industrial commission update · 2020-04-28 · 24 uncompleted wells proximity to high performance...

April 28, 2020

Justin J. KringstadGeological Engineer

Director

North Dakota Pipeline Authority

Industrial Commission Update

Market Uncertainty Has Never Been Higher

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North Dakota Prod.

Forecasts

Individual Well Prod.

Rates

Producer Reactions to Prices

Oil PricesGlobal Oil Supply & Inventory

Global Oil Demand

COVID-19

Traditional Levels of Uncertainty

Unprecedented new reality shaping decisions of

government, industry, and citizens at the global level

Major New Considerations

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North Dakota Prod.

Forecasts

Individual Well Prod.

Rates

Producer Reactions to Prices

Oil PricesGlobal Oil Supply & Inventory

Global Oil Demand

COVID-19

Timelines

“New Normal”

-OPEC+

-G20

-States

-Global

-Domestic

-Wellhead

-Completions

-Curtailments

-DUC Wells

-EUR’s

-GOR’s

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Statewide Well Performance

JJ Kringstad - North Dakota Pipeline Authority 4Average BKN/TF Well Performance Statewide

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Bakken Oil Production by IP Year

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Bakken Gas Production by IP Year

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Holding Oil Constant (No Shut-Ins, Weather, Etc.)Answering the question, “How many well completions to hold oil production flat?”

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Below Curve: Oil Production Dropping

Above Curve: Oil Production Increasing

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April 2020 Futures Curves

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Two Production Scenarios to Review

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Well Completions: NYMEX Futures

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Shut-In Assumptions: NYMEX Futures

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ND Oil Production: NYMEX Futures

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Forecast Shape Explanation

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ND Gas Production: NYMEX Futures

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Two Production Scenarios to Review

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Well Completions: EIA Price Deck

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Shut-In Assumptions: EIA Price Deck

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ND Oil Production: EIA Price Deck

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ND Oil Production: EIA Price Deck

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ND Gas Production: EIA Price Deck

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Base Case Oil Comparison

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Supporting Slides

Non-Confidential DUC Well Review

March 2020

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Bakken & Three Forks Formations

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Bakken Formation Three Forks Formation

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Uncompleted Wells Proximity to High Performance Wells

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Bakken Formation Three Forks FormationNon-Conf. NC/DUC and Drilling*

*NDIC Well Status 3-19-2020

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Uncompleted Wells Proximity to High Performance Wells

*NDIC Well Status 3-19-2020

Non-Conf. NC/DUC and Drilling*

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Uncompleted Wells Proximity to High Performance Wells

*NDIC Well Status 3-19-2020

Non-Conf. NC/DUC and Drilling*

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Uncompleted Wells Proximity to High Performance Wells

*NDIC Well Status 3-19-2020

Non-Conf. NC/DUC and Drilling*

Justin J. Kringstad, DirectorNorth Dakota Pipeline Authority

600 E. Boulevard Ave. Dept. 405Bismarck, ND 58505-0840

Phone: (701)220-6227Fax: (701)328-2820

E-mail: jjkringstad@ndpipelines.com

Websites: www.pipeline.nd.gov

www.northdakotapipelines.com

Contact Information

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