April 17, 2020 -- Lonesome Tumbleweed
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With many businesses closed by the coronavirus pandemic, this tumbleweed gives Crosby’s Main Street the look of a Wild West ghost town. (
photo by Brad Nygaard, Crosby Journal
)
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ND Oil Industry Shutdown Continues
4,600 Wells Shut in, 260,000 Barrels Per Day
Rig Count Drops to 32, More Expected to Idle
The rapid decline of North Dakota's oil production is not reflected in official February figures released this week, but the decline is happening quickly and production will continue to drop off as oil prices fall.
In his monthly Director's Cut report, Lynn Helms, director of the Department of Mineral Resources, said February production averaged 1.45 million barrels per day. But as of mid-April, Helms said reports from the industry suggest 4,600 wells have been shut down, reducing average daily production by about 260,000 barrels per day.
Unfortunately, Helms said with crude oil prices on the WTI index falling below $20/bbl today and the state's active drilling rig count dropping to just 32, production will continue to decline as drilling activity slows and more wells are shut down in the coming weeks and months.
Click
here to listen to Helms' comments.
Helms said a recent policy change by the Industrial Commission will allow oil companies to idle wells for a longer period of time without having to either plug and abandon the well or bring it back into production. He pointed out that a producing oil well costs about $7 million dollars, $3 million of which is the drilling, and another $4 million to complete the well. Helms said the policy should allow companies to maintain more of their experienced workforce during the downturn.
Click
here to listen to Helms' comments.
Helms said his department has provided information about its production estimates to Moody's Analytics, a firm with which the state contracts for revenue forecasting services. He expects financial models will be used to project how much tax revenue will be lost, which in turn will allow the state to develop budget guidelines for state agencies.
Click
here to read Helms' Director's Cut or here to see the April webinar. Click
here to read Amy Sisk's coverage of Helms' news conference in the Bismarck Tribune.
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Burgum Extends Restrictions 10 Days
Plan Proposed for Reopening State's Economy
Gov. Doug Burgum announced this week that he is extending access restrictions on certain businesses an additional 10 days, and outlined a path for them to reopen as the number of COVID-19 cases in North Dakota continues to climb.
Burgum amended an executive order that extends closures through April 30 for businesses including health clubs and athletic facilities; movie theaters and music/entertainment venues; bars and restaurants except for take-out, delivery, curbside and drive-through; salons and barber shops; and personal care services including tattoo parlors, tanning and massage facilities.
Burgum said the state's low infection rate shows it's on the right track, but not far enough to safely lift business restrictions.
Click
here to listen to Burgum's comments.
At his daily news conference on Wednesday, Gov. Burgum outlined a list of items that need to be in place to begin a gradual reopening process in May.
Click
here to listen to Burgum's comments.
Burgum said the state must also continue to focus on protecting the state’s most vulnerable populations. He said it's also essential that North Dakota have sufficient health care capacity and hospital/ICU beds, which he believes the state has, and have adequate personal protective equipment to protect health care workers and the public. Burgum said the state must also be prepared to deal with a resurgence of the virus or additional waves of COVID-19 infections.
The economic reopening, dubbed "ND Smart Restart," will involve the state working with associations that represent the businesses affected by the closures to develop new standard operating procedures for reopening. That may include daily disinfection procedures, mandatory health and hygiene protocols for employees, discontinued use of shared items, limiting the number of customers allowed into the business at one time, and requiring that masks be worn inside the business.
The state Health Department today confirmed 46 new cases of COVID-19, by far the highest single-day total to date, bringing the state’s total to 439 confirmed cases, with 172 recovered, nine deaths and 16 currently hospitalized. A total of 12,342 tests have been completed.
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State's Attorney Tells County Coal Board
Wind Farm Being Used to Kill Coal Plant
Presenting to a special meeting of the Coal Conversion Counties Association this week, McLean County State's Attorney Ladd Erickson said he believes a proposal to build an 800-megawatt wind farm in the region is being used to justify shutting down Coal Creek Station.
Great River Energy, the owner of the 1,100 megawatt coal plant near Underwood, announced in January that it was considering shutting down one or both units and would replace the generating capacity with wind turbines backed by a natural gas-fired plant. Erickson said most wind farms offer an economic benefit to the region in which they are built, generating additional tax revenue, new jobs and lease payments to landowners. But he said the plan being considered by GRE is different.
"This is using wind turbines to destroy a perfectly modern, up-to-date, power plant that is desperately needed for baseload energy supply," Erickson said. "The grids have gotten so weak with this green energy that these power plants have become a security interest."
He told the CCC board, which is made up of city, county and school reps from McLean, Mercer and Oliver Counties, that the possible shutdown of the coal plant would be huge economic loser for communities that benefit from the plant and the associated Falkirk Coal Mine. Erickson said closing the plant would eliminate $150 million in annual payroll, and mean loss of business for more than 1,000 vendors that sell filters, lubricants, chemicals and other products to the plant. He said the jobs associated with a wind farm pale in comparison.
"What's going on is one of the most energy-efficient, environmentally-friendly lignite coal plants in the entire country is being attacked by a replacement economy that is like a penny on the dollar for North Dakota and our region," Erickson said.
The power generated by Coal Creek goes to GRE's co-op customers in Minnesota via a high voltage DC transmission line. Erickson believes GRE intends to re-purpose the line to carry power from the proposed wind farm instead. But McLean County gained some leverage in the negotiation with its passage last month of amendments to its zoning ordinances, one of which would require a one-mile setback from the Missouri River, Lake Sakakawea, and Lake Audubon for electrical power transmission lines from permitted wind turbines. That requirement will make it much more difficult for GRE to build new transmission lines across the county to connect the power from wind turbines to the DC line.
GRE has said it will announce its decision about the possible plant closure some time this year. Details of the proposed arrangement were spelled out in a recent
letter that GRE sent to the McLean County Planning and Zoning Commission.
Click
here to read an op-ed by Rob Port that explains how the loss of Coal Creek Station's 24/7 generation could threaten the reliability of the electric grid.
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TR National Park Shut Down Thru May 9
Lack of Restrooms Cited as Primary Reason
A decision earlier this year by Interior Secretary David Bernhardt to temporarily waive entrance fees at national parks produced an unexpected surge in attendance at Theodore Roosevelt National Park. But with more than twice as many visitors as the park normally sees during the winter months, it created a problem - not enough staff on duty to keep the place clean.
Park Director Wendy Ross said the number of park employees is scaled back during the winter, and additional staff won't be on duty until May. Ross said the problem is complicated by the fact that incoming staff are from out of state, and guidelines require them to self-quarantine for 14 days before going to work. That leaves the park short-handed for the next three weeks, and Ross said staff on duty were not able to keep up with proper maintenance.
Click
here to listen to Ross' comments.
Ross said the next wave of staff will arrive on April 23, and after the mandatory two-week quarantine, they will be ready to greet the surge of visitors that arrive each spring and summer.
Click
here to listen to Ross' comments.
Ross was interviewed yesterday by Scott Hennen on the radio program,
What's on Your Mind. Click
here and advance to the 29:20 mark to listen to the full interview.
Click
here for a story from KXMB-TV about the park's temporary closure.
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ND Royalty Owners Cancel Conference
With ongoing uncertainty about the duration of the partial economic shutdown related to the coronavirus pandemic, the North Dakota Chapter of the National Association of Royalty Owners has decided to cancel is annual conference.
The gathering is typically held in June at the Ramkota Hotel and Conference Center in Bismarck, but ND Chapter President Tony Watterud said the decision was made to call off this year's conference because it appears the state may be dealing with the effects of the coronavirus for a few more months.
"We felt attendance would likely be down considerably with the low price of oil and the health risks involved for those traveling," Watterud said.
The conference normally attracts about 150 attendees from all across the United States. Watterud said next year's conference is already on the calendar, planned for June 16-17, 2021 at the Ramkota in Bismarck.
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ND COVID-19 Community Impact Survey
The state wants to understand how the coronavirus pandemic has impacted individuals, households and communities across North Dakota.
The hope is that tracking this information will help agencies and other organizations fighting the pandemic identify additional resources that may be used to support North Dakotans during this challenging time.
People who have not yet taken the ND Department of Commerce survey are being urged to do so. The responses will help identify how the state can support individuals and communities.
It should only take a few minutes to complete the survey.
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BND to Hold National Financial Bee
A Virtual Challenge for Young Students
Bank of North Dakota’s SAVE 529 Plan is sponsoring the first EVERFI National Financial Bee. The virtual challenge is open to students grades 7 to 10.
North Dakota students participating in the program will compete on a national level for one of three EVERFI Scholarships: 1st Place -- $10,000; 2nd Place -- $6,000; and, 3rd Place -- $4,000.
How the National Financial Bee Works:
- Sign up for the National Financial Bee
- Complete the five 15-minute lessons on important financial topics by April 30.
- Submit a short essay by May 8 on their biggest financial dream and how they plan to achieve it.
Students in grades 11 and 12 can still complete the modules and submit the essay for the opportunity to win one of the $529 College SAVE Scholarships even though they are not eligible for the EVERFI Scholarships.
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FREE Remote Learning Resources Portal
With North Dakota students studying their schoolwork at home during school closures, EVERFI is offering free resources for 20+ digital courses on topics like financial education, mental wellness, digital wellness, and more.
The
Remote Learning Resources Portal is available for students in grades K-12 and their families. With more families spending time together at home, it’s a good opportunity to spark new conversations that prepare students to manage finances for their future.
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NDPC Al Golden Scholarships
Application Process Now Open
The Al Golden Scholarship Program, sponsored by the North Dakota Petroleum Council through its philanthropic foundation, is now accepting applications for the 2020-21 school year.
The program will award up to nine $2,000 scholarships to students pursuing degrees or training in an energy-related field.
“Despite the downturn in oil and gas prices, the industry still requires a skilled, educated and knowledgeable workforce, especially as more and more current employees reach retirement age,” said Ron Ness, president of the NDPC. “The Bakken is a multigenerational play, and we will need these future energy leaders to help us create the new technologies and methods for recovering that resource for the benefit of our state and national economy and energy security.”
Scholarship winners are selected based on academic achievement, work or internship experience in the oil and natural gas industry or a demonstrated commitment to a qualified area of study. Students must be attending a North Dakota college or university and remain a full-time student for the 2020 fall semester and 2021 spring semester.
Applications must be submitted or postmarked by June 1, 2020. For qualifications and application requirements along with a list of previous scholarship award winners,
click here.
Since 2008, the program has awarded more than $70,000 to students pursuing a post-secondary education in energy-related fields.
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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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COVID-19 Useful Information Links
Here is a list of useful information resources for addressing both individual and family concerns along with pertinent information for business and employers related to managing the current coronavirus outbreak.
Information at these links is usually updated to be the most current to help focus on facts not fear, and preparation over panic.
North Dakota Information
U.S. Small Business Administration
Small Business Loans
Center for Disease Control & Prevention
U.S Department of Agriculture
U.S. Department of Housing and Urban Development
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Quick Connect
- Rob Port op-ed: Endless pipeline fights make a mockery of the Rule of Law -- Fargo Forum
- DOE working with 9 U.S. companies to fill 23 million barrels of space in SPR -- Williston Herald
- Marathon Oil announces 'frac holidays,' Continental suspends dividend -- Williston Herald
- North Dakota’s Bakken said to be not at a low point, but heading there -- NGI's Shale Daily
- North Dakota prepares for worst case pandemic scenario with surge plan -- Minot Daily News
- Gov. Burgum: State has hospital beds available to handle coronavirus -- Associated Press
- Sanford to conduct clinical trial for hydroxychloroquine as virus treatment -- Bismarck Tribune
- Amid pandemic closures, ND's Tharaldson ethanol plant grinds on -- Fargo Forum
- Minot's Trinity Health says cost cuts needed for long-term viability -- Minot Daily News
- Burgum rejects call to close June primary polling sites amid virus worry -- Associated Press
- North Dakota hospitals addressing employee workflow issues while preparing -- KFYR-TV
- ‘An honor to serve’: Trustem seeks reelection to Dickinson City Commission -- Dickinson Press
- Contested school board race in District 8, 3 candidates for 3 seats in District 1 -- Williston Herald
- North Dakota's tourism industry taking a hit from coronavirus pandemic -- KXMB-TV
- The latest: Commercial air travel slows to a crawl in North Dakota -- Associated Press
- Dickinson airport to receive nearly $1.1 M in federal money from CARES Act -- Dickinson Press
- Texas oil production cut proposal stirs up anger on both sides of the issue -- Seeking Alpha
- Is western Canada suddenly headed for a crude oil pipeline overbuild? -- RBN Energy
- IEA: World oil demand forecast to suffer biggest drop ever from lockdown -- Associated Press
- Some of America’s oil refineries may be on the brink of shutting production -- Bloomberg
- IEA expects 2020 global refining throughput decline on 'sharply' reduced demand -- S&P Global
- NERC: Power industry ‘well-prepared’ for aggressively confronting pandemic -- POWER
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Factoid of the Week
U.S. refineries operated at 69% of their operating capacity last week reflecting impacts of the national economic slowdown. As the nation enters tourist season, the figure is astonishingly low reflecting significant reductions in demand. Global oil demand is expected to fall by a record 9.3 million bbl/day in 2020 erasing almost a decade of growth. Demand in April is down to a level last seen in 1995.
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April 20
Bismarck
April 28-30
Casselton, Granville and Dickinson
April 28-30
Watford City
April 30
Bismarck
April 30
Bismarck
May 8
Online - Bismarck
May 14
Bismarck
May 19
Bismarck
June 1
Bismarck
June 2
Bismarck
June 8-11
Bismarck
June 19
Williston
September 1-3
Bismarck
September 30 - October 1
Bismarck
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Oil prices and rig count
April 17, 2020
WTI Crude: $18.27
Brent Crude: $28.08
Natural Gas: $1.75
North Dakota Active Rigs: 32 (down 4)
4/17/
2019
-- 66 rigs
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Geoff Simon
Editor/Executive Director
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