Bakken Backers • Grassroots advocacy group

• Business-friendly climate

• Support western ND

Shale + Horizontal drilling + fracturing

Innovative

Casing

Fracking cracks open the rock,(The cracks are hair-width and held open with sand, not as large and dramatic as shown.)

3 Produce 1mm bopd

ONLY THREE US FIELDS

Shale Changed the Economics

Vertical Wells: 1 in 3 Horizontal Wells: > 99 in 100

x xx

x

Shale Changed the World

#1 The United States has become

the largest producer of oil & gas

#8.7m bopd 2016 US

production

#1.7%More gas production

than Russia (#2)

Shale Changed the State Budget

Oil and gas revenue remains huge.

$2.9 billion in 2015-17

$3.2 billion in 2009-11

Other Bienniums | 2011-13: $5.15 billion, 2013-15: $5.80 billion

$3.2 billion in 2017-19 89%O&G severance taxes equate to 89% of the

state’s 2017-2019 general fund budget

$2.4 Billion will be saved in special funds

Shale Changed the State Budget

Oil and gas revenue remains huge.

$2.9 billion in 2015-17

$3.2 billion in 2009-11

Other Bienniums | 2011-13: $5.15 billion, 2013-15: $5.80 billion

$3.2 billion in 2017-19 89%O&G severance taxes equate to 89% of the

state’s 2017-2019 general fund budget

$2.4 Billion will be saved in special funds

Shale Changed the State Budget

Oil and gas revenue remains huge.

$2.9 billion in 2015-17

$3.2 billion in 2009-11

Other Bienniums | 2011-13: $5.15 billion, 2013-15: $5.80 billion

$3.2 billion in 2017-19 89%O&G severance taxes equate to 89% of the

state’s 2017-2019 general fund budget

$2.4 Billion will be saved in special funds

Shale Changed North Dakota Jobs

20%20% of private sector jobs in North Dakota

are supported by oil & gas

Per-capita personal income in North

Dakota has become second in the nation

$25,592 in 2000

$57,084 in 2013

Well-Paid Careers

Average earnings in oil and gas positions (ND)

98,384$ 30%30% of private wages vs. 20% of workforce

Shale Impacted Employment

From 5,000 in 2005 to 50,000 in 2015

↑900%

2014 NotableProduction jobs comprised more than

50 percent of all jobs for the first time

since the start of the Bakken.

Shale Flooded the Market

Credit: CNBC.com

2015 & 2016Falling jobs in drilling and completion

work but still growing jobs in

production roles.

More Bakken wells to go

• 11,516 in Bakken (13,333 total) ( Jan ‘17)

• 40k to 70k estimated

• Today: Almost all drilling is in

“Big Four” counties (McKenzie, Dunn, Mountrail, and Williams)

Growing JobsAs well counts grow, production jobs

will continue to skyrocket.

1.0

1.7

3.0

External:Industry Jobs

Production is

the driver of

community

growth

Huge Job

Growth

Peak industry jobs in production

Production employees are more-

traditional members of a

commmunity:

• Families, schools, etc.

• Traditional housing

• Community involvement

• Dollars spent locally

> 100k

Growing Optimism

The recovery is here

Growing Rig Counts Employment Growth Better Margins Ahead

16 May 2016: 27

15 Mar 2017: 46 ↑ 70% in 10mo

Projected Counts:

31 Dec 2017: 55 ↑ 20% in 10mo

31 Dec 2018: 80+ ↑ 45% in 12mo

Total Growth: ↑ 196% in 31 months

Cindy Sanford, Williston Job Service:“We are seeing hundreds of jobs especially in the

fracking area. We are working with Halliburton,

Slumberger, Cal-Frac, Keen, Q-Sir, Oasis, and

Liberty for full fracking crews. Williston has

their Spring Job Fair on March 22nd and for the first time since we have had job fairs we are full with a wait list of 5 already. Our

estimated guess for jobs at the fair is over 1100.

The estimated off to the races date is April 1st because of frost laws, mud etc. The pipelines are

telling us the same start date.”

Good news & much neededfor oil field companies

Costs drastically down

Well costs down 66%

percent for Hess

Hess presentation at Credit Suisse

Energy Summit, 2017

Other operators vary based on

operation and completion strategies.

DAPL is to the Bakken what

railroads are to agricultureReduces transportation costs by $5-8 per barrel

on 470,000 bopd, creating:

$110 million per year in new taxes

$180 million per year in higher royalty payments

Most importantly, it makes the Bakken more

competive, ie: $60 becomes $54

Extremely promising long-term

The EIA is more bullish

Top-Ranked Asset Recovery to 1.3mm bopd by 2019

Growth to up to 2.3mm bopd by

2040, appx. 1/3 of all US shale

production

Bakken CEO’s nearly unanimously

recognize the Bakken their #1 or

#2 asset in the world

Decades of

Opportunity

Rob Lindberg

rl@backthebakken.org | 701.989.5432

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