A geologist who estimated the Bakken formation in western North Dakota has far more oil than the Arctic National Wildlife Refuge died before other scientists could authenticate his study.
Leigh Price, a scientist with the U.S. Geological Survey, published a study in 1999 that estimates the Bakken shales formation, which underlies much of several western and northwestern counties, may hold up to 400 billion barrels of oil.
By comparison, the Arctic refuge oil reserve is estimated at 16 billion barrels.
Now, Sen. Byron Dorgan, D-N.D., is pushing the federal agency to complete scientific work on Price's paper as part of a national inventory of the nation's oil resources. . . .
Dorgan said the study could have major implications for future oil development in the state.
"If some of the estimates about the Bakken Shale are anywhere near accurate, there may be substantial new oil production in North Dakota's future," Dorgan said. "This could create a new, long-term boost to North Dakota's economy and help move our country toward energy independence. I think USGS has an obligation to put the completion of this study on the fast track."
This is, indeed, great news for North Dakotans. The problem is that Dorgan himself is sponsoring legislation to levy a "windfall profits tax" on the oil industry in order to punish them for high gas prices.
Now, remember that exploiting new oil reserves takes a lot of money, even in places that are pretty accessible like North Dakota. There is scientific study that needs to take place, along with geological sampling and analysis from all sorts of experts. Then equipment needs to be purchased and/or moved into the area and workers have to be hired. And even before most of that starts the oil companies must purchase the applicable permits from the government and buy the necessary mineral rights from land-owners.
In short: It is a significant investment of capital. Capital that comes from the oil industry's "windfall profits." If Senator Dorgan gets his way the oil industry will have less money to develop in places like North Dakota, and that means North Dakotans will lose out.
Dorgan needs to pick one side or the other. Either he's for hamstringing the oil industry and keeping them from expanding domestic production to make gas cheaper and make us less dependent on foreign oil or he's for allowing the ND economy to cash in on this surge in energy prices.
Let's hope he supports the best interests of his constituents on this issue. He certainly hasn't (as per his voting record) in the past.