole at high pressure (called hydrofracturing) to create open fractures, creating artificial permeability in these tight rocks. The oil can then flow more easily out of these fractures and tight pores. Traditional oil fields regularly employ hydrofracturing and non-vertical wells have also long been drilled. The technique has been fine-tuned for use in the Bakken and other similar tight continuous reservoirs. For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

Where does the oil from the Bakken Formation go? Is it stockpiled, exported, or used in the U.S.?
The USGS has no information concerning where oil from the Bakken Formation may be used. You would need to contact the various drilling companies to learn where they send their oil. To find the names of the companies drilling in the Bakken Formation, please contact either the Montana Geological Survey or North Dakota Geological Survey. For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What companies are drilling in the Bakken Formation?
For more information on current drilling activity (what companies are drilling, lease ownership, who owns which wells, etc.), please contact the North Dakota Geological Survey, https://www.dmr.nd.gov/ndgs/ and/or Montana State Geological Survey, http://www.mbmg.mtech.edu/. For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

Is it true that the USGS released a report that states 3 to 4.3 billion barrels of technically recoverable oil assessed in North Dakota and Montana's Bakken Formation - - 25 times more than 1995 estimate?
Yes, this information is true. The report was released in April 2008 and can be found online at http://pubs.usgs.gov/fs/2008/3021/. For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What environmental issues are affected by drilling in the Bakken Formation?
Surface disturbance is roughly comparable to that in any oil field. Other environmental issues include the amount of water initially required to hydrofacture the well and the quality of water produced with oil. In many cases, particularly on private land, it is the state government that regulates the extraction of oil and the remediation of sites after production is no longer economic. For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What are the costs of drilling for oil in the Bakken Formation?
We do not have any current information on drilling costs. Recovery of oil drilling and production costs vary by geographic location, the cost of drilling materials like pipe, and the demand for services at the time. The drilling industry also tends to be cyclical with sometimes significant variation in cost. One evaluation of the technology of horizontal drilling and its costs in the Bakken Formation was performed by the U.S. Department of Energy and can be found at http://tonto.eia.doe.gov/ftproot/petroleum/tr0565.pdf. Total per-barrel costs of production are more complicated and involve other factors such as costs to lease land and royalties. One place to look for that kind of information is the quarterly and annual reports filed by oil and gas producers to the U.S. Securities and Exchange Commission. Those reports are usually available on the internet at the companies' web sites.
For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

How much oil and gas are actually in the Bakken Formation?
Although there have been several published and unpublished estimates of the volumes of oil and gas in the Bakken Formation, there is no agreement on the actual volume of resource remaining in the Formation. There is no way to know how much is in the Bakken Formation or any formation until the area is actually drilled and produced. Estimates are made using the best available information at the time, and different estimates use different assumptions. The USGS uses a consistent methodology, so our estimates are comparable, and our assumption and methodology are published, so people know what we did. Our assessment methodology can be found on-line at http://energy.cr.usgs.gov/oilgas/noga/methodology.html.
The USGS estimate of 3.0 to 4.3 billion barrels of undiscovered, technically recoverable oil in the Bakken Formation, and a mean estimate of 3.65 billion barrels, is an estimate of what industry may recover if the entire area of prospective Bakken Formation is produced using current technology. The current USGS mean estimate is a 25-fold increase over the previous USGS estimate, in 1995, of 151 million barrels of undiscovered technically recoverable oil in the Bakken Formation. As of August 2009, cumulative oil production from the Bakken Formation totaled about 190 million barrels (up from 164 million barrels in March 2009, 149 million barrels in December 2008 and 135 million barrels in September 2008).
For additional information go to http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What are the plans for future drilling in the Bakken Formation?
Concerning future drilling plans, please contact either the Montana or North Dakota State Geological Surveys (respectively, http://www.mbmg.mtech.edu/, https://www.dmr.nd.gov/ndgs/.
For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What is the time frame to accomplish the retrieval of the oil and gas percentages mentioned in the USGS report in the Bakken Formation?
We are unable to provide a realistic time frame for possible production of any of the volumes we mention in our fact sheet. It takes several years between the discovery of an oil field and the initial production from that field. Time is needed for activities such as permitting, leasing, collection of additional data (e.g., 3-D seismic), drilling exploration wells, discovering oil, drilling development wells, building surface infrastructure and pipeline, etc. in the calculation of how long it might take to achieve any of the probabilities mentioned. For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

What documents are available on the Bakken Formation?
You can find the following USGS publications on the Bakken Formation: Fact Sheet - http://pubs.usgs.gov/fs/2008/3021/ Press Release - http://www.usgs.gov/newsroom/article.asp?ID=1911Poster - http://pubs.usgs.gov/of/2008/1353/GIS Data - http://certmapper.cr.usgs.gov/noga/broker.jsp?theServlet=NogaNewGISResultsServ&theProvince=31&thePage=playInteractive Map - http://certmapper.cr.usgs.gov/website/noga00/viewer.htm?service=prov31_2000&OVMap=prov31_2000_overview&province=31Slideshow - http://energy.usgs.gov/flash/Bakken_slideshow.swf For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).
Where is the detailed report concerning the Bakken Formation?
All currently available USGS material on the Bakken Assessment can be found on our website at http://energy.cr.usgs.gov/oilgas/noga/ (choose Bakken/Williston Basin on the interactive map to see available documents), including a summary of the geology, geologic model, and methodology in poster format on our website at http://pubs.usgs.gov/of/2008/1353/. The more detailed report typically takes at least a year from the release of the assessment to complete, review and release via the website. Please feel free to periodically check our website for updates. Also, the Energy Resources Program does have a quarterly newsletter that we distribute that lists all our current publications and other areas of interest in our program. There is no charge for this newsletter registration. You can signup on-line for this newsletter at http://energy.usgs.gov/newsletter.html.

For additional information go to: http://energy.cr.usgs.gov/oilgas/noga/ (choose Williston/Bakken in the interactive map to see all available documents).

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