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

JJ Kringstad - North Dakota Pipeline Authority 2

Cushing $58.33

Brent $63.62WTI + $5.29

Crude Oil Prices – Nov. 21, 2019

3JJ Kringstad - North Dakota Pipeline Authority

Pricing Data: Bloomberg &

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


EIA Forecasted Oil Price (October 2019)

44JJ Kringstad - North Dakota Pipeline Authority 4

5

Statewide oil Performance

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

~4% Improvement

Over 2018


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

7

Statewide Gas Performance


~10% Improvement

Over 2018

8

Statewide Gas-Oil Ratio


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


10

Natural Gas Update

Production

• Technology

• Markets

Gathering

• Capacity

• Connections

Processing

• Capacity

• Location

Transmission

• Dry Gas



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



Solving the Flaring Challenge



Solving the Flaring Challenge – Gas Connections


14

Natural Gas Update

Production

• Technology

• Markets

Gathering

• Capacity

• Connections

Processing

• Capacity

• Location

Transmission

• Dry Gas



Gas Processing Expansions

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

Recent Gas Processing Expansions


Planned Gas Processing Expansions

670 MMCFD

625 MMCFD


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



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


Historical

Historical

Expected Capacity

& Production

Expected Capacity

& Capture Targets


Gas Processing Capacity & Spare Capacity


HistoricalExpected Capacity

& Capture Targets




Historical

9%

24%

Expected Capacity

& Capture Targets




HistoricalExpected Capacity

& Capture Targets

9%

23

Natural Gas Update

Production

• Technology

• Markets

Gathering

• Capacity

• Connections

Processing

• Capacity

• Location

Transmission

• Dry Gas



Major Gas Pipeline and

Processing Infrastructure

WBI Transmission

Whiting


WBI Energy – North

Bakken Expansion Project


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


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


Northern Border Pipeline Market Share

NDPA Calculations Using Northern Border IPS

~1,150+ BTU

~1,035 BTU


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


Northern Border – BTU Calculations*

*Assumes Equivalent Net Replacement of 1,035 Canadian Gas

Bakken Natural Gas Infrastructure


Northern Border Proposed Expansion Options


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


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

40


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: [email protected]

Websites: www.pipeline.nd.gov

www.northdakotapipelines.com

Contact Information


http://www.pipeline.nd.gov/

http://www.ndpipelines.wordpress.com/

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

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