industrial commission updatenov 25, 2019  · •dry gas •natural gas liquids jj kringstad - north...

November 25, 2019

Justin J. KringstadGeological Engineer

Director

North Dakota Pipeline Authority

Industrial Commission Update

2

Natural Gas Update

Production

• Technology

• Markets

Gathering

• Capacity

• Connections

Processing

• Capacity

• Location

Transmission

• Dry Gas

• Natural Gas Liquids

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Cushing $58.33

Brent $63.62WTI + $5.29

Crude Oil Prices – Nov. 21, 2019

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Pricing Data: Bloomberg &

CME (LLS-Argus)LLS (Argus)WTI + $4.58

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EIA Forecasted Oil Price (October 2019)

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Statewide oil Performance

JJ Kringstad - North Dakota Pipeline Authority 5Average BKN/TF Well Performance Statewide

~4% Improvement

Over 2018

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North Dakota Oil Production Forecast Assumes Current Technology – Enhanced Oil Recovery Not Included

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Statewide Gas Performance

JJ Kringstad - North Dakota Pipeline Authority 7Average BKN/TF Well Performance Statewide

~10% Improvement

Over 2018

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Statewide Gas-Oil Ratio

JJ Kringstad - North Dakota Pipeline Authority 8Average BKN/TF Well Performance Statewide

NDPA North Dakota Gas Production ForecastAssumes Current Technology – Enhanced Oil Recovery Not Included

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Natural Gas Update

Production

• Technology

• Markets

Gathering

• Capacity

• Connections

Processing

• Capacity

• Location

Transmission

• Dry Gas

• Natural Gas Liquids

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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.

Sep. 2019 Data – Non-Confidential WellsStatewide

Solving the Flaring Challenge

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Solving the Flaring Challenge

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Solving the Flaring Challenge – Gas Connections

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Natural Gas Update

Production

• Technology

• Markets

Gathering

• Capacity

• Connections

Processing

• Capacity

• Location

Transmission

• Dry Gas

• Natural Gas Liquids

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Gas Processing Expansions

JJ Kringstad - North Dakota Pipeline AuthorityJJ Kringstad - North Dakota Pipeline Authority 15

Recent Gas Processing Expansions

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Planned Gas Processing Expansions

670 MMCFD

625 MMCFD

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Solving the Flaring ChallengeAssumes Current Technology – Enhanced Oil Recovery Not Included

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Gas Processing Capacity & Future OutlookAssumes Current Technology – Enhanced Oil Recovery Not Included

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Historical

Historical

Expected Capacity

& Production

Expected Capacity

& Capture Targets

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Gas Processing Capacity & Spare Capacity

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HistoricalExpected Capacity

& Capture Targets

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Gas Processing Capacity & Spare Capacity

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Historical

9%

24%

Expected Capacity

& Capture Targets

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Gas Processing Capacity & Spare Capacity

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HistoricalExpected Capacity

& Capture Targets

9%

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Solving the Flaring ChallengeAssumes Current Technology – Enhanced Oil Recovery Not Included

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Natural Gas Update

Production

• Technology

• Markets

Gathering

• Capacity

• Connections

Processing

• Capacity

• Location

Transmission

• Dry Gas

• Natural Gas Liquids

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Solving the Flaring ChallengeAssumes Current Technology – Enhanced Oil Recovery Not Included

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Major Gas Pipeline and

Processing Infrastructure

WBI Transmission

Whiting

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WBI Energy – North

Bakken Expansion Project

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Project Highlights

• 67 Miles - 20” Pipeline

• 20 Miles - 12” Pipeline

• $220+ Million

• At least 250,000 MCFD Capacity (expandable)

• 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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Northern Border Pipeline

*Data Source: Northern Border IPS

Northern Border BTU at Glen Ullin, ND

JJ Kringstad - North Dakota Pipeline Authority 28*Data Source: Northern Border IPS

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Northern Border Pipeline Market Share

NDPA Calculations Using Northern Border IPS

~1,150+ BTU

~1,035 BTU

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NB Pipeline Interconnects With Known BTU Limits

JJ Kringstad - North Dakota Pipeline Authority 31Map Source: TC Energy Website

JJ Kringstad - North Dakota Pipeline Authority 32Map Source: TC Energy Website

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Northern Border – BTU Calculations*

*Assumes Equivalent Net Replacement of 1,035 Canadian Gas

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Solving the Flaring ChallengeAssumes Current Technology – Enhanced Oil Recovery Not Included

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Bakken Natural Gas Infrastructure

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Northern Border Proposed Expansion Options

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Two Proposed Options:

Stateline/Watford City to Ventura

-580 Mdth Incremental (~525 MMCFD)

-Phase 1: Q3 2021

-Phase 2: Q4 2023

Stateline/Watford City to Cheyenne

-430 Mdth Incremental (~390 MMCFD)

-Phase 1: Q3 2021

-Phase 2: Q4 2022

Residue Gas Storage Update – WBI Baker

3737JJ Kringstad - North Dakota Pipeline Authority 37Data Source: WBI Energy

Regional NGL Infrastructure

Kinder

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Ma

rath

on

Pe

tro

leu

m

North Dakota Captured* NGL’s

3939JJ Kringstad - North Dakota Pipeline Authority 39*Non-flared NGL’s & Assumes 10 GPM

NGL Pipeline Takeaway Options

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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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