January 17, 2020 -- Another day in God's country
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Anyone who grew up in the south would probably be unnerved driving in conditions like this scene on I-94 near Richardton, but it's just another wintry day for North Dakota motorists.
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Oil Production Held Steady in November
Progess is Happening on Natural Gas Capture
Concern about Impact of Spring Road Restrictions
North Dakota crude production held nearly stead in the month of November, dropping just 0.2% from the record October production figure which topped 1.5 million barrels for the first time.
Producers also improved their natural gas capture rates during the month, according to Lynn Helms, director of the Department of Mineral Resources. In his monthly Director's Cut news conference, Helms said he expects production to remain relatively steady during the winter months, but said he's concerned that weight restrictions to protect roads as frost comes out of the ground could have a bigger impact than usual.
Preliminary November figures show production totaled 45,462,112 barrels, or an average of 1,515,404 bbl/day. That's just slightly less than the 1,517,936 bbl/day number for October. The state's natural gas capture rate improved slightly in October to 83%, which is still short of the 88% target. Helms said he expects the number to continue to improve because additional pipeline infrastructure has come on line and more natural gas processing plants are at full capacity.
Click
here to listen to Helms' comments.
Helms said despite cold winter weather driving natural gas consumption, the market is still oversupplied and prices are low, so the state's gas capture regulations are needed to incentivize new infrastructure.
Click
here to listen to Helms' comments.
Helms said he expects oil production to remain relatively steady through the rest of the winter, but is concerned that industry will see impacts this spring when frost law restrictions take effect. He said because conditions were wet heading into winter, weight restrictions could be in place longer than usual.
Click
here to listen to Helms' comments.
"We could see a situation where road restrictions stay on until Father's Day instead of Mother's Day," Helms quipped.
Click
here to read the January Director's Cut.
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Frost Law Meeting February 4 in Williston
Oilfield trucking companies are being invited to attend the Williams County Highway Department's annual frost law meeting February 4 in the Williams County Commission Room, 206 East Broadway, in Williston. The meeting will begin at 1:30 p.m. CST, and seating is limited.
The agenda will include discussion of WDEA's LoadPass uniforn truck permit system including recent permit changes and additions. The meeting will also cover load restrictions that are planned when frost laws go into effect, permits regarding approaches and road crossings, a discussion of changing weight restrictions during inclement weather to 20,000 GVW, dust control and the county's proposed construction projects.
Click
here to see the agenda.
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Behavioral Health Summit Set for Watford City
People from all walks of life concerned about the impacts of behavioral health are being urged to attend a conference on the topic April 28-30 in Watford City.
The Summit on Behavioral Health in Energy Country is being organized by Vision West ND in partnership with USDA Rural Development. The North Dakota Division of Behavioral Health and the Mountain Plains Addiction Technology Transfer Centers are also part of the planning process.
The planning committee is chaired by Dan Kelly, administrator for McKenzie County Healthcare Systems in Watford City. Kelly said organizers hope to attract 200 attendees to the event.
"We're looking at pastors, we're looking at educators, we're looking at EMS, we're looking at social workers (and others)," he said.
Kelly said he's reached out to various behavioral health service providers in the state, and the people he spoke with were excited about the conference.
"I think we're on track and there may be decent demand for this," Kelly said. "I think it would be wonderful if we sold out."
The event will include an awards ceremony that will recognize Excellence in Behavioral Health Care; a Champion of Change; Community Innovation; Corporate Excellence in Behavioral Health and a Young Influencer Award. Organizers are seeking sponsors for the event which will used to provide scholarships to attend the summit. Click
here for additional details and registration information.
Click
here to see the agenda for the summit.
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Hennessy New President of Vision West
Mountrail County Ag Agent Jim Hennessy is the new president of Vision West ND, assuming the role at the consortium's meeting this week in Halliday.
Hennessy succeeds Dunn County Commissioner Daryl Dukart, who served as president from 2015-17, and stepped into the leadership spot again in 2019. Hennessy said he has "big shoes to fill" in taking over the role of president. He presented Dukart with an engraved pocket knife as a memento of his leadership.
Dukart said the strength of the Vision West Consortium is not in its leaders or executive team, but in the members who've found an interest in the organization and who've worked together to deliver positive results.
"There are issues of housing, child care and reclamation that I don't think we're ever going to completely solve," Dukart said, "But as a group we're coming up with small solutions, we're coming up with answers, and we're also making some difference with our political friends."
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Iowa Wants More Info from DAPL
The Iowa Utilities Board issued an order this week that will require Dakota Access LLC to provide additional information about its plan to nearly double the capacity of the DAPL crude oil pipeline which runs through the state.
The "optimization" project would expand the existing transport capacity from 570,000 barrels per day to 1.1 million bbl/day.
The IUB order requires Dakota Access to provide an explanation of the effect that a drag-reducing additive will have on the longevity of pipeline components, whether the additive will increase the risk of a spill, and whether the increased flow will increase the amount of oil released if a spill occurs.
The board also wants to know the current maximum operating pressure of the pipeline and the proposed maximum actual operating pressure after completion of the improvements. The order also seeks a list of permits or approval requirements from other local, state and federal government agencies and the status of each permit or approval, as well as information about the status of any outstanding damage claims against the company, and whether Dakota Access plans to increase its patrol or inspection of the pipeline right-of-way after the increase of the transport capacity of the pipeline begins.
The company has been provided 30 days to respond to the IUB order, after which time the board will review the information and determine next steps. Click
here to read the eight-page order.
Action on the DAPL expansion project is also pending in North Dakota and Illinois. The ND Public Service Commission has scheduled a January 23 working session on the planned construction of a pumping station in Emmons County. The Illinois Commerce Commission has scheduled an evidentiary hearing on the project February 10-11 in Chicago.
Click
here to see a short video that explains the optimization project.
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Bohrer: Government is Coal's Biggest Threat
The president of the Lignite Energy Council says the industry's biggest threat doesn't come from a physical or cyber attack, or competition from other forms of energy. Its biggest threat is the United States government.
In an interview on the radio program,
What's on Your Mind, LEC President Jason Bohrer touted some of the industry's recent accomplishments. He said power plants and utilities have fortified defenses against physical attacks to infrastructure and improved cybersecurity to ward off electronic attempts to damage or take control of the electric grid. Bohrer said it's a sad statement, but lignite's biggest threat comes from Washington DC.
Click
here to listen to Bohrer's comments.
Bohrer said operators of electric generation plants have made great strides to improve their efficiency, and continue to find ways to make them cleaner, more affordable and more reliable. He said the past year also produced major progress on Project Tundra, which aims to capture carbon dioxide from the Milton R. Young station and use it for enhanced oil recovery.
Click
here to listen to Bohrer's comments.
Bohrer also noted passage of Operation Prairie Dog legislation (
HB 1066) by the 2019 Legislature. The bill is mostly associated with providing oil tax revenue for infrastructure projects in non-oil producing counties and securing the distribution of gross production revenue to western cities and counties. But the bill also earmarks $10 million in oil tax revenue for the Lignite Research Fund. Bohrer said it creates an opportunity for the coal and oil sectors to work together.
Click
here to listen to Bohrer's comments.
Click
here and advance to the 30:25 mark to listen to the full
What's on Your Mind interview with Bohrer.
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Burgum Touts Progress at Conference
Gov. Doug Burgum highlighted collaboration with North Dakota’s tribal nations the past three years during the Strengthening Government to Government Partnerships and Relationships Conference this week in Bismarck.
Burgum cited several examples of partnerships and collaboration which he said are really only possible "because of the foundation of trust, understanding and mutual respect.”
"We know that this real progress is just the beginning," Burgum said. "We know that there are serious gaps that still exist, and we know that each of the tribal nations represented in our state have different challenges, approaches, opportunities and needs."
About 300 people registered for the conference, similar to the turnout for the first two gatherings.The North Dakota Indian Affairs Commission hosted the conference at Bismarck State College.
Burgum highlighted the progress made in the past year through a variety of state-tribal agreements:
- A compact signed by Burgum and MHA Chairman Mark Fox that changed how the state and tribes share tax revenue from new oil and gas activity on trust and fee lands.
- The ND Department of Human Services and the chairs of the four tribal nations signed updated agreements to enhance child welfare services for Native American children and families.
- Burgum directed the flags of the five tribal nations that share geography with North Dakota to be displayed in the Capitol’s Memorial Hall for the first time.
- Legislation authorized the governor to enter state-tribal agreements for sales, use and gross receipts taxes, as well as distribution of alcohol and tobacco taxes.
Topics for the conference included tourism and economic development, historic preservation, electronic gaming, youth leadership, the 2020 census, environmental quality, education governance, missing and murdered indigenous women, and improving health care.
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Boardings Up at Airports in Western ND
Passenger boardings were up last year at nearly all commercial airports in North Dakota, led by Williston which saw a nearly 20% increase in passengers in 2019.
More than 88,000 passengers boarded commercial flights in Williston thru December last year, up from just under 74,000 in 2018. The numbers are still well short of peak travel years at the height of the oil boom in 2014 when nearly 120,000 passengers flew out of the Williston airport.
Passenger numbers were also up about 10% in Minot, which saw nearly 166,000 people board flights in 2019, up more than 14,000 from the previous year. Minot peaked at 222,000 boardings at the height of the boom. Dickinson's passenger count was up about 6%, with nearly 24,000 commercial passengers last year.
Fargo remains the state's busiest airport by far with more than 471,000 passengers in 2019, up nearly 50,000 from the previous year. Bismarck is No. 2 with nearly 310,000 passengers, up about 27,000 from its 2018 total. Overall boardings were up just over 10% statewide.
Click
here to see a table showing boardings from all eight commercial airports.
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Feature Film to be Shot in Badlands
Shooting is scheduled to begin in May 2020 in the Badlands near Medora on a new movie entitled "Sanctified."
The film is a collaborative effort between executive producer Daniel Bielinski, theater chair at the University of Mary, and the Bismarck production company, D&N Cinematics.
According to a
Kickstarter page established to support the project, the movie is set in the 1890s and is the story of an outlaw who is rescued from death by a nun traveling through the Badlands. She nurses him back to health in exchange for him guiding her to a church in Williston. A deep friendship develops between the two unlikely characters as they learn to work together to survive.
The team has produced other films, the most recent of which was The Badlands Girl, which was a testament to the viability of creating a film in the picturesque Badlands of western North Dakota, and demonstrated wide audience interest and support for this type of film.
Auditions are scheduled for the parts of several outlaws and nuns needed for the film, which are open to men and women ages 18-70. They will be held January 31 in
Bismarck and February 1 in
Medora.
The team expects Sanctified to be in theaters in spring 2021.
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Roundtable Presentations On-Line
The Western Dakota Energy Association and the Upper Great Plains Transportation Institute/NDLTAP co-hosted a western North Dakota roads roundtable December 18 in Watford City to bring together county road managers and oilfield trucking interests to discuss common issues and concerns.
With support from the NDDOT, the Federal Highway Administration and the Minot Air Force Base, more than 120 transportation users, owners and industry leaders attended.
Links to all the presentations are now available on the UGPTI
website, or click any of the links below.
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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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Census Committee to hold Workshop at BSC
North Dakota's Complete Count Committee has scheduled a workshop to be held at the Bismarck State College National Energy Center of Excellence on February 3 for Census volunteers and anyone who wants to know more about the impact the decennial event has on the state of North Dakota.
Registration opens at 9:00 a.m. for the event which is scheduled to run from 10:00 - 3:00. Lunch will be included. Attendees can expect to hear:
- Remarks from the Governor's Office and Commissioner Michelle Kommer
- Introductions from the North Dakota State Task Force and US Federal Census
- Breakout sessions by geographic region for formed and newly formed CCC's
- Media panel with updates and materials for your complete count committees
- Networking breaks to connect with others in your same position
Click
here to see the agenda. Click
here to register to get free tickets.
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REGISTRATION NOW OPEN
Williston Basin Petroleum Conference
After a long, cold winter it will be nice to see springtime and the 2020 Williston Basin Petroleum Conference scheduled for Bismarck. Along with green grass and spring temperatures, expect to see another excellent line-up of speakers plus a sold-out trade show.
The new conference
website features opportunities to enhance the participant experience and increase exposure. Registration is now open for the event scheduled for May 19-21. Click
here to register.
The website also features new information and features for exhibitors including an interactive map to allow vendors to select specific booths. Space will fill quickly so conference organizers suggest making plans now.
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Energy Impact Grants Available
The Board of University and School Lands is accepting applications for grants available to oil and gas development-impacted political subdivisions including cities, counties, school districts, and other taxing districts.
The grants are targeted to offset costs incurred for an emergency or unanticipated incident where the damage is directly related to, or impacted by, current oil and gas development. An advisory committee will review the eligible applications and make recommendations to the Land Board, which will make the final decision to award the grants.
The Energy Infrastructure and Impact Office will accept applications from eligible political subdivisions through 5:00 p.m. CST on January 31. Late applications will not be considered.
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Quick Connect
- TC Energy to resume work on Keystone XL oil pipeline in February -- Reuters
- Tioga study shows its air has plenty of room for a petrochemical plant -- Williston Herald
- Large oil patch property sale indicates continued strong Bakken demand -- Bismarck Tribune
- One Basin One Way developed with TrainND getting national attention -- Williston Herald
- Williston State College revises well control classes through TrainND program -- KXMB-TV
- Prairie Dog Bill funding update; designed to pay in stages reaching cities by 2021 -- KFYR-TV
- Burgum, Hoeven & Cramer: Trade deal major win for ND farmers, ranchers -- Minot Daily News
- North Dakota state budget report shows strong economic growth and low debt -- KFYR-TV
- North Dakota leads all states in tax collection growth since Great Recession -- Fargo Forum
- District 8 school superintendent wants to calm the turmoil in Williams County -- KFYR-TV
- District 1 rejects District 8's proposal to share costs of high school addition -- Williston Herald
- Joanna Baltes, District 1 school board president, will resign later this year -- Williston Herald
- Williston High School offers North Dakota's only oilfield CTE classes at that level -- KXMB-TV
- School board accepts results of election; bond referendum officially approved -- Beulah Beacon
- Dickinson State College plans layoffs, eliminating programs in budget cuts -- Bismarck Tribune
- School board votes to fund high school Success Academy, keep schedule -- Dickinson Press
- Minot hires new police chief, John Klug to replace retiring Jason Olson -- Minot Daily News
- NDDOT seeks comments on 2020 transportation improvement program amendment -- KXMB-TV
- Dickinson Press to become weekly, not daily, focus on local news & info -- Dickinson Press
- Lawmakers ponder how to better use natural gas; solution for wet grain -- Fargo Forum
- EPA science advisory panel says air quality regulatory program is worthless -- Inside Sources
- U.S. oil and natural gas proved reserves and production set new records in 2018 -- EIA
- Bellingham, Washington natural gas ban to cost consumers big money -- Energy In Depth
- Energy production on federal lands boosts jobs and revenues in several key states -- IER
- Energy markets are in transition, and investors are retreating. Here’s why. -- CNBC
- EIA expects lower natural gas prices in 2020 as production outpaces demand -- EIA
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Factoid of the Week
In 2018, fossil fuels provided 80.2% of all primary energy consumed in the United States. Petroleum led the way with 36.5%, natural gas with 30.6% and coal provided 13.1%. The leading non-fossil fuel energy type was nuclear providing 8.3%. All others provided less than 3% each including wind, wood, hydroelectric, biofuels, solar, biowaste and geothermal energy.
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January 21
Bismarck
January 21
Bismarck
January 22
Bismarck
January 22
Bismarck
January 22-23
New Town
January 29
Bismarck
January 29 - 31
Fargo
February 3
Bismarck
February 4
Williston
February 4
Bismarck
February 6
Bowman
February 8
Williston
February 13
Bismarck
March 16
Bismarck
February 18
Bismarck
February 19-20
Watford City
February 24-27
Bismarck
February 25-26
Dickinson
March 19-21
Minot
March 27-29
Bismarck
May 19-21
Bismarck
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Oil prices and rig count
January 17, 2020
WTI Crude: $58.54
Brent Crude: $64.85
Natural Gas: $2.00
North Dakota Active Rigs: 56 (up 1)
1/17/2019
-- 68 rigs
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Geoff Simon
Editor/Executive Director
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