Industrial Commission Update Justin J Kringstad Geological Engineer - - PowerPoint PPT Presentation

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Industrial Commission Update Justin J Kringstad Geological Engineer - - PowerPoint PPT Presentation

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Industrial Commission Update Justin J Kringstad Geological Engineer Director North Dakota Pipeline Authority February 12, 2019 US Williston Basin Oil Production, BOPD 2 2 2 2 JJ Kringstad - North Dakota Pipeline Authority Estimated

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Industrial Commission Update

February 12, 2019

Justin J Kringstad

Geological Engineer Director North Dakota Pipeline Authority

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US Williston Basin Oil Production, BOPD

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Estimated Williston Basin Oil Transportation

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Estimated ND Rail Export Volumes

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Rail Destinations Market Share (Oct 2018)

5 5 Data for Rail Destination Market Share Provided by the US Energy Information Administration JJ Kringstad - North Dakota Pipeline Authority 5

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Cushing $51.52 Brent $61.21 WTI + $9.69

Crude Oil Prices – February 11, 2019

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Pricing Data: Bloomberg & CME (LLS-Argus) Houston WTI WTI + $5.69

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Midwest (PADD 2) Refinery Crude Oil Consumption

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North Dakota Oil Pricing

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Statewide Oil Performance

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Average BKN/TF Well Performance Statewide

~12% Improvement Over 2017

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Statewide Initial Oil Production Rates – 24hr

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North Dakota Oil Production Forecast

Assumes Current Technology – Enhanced Oil Recovery Not Included

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North Dakota Oil Production Forecast

Assumes Current Technology – Enhanced Oil Recovery Not Included

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Williston Basin Oil Production & Export Capacity, BOPD

Assumes Current Technology – Enhanced Oil Recovery Not Included

Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning.

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NDPA North Dakota Gas Production Forecast

Assumes Current Technology – Enhanced Oil Recovery Not Included

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NDPA North Dakota Production Forecast Summary

Assumes Current Technology – Enhanced Oil Recovery Not Included

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Simple Terms Blue – Lack of pipelines Orange – Challenges on existing infrastructure GREEN – % of gas captured and sold Blue – % flared from zero sales wells Orange – % flared from wells with at least one mcf sold.

  • Nov. 2018 Data – Non-Confidential Wells

Statewide

Solving the Flaring Challenge

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Statewide Gas Performance

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Average BKN/TF Well Performance Statewide

~12% Improvement Over 2017

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Statewide Initial Gas Production Rate: 24hr

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Bakken and Three Forks Gas Performance

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Statewide Gas Oil Ratio (MCF/BBL)

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Average BKN/TF Well Performance Statewide

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Solving the Flaring Challenge

Assumes Current Technology – Enhanced Oil Recovery Not Included

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Solving the Flaring Challenge

Assumes Current Technology – Enhanced Oil Recovery Not Included

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Upcoming or Recent Plant Expansion

WBI Transmission Andeavor

Major Gas Pipeline and Processing Infrastructure

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WBI Energy – Valley Expansion Project Update

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Project Highlights

  • 38 Miles - 16” Pipeline
  • $60 Million
  • 40,000 MCFD Capacity
  • In-Service Nov. 2018
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WBI Energy – North Bakken Expansion Project

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Project Highlights

  • 67 Miles - 20” Pipeline
  • $220 Million
  • 200,000 MCFD Capacity
  • Expandable to 375,000 MCFD
  • End of 2021 Proposed Completion
  • Residue Gas Service From North of

Lake Sakakawea to Northern Border Pipeline in McKenzie County

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WBI Energy – Natural Gas Storage

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Winter Withdrawals Summer Injection Working Gas Balance

Storage Data: WBI Energy

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Northern Border Pipeline

*Data Source: Northern Border IPS

  • 42” Pipeline
  • Carries Canadian (Port of

Morgan) and Domestic Gas

  • Receives Gas From ND

Plants, WBI Transmission Interconnections, and WY Pipelines (Bison & Grasslands)

  • Midcontinent Deliveries
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JJ Kringstad - North Dakota Pipeline Authority

Simplified Example NB Calculations

Conclusion: IF no other gas export options open and all other deliveries on other pipelines stay static, ND gas production could increase 1.15-1.45 BCFD (from Nov-18) before Northern Border is 100% Bakken

  • production. BTU management becomes increasingly important for Bakken residue gas.

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Bakken Natural Gas Infrastructure

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Regional NGL Infrastructure

Kinder

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North Dakota Captured* NGL’s

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NGL Pipeline Takeaway Options

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ONEOK Elk Creek NGL Pipeline

Project Highlights

  • 900 Miles - 20” Pipeline
  • $1.4 Billion
  • 240,000 BPD Capacity
  • Expandable to 400,000

BPD

  • End of 2019 Proposed

Completion

  • Y-Grade Transportation

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Traditional and Straddle Gas Processing Plants

(Clarification Prompted by HB 1205)

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Traditional Gas Processing Plant Straddle Plant “Dry” Gas NGL’s Pipe/Truck/Rail NGL’s

Interstate Gas Transmission Pipeline (High Volume – Multiple Plant Sources)

Typical ND “Dry” Gas Methane > 80% Ethane < 20% Small % Propane, Butane+ Captures NGL’s “rejected” into the interstate gas network Raw Gas Gathering

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Raw Natural Gas (1400+ BTU) Processing Plant Consumer Quality Dry Natural Gas “Residue Gas” Methane 57.67% NGL’S (8-12 gallons per 1,000 cubic feet

  • f raw gas)

Y-Grade or Fractionated “Y-Grade” if NGL’S are left together in

  • ne mix for

separation later Ethane 19.94% Propane 11.33% Butane 3.80% Natural Gasoline 1.29%

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Natural Gas Processing – “Ethane Capture”

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Raw Natural Gas (1400+ BTU) Processing Plant Consumer Quality Dry Natural Gas “Residue Gas” Methane 57.67% Ethane 19.94% NGL’S (8-12 gallons per 1,000 cubic feet

  • f raw gas)

Y-Grade or Fractionated “Y-Grade” if NGL’S are left together in

  • ne mix for

separation later Propane 11.33% Butane 3.80% Natural Gasoline 1.29%

Natural Gas Processing – “Ethane Rejection”

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Justin J. Kringstad, Director North Dakota Pipeline Authority 600 E. Boulevard Ave. Dept. 405 Bismarck, ND 58505-0840 Phone: (701)220-6227 Fax: (701)328-2820 E-mail: jjkringstad@ndpipelines.com Websites: www.pipeline.nd.gov www.northdakotapipelines.com

Contact Information

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