Bismarck North Dakota
October 20, 2011 by staff
Putting this in perspective, never before in the U.S. oil has a field of this size have been developed. Bakken productive areas have had little or no previous oil and gas exploitation and require a new infrastructure – including gathering systems, pipelines and natural gas plants – to collect, process and put on the market oil and natural gas that is produced.
Yes, there are natural gas is burned, and each wants to capture the economic value of natural gas. That includes oil operators, mineral owners and the state, which collects the taxes on production.
In the last three years, the industry has worked hard to connect more than 1,500 new wells to the gas plant. But even with these efforts, continues and as the Bakken continues to expand in new areas, infrastructure development naturally lag behind newly drilled wells, a logical consequence of the other.
And in North Dakota, unlike places like Texas and Oklahoma, brutal winters cause problems further oil exploration.
The Bakken produces oil and natural gas. The natural gas is burned until the infrastructure is designed to collect and process it all under state regulation.
Furthermore, the development of general infrastructure of the industry is based on a determination that a well is, in fact, economically viable before investing in infrastructure in and around it.
Our roads and cities are certainly more concerned with the development of increasing energy, but this activity will result in faster infrastructure development and ultimately, a significant reduction in the burning of natural gas.
The natural gas burned in North Dakota has about 4 percent of production value and 7 percent of the BTU that wells are producing.
In other words, if you produce a barrel of oil from the Bakken, you have and $ 80 oil and about 6 and the value of gas.
A huge growth in North Dakota-grown internal energy is possible because we are able to begin producing oil before the gas gathering systems and pipelines is completed, often a natural course of development of resources.
Nobody wants to capture the value of natural gas to more operators, so that hard work with industry partners to achieve the necessary infrastructure in place as quickly as possible.
There are four key elements for discussion burning natural gas:
n North Dakota have rules and restrictions governing the burning and is in place long before the Bakken play. These standards specifically require the operator to seek approval to continue the outbreak, thus showing they are making efforts to build the infrastructure needed to capture the natural gas.
n In 2009, the Legislature passed a sales tax exemption to encourage the construction of natural gas infrastructure.
n Through the Oil and Gas Research Council, in partnership with private entities, North Dakota has invested more than 3 million in research and new technologies to capture and use natural gas well sites.
These technologies include power generation in gas facilities, gas compression in the cylinders for transport by truck and use natural gas instead of diesel to power drilling equipment.
n The oil and gas industry is investing more and 3 billion in infrastructure to capture the natural gas. Several of these new processing facilities and pipeline natural gas will become operational later this year.
These plants will create hundreds of jobs and well-paid skilled in rural communities.
The burning of natural gas is taken seriously by industry and politicians alike. The oil industry is presenting an unprecedented effort to get the necessary infrastructure to collect, process and sell as much gas as possible.
In North Dakota, we are proud to make things right. Getting it right means the construction of systems to capture the natural gas produced from the Bakken. This is exactly what we are doing and will do so.
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