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  • North Dakota Petroleum Council - Industry News
    News Center Industry News Industry News Increased Access to Domestic Oil and Natural Gas Posted 11 26 08 Wed BISMARCK North Dakotans are concerned about the price of gasoline and the majority of them support increased access to domestic oil and natural gas resources a new survey finds North Dakotans understand the impact of high gasoline costs and they support increasing domestic supplies of oil and natural gas said Ron Ness president of the North Dakota Petroleum Council NDPC Unfortunately Congress is ignoring this surge of public support and blocking a common sense energy policy that includes development of America s vast natural resources along with more conservation energy efficiency and increased supplies of all sources of energy The time has come for Congress to lift the ban on offshore drilling The poll was conducted by telephone between July 10 and July 21 2008 by Harris Interactive and commissioned by API The survey of 500 registered North Dakota voters who are likely to vote in the upcoming presidential election found 66 percent of those surveyed said they somewhat or strongly support increased access to domestic oil and natural gas resources Only 15 percent of respondents said they opposed increased access An overwhelming 97 percent said they are somewhat or very concerned about the price of gasoline It is clear that our country must respond to the tightening of supplies of oil resources in the face of booming worldwide demand The impact that increased domestic supplies would have on business not only in North Dakota but across this country would be phenomenal said Dave MacIver president and CEO North Dakota Chamber of Commerce Currently Congress is blocking the exploration and development of abundant oil and natural gas reserves beneath non park federal lands and coastal waters Advanced technology means America s

    Original URL path: http://www.ndoil.org/news/industry_news/increased-access-to-domestic-oil-and-natural-gas/ (2016-05-01)
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  • North Dakota Petroleum Council - Industry News
    Home News Center Industry News Industry News Northwood Tornado Relief Fund Posted 11 26 08 Wed The North Dakota Petroleum Council members contributed 17 500 for the Northwood Tornado Relief Fund More than 11 500 in contributions was recently presented to the American Red Cross Northwood Relief Fund In addition members sent 6 000 directly to the Northwood Tornado Fund and the United Way Northwood Fund Tom Tezel Executive Director with the Red Cross in Grand Forks said The American Red Cross relief efforts are made possible by donations from the American public The North Dakota Petroleum Council raised 11 500 for the Northwood tornado disaster Without their generosity we would not be able to provide emergency shelter food clothing and medical items We thank them for their support of the Northwood community Ron Ness President of the North Dakota Petroleum Council said This was an idea generated by our membership The amount we collected in two weeks was way beyond our expectations We know the people of Northwood need our support and assistance Our thoughts are with them Petroleum Council members contributing to the fund included Alan Anderson Ballantyne Oil Bear Paw Energy BTA Oil Producers Cody Oil Gas

    Original URL path: http://www.ndoil.org/news/industry_news/northwood-tornado-relief-fund/ (2016-05-01)
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  • North Dakota Petroleum Council - Industry News
    2005 was 60 330 Jobs in demand include everything from equipment operators and truck drivers to engineers and geologists Good paying jobs in North Dakota s oil and gas industry are available Hoeven said The study confirms what we ve known on a practical level for some time we re creating more career opportunities in North Dakota s energy sector and we re working to get people to fill those positions The study found that the industry s employment in North Dakota is expected to increase 13 percent in 2007 3 percent in 2008 7 percent in 2009 and 3 percent in 2010 This growth is in addition to a 40 percent annual replacement need owing to retirements and job mobility within the field necessary to sustain employment levels The industry s top needs are for drilling rig hands truck drivers work over rig crews production hands directional driller fluids fishing professionals stimulation cementing supervisors and roustabouts Professionals such as engineers and landmen are also in high demand Most entry level positions require a valid driver s license and a clean driving record some require a commercial driver s license Age restrictions may also apply most companies require a minimum age of 18 or 21 Drug testing is required in the hiring process and randomly in a work situation Employment offers posted by companies for these positions ranged from 15 to 26 an hour for laborers and roughnecks 16 to 22 an hour for truck drivers and more than 31 an hour for equipment operators A listing of available jobs and information about the application process is available at www jobsnd com There are currently 41 rigs drilling new oil wells in the state This compares to 16 rigs drilling new wells in 2005 Ron Ness of the North Dakota Petroleum Council said the industry s barometer for growth is rigs drilling new wells because new rigs require a big investment and generate the largest number of jobs The drilling of a new well provides about 120 direct and secondary jobs which are primarily provided by 75 service related contractors North Dakota currently has a total of 4 163 wells capable of producing oil and gas In 2006 the state produced 40 million barrels of oil compared to 35 million in 2005 That s a significant increase in one year Al Anderson chair of the North Dakota Petroleum Council said North Dakota is contributing significantly to domestic oil production nationally and the potential of the Bakken formation is driving more interest Hoeven was joined at the news conference by several new employees to the oil and gas industry Tressy Heinle was formerly employed as an Economic Development Director in Tioga and is now working as a landman in Minot Jeff Iverson received his certificate in power process plant technology from Bismarck State College He moved back to North Dakota from Minnesota to work at the Tesoro s Mandan Refinery as a process operator Twenty one year old Devon Harrison just

    Original URL path: http://www.ndoil.org/news/industry_news/oil-and-gas-industry-projects-employment-growth/ (2016-05-01)
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  • North Dakota Petroleum Council - Industry News
    are making hole in the state 36 of them are within these two counties looking for another Parshall field the state s largest Bakken oil pool This field which is in Mountrail County is currently producing over 278 k bo per month from 21 wells and is currently under aggressive exploitation It s also noteworthy to point out that production within these two counties has greatly increased In 2006 Mountrail and Dunn counties produced 415 434 bo and 984 863 bo respectively A year later Mountrail County reported production of 1 960 091 bo while Dunn County increased their output to 1 913 598 bo It should be pointed out that in 2006 the Bakken accounted for 5 6 of the state s total oil output from 300 active wells In 2007 the Bakken represented 16 6 of the states output from 457 wells The only other formations that had a higher percentage of oil produced during 2007 was the Madison and Red River B It s anticipated that the results for 2008 will show even greater numbers for the Bakken Although a great deal has been written about the Bakken play within the state it should be remembered that the Ordovician Red River B is still king This formation produced 16 722 579 bo or 37 6 of the states production in 2007 In 2006 the Red River B cumulated 15 706 913 bo The source of this production is coming from the Greater Cedar Creek Anticline primary the Cedar Hills South Unit CHSU in Bowman County In fact for the month of December 2007 the latest production figures that are currently available the CHSU produced 1 072 933 bo from 136 horizontal wells Of the 161 operators reporting production within the state for 2007 Burlington Resources BR was far and away industry s leader Retaining their 1 spot BR reported production of 12 690 287 bo up 425 475 bo compared to a year earlier This production by BR is over twice that of the second largest producer in the state The vast majority of BR s production is due to the company s aggressive horizontal Red River B drilling program occurring in Bowman County however the company is getting increasingly active in the horizontal Bakken play and has numerous prospects planned in Dunn County Another company who is major factor in the Red River B play is Continental Resources CR CR was second largest producer in the state having extracted 5 146 714 bo for the year up 1 237 361 bo compared to 2006 Aside from their activity in the Red River B play CR is also a large player in the Bakken play with prospects planned or drilled in Divide Billings McKenzie Mountrail and Williams County Hess Corporation Hess maintained its third place standing in 2007 with a yearly production of 4 189 870 bo The majority of Hess s production is coming from the Nesson Anticline in Williams and McKenzie counties In 2006 Hess

    Original URL path: http://www.ndoil.org/news/industry_news/bakken-output-increases-329-compared-to-2006/ (2016-05-01)
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  • North Dakota Petroleum Council - Industry News
    in this category are limited in scope would not have significant impacts on the human environment and would not require preparation of an environmental assessment or an environmental impact statement The final categorical exclusion applies exclusively to the Forest Service s review of an applicant s request for approval of a surface use plan of operations for oil and gas exploration on NFS lands under Federal lease It permits the Forest Service to respond quickly to applications for oil and gas exploration on leases where there would be no significant environmental effects saving both the proponent and the government time and money The rule was published in the Federal Register for public review and comment on December 13 2005 There was a 60 day comment period and comments received during that period were considered in the preparation of the final rule The final rule will be effective immediately upon its publication in the Federal Register This categorical exclusion will not apply where there are extraordinary circumstances such as adverse effects on threatened and endangered species or their designated critical habitat wilderness areas inventoried roadless areas wetlands and archeological or historic sites The USDA Forest Service is announcing the Federal Register publication of final changes to its regulations for the National Environmental Policy Act which create more efficient environmental reviews of smaller oil and gas exploration and development projects on the national forests grasslands and prairies The final rule is new categorical exclusion that applies to oil and gas exploration and development on National Forest System NFS lands under Federal leases Based upon analysis of 5 years of field data for oil and gas exploration and development on NFS lands the actions identified in this category are limited in scope would not have significant impacts on the human environment and would

    Original URL path: http://www.ndoil.org/news/industry_news/national-environmental-policy-act/ (2016-05-01)
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  • North Dakota Petroleum Council - Industry News
    will be allowed if a flame arrestor is utilized on the equipment 43 02 03 55 ABANDONMENT OF WELLS SUSPENSION OF DRILLING A fee of one hundred dollars shall be submitted with each application to temporarily abandon or extend the temporary abandonment status of any well We adamantly oppose this change This will be 100 per year tax on industry which equates to another 30 000 per year that industry will pay to the government The passage of HB 1060 removed the cap on the Plugging and Reclamation Fund thereby allowing the Division to retain revenues above 250 000 instead of the funds being transferred to the general fund The Petroleum Council not only supported this change but offered the suggestion to the Senate Natural Resources Committee These are fees paid by the industry for the purpose of covering costs associated with plugging abandoned wells In addition HB 1511 which was passed and was signed into law allows the Industrial Commission to require a single well bond on wells that are not properly placed in temporarily abandoned status This change was intended to reduce the risks to the state by requiring bonds on single wells that are not properly administered There are many reasons why oil and gas operators temporarily abandon T A wells It allows more time to evaluate the well for a recompletion or deepening to another zone These wells are usually no longer economically producing and can be used for casing exits to drill horizontal wells This can save the operator as much as two million dollars versus drilling a new well Operators may be doing other work in the area to evaluate a particular zone and need additional time to fully evaluate the zone If a well is plugged and abandoned and the casing is cut and pulled from below the surface the wellbore can likely never be used again T A s are very simple for the Division staff to evaluate and require virtually no staff resources There is no evidence to support any relationship between the proposed fee and the anticipated actual cost of designating a T A well as required by Section 38 08 04 j of the North Dakota Century Code Imposing an annual fee will create another reporting payment and monitoring structure by the Division The oil and gas industry paid nearly 350 million in oil and gas production taxes alone in the 2005 2007 biennium This is an unnecessary and burdensome tax on the most uneconomic wells At times of high oil prices it s easy to forget what happened in previous bust cycles like 1999 when the state was taking steps to encourage industry to keep wells from being plugged and abandoned The state should not be ramping up fees on industry as industry pays more than its fair share of taxes As you can see from the figures below in addition to existing taxes paid the state the industry is paying a significant amount to the Division in

    Original URL path: http://www.ndoil.org/news/industry_news/petroleum-councils-comments-on-43-02-03-01/ (2016-05-01)
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  • North Dakota Petroleum Council - Industry News
    to the provisions of the CE which limit approvals to activities within a new oil and or gas field and those which impose arbitrary and unnecessary limitations on the length of roads and pipelines and numbers of wells In its supplementary information the Forest Service appropriately notes that the National Energy Policy Act and the Forest Service Energy Implementation Plan developed in response to Executive Order 13212 call for streamlining the processing of APDs in an environmentally sound manner The Forest Service further notes its review of 73 oil and gas exploration and development projects and its conclusion that in those 73 projects there were no significant environmental effects because such effects had been precluded by 1 management classifications in the appropriate resources management plan 2 environmental reviews undertaken in connection with leasing decisions and 3 the use of best management practices None of these rationales made any distinction between exploration wells and development wells Yet the proposed new CE is limited to activities within a new oil and or gas field and to activities which do not include more than one mile of new road construction one mile of road reconstruction three miles of pipeline installation or four drill sites Limiting the applicability of the new categorical exclusion to wells in new fields will deny the benefits of an expedited approval process to development wells notwithstanding the fact that the approval of development wells and activities undertaken pursuant to such approvals will have no significant impact on the environment for the same reasons a well in a new field will have no significant impact such approvals are pursuant to management classifications developed in conjunction with environmental review leasing decisions have been made after environmental review and best management practices will be followed In fact between 2000 and 2005 there were 13 wildcat wells drilled on the Dakota Prairie Grasslands compared to 115 development wells The current draft of the CE i e new fields only would only apply to 10 of the wells permitted The original intent of the CE proposal in North Dakota was to apply the CE to 80 of the wells drilled since most of the activity is occurring in existing oil fields and has no significant impact on the environment Additionally the notice itself recognizes the potential for conflict in determining whether a proposed SUPO is within a new oil and gas field The notice provides both that a field is determined by the BLM and delineated by states in coordination with the BLM The proposed limitations on road construction road reconstruction pipeline installation and numbers of wells are completely arbitrary and were made without any supporting rationale They too will lead to conflict and uncertainty In western North Dakota federal surface ownership is frequently interspersed with fee surface ownership Is the one mile of new road construction or road reconstruction or three miles of pipeline installation determined by construction activities on federal lands subject to Forest Service control or by total construction activities regardless

    Original URL path: http://www.ndoil.org/news/industry_news/comments-on-proposed-categorical-exclusion-directive/ (2016-05-01)
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  • North Dakota Petroleum Council - Industry News
    State Tax Commissioner SUBJECT Notification of Gas Tax Rate for Fiscal Year 2007 DATE June 1 2006 In keeping with the provisions of North Dakota Century Code 57 51 02 2 the Tax Commissioner has determined that the gas tax rate for the fiscal year beginning July 1 2006 through June 30 2007 is 1640 per mcf The gross production tax on gas produced during this time period must be calculated by taking the taxable production in mcf times the 1640 gas tax rate For your information the gas tax rate for fiscal year 2007 was determined by the following steps STEP 1 The annual average of the gas fuels producer price index commodity code 05 3 as published by the U S Department of Labor Bureau of Labor Statistics for calendar year 2005 was computed from the data shown below January 236 2 February 237 9 March 245 4 April 277 9 May 258 7 June 244 6 July 276 3 August 296 4 September 384 7 October 447 6 November 435 3 December 384 3 Annual Average 310 4 STEP 2 A gas base rate adjustment of 4 1004 was computed by dividing the annual average price index

    Original URL path: http://www.ndoil.org/news/industry_news/gas-tax-rate-for-fiscal-year-2007/ (2016-05-01)
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