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Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
Lynn Helms
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Lynn Helms

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  • 1. 600 East Boulevard Ave. - Dept 405 Bismarck, ND 58505-0840 (701) 328-8020 (701) 328-8000 North Dakota Department of Mineral Resources http://www.state.nd.us/ndgs http://www.oilgas.nd.gov
  • 2.  
  • 3.  
  • 4. 100 years ago wells were drilled wherever they would fit (rule of capture), and were not spaced on the basis of geology and engineering as is currently done by the North Dakota Industrial Commission. This wasted a great deal of the oil and gas.
  • 5.  
  • 6.  
  • 7. Vern Whitten Photography
  • 8.  
  • 9. 192 Rigs
  • 10.  
  • 11.  
  • 12. Western North Dakota <ul><li>1,100 to 2,700 wells/year = 2,000 expected </li></ul><ul><ul><ul><li>100-225 rigs = 12,000 – 27,000 jobs = 20,000 expected </li></ul></ul></ul><ul><li>15 - 30 million gallons frac water/day </li></ul><ul><li>10 to 20 years </li></ul><ul><ul><ul><li>26,000 new wells = thousands of long term jobs </li></ul></ul></ul>
  • 13. 2,600 Bakken and Three Forks wells drilled and completed 26,000+ more new wells possible in thermal mature area P90=5 BBO – P50=7 BBO – P10=11 BBO (billion barrels of oil) P90 P50 P10
  • 14. <ul><li>Hydraulic Fracturing </li></ul><ul><li>Lifeline to Domestic Energy </li></ul><ul><ul><ul><li>Hydraulic Fracturing </li></ul></ul></ul><ul><ul><ul><ul><li>Why </li></ul></ul></ul></ul><ul><ul><ul><ul><li>How </li></ul></ul></ul></ul><ul><ul><ul><li>State Regulation </li></ul></ul></ul><ul><ul><ul><li>Frac fluid </li></ul></ul></ul>
  • 15. <ul><li>WHY FRACK THE ROCK? </li></ul><ul><li>Easy oil is already developed </li></ul><ul><ul><li>oil that flows without fracing </li></ul></ul><ul><li>Unconventional Reserves </li></ul><ul><ul><li>reservoirs are tight </li></ul></ul><ul><ul><ul><li>look at sample </li></ul></ul></ul><ul><ul><li>uneconomic to produce without fracing </li></ul></ul><ul><ul><li>must create a path for oil to flow </li></ul></ul>
  • 16. <ul><li>Performing hydraulic fracture stimulation south of Tioga </li></ul><ul><li>all Bakken wells must be hydraulically fractured to produce </li></ul><ul><li>> 2-4 million gallons of water </li></ul><ul><li>> 3-5 million pounds of sand or ceramic beads </li></ul><ul><li>cost > $2 million </li></ul>
  • 17. <ul><li>Thousands of fractures are created </li></ul><ul><li>pumping water at 6,000-9,000 psi </li></ul><ul><li>millions of pounds of sand and ceramic beads are pumped with the water to hold the fractures open. </li></ul><ul><li>Ball and Sleeve </li></ul><ul><li>up to 40 stages </li></ul><ul><li>ball opens the liner sleeve </li></ul>
  • 18. <ul><li>Stage Fracturing </li></ul><ul><li>up to 40 stages </li></ul>
  • 19.  
  • 20.  
  • 21. <ul><li>Purposes of frac fluid </li></ul><ul><li>crack the reservoir </li></ul><ul><li>gel strength to carry sand </li></ul><ul><li>Frac fluid is produced back as flowback and produced water </li></ul>
  • 22. Each hydraulic fracturing stage creates hundreds of fractures extending several hundred feet from wellbore
  • 23. 4.5” Frac String Upper Bakken Shale Lower Bakken Shale Middle Bakken Potable Waters TYPICAL HORIZONTAL OIL WELL Cement Packer <ul><li>Run in hole with: </li></ul><ul><li>4.5” liner </li></ul><ul><li>30-40 swell packers </li></ul><ul><li>sliding sleeves </li></ul>4.5” liner
  • 24. <ul><li>States have been regulating the full life cycle of hydraulic fracturing for decades </li></ul><ul><li>Geology of each sedimentary basin is different </li></ul><ul><li>Water Appropriation Regulation </li></ul><ul><li>Oil & Gas Regulation </li></ul><ul><li>Health and Environmental Regulation </li></ul>
  • 25.  
  • 26. <ul><li>North Dakota has been regulating the full life cycle of hydraulic fracturing for decades </li></ul><ul><li>Water Commission—water supply </li></ul><ul><li>Industrial Commission—well permitting & disposal of flowback water </li></ul><ul><li>Health Department—spill cleanup </li></ul>
  • 27. <ul><li>Water Commission Regulation </li></ul><ul><li>Regulate water appropriations </li></ul><ul><li>Guard against withdrawals exceeding recharge </li></ul>
  • 28. <ul><li>Thirsty Horizontal Wells </li></ul><ul><li>2,000 - 3,000 wells / year </li></ul><ul><li>15 - 25 years duration </li></ul><ul><li>20 - 30 million gallons water / day </li></ul>
  • 29. Glacial Drift Aquifers
  • 30. <ul><li>FRAC WATER NEEDS </li></ul><ul><li>Lake Sakakawea (Missouri River) is the best water resource </li></ul><ul><ul><li>one inch contains 10 billion gal water </li></ul></ul><ul><ul><ul><li>=5,000 wells @ 2 million gal/well </li></ul></ul></ul><ul><ul><ul><li>2 - 2.5-year supply </li></ul></ul></ul>
  • 31. <ul><li>Industrial Commission Regulation </li></ul><ul><li>Hydraulic fracturing </li></ul><ul><ul><li>Two casing strings required </li></ul></ul><ul><ul><li>Both strings must be cemented </li></ul></ul><ul><ul><li>Pressure tests required </li></ul></ul><ul><ul><li>Frac is > 1 mile below potable water </li></ul></ul>
  • 32. 4 ½” Frac String Upper Bakken Shale Lower Bakken Shale Middle Bakken Potable Waters <ul><li>Drill with fresh water </li></ul><ul><li>Total depth below lowest potable water </li></ul><ul><li>Run in hole with surface casing </li></ul><ul><li>1 st layer of surface water protection </li></ul><ul><li>Cement casing back to surface of ground </li></ul><ul><li>2 nd layer of surface water protection </li></ul>TYPICAL HORIZONTAL OIL WELL 9-5/8” in 13.5” Hole
  • 33. 7” Casing Upper Bakken Shale Lower Bakken Shale Middle Bakken Potable Waters TYPICAL HORIZONTAL OIL WELL 9-5/8” in 13.5” Hole Cement Kick-off Point <ul><li>Drill vertically to kick-off point </li></ul><ul><li>Run in hole with bent assembly </li></ul><ul><li>Downhole mud motor </li></ul>
  • 34. 7” Casing Upper Bakken Shale Lower Bakken Shale Middle Bakken Potable Waters <ul><li>Drill 8-3/4” hole to pay </li></ul><ul><li>Run in hole with 7” casing </li></ul><ul><li>3 rd layer of protection </li></ul><ul><li>Cement 7” casing </li></ul><ul><li>4 th layer of protection </li></ul>TYPICAL HORIZONTAL OIL WELL 9-5/8” in 13.5” Hole Cement Kick-off Point Build Section
  • 35. 7” Casing Upper Bakken Shale Lower Bakken Shale Middle Bakken Potable Waters <ul><li>Drill lateral in pay </li></ul><ul><li>Run in hole with 7” casing </li></ul><ul><li>Cement 7” casing </li></ul><ul><li>2 nd layer of protection </li></ul>TYPICAL HORIZONTAL OIL WELL 9-5/8” in 13.5” Hole Cement Kick-off Point Horizontal lateral Build Section <ul><li>Drill 6” horizontal hole in pay </li></ul>
  • 36. 4.5” Frack String Upper Bakken Shale Lower Bakken Shale Middle Bakken Potable Waters TYPICAL HORIZONTAL OIL WELL Cement Packer <ul><li>Run in hole with: </li></ul><ul><li>4.5” liner </li></ul><ul><li>30-40 swell packers </li></ul><ul><li>sliding sleeves </li></ul><ul><li>4.5” frack string </li></ul><ul><li>5 th layer of protection </li></ul>4.5” liner
  • 37. Sea Level Oil & Gas Bakken/Three Forks Precambrian Basement Base of fresh water
  • 38.  
  • 39.  
  • 40. <ul><li>Industrial Commission Regulation </li></ul><ul><li>Water flowback after frac </li></ul><ul><ul><li>Storage in open pits prohibited </li></ul></ul><ul><ul><li>Disposal wells permitted through Underground Injection Program </li></ul></ul><ul><ul><li>Disposal zone is 2,500 feet below potable waters with impermeable shale between </li></ul></ul>
  • 41. Salt-Water Disposal Dakota Fm. Sea Level 300 disposal wells 450,000 barrels wtr/day Bakken Fm. Base of fresh water
  • 42. <ul><li>Health Department Regulation </li></ul><ul><li>Cleanup of discharge to environment </li></ul><ul><li>Coordinate with local Emergency Managers </li></ul><ul><li>Emergency Planning and Community Right-to-know Act (EPCRA) </li></ul><ul><li>Congress passed for storing and handling of chemicals </li></ul><ul><li>Requires material safety data sheet (MSDS) for each chemical on location </li></ul>
  • 43. <ul><li>Compound </li></ul><ul><ul><li>Purpose </li></ul></ul><ul><ul><ul><li>Common application </li></ul></ul></ul><ul><li>Fresh Water – 80.5% </li></ul><ul><li>Proppant – 19.0% </li></ul><ul><ul><li>Allows the fractures to remain open so the oil and gas can escape </li></ul></ul><ul><ul><ul><li>Drinking water filtration, play ground sand </li></ul></ul></ul><ul><li>Acids - 0.12% </li></ul><ul><ul><li>Help dissolve minerals and initiate fractures in rock (pre-fracture) </li></ul></ul><ul><ul><ul><li>Swimming pool cleaner </li></ul></ul></ul><ul><li>Petroleum distillates – 0.088% </li></ul><ul><ul><li>Dissolve polymers and minimize friction </li></ul></ul><ul><ul><ul><li>Make-up remover , laxatives, and candy </li></ul></ul></ul><ul><li>Isopropanol – 0.081% </li></ul><ul><ul><li>Increases the viscosity of the fracture fluid </li></ul></ul><ul><ul><ul><li>Glass cleaner , antiperspirant, and hair color </li></ul></ul></ul><ul><li>Potassium chloride – 0.06% </li></ul><ul><ul><li>Creates a brine carrier fluid </li></ul></ul><ul><ul><ul><li>Low-sodium table salt substitute </li></ul></ul></ul><ul><li>Guar gum – 0.056% </li></ul><ul><ul><li>Thickens the water to suspend the sand </li></ul></ul><ul><ul><ul><li>Thickener used in cosmetics , baked goods, ice cream, toothpaste, sauces, and salad dressing </li></ul></ul></ul><ul><li>Ethylene glycol – 0.043% </li></ul><ul><ul><li>Prevents scale deposits in the pipe </li></ul></ul><ul><ul><ul><li>Automotive antifreeze , household cleansers, deicing, and caulk </li></ul></ul></ul>
  • 44. <ul><li>Sodium or potassium carbonate – 0.011% </li></ul><ul><ul><li>Improves the effectiveness of other components, such as cross-linkers </li></ul></ul><ul><ul><ul><li>Washing soda, detergents, soap , water softeners, glass and ceramics </li></ul></ul></ul><ul><li>Sodium Chloride – 0.01% </li></ul><ul><ul><li>Delays break down of the gel polymer chains </li></ul></ul><ul><ul><ul><li>Table Salt </li></ul></ul></ul><ul><li>Polyacrylamide – 0.009% </li></ul><ul><ul><li>Minimizes friction between fluid and pipe </li></ul></ul><ul><ul><ul><li>Water treatment , soil conditioner </li></ul></ul></ul><ul><li>Ammonium bisulfite – 0.008% </li></ul><ul><ul><li>Removes oxygen from the water to protect the pipe from corrosion </li></ul></ul><ul><ul><ul><li>Cosmetics, food and beverage processing , water treatment </li></ul></ul></ul><ul><li>Borate salts – 0.007% </li></ul><ul><ul><li>Maintain fluid viscosity as temperature increases </li></ul></ul><ul><ul><ul><li>Used in laundry detergents , hand soaps and cosmetics </li></ul></ul></ul><ul><li>Citric Acid – 0.004% </li></ul><ul><ul><li>Prevents precipitation of metal oxides </li></ul></ul><ul><ul><ul><li>Food additive ; food and beverages; lemon juice </li></ul></ul></ul><ul><li>N, n-Dimethyl formamide – 0.002% </li></ul><ul><ul><li>Prevents the corrosion of the pipe </li></ul></ul><ul><ul><ul><li>Used in pharmaceuticals , acrylic fibers and plastics </li></ul></ul></ul><ul><li>Glutaraldehyde – 0.001% </li></ul><ul><ul><li>Eliminates bacteria in the water </li></ul></ul><ul><ul><ul><li>Disinfectant ; Sterilizer for medical and dental equipment </li></ul></ul></ul>
  • 45. <ul><li>Hydraulic Fracturing Stimulation is Safe </li></ul><ul><li>IOGCC survey—no contamination </li></ul><ul><li>EPA survey – no contamination </li></ul><ul><li>GWPC study verifies State’s regs </li></ul><ul><li>GWPC National Registry f/chemicals </li></ul><ul><ul><ul><li>FracFocus </li></ul></ul></ul>
  • 46.  
  • 47. Oil and gas well locations are built (stockpiling top soil and lining reserve pits) to make reclamation easier.
  • 48. Drilling rigs are leased on a daily rental. A horizontal Bakken well costs approximately $1/second.
  • 49.  
  • 50.  
  • 51. Well head Treater Tanks
  • 52.  
  • 53.  
  • 54.  
  • 55.  
  • 56. The future looks promising for sustained Bakken/Three Forks development Cap and trade proposals in congress could reduce activity an estimated 35-40% EPA regulation of hydraulic fracturing could halt drilling activity for 18-24 months production decline of 25-30% Current administration budget contains tax rule changes that could reduce activity an estimated 35-50% Federal regulations require 6 -12 months longer for drilling and surface use approval
  • 57.  

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