Saturday, March 16, 2013
Bakken 201 with Brian Hicks
This is a story worth telling. It also reminds us that every advance made by humanity needs a champion no matter how small. You can also be sure that Findley's expectations on the first test wells were quite circumspect.
It turns out that the early flush production is huge and over pressure of the rocks is very encouraging. It suggests that merely stepping sideways a modest distance will see any well replicated. I do not know how modest is modest yet. If we could step sideways a couple hundred meters and drill a parallel well which is something not easily allowed by regulation.
In the meantime, thousands of wells need to be drilled just to earn the land and that will continue for a long while yet.
Bakken 201 with Brian Hicks
Thursday, February 28th, 2013
By the 1990s, most oil companies had given up on trying to coax the oil trapped in tight shale to the surface from the Bakken.
Dick Findley is credited with cracking the code for the Bakken in 1996, ultimately leading to the development of the giant Elm Coulee Field (known as "Sleeping Giant" at the time) in the Bakken in Eastern Montana.
Findley's discovery was so epic, he was awarded Explorer of the Year in 2006, some 10 years after his discovery.
You see, a few miles outside Sidney, Montana, Findley uncovered a layer of dolomite, a porous mineral running between two shale layers where oil and gas had previously been found.
His theory was simple: If the dolomite was drilled and fractured in the right direction, it would draw in oil from the shale above and below.
Findley hoped this "two-for-one" approach would make the vast Bakken field economical to produce where other approaches had failed.
But he needed a company with deep pockets and expertise in horizontal fracturing to accomplish this...
Findley got his wish when oil giant Halliburton signed on to test his theory.
In 1998, Halliburton invested in a limited number of drilling programs in the Bakken. Drilling began in early 2000. The first well drilled by Halliburton — christened Burning Tree State — called for a 10,000-foot vertical well with a 3,000-foot horizontal drill well.
While all of this was going on, the U.S. Geological Survey (USGS) launched a study to determine how large the oil reserve was, and how it would impact the U.S. oil industry — which, at that time, was experiencing an all-time low.
The U.S. Energy Information Administration (EIA) made the biggest estimate on what U.S. oil companies could expect to harvest from the Bakken Basin: a whopping 503 billion barrels of oil.
Today, the Bakken is considered one of the largest (possibly the largest) continuous hydrocarbon accumulations in the world.
It's an over-pressurized system, which is why wells drilled have such high initial production rates.
The high pressure in the Bakken suggests the oil is contained within the source rock itself. This means the oil remains in place and is tightly contained throughout the geologic structure.
Typically, highly-pressurized source rocks squeeze oil out into surrounding reservoirs, which also produce surface seeps.
The formation's high pressure — coupled with advances in technology — make each well drilled in the Bakken capable of producing 600,000 and 700,000 barrels of oil over the course of its life.