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500 Billion BBL – Sweet Crude Find Montana & Wyoming Williston /Bakken Basin

Home Forums Refining Community Refinery News 500 Billion BBL – Sweet Crude Find Montana & Wyoming Williston /Bakken Basin

This topic contains 2 replies, has 1 voice, and was last updated by  Charles Randall 13 years ago.

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  • #3626

    Charles Randall
    Participant

    <Does anyone have information on this new find? CER>
     
    Investing in Oil: The Gusher Behind the “Montana Millionaires”

    Posted by Brian Hicks on April 29, 2008

    (No Ratings Yet)

    [blockquote]
    – 5.3 times the proven reserves of Exxon, Gazprom, Chevron and ConocoPhillips combined.
    – Twice the size of Saudi Arabia’s Ghawar oil field.
    – The U.S. Department of Energy confirms, “This could increase crude oil in America by billions of barrels.”
    – The Billings Gazette says, “The oil field has made millionares out of ordinary Montanans.” [/blockquote]
    About 470 miles outside the state capitol of Helena – in a place called Richland County, Montana – more millionaires are being created per capita than anywhere else in America.
    To get right to the point.
    It’s the largest domestic oil discovery since Alaska’s Prudhoe Bay and has the potential to eliminate all American dependence on foreign oil.
    The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable. at $107 a barrel, Montana is looking at a resource base worth more than $5.3 trillion.

    • “When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea.” says Terry Johnson, the Montana Legislature’s financial analyst.
    • “This sizeable find is now the highest-producing onshore oil field found in the past 56 years,” reports The Pittsburgh Post Gazette.

    It’s a formation known as the Williston Basin, but is more commonly referred to as the “Bakken.” And it stretches from Northern Montana, through North Dakota and into Canada.[center][/center]For years, U.S. oil exploration has been considered a dead end. Even the “Big Oil” companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken’s massive reserves. and we now have access of up to 500 billion barrels.
    And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!
    That’s enough crude to fully fuel the American economy for 41 years straight.
    To America, this discovery couldn’t have come at a better time. You see, when all the wells are finally drilled and pumping, we won’t have to import any foreign oil from the Middle East. Not a single drop!
    For investors like you and me, it offers a “once-in-a-lifetime” chance to profit on ever-rising demand for oil. And we can do it by getting in on the groundfloor of the next great oil boom.
    “There may be more oil under Montana and North Dakota ranchland than under all of Alaska.” – Investors Business Daily
    Even the US Government has confirmed the Bakken as a huge oil formation. The government’s own Energy Information Administration (EIA) issued this press release:
    [blockquote]
    “.with new drilling and completion technology taken into account, the resource base for the entire formation is potentially much larger. A study provides estimates ranging up to 503 billion barrels of potential resources in place.”[/blockquote]
    Oil in the Bakken isn’t gritty, dirty and expensive like the Alberta oil sands.
    We’re talking light, sweet crude oil – the least expensive and easiest to refine oil out there.
    And here’s the kicker.

    Montana lawmakers recently passed a bill that creates an 18-month tax holiday for oil wells drilled and completed in this area.
    This legislation has caused a massive increase in exploration and has blown the top off this hidden ocean of oil.
    Since this bill was passed, a small group of investors have been taking advantage of this untapped resource and are making thousands of dollars each month.
    The good news is that you don’t have to drive up to Montana to get your piece of the pie.
    In fact, I have uncovered three companies that are drilling in the Bakken right now and are seeing returns and revenues second to none.
    [blockquote]
    “It’s a good, old fashioned oil boom,” says Dr. Paul Polzin, a University of Montana economist.[/blockquote]
    One company has been there since the beginning of the Bakken boom. and is already selling its oil to the market. And the best part about it – this company is sharing its Bakken profits with everyday investors.
     

  • #6843

    Charles Randall
    Participant

    GLC folks sent me info that came from the OGJ which has quoted an article by USGS that estimates field having only 3 – 4.3 billion BBL of undiscovered, technically recoverable oil.( Here is their link for that article http://www.usgs.gov/newsroom/article.asp?ID=1911 ). Both views may be correct….. since the USGS volume falls into min range of 10% recovery that news article from investment company quotes.
     
    Here would be my take on this:
    The USGS 5 Billion BBL number is in the 10% range article refers to based on “today’s” technology as I mentioned.
     
    Like the large Bitumen reserves in both California & Texas of 450 Billion Bbls each – there is much higher recovery rate using today’s newer technology like EOR from CO2 flooding or other techniques learned from area’s like Canada SAGD process. These are hung up waiting outcome of Carbon Tax cost, permiting of ongoing work on CO2 & H2 pipelines & projects and way overcome Environmental blocks on higher CO2 generation level as byproduct additional energy use required for reserve recovery using newer technology.
     
    As usual Government (USGS) is being ultra-conserative & looking backward at previous/current technology, and the media is depreciating the potential to follow a storyline that really assist Liberal factions / Envrionemental groups trying block development in their favorite wild areas. It Keeps find from being funded & assits in a case for blocking permits / development.  Typical Pusedo science used to frame the story they need or want to tell rather than full disclosure.
     
    Both sides are keeping lot details confidential at this stage to minimize counter arguments by other side.
     
    But thanks to the link and details you can see both sides – it does follow almost the same script that has kept our own non-conventional Bitumen heavy crude reserves in Calif & Texas from making much headway despite high prices & favorable permit atmosphere.  Really wait for new President & congress leaders to see what course CO2 / Carbon legislation is going to take in current per-recession, critical energy shortage set against backdrop of damaged food industry from failed government & pro-environmental quick fixes.

    Regards

  • #6831

    Charles Randall
    Participant

    <Here is Update on Montana/Wyoming/NDakota – Bakken/Williston field & also ND/SD talks on Grassroots refiner – this one combines both concepts. The S. Dakota Hyperion Grassroots refinery project that is bogged down by environmentalist & has had change locations already – also benefits from the development of this field and it’s close proximity. Although article points out that the Tesoro Mandan refinery in ND exports half of its production because of low rural population levels and  4 pipelines feed product into the area also. BUT it does not point out that N. Dakota only has that 1 refinery & S.Dakota has no refineries – a serious supply risk other states have discovered when P/L rupture or natural disasters take impact them. CER comments>
    —————-
    Talk Heats Up About Another Oil Refinery in ND
    May 24, 2008 7:16PM   KXMBTV Bismarck
    Americans have a serious thirst for fuel the largest in the world. In fact we import 60% of it’s petroleum products

    So as we look at the oil flowing out of the Bakken Formation does it make sense to build a refinery here? Donnell Preskey explores that topic as we continue our series Oil: Dakota Gold.

    (Donnell Preskey) “There are millions of barrels of oil pumping out of the Bakken and as our oil production increases talk about an additional refinery is heating up.” (Ron Ness) “The economics behind building new or expanding a refinery in rural areas are extremely challenging. We got a lot of people looking at it. We got more people looking in ND than anywhere else in the country.” Representative Shirley Meyer is one of those people pushing for another refinery.

    She’s part of a group that formed this year to study the issue  Meyer says knowing how much oil is in the Bakken is all the incentive the state needs  (Rep. Shirley Meyer / (D) Dickinson) “This indicates to us we are going to have another 2 decades of oil, and we need to add value to it, refine own product and work on finished product pipeline.” Meyer says interested investors are ready to pay for the project whatever it may be.

    (Shane Goettle / ND Commerce Commissioner) “4 refining projects on the table we are aggressively supporting and pursuing.” The Oil and Gas Research Council is studying a refinery in the Williston area. The Three Affiliated Tribes is working on permitting a refinery on the Reservation  And American Lignite Energy is looking at a coal to liquids plant near Underwood Plus – the Tesoro Refinery in Mandan is expanding it’s diesel production.

    (John Berger / Tesoro Refinery Mgr.) “We’ve talked about expanding as much as 15,000 barrels a day but even that is about a $225 million dollar investment – large investment – we have to make sure economics support that.” The Tesoro Refinery already produces more product than the state consumes. About half of it leaves the state.  That’s because fuel also comes into North Dakota on four pipelines. 
     
    (Goettle) “We are a net exporter – any additional refining capacity means we have to find export markets for it – large areas – like minneapolis, chicago.” (Meyer) “We can’t take the assumption that we won’t use it all here and that’s why we don’t have to refine it. When you look at that same scenario – we produce a lot of wheat and cattle and we don’t eat it all here but it helps ND’s bottom line. Same is true with oil.” But building a refinery can be a risky venture especially with high oil prices. (John Berger / Mandan Refinery) “even though consumers are looking for some relief at the pump we’ve got almost $3.50 just into crude oil and taxes – that puts a squeeze on refineries.” And that’s why Gas Prices will continue to squeeze your wallet.
    Because contrary to what you may think another refinery won’t lower what you pay at the pump. But state officials say an additional refinery would add value to the Bakken oil some of the best crude the world. Creating more wealth in the state before the oil leaves.
    (Rep. Meyer) “Developing strategies and legislation for upcoming session on what we can do to expedite this process of getting a refinery built here. It’s going to happen.” (Donnell) “Whether we build another refinery or not the state will need to expand it’s pipeline. To either transport the oil out of state or to deliver the refined product to market. Ron Ness with the North Dakota Petroleum Council says we’ve doubled our pipeline capacity in the last two years. And many companies are looking at expansions.”
    Representative Meyer says another idea that has been tossed around is creating a North Dakota Petroleum Reserve. So North Dakotan’s don’t run out of fuel

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