Stanton Dodson: The Bakken Oil Formation Is Alive and Well

The CEO of Great Dakota Energy takes a peek at one of the most exciting oil and gas plays in US history: the North Dakota "Bakken" oil formation.

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Stanton Dodson: The Bakken Oil Formation Is Alive and Well

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FOR IMMEDIATE RELEASE
Grand Forks, North Dakota, United States of America (Free-Press-Release.com) January 21, 2012 --According to Stanton Dodson, Chairman and CEO of Great Dakota Energy, the investment community's feeding frenzy in North Dakota's oil fields has only just begun.

Since the early 2000s, investors have been taking part in tapping the massive oil reserves hidden underneath the layers of shale in what geologists call the Williston Basin / Bakken Shale Formation. The Bakken covers a wide area in the states of Montana and Northern Dakota in the United States, and up into Saskatchewan, Canada. Depending on the source, somewhere between 4.3 billion barrels to 11 billion barrels of oil are recoverable from the Bakken. Some industry experts are stating that the recoverable estimates will go much higher.

Bakken Basin Oil Investments

Analysts are closely observing the Bakken Basin and its impact to the overall economy and the area it covers. Based on statistics, the average oil production in Bakken is 460,000 barrels per day (bbl/d) as of September of 2011. This is five times more than what was recorded by the United States Energy Information Administration (EIA) in September of 2005.

There are more than 200 oil rigs operating in the counties across northern Montana and North Dakota. Investors in the energy sector are not letting up either; as of press time, there are reports of an increasing amount of companies intending to spud oil wells by next year.

Development is increasing in the Bakken, and it certainly has not for the thousands of residents and citizens who are benefiting from the increased economic activity in the state. The unprecedented economic growth in North Dakota and Montana has caused businesses to mushroom and boom overnight. One major area that is ripe for investments include railway freight transportation.

Railroads: Bakken’s Lifeline

Investment analysts observing the activities and development in the Bakken Basin have found several problems, or opportunities, depending on how one views things in the area.

For one, the North Dakota Department of Mineral Resources (DMR) reported 350 oil rigs waiting to be fracked. With fully-serviced oil wells, the DMR projects a staggering 100 percent increase in the bbl/d production come 2015.

Still a bigger issue is the limited pipeline capacity in the Bakken that prevents oil from getting to the market. Pipelines are the lifelines of Bakken; with limited serviceable pipelines, delivery of the oil to market could result in some companies slowing their drilling activities.

A pipeline connecting Bakken to the TransCanada Pipeline has been proposed, but the pipeline – dubbed the Bakken Link Pipeline – will not be completed for two more years. The Keystone Pipeline which moves crude oil south from Alberta is another option for Bakken, but it has encountered recent government opposition which will probably only be resolved after the 2012 Presidential elections. This means that between then and now, Bakken’s barrels of crude oil will have to rely on freight transportation via railroads.

Already, developers and oil companies operating in the area are allocating billions of dollars towards building a new railroad loading terminal for the Bakken, complete with facilities for storage. Companies running the railroad project and freight transportation in the Bakken are now big-ticket names, and investors are starting to pick up shares from these companies.

Copyright: Stanton Dodson and Dom Einhorn.

More information can be found online at http://www.greatdakotaenergy.com

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