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Released May 17, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As crude oil production struggled in 2021, natural gas production in the Bakken Shale boomed to an annual high of 2.97 billion cubic feet per day (Bcf/d), reversing an 8% decline in 2020, according to the U.S. Energy Information Administration (EIA). Companies operating in the area saw corresponding growth in production and profits, and are tailoring their plans for 2022 and 2023 developments accordingly. Industrial Info is tracking nearly $6 billion worth of natural gas production, processing and pipeline projects across the Bakken Shale areas of the U.S. and Canada, more than $2 billion of which already has started construction.
Click on the image at right for a graph detailing the top 10 parent companies for natural gas production, processing and pipeline projects in the Bakken, by total investment value.
Crescent Point Energy Corporation (NYSE:CPG) (Calgary, Alberta), which has active developments in both the U.S. and Canadian areas of the Bakken, began work last month on its drilling program in North Dakota's Alamo Field, which involves drilling up to 20 new wells in the heart of the Bakken Shale through the end of the year. The company, which has a total of seven operational production plants throughout the Bakken, plans to drill another 15 to 25 new wells in the Alamo Field next year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for a full list of Crescent Point plants in the Bakken, and read detailed project reports on the 2022 and 2023 drilling programs.
Crescent Point's natural gas sales totaled C$188.3 million (US$146.14 million) in 2021, compared with C$74.6 million (US$57.9 million) in 2020. The company's average selling price for natural gas in 2021 increased 49% to C$4.51 (US$3.50) per million cubic feet, primarily as a result of the increase in the AECO and NYMEX benchmark prices. Crescent Point attributed higher prices to stronger industrial and weather-related demand, which outpaced supply amid the global recovery from the pandemic.
Basin Electric Power Cooperative (Bismarck, North Dakota), which provides electricity to 2.8 million customers in nine U.S. states across the Midwest and Rocky Mountains regions, plans to use some of the natural gas from the Bakken to develop "blue" hydrogen, which is produced using carbon capture and sequestration (CCS) technology to reduce CO2 emissions. Basin Electric is designing its Great Plains Synfuels Plant in Beulah, North Dakota, which it hopes will produce 348,000 metric tons per year of blue hydrogen. Subscribers can read more in Industrial Info's project report.
Blue hydrogen has become an appealing prospect for energy companies across North America, as it takes advantage of prosperous, inexpensive natural gas resources while addressing concerns about carbon emissions. For more information, see May 11, 2022, article - Ammonia Projects Gain Traction in U.S. as Global Gas Prices Spike; April 28, 2022, article - Alberta Pursues Blue Hydrogen in Earnest; and March 3, 2022, article - ExxonMobil Mulls Blue Hydrogen for Baytown.
The North Dakota Industrial Commission (NDIC) expects processing capacity from the state's Bakken assets to increase to 4.2 billion cubic feet per day in 2023, as more pipeline takeaway capacity has been added in recent years. Dakota Natural Gas LLC (Faribault, Minnesota) began construction on a 35-mile pipeline from Hillsboro to the border with Minnesota, which is expected to wrap up toward the end of the year, while MDU Resources Group Incorporated (Bismarck, North Dakota) expects to begin construction later this year on a 21-mile pipeline from Milnor to Gwinner, North Dakota.
Each project is expected to transport up to 75 million standard cubic feet per day of natural gas. However, the Minneapolis Star Tribune recently reported WBI Energy, a subsidiary of MDU Resources, cancelled plans to build another natural gas pipeline west-to-east across North Dakota. WDI cited regulatory uncertainty, limited in-state demand and rising construction, labor and land-acquisition costs in its decision, noting that materials and construction costs have risen up to 50% in just the past nine months, according to the newspaper. Subscribers can learn more from Industrial Info's reports on the Hillsboro-to-Minnesota and Milnor-to-Gwinner projects.
The Bakken region's ratio of natural gas to crude oil production has been increasing since 2008, according to the EIA, and isn't slowing down: As natural gas production ramped up to its 2021 highs, average annual crude oil production peaked at 1.45 million barrels per day in 2019 and then declined by 17% in 2020 and by 6% in 2021.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click on the image at right for a graph detailing the top 10 parent companies for natural gas production, processing and pipeline projects in the Bakken, by total investment value.Crescent Point Energy Corporation (NYSE:CPG) (Calgary, Alberta), which has active developments in both the U.S. and Canadian areas of the Bakken, began work last month on its drilling program in North Dakota's Alamo Field, which involves drilling up to 20 new wells in the heart of the Bakken Shale through the end of the year. The company, which has a total of seven operational production plants throughout the Bakken, plans to drill another 15 to 25 new wells in the Alamo Field next year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for a full list of Crescent Point plants in the Bakken, and read detailed project reports on the 2022 and 2023 drilling programs.
Crescent Point's natural gas sales totaled C$188.3 million (US$146.14 million) in 2021, compared with C$74.6 million (US$57.9 million) in 2020. The company's average selling price for natural gas in 2021 increased 49% to C$4.51 (US$3.50) per million cubic feet, primarily as a result of the increase in the AECO and NYMEX benchmark prices. Crescent Point attributed higher prices to stronger industrial and weather-related demand, which outpaced supply amid the global recovery from the pandemic.
Basin Electric Power Cooperative (Bismarck, North Dakota), which provides electricity to 2.8 million customers in nine U.S. states across the Midwest and Rocky Mountains regions, plans to use some of the natural gas from the Bakken to develop "blue" hydrogen, which is produced using carbon capture and sequestration (CCS) technology to reduce CO2 emissions. Basin Electric is designing its Great Plains Synfuels Plant in Beulah, North Dakota, which it hopes will produce 348,000 metric tons per year of blue hydrogen. Subscribers can read more in Industrial Info's project report.
Blue hydrogen has become an appealing prospect for energy companies across North America, as it takes advantage of prosperous, inexpensive natural gas resources while addressing concerns about carbon emissions. For more information, see May 11, 2022, article - Ammonia Projects Gain Traction in U.S. as Global Gas Prices Spike; April 28, 2022, article - Alberta Pursues Blue Hydrogen in Earnest; and March 3, 2022, article - ExxonMobil Mulls Blue Hydrogen for Baytown.
The North Dakota Industrial Commission (NDIC) expects processing capacity from the state's Bakken assets to increase to 4.2 billion cubic feet per day in 2023, as more pipeline takeaway capacity has been added in recent years. Dakota Natural Gas LLC (Faribault, Minnesota) began construction on a 35-mile pipeline from Hillsboro to the border with Minnesota, which is expected to wrap up toward the end of the year, while MDU Resources Group Incorporated (Bismarck, North Dakota) expects to begin construction later this year on a 21-mile pipeline from Milnor to Gwinner, North Dakota.
Each project is expected to transport up to 75 million standard cubic feet per day of natural gas. However, the Minneapolis Star Tribune recently reported WBI Energy, a subsidiary of MDU Resources, cancelled plans to build another natural gas pipeline west-to-east across North Dakota. WDI cited regulatory uncertainty, limited in-state demand and rising construction, labor and land-acquisition costs in its decision, noting that materials and construction costs have risen up to 50% in just the past nine months, according to the newspaper. Subscribers can learn more from Industrial Info's reports on the Hillsboro-to-Minnesota and Milnor-to-Gwinner projects.
The Bakken region's ratio of natural gas to crude oil production has been increasing since 2008, according to the EIA, and isn't slowing down: As natural gas production ramped up to its 2021 highs, average annual crude oil production peaked at 1.45 million barrels per day in 2019 and then declined by 17% in 2020 and by 6% in 2021.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
