This document provides an overview of the history and development of oil production in the Bakken formation in North Dakota and Montana. It discusses how the first economical horizontal well was drilled in 1999, producing 196 barrels of oil per day. Production grew significantly over the following years due to improvements in horizontal drilling and hydraulic fracturing techniques. The document also outlines the large volumes of oil estimated to be recoverable from the Bakken, compares its current production levels to other areas, and discusses both federal and state regulatory efforts and changes regarding emissions from the oil industry.

1. Bakken History with an
Air Quality Twist

2. Introduction
Bison Engineering, Inc.
 Employee-owned, environmental consulting and technical services firm
specializing in air quality.
 Founded in Montana in 1980 by the previous Chief of the Montana Air
Quality Bureau (MT DEQ)
 Experience carried forward as Bison was joined by two subsequent DEQ Air
Bureau Chiefs
 Success of our company has been based on assisting natural resources
industries with environmental compliance in Montana and the western
US.

3. Williston Basin Map

4. Stratigraphic Column of Intrest

5. Bakken: “The Beginning”
 Elm Coulee Field
 Richland County, MT
 1999: First Economical
Horizontal Well Drilled in the
Bakken @ 196 BOPD
 Ironically named Burning Tree State #36-10
 2006: 350 wells producing
~53,000 BOPD
 (avg. 150 BOPD each)

6. Well Creation & Hydraulic Fracturing
 Thought of as a “new”
technology……
 Started in 1940s
 “Prop” open the formation to
allow oil and/or gas to flow
easier
 Proppant: high tensile strength, heat
resistant sand, ceramics
 Walnut Shells!
 https://www.youtube.com/watch
?v=VY34PQUiwOQ

7. Bakken Volumes
 200,000 square miles subsurface
 2013: USGS estimated 7.4 BBO recoverable
 3.5% of total standing oil
 ~210 BBO
 2015: New estimates of 7% recoverable oil by
operators
 2016: Operators state maybe 900 standing
oil…..w/15% recoverable

8. BAKKEN vs. WORLD
• 1,085,000 BOPD
• 14,000 producing
wells
• 12,000 Bakken
• 775 DUC wells
• 57 active drilling rigs
• Future: 30-40K more
Bakken wells

9. Oil Volumes by County (June 2017)
NORTH DAKOTA DOMINATES
1. McKenzie (near Watford City): 50% (>500,000 BOPD)
2. Williams (near Williston): 18%
3. Mountrail (near Stanley): 14%
4. Dunn (near Manning): 11%
By Comparison…..MONTANA 
1. Richland (near Sidney): ~26,700 BOPD

10. “Bakken Bust”
Brent/WTI
~ $145
~$53

11. Bakken Evolution
 2008-2017: From 30-90 days to drill a well down to10-15
days (reduction of costs from ~$13MM to $7MM)
 Walking Drilling Rigs
 https://www.youtube.com/watch?v=e5gTw5-KjSk
 Single well pads became CTBs/RTBs (at certain sites, +20
wells)
 2005-2017: From 500 BOPD IP up to 4,000 BOPD IP
 Less surface area destruction, vehicles, pollution, etc.!! More
economical and environmental friendly.

12. Well Production Increase

13. Typical Oil and Gas Well

14. Oil/Gas/Water Separation

15. Bakken Shale Characteristics
Emissions from Shale Plays
were relatively unknown
 Conventional plays had heavy
crude, little gas or visa versa
(few emissions)
 Unconventional shale plays have
high gas volumes AND light
crude (higher emissions
potential)

16. Typical Emissions from Wellsite

17. Typical Emitting Units

18. Gas Flared

19. Today’s Production Facility Example

20. Obama Administration's Climate Action Plan
Strategy to Reduce Methane Emissions
 Landfills
 Coal Mines
 Agriculture
 Oil and Gas
 Aggressive methane reduction of 40-45% from 2012 levels by 2025
 Agencies: EPA & BLM
 Other (non-environmental) Agencies: DOI, DOJ, etc.

21. Federal Regulatory Increase

22. Change in White House
Administration (2008 vs. 2016)
Two Primary Focuses of
Previous Administration
1. Reduce our dependency
on fossil fuels
 Coal and O&G, primarily
2. Combat Climate Change
 All industrial sectors
Two Primary Focuses of
Current Administration
1. Global Energy
Independence
 Rejuvenate Coal and O&G
2. Reduce Regulatory
“Burden”
 All industrial sectors

23. Current State of Regulations
Congressional Review Act
 Modify?
 Rescind?
 Repeal?
 “Stays” in Litigation
WHO KNOWS?????

24. Importance of State Regulations
State agency must update/adopt federal regulations
within existing programs.
 Allows the state to ensure compliance
 Enforcement actions, negotiations at state level
Currently “in flux”……
Need for robust, fit-for-purpose regulations at the state
level
 More knowledgeable about operations of the industries
 Reduces potential swings from policy changes in federal
administrations

25. Conclusion
Future of the Bakken……still relatively young play….much
more will be done to ensure longer lasting wells, higher
producing wells, etc.
 To drill out the next 30-40k wells (using current technology
& estimated recoverable oil), it will take decades.
 Secondary and Tertiary Production (EOR: water flooding,
CO2 flooding, CH4 flooding…..)
Future of regulations……many are here to stay, some will go
away……
 Those that stay will most likely be changed in some way, at
sometime, by someone, for some reason……I promise! 

26. Questions??
Bret Gallo
Project Engineer/ Business Development
bret@bison-eng.com