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
[email protected] | 701.989.5432
Show your support at www.BacktheBakken.org
facebook.com/bakkenbackers
twitter.com/bakkenbackers
BAKKENBACKERS
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