New Oil Deposits Found In North Dakota, Size Rivals The Bakken
I actually posted about the new oil reserve discoveries in the Three Forks/Sanish area back in July of last year. Then the size of the deposits was mere speculation. It seems as though the experts are a lot more sure of what’s there now.
BISMARCK, N.D. — An oil reservoir in western North Dakota holds nearly as much recoverable crude as the rich Bakken shale formation above it, a new state study shows.
The study released Thursday by North Dakota’s Industrial Commission said current technology could lead to the recovery of about 1.9 billion barrels in the Three Forks-Sanish formation.
“This is good news for North Dakota and our country,” said Gov. John Hoeven. “This indicates more sustainability in this oil play.”
The Three Forks is made up of sand and porous rock directly below North Dakota’s portion of the Bakken formation, where oil-producing rock is sandwiched between layers of shale about 2 miles underground.Ron Ness, president of the North Dakota Petroleum Council, cautioned against overreacting to the state’s findings. He said oilmen have known for years the Three Forks holds a vast cache of crude but technology and oil prices haven’t made it economical until now.
“Oil just doesn’t come when it’s in a study,” he said. “For the guy out there drilling this helps show investors this thing is for real.”
I have two reactions:
First, I’m happy to see that more oil is being discovered in North Dakota. The state is going to need the tax revenues to pay a) for the massive spending bill the legislature has run up in recent sessions b) the public worker pension shortfalls and c) for the unfunded mandates put in place by the Obamacare bill.
Second, North Dakotans had better (more than ever before) hope that the federal government doesn’t pass cap and trade. The Three Forks/Sanish oil deposits are just now becoming marketable thanks to oil prices and emergent technologies. If the oil industry (along with the coal and agriculture industries) get nailed by environmental legislation from Washington DC this state is going to be hurting.
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