By: MyraP. Saefong, Markets/commodities reporter

U.S. Energy Information Administration

Oil production from the Bakken and Eagle Ford shale plays in the U.S. has been falling since March, but traders shouldn’t be quick to assume that will translate into lower supplies and higher prices.

Total oil output from seven major U.S. shale regions is expected to fall by 118,000 barrels a day to about 4.95 million barrels a day in December, according to the Energy Information Administration’s monthly Drilling Productivity Report released Monday. The data show that production from the Bakken and Eagle Ford shale regions are both likely to show declines next month, which would mark 10 months in a row.

Read: Discontent with OPEC spills into the open

“Bakken oil producers are still going after the low hanging fruit and leaving the high ones until prices go back up,” said Bob van der Valk, senior editor of the Bakken Oil Business Journal

Indeed, analysts have been quick to attribute the declines to low oil prices, with West Texas Intermediate crude futures CLZ5, -2.58%  down more than 17% year to date—and some have said that once a trend of production declines forms, higher oil prices will follow.

“There is no evidence at current prices that rig drilling activity will recover any time this year, so we can expect ever lower production every month well into 2016,” said James Williams, energy economist at WTRG Ecomomics.

He expects December production in the shale plays to be down 550,000 barrels a day from the peak seen in April.

But a closer look shows that production from the Permian Basin, which is located in West Texas and southeastern New Mexico, is forecast to climb by 11,000 barrels a day to roughly 2.02 million barrels a day next month. Output from that shale play has been climbing all year.

U.S. Energy Information Administration

“Right now, the Permian looks like the most profitable play,” said Michael Lynch, president of Strategic Energy & Economic Research (SEER).

That is due in part to location, he said. The Eagle Ford shale play is in South Texas, but Bakken Shale is located in eastern Montana and Western North Dakota as well as parts of Canada.

“You have to bring workers from outside North Dakota and so salaries for everything, even hamburger flippers, is elevated,” Lynch said. “Much less so in Texas.”

‘Quite possibly, the redeployment of money, rigs and personnel to the Southwest will mean that even low drilling activity allows shale-oil production to expand.’ ~ Michael Lynch, SEER

So, “quite possibly, the redeployment of money, rigs and personnel to the Southwest will mean that even low drilling activity allows shale-oil production to expand,” he said.

Williams, however, pointed out that the EIA report shows that the number of new oil barrels we can expect per rig showed no improvement in the Eagle Ford and Bakken, and the increase in the Permian was “minimal.”

“Previously, the barrels per rig often showed substantial gains as drillers became more efficient and focused drilling to the sweet spots,” said Williams. “We cannot expect efficiency gains at the same level that we experienced over the last year.”

Still, Lynch noted three key reasons why oil prices won’t climb soon: higher shale output, the return of Iran’s oil to the global market as sanctions are lifted following its nuclear agreement with western powers, and production increases elsewhere in the world.

The combination of those factors will mean there is “no room for prices to rise,” he said.

Retrieved 11-11-15 from MarketWatch.

The Northern Plains Resource Council (NPRC) has asked the Board of Oil and Gas Conservation to commence rule making to impose quarter mile (1,320 ft) setbacks of drilling rigs from occupied dwellings. This is a greater distance than the proposal struck down before the legislative Senate Natural Resources committee just months ago, after ample testimony on both sides.

NPRC claims that because other states have imposed setbacks, Montana should follow suit for the benefit of landowners. However, existing statute and administrative rules, along with the structure and function of the BOGC, are a made in Montana solution that works. Using a checklist of out of state rules and regulations to shape policy in Montana is not a good idea. Doing so neglects to take into account those attributes which are unique to Montana.

This Wednesday, at a public meeting before the Board of Oil and Gas Conservation (BOGC), the Montana Petroleum Association (MPA) will be providing comments on how implementation of the proposed rule would negatively impact oil and gas opportunities in Montana, siting that:

• Montana’s drilling and permitting activity pales in comparison to other states who’ve elected to impose setbacks, especially with consideration to densely populated areas
• Other states do not have the same protest ability that Montana landowners do with regard to oil and gas drilling
• The public, including land/surface owners, have considerable access to the BOGC
• Montana’s BOGC is set up to mitigate concerns on a case by case basis; ensuring responsible and efficient development of mineral resources
• If imposed, drilling opportunities in Montana would be severely impacted, with many small and exploratory oil and gas operators essentially placed out of business without the ability to drill into small target formations
• Many claim horizontal wells have greater flexibility in surface placement, however, operators seek to evenly space wells within a DSU (drilling spacing unit)
• Setbacks would reduce the number of wells there could be in a given DSU (within the same lease), shorten laterals, thereby increasing wasted oil and gas reserves, and lessening both production revenue (including that to the state and counties) and royalty payments to mineral owners, which include universities, hospitals, and charitable organizations
• Setbacks neglect to recognize that minerals are the dominate estate (under common law) in split estate scenarios.
• Setbacks act as a taking of mineral owners rights without compensation
• Correlative rights of mineral owners are compromised by setback rules administered as a “one-size-fits-all” rule
• Potential legal conflicts exist with regard to treatment of existing leases under setback rules
• Surface use agreements are currently negotiated between landowner and operator, prior to drilling
• The BOGC sites less than a handful of cases wherein a surface owner came before the Board with a concern over the placement of a well
• The BOGC currently has the ability to exercise authority over well placement to mitigate surface owner concerns when necessary, based on potential harms
• Montana has a longstanding history of environmentally responsible development of oil and gas, without negative impacts on air, soil, or water

The rule would have widespread effects on Montana’s economy and on mineral rights. Mineral owners, royalty recipients, and oil and gas operators with an interest in preserving future drilling opportunities in the Treasure State ought to weigh in at the June 24th meeting at the Board of Oil and Gas Conservation office in Billings, 2535 St. Johns Avenue, at 1:00 pm.

Public hearings will follow at a date TBD, should the Board commence rule making.

Interested parties may contact the Montana Petroleum Association at mpa@montanapetroleum.org to stay updated on the issue, and to be notified of future opportunities for public comment.

Contact: Jessica Sena, 590-8675

#######

“Economic Contributions” of the Oil and Gas Industry in 2013” Infographic

Bismarck, N.D. – The oil and gas industry has seen its economic output rise by 750 percent to $43 billion since 2005, according to a study conducted by the North Dakota State University’s Department of Agribusiness and Applied Economics. The study also found that the industry directly supported 55,137 full time equivalent jobs and supported another 26,403 secondary full-time jobs. This increase represents the growing importance oil and gas development has on the state’s overall economic health.

“This study helps confirm that the petroleum industry is one of the largest basic-sector industries in North Dakota,” said Dean Bangsund, co-author of the study and research scientist for the department at NDSU. “Although activity is concentrated in the western part of the state, the magnitude of the contributions to both the state and local governments and the sheer volume of secondary economic effects in nearly all sectors of the North Dakota economy would suggest that the economic effects of the industry are felt statewide.”

Because the industry relies on hundreds of contractors and subcontractors, the economic contributions extend beyond the mining and extraction industries. According to the study, retail trade once again saw the largest impact, taking in $11.3 billion of the $43 billion. Households, or personal income, saw the second-largest impact at $9.3 billion, and the Finance, Insurance and Real Estate industry ($4.5 billion) overtook the government ($4.4 billion), which was the third-largest beneficiary in 2011. More than six other industries in North Dakota also benefitted from oil and gas development.

“The positive impacts of oil and gas development extend far beyond just the energy industry, and benefit many of our small and independent businesses in the oil patch and across the state,” said Rae Ann Kelsch, state director of the North Dakota chapter of the National Federation of Independent Business. “This is great news, but what is perhaps more exciting for our organization and members is the fact that the $43 billion only represents 48 percent of the total economic output. That means there is a demand for services within the state that our members can begin taking a look at and capitalizing upon to keep even more of those dollars here in our state.”

Among the study’s key findings:

· The oil and gas industry generated $43 billion for North Dakota’s Economy: In 2013, direct impacts of the oil and gas industry were $17 billion and secondary impacts were $25.7 billion for a total of $43 billion in business activity. For every dollar spent in the state by the oil and gas industry, another $1.43 in additional business activity was generated.

· The oil and gas industry created more than 80,000 jobs statewide: The study reveals that the oil and gas industry’s economic importance to the state includes direct employment for 55,137 full-time jobs and secondary employment of 26,403 full-time equivalent jobs.

· The industry contributed $9.3 billion in economy-wide personal income: The study reveals that the oil and gas industry contributed $9.3 billion in economy-wide personal income, including $1.425 billion in in-state private royalties and $300 million in lease bonuses. This is a 382 percent increase since 2005.

· The oil and gas industry generated $4.4 billion in government revenues: According to the study, the oil and gas industry generated a total of $4.4 billion in government revenues, including:
o $2.9 billion in gross production and severance taxes;
o $654 million in royalties, including $304 million in state royalties, $349 million in federal royalties, including tribal royalties;
o $49.6 million in state lease bonuses, and $4.1 million in federal lease bonuses that were returned to the state;
o $62.6 million in direct sales and use taxes;
o $50.5 million in corporate and personal income taxes;
o $54.6 million in licenses, permits, and fees;
o $12.5 million in charitable donations;
o $322.3 million in indirect state government general tax collections.

· The oil and gas industry supported $28.5 billion in non-industry business activity: The oil and gas industry benefited other industries and sectors statewide, including $11.3 billion in statewide retail sales; $4.5 billion in finance, insurance and real estate; $2.8 billion in business and personal services; $2.3 billion in communications and public utilities; $2.2 billion in professional and social services; $1.8 billion in construction; $1.5 billion in other sectors (various ag and mining); $1.3 billion in manufacturing; and, $838 million in transportation.

The North Dakota Petroleum Council (NDPC) has commissioned the study each biennium since 2005, and economic benefits have risen dramatically. Economic impacts have grown by 750 percent since the first study in 2005. State and local government revenues grew by more than $3.73 billion—or 1,150 percent—since 2005, while industry-wide direct employment grew by 992 percent from 5,051 in 2005 to 56,137 in 2013.

“We’ve seen a dramatic growth in production, and along with it, a dramatic growth in the economic contributions and associated job creation,” said Ron Ness, president of the NDPC. “Obviously, as prices decrease, the benefits previously enjoyed by the state government, households and other industries will be much lower as we work through the current price drop – no doubt impacts many are beginning to feel. We must be cautious to not further hinder these positive economic impacts through onerous or unnecessary regulation.”

The study was conducted by research scientist Dean Bangsund and Dr. Nancy Hodur, Research Assistant Professor at the NDSU Department of Agribusiness and Applied Economics. Bangsund and Hodur surveyed firms engaged in exploration and development, extraction and production, transportation, and processing of crude oil and natural gas. Data that was measured in this study but not included in previous surveys was an assessment of capital expenditures for infrastructure projects. To view the full study, visit http://ageconsearch.umn.edu/.

ATTACHMENT: “Economic Contributions” of the Oil and Gas Industry in 2013” Infographic

Since 1952, the Petroleum Council has been the primary voice of the oil and gas industry in North Dakota. The Petroleum Council represents more than 500 companies involved in all aspects of the oil and gas industry, including oil and gas production, refining, pipeline, mineral leasing, consulting, legal work, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain Region. For more information, go to www.ndoil.org.

Media Contact:
Tessa Sandstrom
Communications Manager
ND Petroleum Council
701.223.6380
tsandstrom@ndoil.org

By:  Bob van der Valk
Date:  January 19, 2015 – 12:30 PM MDT

A Bakken crude gathering system reported a pipeline leak near Glendive, Montana Saturday, January 17th, leading to oil spilling into the Yellowstone River.  An oil sheen has been noticed in the Yellowstone River approximately 15 miles from the spill site and was confirmed by Bill Salvin, spokes person from Bridger Pipeline.

The exact amount of the leak has not yet been determined but currently contractors are digging trenches on both sides of the Yellowstone River to install siphon valves in order to determine whether anymore crude oil is currently flowing through the pipeline.

Location of the suspected leak underneath the Yellowstone River is 2 miles east of the I-94 mile marker 204 near Glendive, Montana.  Work in progress can be seen from the I-94.

Kevin Pena, District Sanitarian for Dawson County, has been monitoring for Volatile Organic Compounds (VOC), in the water supply system for the City of Glendive and reports of contamination have been reported causing a run on bottled water at local markets.

Bridger Pipeline LLC headquartered in Casper, Wyoming owns and operates the Poplar System in Eastern Montana, the Four Bears Pipeline System in North Dakota, the Parshall Gathering System and the Powder River System in Wyoming.

Crude oil gathering systems in Baker, Montana build up inventory for rail or pipeline deliveries to the coastal refining hubs on the Gulf Coast, West Coast and East Coast as well as the crude storage hub in Cushing, Oklahoma.

Bridger Pipeline is owned by True Companies, which also owns and operates other crude oil gathering systems in North Dakota, Wyoming and Montana.

Bridger Pipeline said that the oil spill at Glendive occurred at about 10 AM on Saturday.  The initial oil leak volume is estimated to be about 1,200 barrels or 50, 000 gallons according to the initial report.

The Bridger Pipeline is connected to Belle Fourche Pipeline, which gathers domestic crude production in Wyoming and North Dakota.

Bridger and Belle Fourche pipelines have a maximum capacity of about 100,000 barrels per day. A prolonged pipeline shutdown of Bridger may have some impact on crude delivery to Cushing, but it is noted that there are several other crude gathering systems in North Dakota and this crude oil could also be delivered by trucks and rail, in addition to pipelines.

Besides Belle Fourche and Bridger pipelines, True Companies is also involved in oil drilling, trucking, trading oil from both rail and truck, drilling equipment and farming and employs more than 1,000 people.

PHOTOS: (top) Portion of Bridger pipeline with siphon valve installed. (bottom) Frozen Yellowstone River shoreline at the oil spill site.

INTRODUCTION by Bob van der Valk, Senior Editor  |  Bakken Oil Business Journal

“In October 2014 crude oil barrels went down 4M barrels/day from 1,186,228 to 1,182,174 barrels/day.  The drilling rig count dropped 2 from September to October, an additional 3 from October to November, and has since fallen 5 more from November to today. The number of well completions decreased from 193(final) in September to 134(preliminary) in October. Three significant forces are driving the slow-down: oil price, flaring reduction, and oil conditioning.”

NDIC Department of Mineral Resources Director’s Cut Newsletter
December 13, 2014 – Lynn Helms

Crude Oil production:
Sep Oil 35,586,832 barrels = 1,186,228 barrels/day
Oct Oil 36,647,393 barrels = 1,182,174 barrels/day (preliminary)
1,118,010 barrels per day or 95% from Bakken and Three Forks
64,164 barrels per day or 5% from legacy conventional pools

Natural Gas Production:
Sep Gas 42,400,766 MCF = 1,413,359 MCF/day
Oct Gas 44,317,381 MCF = 1,429,593 MCF/day (preliminary)(NEW all-time high)
Sep Producing Wells = 11,758
Oct Producing Wells = 11,892 (preliminary)(NEW all-time high)
8,406 wells or 71% are now unconventional Bakken – Three forks wells
3,486 wells or 29% produce from legacy conventional pools

Permits issued:
Sep Permitting: 261 drilling and 2 seismic
Oct Permitting: 328 drilling and 1 seismic
Nov Permitting: 235 drilling and 1 seismic (all time high was 370 in 10/2012)

Crude oil pricing:
Sep Sweet Crude Price = $74.85/barrel
Oct Sweet Crude Price = $68.94/barrel
Nov Sweet Crude Price = $60.61/barrel
Today Sweet Crude Price = $41.75/barrel (lowest since March 2009) (all-time high was $136.29 7/3/2008)

Rig Count:
Sep rig count 193
Oct rig count 191
Nov rig count 188
Today’s rig count is 183 (all-time high was 218 on 5/29/2012)
The statewide rig count is down 16% from the high and in the five most active counties rig count is down as follows:
Divide -69% (high was 3/2013)
Dunn -26% (high was 6/2012)
McKenzie -15% (high was 1/2014)
Mountrail -20% (high was 6/2011)
Williams -16% (high was 10/2014)

Comments:
The drilling rig count dropped 2 from September to October, an additional 3 from October to November, and has since fallen 5 more from November to today. The number of well completions decreased from 193(final) in September to 134(preliminary) in October. Three significant forces are driving the slow-down: oil price, flaring reduction, and oil conditioning. Several operators have reported postponing completion work to achieve the NDIC gas capture goals. There were no major precipitation events, but there were 9 days with wind speeds in excess of 35 mph (too high for completion work).

Over 95% of drilling still targets the Bakken and Three Forks formations.

The drillers outpaced completion crews in October. At the end of October there were about 650 wells waiting on completion services, an increase of 40.

Crude oil take away capacity is expected to remain adequate as long as rail deliveries to coastal refineries keep growing.

Rig count in the Williston Basin is set to fall rapidly during the first quarter of 2015. Utilization rate for rigs capable of 20,000+ feet is currently about 90%, and for shallow well rigs (7,000 feet or less) about 60%.

Drilling permit activity peaked in October as operators worked on their summer programs, planned locations for next winter, and adjusted capital budgets.

The number of rigs actively drilling on federal surface in the Dakota Prairie Grasslands is down from 6 to 3.

Activity on the Fort Berthold Reservation is as follows:
28 drilling rigs (11 on fee lands and 17 on trust lands)
386,679 barrels of oil per day (149,547 from trust lands & 237,131 from fee lands)
1,371 active wells (1,044 on trust lands & 327 on fee lands)
172 wells waiting on completion
346 approved drilling permits (306 on trust lands & 40 on fee lands)
1,997 additional potential future wells (1,224 on trust lands & 773 on fee lands)

Seismic activity is slowing down with 5 surveys active/recording, 1 remediating, 0 suspended, and 1 permitted. There are now 3 buried arrays in North Dakota for monitoring and optimizing hydraulic fracturing.

North Dakota leasing activity is very low, consisting mostly of renewals and top leases in the Bakken – Three Forks area.

US natural gas storage is now 10% below the five-year average indicating slowly increasing prices in the future. North Dakota shallow gas exploration could be economic at future gas prices. As you are aware there is some exploration underway in Emmons County. The first well will be on confidential status until 12/23/14.

The price of natural gas delivered to Northern Border at Watford City is down $0.76 to $2.98/MCF. This results in a current oil to gas price ratio of 14 to 1. The percentage of gas flared dropped to 22%. The Tioga gas plant remained below 70% of full capacity due to delayed expansion of gas gathering from south of Lake Sakakawea.
capture percentage was 78% with the daily volume of gas flared from Sep to Oct decreasing 32.8 MMCFD. The historical high flared percent was 36% in 09/2011.

Gas capture statistics are as follows:
Statewide 78%
Statewide Bakken 78%
Non-FBIR Bakken 79%
FBIR Bakken 75%
October 2014 capture target =74%
January 2015 capture target =77%

BLM revised final regulations for hydraulic fracturing on federal and Indian lands were sent to the White House Office of Management and Budget for interagency review on Oct 26 and Department of Interior continues to be committed to their goal of issuing a final rule by the end of 2014. After initial publication in 2012, BLM received over 177,000 comments and withdrew the rule. A new proposed rule was published in the federal register on 5/24/2013 and the comment period ended 8/23/2013. This time BLM received over 1.2 million comments. Thanks to all who provided comments in support of a “states first” policy.
BLM has started the process of new venting and flaring regulations with input sessions in Denver, Albuquerque, Dickinson, and Washington, DC.

EPA published an advanced notice of proposed rule-making to seek comment on the information that should be reported or disclosed for hydraulic fracturing chemical substances and mixtures and the mechanism for obtaining this information. The proposed rule-making is in response to a petition from Earthjustice and 114 other groups who are opposed to the use of the GWPC-IOGCC FracFocus website process of chemical disclosure and any type of trade secret protection for hydraulic fracturing fluid mixtures. These groups are requesting EPA regulation of chemical disclosure under the federal Toxic Substances Control Act.

“What we see is the technology is changing rapidly.
We want to stay at the forefront of that.”

Are regulatory updates across the Rockies states encouraging or hindering reusing produced water for fracking?
For us, in the Piceance basin, I’m going to say encouraging. The state is really supportive of water sharing agreements within the Piceance basin. So that’s a yes.

There is a lot of pressure towards reusing produced water for fracking currently – how can operators manage these pressures?
I believe most operators want to reuse their water, and for us there are regulatory pressures. Because we use slick water approach to complete our wells, it makes it easier for us to recycle our water. When you go to the front range, where operators’ chemistry requires a more complicated completion fluid, it becomes more difficult. So here, it’s very straightforward.
For us, there is a cost of recycling the produced water, but it makes more sense than pulling freshwater out of the river; this gives us a real advantage.

Water sources are under stress from industries besides the oil and gas industry, do you believe reusing produced water is the solution to water sourcing issues? Using produced water is a good option for all operators. Obviously, there are economic restraints depending on the quality of water you have to clean and where you have to take it to, to reuse it. Locally, we’re sensitive to the stress of sourcing freshwater – obviously in Colorado, water is key to everyone. We made the switch to recycling close to 100% of our produced water and really, in the local community’s eyes, it made sense. It’s something that we’re proud of.

Download the full interview here.

READ the FULL STORY ONLINE: http://bakkenjournal.uberflip.com/i/389533/28

Response from Quantum about building their refinery in Billings

When asked about the information that had come to light, Yellowstone County Commissioners immediately distanced themselves from the company. Quantum Energy sent a letter to the Billings Gazette insisting to have it published in its entirety or not at all. The Gazette had published a negative article about Quantum Energy and declined to print the letter. The Bakken Oil Business Journal will publish the letter along with this article.

However, the letter answered no substantive questions about their finances or Andrew J. Kacic and states that they would make no further comment on the issue.

The public has heard nothing from Quantum Energy, Andrew J. Kacic or the Yellowstone County Commissioners about an oil refinery or any impending land purchases since August 19, 2014 meeting. MarketWatch listed Quantum Energy Inc. ATC stock at 50 cents a share with no trades after August 14, 2014.

The Billings Gazette published a follow up to the original story on Oct. 2nd.

After big splash, not a trickle of news about new Billings refinery plans

By Tom Lutey, Source: Billings Gazette.

More than a month after floating plans for a new oil refinery in Billings, Arizona-based Quantum Energy hasn’t been in touch with Yellowstone County commissioners.

Commissioner John Ostlund said he hasn’t heard from Quantum since Aug. 19, when CEO Andrew Kacic said Quantum wowed commissioners with talk of a $500 million Billings refinery to convert Bakken crude into diesel fuel. At the time, Kacic said Quantum would be revealing a potential refinery site a few days after his meeting with commissioners.

The announcement never came, and within days of Kacic’s meeting with county commissioners, court documents surfaced indicating Kacic had in the past run substantial personal expenses through his other businesses.

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Calls to Quantum Chairman Stanley F. Wilson were not returned Thursday.

The Big Sky Economic Development Authority, which normally vets large commercial project proposed in Yellowstone County, also confirmed no contact with Quantum since August.

Quantum had indicated plans to build five “micro-refineries” in Montana and North Dakota, each with a $500 million price tag and possibly 150 employees.

On its website, Quantum indicates it has a two-year option for a 144-acre refinery site near Fairview. The company also reports it has a three-year option on land near Baker.

The South Dakota Oil and Gas Association (SDOGA) announces TransCanada’s Larry Scheuerman, Director of Project Development for the Keystone XL pipeline project will be a featured speaker at the 2014 Black Hills Bakken and Investor Conference October 1 and 2. The conference will be held at the Spearfish Holiday Inn Convention Center in Spearfish, S.D.

Scheuerman is responsible for the development of non-regulated Canadian and US oil and gas projects including pipelines and facilities from prospect to commencement of implementation.  Scheuerman brings over 35 years experience in oil and gas pipeline and facility construction and project development completing several projects within North America and internationally. Scheuerman will give attendees to the conference a highly anticipated update discussing the opportunities and future of the Keystone XL pipeline in South Dakota and the northern portion of the project.

According to the U.S. Department of State’s FSEIS, the Keystone XL project spending would support approximately 42,100 jobs (direct, indirect, and induced), and approximately $2 billion dollars in earnings throughout the United States. Of these jobs, approximately 3,900 would be direct construction jobs in the proposed project area, which includes South Dakota. Property tax revenue during operations would be substantial for many counties, with an increase of 10 percent or more in 17 of the 27 counties with proposed Project Facilities.

South Dakota Oil and Gas Association’s Executive Director Adam Martin states, “We are excited to have Mr. Scheuerman speaking. This update comes at a critical time in United States and South Dakota history. The project would help support economic growth in our smaller rural communities and create good paying jobs with needed health benefits. The delays to approve the Keystone XL project continue to make it harder for our farmers and ranchers to have grain products like corn and soybeans delivered by rail. Unfortunately the longer the project is delayed, the rising costs to construct the pipeline will result in those costs being passed down to the consumer. It’s a counter-productive delay that will end up costing our farmers, ranchers, and the American taxpayer. We’ve lost too many opportunities by the delay, and we need the infrastructure. We need to get these opportunities back. It’s time to approve and build the Keystone XL.”

Sources: http://keystonepipeline-xl.state.gov/documents/organization/221135.pdf

More information about speakers of the conference can be found at: www.BlackHillsBakkenConference.com

WASHINGTON, D.C. –North Dakota Petroleum Council (NDPC) Vice President Kari Cutting will testify before two U.S. House subcommittees today on the subject of Bakken Petroleum: The Substance of Energy Independence.
In her testimony to the House Subcommittee on Energy and Subcommittee on Oversight, Cutting will address the industry’s safety record and goals, the qualities of Bakken crude, the steps taken by the industry to properly classify and ship Bakken crude oil, and steps taken to ensure emergency responders are prepared to handle any incidences that may occur.

“Three independent studies have now shown that Bakken crude is similar to other North American light, sweet crude oils in gravity, vapor pressure, flash point and initial boiling point,” says Cutting. “According to these studies, Bakken crude oil chemical properties attest to its proper classification as a Class 3 flammable liquid. This category contains most of the valuable fuels and fuel feed stocks offered for transportation in the United States.”

With the increase of Bakken crude being shipped by rail, however, Cutting stressed the industry’s continued commitment to safely handling and transporting this cargo, including its partnership with railroads and local responders to develop a common educational tool to be distributed broadly to fire departments either through web portal or DVDs. This information is available for companies to use in continued interaction with EMS personnel.

The oil and gas industry will also continue development of additional response resources and periodic meetings to keep the lines of communication open to maximize information sharing of the latest data on emergency response for crude and other flammable liquids incidents.

“Hazardous Materials transported by rail arrive safely at their destination 99.997% of the time, but all stakeholders recognize the importance of implementing additional safety measures to reduce the probability of the remaining 0.003%,” says Cutting. “Routing analysis, infrastructure inspection and maintenance, railcar design, and additional training and information for Emergency Management personnel are all efforts being addressed.”

The joint hearing of the House Subcommittee on Energy and Subcommittee will begin at 2:00 p.m. EDT. The hearing may be viewed online at http://science.house.gov/hearing/subcommittee-energy-and-subcommittee-oversight-joint-hearing-bakken-petroleum-substance.

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ATTACHMENT: Cutting Testimony

For media inquiries, contact Tessa Sandstrom by email. (I will not be reachable via telephone, so please email with questions).

Since 1952, the North Dakota Petroleum Council has been the primary voice of the oil and gas industry in North Dakota. The Petroleum Council represents more than 525 companies involved in all aspects of the oil and gas industry, including oil and gas production, refining, pipeline, mineral leasing, consulting, legal work, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain Region. Our members produced 98 percent of the 313.5 million barrels of oil produced in North Dakota last year.

URTeC Takes Center Stage in Colorado
Record Attendance Expected as Professionals Across All Segments of the Unconventional Arena Converge for Integrated Event

Complimentary Press Passes Available Here

August 18, 2014//Tulsa, OK – The second edition of the Unconventional Resources Technology Conference (URTeC) takes center stage 25-27 August at the Colorado Convention Center in Denver, CO. The 2014 event highlights unconventional resource possibilities in North America and around the world, as well as takes an in-depth look at existing plays.

URTeC 2014 is attracting acute interest from the industry as it brings together scientists, engineers and business managers to cross-pollinate ideas and encourage an “asset team” approach to exploration and production. With attendance trending ahead of last year’s inaugural event, the multidisciplinary organizing committee is optimistic that this year’s event will exceed expectations.

“The response to URTeC affirms the importance of this approach to the industry and we look forward to providing a robust, highly-interactive and superior attendee experience,” said Mr. Luis Baez, Co-chair of URTeC’s Technical Program Committee. “The program committee has worked diligently to ensure that the content being offered serves professionals across all segments of the unconventional arena and is second to none.”

A joint project of the Society of Petroleum Engineers (SPE), the American Association of Petroleum Geologists (AAPG) and the Society of Exploration Geophysicists (SEG) with help from the American Association of Mechanical Engineers, Petroleum Division (ASME-PD), URTeC is one of the industry’s only integrated science and technology events.

The opening plenary session features a panel of experts that will address the topic of “Using Science and Integrated Technologies to Develop Unconventional Plays.” Other interactive panel discussions include “Nimble Independents: Moving the Needle With Innovation and Execution Excellence,” “Converting Technology Into Dollars,” “Emerging International Plays,” “Water Management and the Link to License to Operate” and “Marcellus Shale: ‘Bottom Up’ Integrated Assessment of Future Production and Reserves.”

The program, comprising experts from every aspect of the unconventional sector, features multi-themed technical sessions including 190+ oral sessions, 60+ ePapers, team presentations, topical breakfasts and luncheons, and interactive panel sessions. Cores from several unconventional reservoirs will be on display allowing attendees to view the rocks and compare analyses and results summarized by service companies. Cores are expected from the Haynesville, Bossier, Eagle Ford, Marcellus, Utica, Woodford, Niobrara, Tuscaloosa and Bakken plays.

“Attendees with various levels of unconventional experience will attend. It attracts those that have expertise in unconventionals with its top-quality content,” said Jennifer Bell, chair of the ASME’s Petroleum Division and chief executive officer of Elements Offshore LLC in Houston. She will serve as co-chair for the URTeC session “Emerging Plays: Roadway from Ideas to Sweetspots.”

“URTeC is the best venue where technology can be shared,” said AAPG award-winning member Bob Hardage of the Texas Bureau of Economic Geology.

Several Companies Expected to Announce New Products
Press conferences by exhibiting companies will take place over the course of the event. For a complete schedule of events, visit www.urtec.org or contact press@urtec.org.

Complimentary Press Registrations Available
Members of the press are invited to attend URTeC free of charge, with access to conference sessions, the exhibition and opening plenary session. Expedite press registration or request additional information by contacting Vern Stefanic. For full conference program details, registration, exhibition and sponsorship information, visit www.urtec.org.

About SPE
The Society of Petroleum Engineers (SPE) is a not-for-profit professional association whose members are engaged in energy resources development and production. SPE serves more than 124,000 members in 135 countries worldwide. SPE is a key resource for technical knowledge related to the oil and gas exploration and production industry and provides services through its publications, events, training courses, and online resources at www.spe.org.

About AAPG
Founded in 1917, AAPG is the premiere global organization for petroleum explorationists with over 42,500 members in 129 countries. The original purpose of AAPG, to foster scientific research, to advance the science of geology, to promote technology, and to inspire high professional conduct, still guides the Association today. AAPG provides publications, conferences, and educational opportunities to geoscientists and disseminates the most current geological information available to the general public.

About SEG
The Society of Exploration Geophysicists is a not-for-profit organization that promotes the science of applied geophysics and the education of geophysicists. SEG’s mission is connecting, inspiring, and propelling the people and science of geophysics. It provides its members with a variety of resources designed to further their success in the geophysics community.  For more information, visit www.seg.org.