March 13, 2020 -- Like a Rock
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Members of the ND Industrial Commission (from left) Ag Commissioner Doug Goehring, Governor Doug Burgum and Attorney General Wayne Stenehjem, get a close-up look at the fossilized right hand of “Dakota the Dinomummy.” Learn more in the article below.
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Oil Price Plunges after Saudi-Russia Spat
Bakken Production to Retract if Low Price Lingers
Crude oil prices have fallen more than 25 percent the past week in the wake of a fallout in an oil supply agreement between Russia and the Organization of Petroleum Exporting Nations.
The price war began following a breakdown in dialogue between the parties. Saudi Arabia announced unexpected price discounts of $6 to $8 per barrel to customers in Europe, Asia and the United States, triggering a free fall in oil prices. Magnified by an economy-slowing coronavirus pandemic, the WTI price index fell as low as $30/barrel, which translates to a price in the $20s per barrel for producers in North Dakota.
Lynn Helms, director of the Department of Mineral Resources, said the drop in prices means the state's production will stop growing. Helms expects production will start to decline if the low price environment persists, but he said it will happen slowly.
Click
here to listen to Helms comments.
The last oil price war in 2014 also caused a drop in North Dakota oil production, but ND Petroleum Council President Ron Ness said producers were able to respond by improving efficiency and developing new drilling technology. However, Ness said the situation is different this time because there is not much room for additional improvement like there was in 2014.
Click
here to listen to Ness' comments.
Ness said the upside for North Dakota is that the Bakken is the most productive shale play and the state has a strong business climate, so the impacts will be somewhat less than in other oil plays.
Click
here to listen to Ness' comments.
Ness said it requires $20 million of capital investment per day to keep 55 rigs running in the state, a number which he expects will retract in coming months. But like Helms, he said for the near term the state's crude oil production will remain in the neighborhood of 1.5 million bbl/day.
Helms also notes that both the oil price war and the virus-related economic slowdown are temporary, so there is a brighter future still on the horizon.
Click
here to listen to Helms comments.
Helms was interviewed Wednesday on the radio program,
What's on Your Mind. Click
here and advance to the 2:45 mark to listen to the full interview. Ness was interviewed Tuesday on the radio program,
Energy Matters. Click
here and advance to the 00:20 mark to listen to the full interview.
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Gov. Burgum Urges Citizens Not to Panic
Take Precautions to Prevent Infection
With the announcement this week that North Dakota confirmed its first case of the COVID-19 coronavirus, state officials urged the public to remain calm and to use common sense to minimize the chance of contracting or spreading the virus.
The first confirmed case of the virus is a Minot man in his 60s who is recovering at home. At a news conference with the Department of Health yesterday, Gov. Doug Burgum said despite best efforts to contain the coronavirus, he expects the state will see additional cases.
Click
here to listen to Burgum's comments.
Burgum urged citizens to limit their exposure with frequent hand washing, especially after contact with frequently touched surfaces such as door knobs, gas pumps and ATM machines. He urged citizens who are sick to stay home to avoid infecting others, and use common sense.
Click
here to listen to Burgum's comments.
"We want to be making decisions on facts, not on fear," Burgum said "We want to focus on preparation and avoid any panic."
There have been numerous precautionary measures taken. The North Dakota Democratic-NPL Party has cancelled its convention that was to be held March 19-21 in Minot. The ND High School Activities Association also announced it will postpone the Class A basketball tournament and all remaining 2020 postseason state tournaments including the Class B boys event. All remaining fine arts and spring sports seasons have also been postponed indefinitely.
South Dakota officials took the extraordinary step of closing all K-12 schools for a week, but so far North Dakota is simply urging local school boards to use their best judgment.
Click
here to read guidance issued by Gov. Burgum and the Department of Health for events and public gatherings. Click here for
guidance issued by the Department of Public Instruction for school districts concerned about the virus.
Click
here to view video of Thursday's North Dakota Department of Health news conference on the department's Facebook page. Click
here to view another news conference with state officials held late this afternoon that included Superintendent of Public Instruction Kirsten Baesler.
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Zoning Hearing Turns into Community Event
Tailgating Party to Precede Underwood Discussion
A growing Facebook group called Faces of North Dakota Coal is planning a tailgate party that will precede a March 26 hearing in Underwood on proposed revisions to McLean County's zoning ordinances for transmission lines and power plants.
The proposed
zoning amendments are an apparent response to a recent announcement that Great River Energy will consider shutting down one or both units at Coal Creek Station, located just south of Underwood. The zoning proposal drafted by McLean County State's Attorney Ladd Erickson includes a background statement that references the Clean Power Plan proposed by the Obama Administration, declaring that it "politicized the important issue of man-made climate change by failing to credit North Dakota with its investments in carbon reduction technology, and existing renewable and hydroelectric power." It goes on to say, "The proposed zoning amendments are intended to ensure the rich history of environmentally sound electrical generation in McLean County and has legal siting rules to protect our citizen's 'general prosperity' and 'public welfare.'" The
background document also includes a declaration prepared by Erickson that was submitted in support of the State of North Dakota's lawsuit that resulted in the US Supreme Court's stay of the Clean Power Plan.
The Faces of North Dakota Coal group, which has more than 2,000 followers, is planning a tailgate party in the Underwood City Building parking lot "to show Coal Country’s support to our brothers and sisters at Coal Creek Station and Falkirk Mine." Attendees at the event, which is scheduled to begin at 5:00 p.m., are urged to wear black and white "to show that Faces of North Dakota Coal has a voice in the future of this industry we care so deeply about."
The McLean County Planning and Zoning Commission public meeting on the zoning revisions is set to begin at 7:00 p.m. at Underwood City Hall.
The zoning amendment proposes to add to the county's transmission siting requirements the option of issuing a moratorium for up to 24 months if it “needs time or information to study the impact of additional transmission lines or generation facilities on the health, safety, morals, public convenience, general prosperity, and public welfare of the citizens of McLean County.” It would also add to its zoning ordinance a requirement that transmission routes be selected to “minimize disorder and adverse human, economic, agricultural, environment, and wildlife impacts in the county." The amendments would also add language to a section on permitting power plants, refineries, etc. that the applicant provide documentation of its greenhouse gas and other pollutant releases, its baseload generation needs including blackout or brownout or reliability risks, impacts to coal mining in the county, and the right of the county to deny a permit until lands under mining control are released from bond and returned to private ownership. It would also require that any new transmission lines be set back at least a mile from the Missouri River, Lake Sakakawea and Lake Audubon.
Click
here to read the amendment. Click
here to see the Faces of North Dakota Coal Facebook page.
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Kenmare to Vote on School Bond
Patrons of the Kenmare School District will go to the polls next Tuesday to determine the fate of a $13.9 million bond issue that would construct additional classroom space and other facilities for students in the district.
In addition to building new elementary classrooms, the project would create flexible learning spaces, a new STEM center, a new gymnasium and locker rooms, and provide improvements to school safety and security. The largest expense is the classroom addition and learning space. High school improvements include expanding the kitchen, the school security system and the STEM lab. The new gym, which would double as a community center, accounts for less than one third of the total cost.
The district will host a community forum on the project Monday, March 16, at 7:00 p.m. at Kenmare High School. Polls will be open at Memorial Hall on Tuesday from 8:00 a.m. to 8:00 p.m. The bond measure will require a 60% margin of approval to pass.
Click
here for additional details about the project.
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NDIC Submits Comments on NEPA Reform
The North Dakota Industrial Commission submitted comments this week to the White House Council on Environmental Quality in support of proposed changes to the National Environmental Policy Act.
The document states that NEPA regulations "have too often been used in the past to delay or block (infrastructure) projects." The letter notes that NDIC strongly supports clarifying the definition of "timely decision making," and a two-year limit on completion of Environmental Impact Statements. It also supports a joint record of decision making requirement to streamline review for projects that involve approvals of multiple federal agencies.
NDIC also likes a change that clarifies the definition of "major federal action," pointing out that projects in North Dakota have been subject to significant delays because of federal involvement even at minimum levels. The comment letter also says the NDIC appreciates the addition of "reasonable alternatives" to the definitions to prevent wasted effort considering alternatives that are not feasible.
The Industrial Commission also supports inclusion of tribal coordination throughout the proposed rulemaking to ensure tribal nations are included. It also endorses a proposed change that will allow state, tribal and local agencies to become cooperating agencies, which allows local expertise to be part of the regulatory effort to preserve environmental quality.
Click
here to read the NDIC comment letter.
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State Planning New Exhibit for Dinomummy
North Dakota's most famous fossil will soon be housed in a new exhibit at the Heritage Center and State Museum.
Dakota the "Dinomummy,” a 67-million-year-old fossilized Edmontosaurus, is undergoing additional work in preparation for a new exhibit scheduled to open in May 2020.
Senior Paleontologist Clint Boyd told members of the Industrial Commission this week that the current exhibit displaying the fossil was always intended to be temporary. Work on the new exhibit began in January 2019 to get the specimen ready for the new display. Boyd said work is now underway to carefully remove bits of rock that still cover the fossil.
Click
here to listen to Boyd's comments.
Boyd said the fossilized remains of the duck-billed dinosaur are unique because they preserve not just the bones of the animal but actually a good portion of its skin.
Click
here to listen to Boyd's comments.
Boyd said Dakota was about 23 feet long and probably weighed seven tons. It was discovered in 1999 by Tyler Lyson while exploring the Hell Creek Formation on his uncle's ranch. Click
here to see a Wikipedia page that includes a high resolution photo of the animal's skin.
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Spring is Coming - Seasonal Load Restrictions
There's no doubt that spring is approaching when road restrictions begin on North Dakota highways.
The ND Department of Transportation and county administrators typically place load restrictions on highways from March to May, commonly known as frost law season. The agencies encourage truckers to check the load restriction information daily as it can change quickly due to weather conditions.
Click
here to view current restrictions posted on county roads through WDEA’s LoadPass Permits.
Click
here to sign up for notifications of new and updated county restrictions through email and text messages through LoadPass.
Click
here for the LoadPass road restriction map.
Click
here for the load restriction map for state highways published by NDDOT.
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Bakken Business 101 Postponed
Bakken Business 101, an event designed to assist business entry into the oil industry in western North Dakota, has been postponed due to public health recommendations related to COVID-19.
The event had been scheduled for March 18 in Fargo. Meeting organizers indicated a new date has not yet been set.
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Census: Count Everybody Born by April 1
The U.S. Census Bureau is conducting the decennial census across the nation, which has occurred every 10 years since 1790. The count plays a huge role in shaping the nation.
The goal is simple: to account for every living person in the U.S. born or living on or before April 1. The more people counted, the more U.S. representatives for the state and the more federal funding communities get. But the job is easier said than done.
“For the first time in 100 years we will change the first digit in the number of our residents to a ‘7’, with an expected 2020 census count somewhere above 760,000,” said Kevin Iverson, census office manager at the North Dakota Department of Commerce. “We will have spent a whole century of censuses through 2010 between 600,000 and 700,000.”
North Dakotans’ participation in the census helps determine every community’s share of federal funds that were collected through federal taxes – more than $675 billion each year.
“It’s very crucial that every person residing in North Dakota, whether a resident or not, is counted,” said Iverson. “We as a state have to live with the results of the 2020 census for the next 10 years.”
Over the course of the decade, each person counted brings approximately $19,100 in federal tax dollars back to North Dakota. If one household is missed, that means that $44,312 that would have otherwise come to the state to help support critical education, health care and infrastructure programs, will instead go to states like California or New York.
The U.S. census takes just 10 minutes to complete, and responses should reflect where residents spend most of the year, not where they are on Census Day (April 1) or where they claim residency in 2020.
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Gateway to Science STEM Golf Scramble
Playing Legendary St. Andrews Old Course
Thoughts of golf are a sure sign of spring. EnerPLUS, Halliburton and the Gateway to Science have scheduled an indoor golf tournament on Saturday, March 21 at Golf Etc. in Bismarck to raise awareness and support the new Gateway to Science building now under construction.
The indoor tournament will feature 18 holes of simulated golf on the legendary St. Andrews Old Course. Interested individuals can join as a golfer or as a sponsor. As in most golf events, there will be a long drive and closest to the pin competition along with prizes.
The event is an opportunity to show support for STEM education and to help make the new Gateway to Science facility a reality.
For more information or to register, click
here.
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2020 WBPC Agenda Announced
The event has become the largest conference in North Dakota and it’s scheduled for the Bismarck Event Center on May 19-21.
Event organizers released the conference agenda this week that includes 17 Bakken CEOs and executives. Click
here to view the agenda.
”The WBPC is one of the top oil conferences in the country. We have an incredible lineup of speakers,” said Ron Ness, president of the North Dakota Petroleum Council, the lead organizer of this year’s conference. “We are excited to feature the latest technologies that have helped turn the Bakken into a world-class resource and discuss the way forward to help take the Bakken and Williston Basin to the next level.”
The conference will feature more than 70 speakers and presenters, each sharing insights on the latest issues impacting oil and natural gas development and what the future holds for the Williston Basin.
The list of speakers includes Mike Sommers, the president and CEO of the American Petroleum Institute addressing The State of American Energy. API is the only national trade association that represents all aspects of America’s oil and natural gas industry.
Click
here to register for the conference. Click
here for an article from the Bismarck Tribune.
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Write it Down on Your Calendar!
WDEA 2020 Annual Meeting
Get this date on your calendar! The Annual Meeting of the Western Dakota Energy Association will be held:
October 7-8, 2020
The Grand Williston Hotel & Conference Center
Williston, ND
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Quick Connect
- North Dakota reassessing budget in wake of dropping prices -- KFYR-TV
- ND's oil industry hopes for only 'a blip' as prices collapse -- Bismarck Tribune
- ND oil producers at disadvantage when crude prices are low -- Star Tribune
- ONEOK will cut Demicks Lake expansion, scale back Elk Creek pipeline -- Williston Herald
- Hamm leads effort in anti-dumping case against Saudia Arabia, Russia -- Williston Herald
- Canadian firm, TC Energy, starts US prep work for Keystone XL pipeline -- Associated Press
- PSC Hearing: Questions about Garden Creek spill linger for ONEOK -- Williston Herald
- Lawsuit accuses oilfield services company of massive fraud, racketeering -- Williston Herald
- North Dakota Voters First submits proposal to reform state elections -- Bismarck Tribune
- Williston District 1 and District 8 start talking about high school again -- Williston Herald
- Four North Dakota schools apply for 4-day weeks in 2020-21 school year -- Bismarck Tribune
- Minot School District acquires 70 acres near Ramstad for future use -- Minot Daily News
- Dickinson State suspends in-person classes over coronavirus concerns -- Dickinson Press
- ND Department of Transportation using drones for flood emergencies -- KFYR-TV
- ND school superintendent, Kirsten Baesler, pleads guilty to DUI charge -- Bismarck Tribune
- Insurance commissioner urges insurers to cover coronavirus testing -- Minot Daily News
- Despite endorsement loss, Rep. Jeff Delzer plans primary run in District 8 -- Bismarck Tribune
- Mark Haugen, Bismarck Democrat, announces bid for ND treasurer -- Bismarck Tribune
- Addiction treatment access poised to expand across North Dakota -- Bismarck Tribune
- New CO2 capture technology coming to Richardton Red Trail ethanol plant -- KX News
- Police Chief Frank Senn: Drug related crimes on the rise in Beulah -- Beulah Beacon
- Weiler and Harms: North Dakota will need the Legacy Fund earnings -- Fargo Forum
- Democrat leaders: Invest Legacy Fund earnings in North Dakotans first -- Bismarck Tribune
- OPEC countries are bleeding over $500 million a day in oil price crash -- Hart Energy
- U.S. producers Apache, Devon, Murphy Oil slash budgets by 30% or more -- S&P Global
- Cyberthreats to electric grid are escalating fast; we must keep up -- Morning Consult
- Death of coal exaggerated as banks finance projects in China, Japan -- Bloomberg Green
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Factoid of the Week
If a fracking ban is implemented, the Unites States' movement to enhanced energy self-sufficiency would be halted in its tracks as the nation goes back to more reliance on foreign suppliers for 21% of total energy needs by 2030. Additionally, the nation would witness a cumulative GDP loss of $7.1 trillion by 2030 plus lose 7.5 million jobs in 2022.
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March 16
Bismarck
March 17
Kenmare
March 19
Bismarck
March 19
Bismarck
March 19
Watford City
March 24
Bismarck
March 25
Bismarck
March 26
Underwood
March 26
Bismarck
March 27-28
Bismarck
April 1
Bismarck
April 1
Bismarck
April 2
Bismarck
April 9
Bismarck
April 15-16
Bismarck
April 21-23
Four Bears - New Town
April 28-30
Watford City
May 19-21
Bismarck
June 8-11
Bismarck
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Oil prices and rig count
March 13, 2020
WTI Crude: $31.73
Brent Crude: $33.85
Natural Gas: $1.87
North Dakota Active Rigs: 55 (unchg)
3/13/
2019
-- 65 rigs
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Geoff Simon
Editor/Executive Director
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