What is the Bakken Boom?

1 Bakken from space1 150x150 What is the Bakken Boom?

Bakken Gas Flaring

Wondering what the Bakken Energy Boom is all about?   One of the best overviews of the Bakken Boom can be found at this link.

You can check out Wikipedia’s page on the Bakken at this link.

The Bakken Basin is a shale oil formation that lies under Manitoba, Saskatchewan, Alberta, Montana, South Dakota and North Dakota,

it is estimated to be approximately 200,000 miles in size and current estimates are that it holds approximately 3-4 Billion Barrels of oil/gas

equivalents.  In 2011, a senior manager at Continental Resources Inc. (CRI) declared that the “Bakken play in the Williston basin could become the world’s largest discovery in the last 30-40 years”, as ultimate recovery from the overall play is now estimated at 24 billion barrels.

Here is a great video on the history of oil and gas production in the Bakken Basin.

Currently North is the center of Bakken oil/gas production and the state ranks in 4th place behind, Texas, California

At the end of December 2011 there are currently 186 drillings rigs active in North Dakato up from 146 active rigs in December 2010 and

62 in December 2009.

The technological changes have caused a tenfold increase in the price of oil leases, which are often made for 3 or 5 year terms. But the leases typically don’t run out if an oil company starts drilling, which results in a huge push to commence drilling on as many as possible before they expire. The resulting sudden boom has reduced unemployment and given the state of North Dakota a billion-dollar budget surplus. But the industrialization and population boom has also put a strain on water supplies, sewage systems, and government services of the small towns and ranches in the area

 

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