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Released November 29, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--North Dakota's production of natural gas is growing at a faster rate than that of oil, reaching a record 1.94 billion cubic feet per day in August, or the equivalent of about 334,000 barrels per day (BBL/d) of crude oil, according to the U.S. Energy Information Administration (EIA). Industrial Info is tracking progress at more than 330 Oil & Gas Production facilities across North Dakota, including more than 230 facilities for the production and processing of natural gas.
North Dakota's crude production peaked at more than 1.2 million BBL/d in December 2014, but dropped to 1.07 million BBL/d in August 2017, based on data in the EIA's Monthly Crude Oil and Natural Gas Production Report. The state still produces more than three times as much energy from crude oil as from natural gas, according to the EIA, but the ratio of natural gas production relative to crude oil--known as the gas-oil ratio--has never been higher.
Growth projects underway include Oasis Petroleum Incorporated's (NYSE:OAS) (Houston, Texas) $200 million expansion of the Wild Basin Cryogenic Natural Gas Processing Plant in Watford City. The facility, which is in one of the most prolific areas of the Bakken, will go from processing 80 million to 345 million standard cubic feet per day. For more information, see Industrial Info's project report.
Watford City is located in MacKenzie County, where much of the drilling since 2015 has occurred. Its gas-to-oil ratio normally is higher when compared with the entire Willison Basin, bolstering the need for incremental processing capacity in the area. In a quarterly earnings report earlier this month, Oasis noted that its natural gas production for its quarter ended September 30 increased nearly 58% from the same period last year; revenues from natural gas stood at $27.6 million, compared with $9.2 million earlier, with prices having increased to $3.50 per million cubic feet from $1.84.
Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas) also has been adding to its investments in the Bakken, and is at work on the $100 million Bear Den Cryogenic Natural Gas Processing Plant in Watford City, which is set to wrap up before the end of the year and have a processing capacity of 30 million standard cubic feet per day. The company also is considering a second train at the facility, which would process an additional 170 million standard cubic feet per day, but is unlikely to make a decision soon. For more information, see Industrial Info's project reports on Phase I and the proposed Phase II, and November 1, 2017, article - Crestwood Partners Expands in Bakken, Permian with $1.86 Billion in Active Projects.
Crude oil may be trending behind natural gas, but North Dakota still is the second-largest oil-producing state, accounting for 11% of total U.S. crude oil production, according to the EIA. Some oil producers are considering expansions. This summer, Hess Corporation (NYSE:HES) (New York, New York) finished construction on the $30 million first phase of a crude-oil processing facility in Hawkeye, which handles 80,000 barrels per day (BBL/d) from the Bakken and features two 400-barrel storage tanks. The company is weighing its options for second- and third-phase expansions, each of which would, as currently envisioned, include an identical pair of storage tanks.
Hess also operates a $10 million oil-drilling program near Keene that uses four rigs. For more information, see Industrial Info's project reports on Phase I, Phase II and Phase III at Hawkeye, and the drilling program.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
North Dakota's crude production peaked at more than 1.2 million BBL/d in December 2014, but dropped to 1.07 million BBL/d in August 2017, based on data in the EIA's Monthly Crude Oil and Natural Gas Production Report. The state still produces more than three times as much energy from crude oil as from natural gas, according to the EIA, but the ratio of natural gas production relative to crude oil--known as the gas-oil ratio--has never been higher.
Growth projects underway include Oasis Petroleum Incorporated's (NYSE:OAS) (Houston, Texas) $200 million expansion of the Wild Basin Cryogenic Natural Gas Processing Plant in Watford City. The facility, which is in one of the most prolific areas of the Bakken, will go from processing 80 million to 345 million standard cubic feet per day. For more information, see Industrial Info's project report.
Watford City is located in MacKenzie County, where much of the drilling since 2015 has occurred. Its gas-to-oil ratio normally is higher when compared with the entire Willison Basin, bolstering the need for incremental processing capacity in the area. In a quarterly earnings report earlier this month, Oasis noted that its natural gas production for its quarter ended September 30 increased nearly 58% from the same period last year; revenues from natural gas stood at $27.6 million, compared with $9.2 million earlier, with prices having increased to $3.50 per million cubic feet from $1.84.
Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas) also has been adding to its investments in the Bakken, and is at work on the $100 million Bear Den Cryogenic Natural Gas Processing Plant in Watford City, which is set to wrap up before the end of the year and have a processing capacity of 30 million standard cubic feet per day. The company also is considering a second train at the facility, which would process an additional 170 million standard cubic feet per day, but is unlikely to make a decision soon. For more information, see Industrial Info's project reports on Phase I and the proposed Phase II, and November 1, 2017, article - Crestwood Partners Expands in Bakken, Permian with $1.86 Billion in Active Projects.
Crude oil may be trending behind natural gas, but North Dakota still is the second-largest oil-producing state, accounting for 11% of total U.S. crude oil production, according to the EIA. Some oil producers are considering expansions. This summer, Hess Corporation (NYSE:HES) (New York, New York) finished construction on the $30 million first phase of a crude-oil processing facility in Hawkeye, which handles 80,000 barrels per day (BBL/d) from the Bakken and features two 400-barrel storage tanks. The company is weighing its options for second- and third-phase expansions, each of which would, as currently envisioned, include an identical pair of storage tanks.
Hess also operates a $10 million oil-drilling program near Keene that uses four rigs. For more information, see Industrial Info's project reports on Phase I, Phase II and Phase III at Hawkeye, and the drilling program.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
