the bakken oil report inaugural 2011
DESCRIPTION
The Bakken Oil Report focuses on the success of the Bakken oil industry in North Dakota and Montana, profiling technology of interest, news of the Bakken’s positive effect on the economy and communities, and other news of interest. 3,500 copies of each edition of the Bakken Oil Report are direct-mail distributed on a guaranteed circulation, free-of-charge, to companies working in the region and to companies, organizations, and key industry stakeholders with a vested interest in the area. This magazine has a presence at various oil and gas conferences, including the Bakken Oil Product & Service Show in Williston, the Williston Basin Oil show in Bismarck, Montana Energy 2012, the Bakken Investors’ Conference, among others.TRANSCRIPT
60 years later, oil still shapingNorth Dakota’s destiny
Harold Hamm,Chairman and CEO
of Continental Resourcescelebrates success
of Bakken boom
WHITING PETROLEUM CORPORATION
WORLD CLASS OIL AND GAS FINDERS IN NORTH DAKOTA AND ACROSS THE UNITED STATES.
1700 BROADWAY
SUITE 2300DENVER, COLORADO 80290-2300303.837.1661Fax 303.851.4923
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4 | BAKKEN OIL REPORT 2011
Published by:DEL Communications Inc.Suite 300, 6 Roslyn RoadWinnipeg, ManitobaCanada R3L 0G5www.delcommunications.com
PresidentDAVID LANGSTAFF
Associate PublisherJASON STEFANIK
Managing EditorKATRINA A.T. [email protected] Free: 1.866.403.5467
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PRINTED IN THE U.S.A. | 09/2011
Heading west: The Bakken oil play 6
The Bakken’s impact: Bringing businesses, people and wealth to North Dakota 8
60 years later, oil still shaping North Dakota’s destiny 10
Unlocking the Bakken: How new ideas roused a sleeping giant 16
Success of Divide County well helped launch current Bakken Boom 20
Enerplus: Focusing on the Bakken/tight oil play as a growth area 24
Capital Lodge opens amenity-packed crew facility in Tioga 26
North Dakota Petroleum Council hosts the 20th Williston Basin Petroleum Conference & Expo 28
Booming Minot seeks to accommodate oil companies 30
Bakken Formation represents significant frontier for domestic energy development 34
Welcome to the new frontier! Frontier Energy Group invests in local Bakken communities 36
BNSF Railway serves the transportation needs of the Bakken shale market 40
Moving forward as ND hits record rig count:Enbridge Pipelines (North Dakota) LLC Bakken Expansion Program 44
Wanzek builds on 40 years of industrial, civil, oil & gas experience in the Williston Basin 48
MDU Resources Group celebrates 85 years of service to the Bakken area 52
Made in America: Don-Nan Pump & Supply 56
Oilfield Integrators: An industry leader 58
Badger Daylighting:Proud to be the Bakken’s largest provider of non-destructive hydro-excavating services 60
Pioneer Drilling offers partnership-based approach to clients 64
MAC Heaters: ‘Your reliable heat source’ 68
CanElson: Building the drilling leadership of tomorrow 70
North Dakota Friefighter’s Association: Prospective 76
Six Gun Hotshot responds to increased demand for hauling services 80
Badlands Integrity Group: Safety compliance and HR management 82
Innovative containment system saves the oil industry time and money 84
Camex oilfield equipment big in the Bakken 86
Pat’s Off-Road Inc. provides frac heating services to Bakken oilfield production companies 90
Finally, a GOS navigation solution designed specifically for the U.S. oil and gas industry! 92
Secondary containment company TCA proud to serve the Bakken industry 94
Whatever you need, you can trust Brock White to deliver 96
When support matters, you can trust Peterson Equipment company 98
Quality Mat Company installs patented, interlocking mats in the Bakken oilfield 100
Calfrac Well Services breaks ground in the Bakken 102
Locally owned Petroleum Services offers many products and services to clients 104
ON THE COVERCover photo credit: John Nervig Photography803 - 1st Avenue E., Williston, ND 58801Email: [email protected] | www.johnnervigphotography.com
OILREPORT2011
2011CONTENTS
www.nabors.com
6 | BAKKEN OIL REPORT 2011
MESSAGE
Eastern Montana is on the verge ofexperiencing one of the nation’s largest
energy developments, the Bakken oil and gasfield. The largest hydrocarbon play in thecontinental U.S. in decades, and possibly thelargest in history, the Bakken shale formationis found some 10,000 feet below the grassyplains of eastern Montana, western NorthDakota, southwest Manitoba, and southernSaskatchewan, and may hold up to 400billion barrels of light, sweet crude oil.
“Landmen” in the oil industry have beenfilling courthouses across eastern Montana,buying up leases. Why? Because in additionto the oil, when you add up all the facts,Montana is a great place to do business.
We have all heard of the growthassociated with the Bakken in North Dakota,and now the activity is really starting to movewest. Bakken developers are poised to takeadvantage of Montana’s competitive taxstructure. According to the conservative TaxFoundation state rankings, Montana has thesixth-best business tax climate in the nation,number one among Bakken oil states.
Those who know the oil industry wellwill tell you that drilling takes place wherethe oil is – where the geologic formation ismost accessible. The layer of petroleum-bearing shale in the Bakken is thicker in
North Dakota, and it is also under more
natural pressure than in Montana, so that
play has been producing the most wells and
highest yields. But when those wells drop in
production, exploration is going to move
west. If the aggressive leasing going on in
Montana right now is any indication, we are
starting to see that shift.
Making the move even more attractive,
industry has been pleased that Montana has
a lower tax burden per barrel of oil
produced. A recent study conducted by the
Montana Department of Revenue found that
over a four year period from 2005-2009,
Montana’s average taxes paid per barrel of
oil were only $4.89/barrel, while North
Dakota’s were $5.27/barrel. That starts to
add up when you are producing hundreds
of thousands, even millions, of barrels of oil.
Authentic producers of oil in the region
have also affirmed that Montana’s efficient
administrative structure and regulatory
environment makes the state a good place
to do business. A permit application in
Montana takes about 60 days, under the
statutorily allowed 75 days, while a permit
in North Dakota takes, on average, the
statutorily allowed 365 days.
The construction of the Keystone XL
pipeline, proposed to run across eastern
Montana, would include a critical on-ramp
near Baker, Montana for Bakken oil
producers. I worked hard to get this on-
ramp integrated into the system to provide
relief from the bottleneck that has restricted
market access for Bakken and other oil
produced in Montana and North Dakota;
producers will no longer be forced into a
discounted rate for their product. This on-
ramp means a better price, more oil
produced, more money spent on Main
Street Montana, more taxes paid, more
jobs, and more economic growth.
Finally, all of Montana’s employers are
thrilled that we reformed Montana’s
workers’ compensation insurance system,
saving businesses an average of 20 percent
on their workers’ comp expenses. In
addition, I once again signed legislation that
reduced the business equipment tax. Both
of these factors will have a positive effect
on the Bakken’s continued development and
on the businesses climate and job growth in
our state.
Montana lies within the most important
energy corridor in the world. We have wind,
natural gas, coal, biofuels, solar,
geothermal, hydro, and of course, oil.
The Bakken formation will increasingly play
a central role in ending America’s
dependence on overseas oil, saving
American lives and treasure while
increasing our energy security and our
economic opportunities. ■
Heading west:The Bakken oil play
Montana Governor Brian Schweitzer.
Vision. Value. Passion. Integrity. Relationships. Attitude. These elements make up the structure of AE2S. What does that mean to
you? Extreme client service, trusted relationships, a shared vision for your
future, and passion for every project. They all translate into your success.
Bismarck Dickinson Fargo Grand Forks Minot Williston Watford CityEagan Maple Grove MoorheadGreat Falls Kalispell www.ae2s.com
ELEMENTS OF YOUR SUCCESS WATERWASTEWATERWATER REUSECIVIL ENGINEERINGSURVEYING
MAPPINGGISSITE DESIGNSTRUCTURAL ENGINEERINGELECTRICAL ENGINEERING
8 | BAKKEN OIL REPORT 2011
MESSAGE
For the past six decades, the oil industryhas been part of the mix of North
Dakota’s economic engine. During the highsand lows of these 60 years of oildevelopment, we have benefited from thejobs, people and wealth this industry hasbrought to our state.
North Dakota’s current lowunemployment rate, nearing three percent,and its $1-billion-plus budget surplus havedrawn national attention. Businessopportunities tied to the Bakken haveexpanded across the state, bringing with it agrowth in investments in education, waterprojects and infrastructure.
Through these years, the North DakotaChamber of Commerce has been committedto growing and developing the businesscommunity across our state. In fact, NorthDakota was recently named one of“America’s most pro-business states”according to the Pollina Corporate Top 10Pro-Business States for 2011. The state wasalso this year’s most improved state in thebusiness rankings, moving from number 18to number three in the last three years.
Recently, a North Dakota StateUniversity study examined the economicimpact of oil development in North Dakotabetween 2005 and 2009. It concluded thepetroleum industry nearly tripled in sizeduring these years, and it estimated the
direct impact of oil and natural gasdevelopment grew from $1.29 billion to $4.9billion in that time. Further, when theindustry’s secondary impacts were factoredin, the total business grew from $4.2 billionin 2005 to $12.7 billion in 2009.
The study also showed directemployment opportunities in the industrygrew significantly from an estimated 5,051full-time equivalent positions in 2005 to18,328 positions in 2009. The petroleumindustry paid $821.8 million in state and localtaxes in 2009, which helped provideproperty tax relief to all homeowners andsupport many public services. North Dakotaresidents also received $559 million in leaseand royalty payments in 2009.
In the two years since this study, thegrowth has continued to be even moresignificant. The current impact anddevelopment of the Bakken points to thelikelihood that North Dakota is experiencingmore than an oil boom, and it is likely thisrecord oil production will continue years intothe future. Currently, there are more than5,000 producing oil wells in the state and upto 2,000 new wells are expected to bedrilled in 2011.
While this type of growth is not withoutits struggles, the positives of this strongdevelopment keep us optimistically lookingtoward future expansion and growth.
The North Dakota Chamber of
Commerce views this as a valuable
opportunity to grow and strengthen our
state’s business community. During the past
state legislative session that adjourned in
May, we championed a reduction in
corporate income taxes that will attract
more business across the state. This was
part of a nearly $490 million tax relief
package that will continue to share the
rewards of our state’s strong economy with
North Dakota businesses and citizens alike.
We welcome the new people and
opportunities of North Dakota’s oil industry.
The North Dakota Chamber is committed to
working to grow these opportunities to
make our state an outstanding place to live,
work and do business.
The North Dakota Chamber of
Commerce is the state’s largest, most
influential general business organization.
It offers many programs and services to
help businesses succeed in North Dakota.
For additional information on North Dakota
business and job opportunities, please
contact the North Dakota Chamber at
1-800-382-1405 or visit
www.ndchamber.com. ■
The Bakken’s impact:Bringing businesses, peopleand wealth to North Dakota
By Andy Peterson, North Dakota Chamber of Commerce president and CEO
Andy Peterson, president of the North
Dakota Chamber of Commerce.
(701) 580-4327Williston, North Dakota
(800) 873-3002
North Dakota officially became an oil-producing state 60 years ago on April
4, 1951, when a well drilled eight miles southof the Williams County town of Tioga struckblack gold.
Williston’s legendary newspaperphotographer and editor William “Bill”Shemorry recalled that night in his 1991book on the early days of the Williston Basin,“Mud, Sweat & Oil.”
“The telephone rang in my apartment,”he wrote. “My ‘boss,’ Herman Zahl,publisher of the Williston Press-Graphic, wason the line. He sounded excited. ‘Bill,’ hesaid, ‘The Clarence Iverson well has comein. Get your camera and go out there. Takeyour hip boots because there’s a lot ofsnowmelt water.”
The time was 7 p.m. Shemorry grabbedhis camera gear, hip boots and tripod andheaded north on Highway 2 in his 1950Pontiac coupe. “When I reached the hill justwest of Wheelock I could see the glow of afire in the sky directly to the east,” he wrote.“I wondered if the well was on fire. I passedthrough Ray and headed east. The light ofthe fire was getting brighter. There was noproblem finding the well site in the dark.”
As he approached the well, he foundthat several hundred interested spectatorshad gathered along the road. With cars
60 years later, oil stillshaping North Dakota’s destiny
By Andrea Winkjer Collin
10 | BAKKEN OIL REPORT 2011
60THANNIVERSARY
Oil workers do a Silurian test at a
McKenzie County well in 1967.
PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH
COLLECTION STATE HISTORICAL SOCIETY OF NORTH DAKOTA.
BAKKEN OIL REPORT 2011 | 11
parked all over the shoulders of the road,there was no room to stop. “The drillingrig and surrounding area were lighted by ahuge gas flare. It was almost as if it weredaylight. The big Loffland Brothers drillingrig stood before me. Its silver derrick wasilluminated by the light of the flare andstood out in stark detail against the blacknight sky. In the foreground was a big poolof snow runoff water which had gatheredin a low place. The night was still. Not abreath of wind. A perfect double image ofthe derrick and flare was reflected.”
Shemorry got as close as he could,shooting photographs until his hip bootsfilled with water. His newspaper, TheWilliams County Farmers Press, ranShemorry’s historic photo on the cover ofthe Thursday, April 5, issue, along with theheadline, “Gas, Yes, and Oil, Too!” Theheadline above the article read: “IversonWell Pumps 307 Barrels of 55 GravityCrude Oil During 17 Hour Test, AmeradaReports.”
That historic photo appeared inpublications around the world, includingLife and U.S. News & World Report
magazines. It symbolized a new chapter inNorth Dakota’s history and the beginningof an industry that is now driving not onlythe economy of the region, but also thenation.
FOR 60 YEARS, THE INDUSTRYADAPTS TO CHALLENGES
The excitement of those early years ofoil discovery in the Williston Basinresonated through towns and companiesacross the region. The influx of people tothe area brought cultural diversity towestern North Dakota. Amerada OilCompany established housing outside ofTioga for its workers, not unlike the mancamps found in the area today.
Oil companies scrambled to figure outhow to get the oil to market. “There wereno pipelines,” says Nathan Conway, CEOof Ward Williston, which drilled its firstwell, the William Gorder #1 in the NorthWesthope Field near Bottineau in October1952. By then, 68 wells were operating inthe state. Leonard Ward, one of the state’soil pioneers, recognized the need to meetthese infrastructure challenges and started
The H.O. Bakken #1
well near Tioga, which
was completed
September 9, 1951, and
which gave the Bakken
Formation its name.
PHOTO CREDIT:
WILLIAM SHEMORRY
PHOTOGRAPH COLLECTION,
STATE HISTORICAL
SOCIETY OF NORTH DAKOTA.
60THANNIVERSARY
Tom Rolfstad,
Williston Economic
Development director.
Wes Norton,
former North Dakota Oil
and Gas Division director.
Nathan Conway,
CEO, Ward Williston.
This photograph,
which was published in
the Williston DailyHerald, shows the
derrick of the
Clarence Iverson #1
test well, which was
first erected on
August 4, 1950. North
Dakota’s first oil well
produced more than
585,000 barrels of oil
in 28 years.
PHOTO CREDIT:
WILLIAM SHEMORRY
PHOTOGRAPH COLLECTION,
STATE HISTORICAL
SOCIETY OF NORTH DAKOTA.
The excitement of those early years of oil discoveryin the Williston Basin resonated through townsand companies across the region.
12 | BAKKEN OIL REPORT 2011
one of the first well service companies.“Rail became a major means of
transportation then. Ward Willistontransported the first load of oil out ofWesthope, and we are seeing historyrepeat itself with the heavy use of railtoday,” says Conway. “Fortunately, a good
network of railroad tracks was alreadydeveloped to handle the state’s graintransportation and the industry was able tobring in oil cars on those tracks.”
Ward Williston continued its wellservice business in the Williston Basin untilrecently selling that division of its company
to Missouri Basin Well Service. “We areproud of being one of the pioneers in theWilliston Basin,” says Conway. “Weweathered the storms and never left.” Stillan exploration and production company,Ward Williston currently operates 150 wellsin the Williston Basin, mostly in Bottineau,Renville and Burke counties.
TIOGA, WILLISTON REMAIN ININDUSTRY’S BULLS-EYE
As they were in the early 1950s, two ofthe towns that remain in the bulls-eye ofNorth Dakota’s oil activity are Tioga andWilliston. Boom and bust cycles havedriven the industry, and they haveimpacted the wellbeing of these and otherregional towns.
A major challenge today in Tioga, theofficial “Oil Capital of North Dakota,” is notunlike what other communities are facing –housing. Population estimates for the town,which was listed at 1,200 in the 2010census, is now closer 1,500. Mayor NathanGermundsen, who has led the city for 14months, says the town is meeting thatchallenge with several housing developers.“We have some real nice housing comingto Tioga,” he says. “The developers havebeen good to work with.”
Some new homes will be ready by theend of this year, and Germundsen saysother low-to-moderate income units willbe complete in the spring. Several older
Bakken family portrait in 1951,
from left: Harry, Mary and
Henry.
PHOTO CREDIT:
WILLIAM SHEMORRY PHOTOGRAPH
COLLECTION, STATE HISTORICAL SOCIETY OF
NORTH DAKOTA.
60THANNIVERSARY
Aerial view of and Amerada camp for
workers outside of Tioga, North Dakota,
in the 1950s.
PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH
COLLECTION, STATE HISTORICAL SOCIETY OF NORTH
DAKOTA.
BAKKEN OIL REPORT 2011 | 13
buildings on Tioga’s Main Street are beingrenovated into office and retail space, andthere are plans for more commercialdevelopment on the north end of town.
South of town off Highway 40, the city-owned industrial park has attracted officesof many well-established oil companies,which join the large Hess Corporationoffice complex north of town. “We also arebeing proactive in addressing infrastructureneeds with a master plan, and are workingon a new water storage facility and repairsto the lagoon.”
A lifelong Tiogan, the 31-year-oldGermundsen doesn’t remember the area’stwo other boom cycles of the early 1950sand 1980s. But the mayor says he has agood feeling about where Tioga is headed.“A lot of great people are moving here, andwhen they bring their families it bringsmore stability. We have a good citycommission, and this boom has given us afresh outlook. It’s exciting and has plenty ofchallenges, but I’d rather be dealing withthese issues instead of those associatedwith no growth.”
Unlike Germundsen, Williston EconomicDevelopment director Tom Rolfstad doesremember the challenges faced by the areawhen the bottom dropped out of the 1980sboom. A Williston native, Rolfstad was bornthe year after oil was discovered in thestate. He grew up on what was then theedge of town just north of 11th Street East,in a subdivision developed to house theAmerada Oil staff and other industryworkers who came to town.
One of the most visible leaders trying tohelp the region navigate through thechallenges and opportunities of the pastfew years, Rolfstad sees differences withthis current oil boom. “These anniversariesare important to celebrate. Oil has beenpart of our economy for 60 years, but withthis new activity in the Bakken, I see aparadigm shift that is pointing to thisindustry being strong for another 60years.”
Along with the challenges, Rolfstad
60THANNIVERSARY
“The business of oil since 1952”
Still producing after 60 years
Exploration and Production Operator Enhanced Oil Recovery Joint Ventures Acquisitions
(248) 594-6622 www.wardwilliston.com
But the mayor says he has a good feeling aboutwhere Tioga is headed. “A lot of great peopleare moving here, and when they bring theirfamilies it brings more stability. We have agood city commission, and this boom has givenus a fresh outlook.
14 | BAKKEN OIL REPORT 2011
60THANNIVERSARY
says “the past few years have brought abreath of fresh air here.” One keydifference he sees from the 1980s whenWilliston took a big hit when the boomended is that more governments,businesses and people from across thestate and nation are understanding thesignificance of this current oil play. “Thereare more private-sector investors, and thestate is stepping forward to shoulder someof the infrastructure risk. They realize thatour success can be their success as well.”
“Our biggest challenge right now is ourrapid growth,” he says. The number ofmotel rooms has doubled and will soondouble again. The city’s population of12,500 in the 2000 census is now close to19,000. “We will be at 25,000 before weknow it.”
In mid-September, the Williston CityCommission voted to establish a six-month
moratorium on approving new mancamps to allow infrastructure needsto catch up with the demand. “Ourultimate goal is to be a more family-focused community,” says Rolfstad.“We believe the best employees theoil industry has are those who comehome to their families at night.”
Rolfstad is also impressed withthe quality of the state and regionalelected leaders. “We’ve never had abetter city commission, and stateand local legislators have spent a lotof time listening and caring andaddressing our needs.”
Likewise, he says the oil companiesdoing business in the region have beenvery helpful in understanding this boom.“This is an unconventional oil play, and weare guinea pigs of sorts as we see how itmatures and continues to produce. In the
end, how well the oil companies treat uswill determine how well we treat them.”
INDUSTRY GROWTH TO CONTINUEWes Norton, the former director of
North Dakota’s Oil and Gas Division, now
Oil well in Tioga,
North Dakota.
PHOTO CREDIT:
WILLIAM SHEMORRY PHOTOGRAPH
COLLECTION, STATE HISTORICAL
SOCIETY OF NORTH DAKOTA.
The difference with this oil boom, he says,is the advancement of horizontal drillingand hydraulic fracturing technology.“We always knew there was a lot of oilin the Bakken. We just needed to figureout how to get it out.”
A winch truck owned by Ward Williston
loads a test tank in the 1950s.
This Ward Williston water
truck from the 1950s.
An early Ward Williston winch truck
hauls a heater treater.
BAKKEN OIL REPORT 2011 | 15
• Tax Planning And
Preparation
• Estate And Wealth
Transfer Planning
• Accounting For Drilling Costs
• Depletion Calculation
• Entity Selection For Oil And Gas
Activities
• Quickbooks Consulting
• Bookkeeping And Payroll
Services
JohnSchell,
CPABismarck, ND(701) 223-1717
NathanSorenson,
CPADickinson, ND(701) 483-6000
TaryceMalnaa,
CPAMinot, ND
(701) 852-0196
SteveOyloe,CPA
Williston, ND(701) 572-3299
www.bradymartz.com
The cover of the April 5, 1951, Williams County FarmersPress heralds the beginning of a new era in North
Dakota’s history. It shows the famous William Shemorry
photograph that was published around the world.
The Amerada Hove well south of Tioga in June 1979.
PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION, STATE
HISTORICAL SOCIETY OF NORTH DAKOTA.
known as the Department of MineralResources, began his career as a petroleumgeologist in the state in 1960. He retired in1998.
A year and a half ago, he predicted thestate’s rig count would increase to 150 withintwo to three years. However, the fact that ahistoric high of 200 rigs was reached in lateAugust, ahead of his projections, doesn’tsurprise him. “If there were more rigsavailable, there would be even more drilling.”
The difference with this oil boom, hesays, is the advancement of horizontaldrilling and hydraulic fracturing technology.“We always knew there was a lot of oil in theBakken. We just needed to figure out how toget it out.”
Norton was a teenager living nearMandan when the Clarence Iverson #1 wellcame in. “It was an exciting time. But, even inthe 1960s, we never thought North Dakotawould be one of the country’s top oil-producing states.” Now number four in thecountry, Norton predicts that one day NorthDakota will become the second, behind onlyTexas. ■
16 | BAKKEN OIL REPORT 2011
The Billings-based geologist who is
credited with the break-through
discovery of the oil field initially called it the
“Sleeping Giant” on his maps.
Today, that field in Richland County,
Montana is better known as Elm Coulee, a
play that, through 2010, has produced more
than 105 million barrels of oil.
But geologist Richard Findley’s initial
map may still be the more apt description of
the Bakken oil play evolution. For decades, it
was a sleeping giant. And no one knew quite
how to get it moving.
No more.
The Bakken is a success story born less
of new discovery than of application of new
ideas, new drilling techniques and new
technology. And while much of the most
recent U.S. Bakken activity has been in
North Dakota, the opportunity Findley helped
unlock in Richland County bodes well for the
Montana oil and gas industry – and for all
Montanans – for decades to come.
The Bakken is one of many
hydrocarbon-producing formations in the
Williston Basin, a sedimentary basin
covering parts of Montana, North and South
Dakota and two Canadian provinces. It’s
about 360 million years old and fairly thin asstrata go, less than 150 feet at its thickestand encountered about two miles below theprairie lands at the surface.
Geologists have known there was a lotof oil in the Bakken formation for more thanhalf a century. Oil was first discovered in theWilliston Basin in 1953 by geologist J.W.Nordquist.
Oil companies have drilled through theBakken for decades using traditional verticalwells, and a good bit of oil has beenextracted that way. But as thin and deep andhard as the Bakken shale is, the realopportunity there was never going to berealized with vertical wells.
Several things needed to happen for theBakken to be fully appreciated. By 1974,during the oil “crisis” of that time, theBakken attracted some attention as theUnited States began to reconsider itsincreasing reliance on foreign oil sources.But it was not until the mid-nineties that theU.S. Geological Survey assessed theformation.
Geologist J.W. Price, the Denver-basedgeologist who conducted the fieldassessment for the USGS in the nineties,suggested the Bakken shale held between271 billion and 503 billion barrels of oil, anastonishing number. But Price died beforehis work could be peer-reviewed, so it wasnever published. Nevertheless, it acceleratedinterest in the area.
The problem in the Bakken was getting
By David A. Galt, Montana Petroleum Association
Unlocking the BakkenHow new ideas roused a sleeping giant
MONTANAPETROLEUMASSOCIATION
PHOTO COURTESY OF THE MONTANA BOARD OF OIL AND GAS CONSERVATION.
18 | BAKKEN OIL REPORT 2011
the oil out, and doing so in a commerciallyviable way. Initially, Price’s unpublished workin 1995 estimated the amount of oiltechnically recoverable from the Bakken wasabout 151 million barrels.
Horizontal drilling, which had been inuse since the 1980s, held promise forunlocking more of the Bakken. In the early1990s, a horizontal play targeted the upperBakken shale, mostly in North Dakota, butavailable technology limited the length of thehorizontal laterals to a few hundred feet.Although the play was generally considereduneconomic, it set an early precedent forfuture horizontal drilling in the Bakken.
Richard Findley’s work built on thatbase, and rising oil prices helped with theeconomics. In interviews published in themagazine Geo ExPro, Findley recountedmapping what he called Sleeping Giant (ElmCoulee) “as a possible continuousaccumulation over 64 kilometers long andseven kilometers wide.”
After being less than overwhelmed with
some initial wells that were drilled, Findleyworked with Lyco Energy Corp. andHalliburton to bring a marriage of horizontaldrilling and hydraulic fracturing to the tightoil layer of the Bakken.
Hydraulic fracturing techniques are usedto liberate oil from rock and provide theporosity needed for production. The practicehas been part of oilfield operations since the1920s in cased, vertical wells, but only in thelast decade or so have those techniquesbeen developed to allow operators toefficiently apply this technology to horizontalwellbores.
The Findley group’s first horizontal well,the Burning Tree State, spudded in March2000, drilled 500 meters laterally along themiddle Bakken member, according to theGeo ExPro account. Then the Halliburtontrucks arrived with sand, water and dieselpower, and the fracing process began. Thewell started the boom that is still growing.Lyco, the early player, was bought byEnerplus Resources in 2005, and since
then, the company has increased itsoperations in “Sleeping Giant” to 200 wells.
In less than a decade, the horizontaldrilling and fracing techniques used in theBakken have been refined to the point thatoil company representatives from othercountries routinely come here to learn fromthe companies working the Bakken oil play.Wells are now often drilled several thousandfeet laterally and successfully fracked withseveral stages. Moreover, as a Marathon Oilexecutive pointed out in an interview withthe Associated Press, the time it takes to drilla well in the Bakken “has dropped from 55days four years ago, to 20 days now.”
In 2008, USGS raised its estimates oftechnically recoverable oil in the Bakken tomore than 3.65 billion barrels, or nearly 25times the 1995 estimate. USGS will begin anew assessment this October.
Richard Findley told Geo ExPro thatsince the 2008 USGS reevaluation, “fractechnology has advanced and, combinedwith the potential of the Three ForksFormation (below the Bakken), I believe theirassessment is greatly understated.”
Robust oil prices, continuingimprovements in drilling technology and theprice efficiencies that would come fromcompletion of TransCanada’s XL pipeline allwill play important parts in determining justhow big the Bakken will become, but theripple economic benefits for citizens in NorthDakota and Montana are already reachingwell beyond the Bakken.
Montana’s first oil and gas lease sale forfiscal year 2012, which occurred early inSeptember, generated $7.9 million in lease
MONTANAPETROLEUMASSOCIATION
PHOTO COURTESY OF SM ENERGY.
PHOTO COURTESY OF SM ENERGY.
BAKKEN OIL REPORT 2011 | 19
sales on school trust lands – the fourth-
largest auction since the 1970s.
The Great Falls Tribune noted in its
report on the sale that going into the 2012
fiscal year, Montana was projected to
receive $5 million in oil and gas lease
revenue. With just the first sale completed,
and three more to go, the state is already
$3 million ahead of its projection.
Leases were sold in 20 counties across
the state, an indication that interest in
duplicating recent successes in oil
production in northeast Montana is
spreading to central Montana, according to
state and industry officials.
Public schools will get the money from
the lease sales.
It is through those contributions – from
support for community schools, to job
creation, to greater energy independence,
and by finding innovative solutions for old
problems – that the promise of the Bakken
is being realized, both today and in the
years to come.
About the Author: David A. Galt is executive
director of the Montana Petroleum
Association, a trade association whose
members include oil and natural gas
producers, gathering and pipeline
companies, petroleum refineries and
service providers and consultants.
Reach him via email at
or by phone at 406-442-7582. ■
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20 | BAKKEN OIL REPORT 2011
During this year’s 60th anniversary ofoil discovery in North Dakota, the
significance of another well, located 40miles north of the state’s first ClarenceIverson #1, is also being recognized.
In March 2004, Continental Resources’Robert Heuer 1-17R in Divide County wasthe first commercially successful well in theNorth Dakota Bakken to be both horizontallydrilled and fracture stimulated.
“After many failed attempts, this oneproved that a Bakken well could be acommercial success,” says Harold Hamm,
chairman and CEO of ContinentalResources. “It helped usher in a new era inthe American oil industry by unleashing thedevelopment of the enormous Bakken oilfield.”
In the seven years since the RobertHeuer 1-17R was completed, oil activity inthe Bakken and its adjacent fields has re-energized North Dakota’s economy. OnAugust 26, for the first time in its history, thestate reached 200 active drilling rigs. Thecount had been rising steadily since October5, 2010, when it broke the previous high
record of 147 active drilling rigs that was setin October 1981.
Hamm says the significance ofunlocking the potential of the Bakkenresonates far beyond North Dakota’sborders. “Its success reversed a 40-yeardecline in American oil production and hashelped reduce America’s dependence onimported oil. It is dispelling the myth thatAmerica is running out of oil.”
In July, Continental Resources placed amonument at the Robert Heuer 1-17R wellsite, and Hamm brought together a number
Success of Divide Countywell helped launch
current Bakken Boom
CONTINENTALRESOURCES
Harold Hamm, chairman and CEO
of Continental Resources.
Harold Hamm, second from left of the monument, with past and current crew at the Robert Heuer 1-17R in July.
BAKKEN OIL REPORT 2011 | 21
of current and former crew members tocommemorate its significance. Thecompany has also placed a monument 15miles northwest of the well at the DivideCounty Historical Society’s Pioneer Villagein Crosby.
Placing the monument at the Crosbypark that honors the county’s pioneers isfitting, since Hamm is one of the pioneersin North Dakota’s current oil boom. Aftermost oil companies left North Dakota whenthe activity of the early 1980s ended,Hamm drilled his first vertical Bakken wellin 1989. He was the only operator in theworld experimenting with horizontal drillingin the Cedar Hills prospect area in south -western North Dakota when he startedleasing in 1993, and he started drilling in theRed River B formation in 1995.
Today, 22 years later, ContinentalResources operates 24 rigs in North Dakotaand owns the most leased acreage. The
company is the top oil producer in the
Williston Basin and the second-largest
producer in the Rocky Mountain Region.
Russ Atkins is the area supervisor for
the company’s operations in North Dakota
and Montana, and works out of the Sidney,
Montana office. As one of the crew
members working on the Robert Heuer 1-
17R in 2004, Atkins joined in the
commemoration at the well site in July.
“Back in 2004, none of us thought it
would become what it has,” Atkins recalls.
“At that time, the Montana Bakken was really
firing up around Richland County. But
Continental Resources is at the forefront of the exploration and production of oil and natural gas resources inthe United States and is the second largest producer of crude oil in the Rocky Mountain region.
Using the latest technology in hor izontal dr illing , we are leading the development of key oil andnatural gas resources in the continental U.S., including theWoodford resource play in Oklahoma and the mostsought-after oil play in the nation, the Bakken resource play in North Dakota and Montana.
We are growing aggressively and are on track to triple the size of our company from 2009 to 2014. We have built aconsistent record of success, finding significant new crude oil and natural gas resources,harvesting them in an environmentally responsible manner and investing in the communitieswhere we work and operate.
With our excellent, growing team of employees, we are leading the way to an evenbrighter future.
Leadership
www.contres.comAmerica’s Oil Champion
CONTINENTALRESOURCES
The Robert Heuer 1-17R well
north of Tioga, North Dakota.
22 | BAKKEN OIL REPORT 2011
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Harold Hamm wanted to go into the NorthDakota Bakken.”
Atkins says Continental Resources’ bigactivity in the region then was at Cedar Hillsnear Baker, Montana. “It was our mostambitious effort to date, with 200,000 acres.I considered this Robert Heuer 1-17R job tobe one of those wildcat wells that you haveto do in the business. We drilled a shortlateral 2,600- to 2,700-feet long, similar towhat we had been doing in Montana. Wefracked the well on March 2, 2004, andHarold Hamm was on location.”
He says the first well flow tests did notshow much. “We kept messing around withit and there were only traces of oil. But onMarch 8, it started flowing like crazy. Then itwould slow down, and then flow somemore. By today’s standards it was not muchoil. But, back then 35 to 40 barrels a daywas big.”
All this time it remained a tight hole,Atkins says. “People were standing guardkeeping the curious away. Harold hadordered complete secrecy. It was anothersix to eight months later when the well reallystarted screaming. Then we knew weneeded to hold on – it was going to getwild!”
Since 2004, Atkins has watched theNorth Dakota Bakken continue to grow. TheRobert Heuer 1-17R continues to producetoday, and Atkins estimates ContinentalResources has drilled some 150 wells in
Divide County alone. “We are still drillingnew wells and the field hasn’t yet beencompletely defined. It’s going to be big for along time.”
Even though he has drilled hundreds ofwells in his career, Atkins will alwaysconsider the Robert Heuer 1-17R, to bespecial. “This is what started it all in theNorth Dakota Bakken. In my world ofpetroleum engineering, this is ‘spindle top.’ Itis an important part of history. I will alwaysconsider it very cool that I was able to bepart of it.” ■
“This is what started it all in the North Dakota Bakken.In my world of petroleum engineering, this is ‘spindletop.’ It is an important part of history. I will alwaysconsider it very cool that I was able to be part of it.”
PROUDLY SERVING
THE DOMESTIC OIL & GAS INDUSTRYFOR OVER 25 YEARS
PRESIDENTJohn C. Lamb
STEAMBOAT ENERGY CONSULTANTSPO Box 881570
Steamboat SpringsColorado | 80488
Offi ce: (970) 870.9964
www.steamboatenergy.com
STEAMBOAT ENERGY CONSULTANTSSteamboat Energy Consultants is a solutions-based company that is truly committed to providing our clients with the specifi c tools and expertise that are required to complete each project in a timely and cost effective manner. We offer a complete package of consulting services to accommodate the specifi c and ever-evolving needs of the energy industry and are prepared to immediately begin work whenever and wherever we are needed. Within our team, we have professionals that are trained and experienced within the following areas: environmental compliance, project management, safety engineering, fi eld supervision of drilling, completion and workover operations, and the construction of production infrastructure such as tank batteries, pipelines and compression facilities. In addition to the management and supervision of operations, we also offer professionals for land, petroleum and civil engineering as well as petroleum geology.
OIL AND GAS OPERATIONS SUPERVISIONSteamboat Energy Consultants currently provides horizontal well completion and production operations supervision in the Bakken Shale Play, as well as in other Shale Plays throughout the continental United States. Some of our fi eld professionals specialize in supervising frac jobs; others specialize in all phases of well work, including drill outs and clean outs with tubing or coiled tubing; the installation of tubing and production equipment, as well as the day to day supervision of well production.
We are frequently called upon for the supervision of critical well operations, which include those important and/or problematic wells with high public or corporate visibility, as well as those with highly sour and corrosive downhole environments. We have established and maintained an impeccable reputation for ensuring safe working conditions, environmental compliance and especially, for the economical achievement of results in fi eld operations.
24 | BAKKEN OIL REPORT 2011
ENERPLUS
These are exciting times at Enerplus. Thecompany is celebrating 25 years as a
successful oil and gas producer and ispositioning itself for the next quarter-centuryby forging ahead on major growth projects. Ithas built significant land positions in some ofthe most economic plays in North America,including the immense Bakken/tight oil play.
“We’re interested in plays like the Bakkenthat offer scope, repeatable development,lower geological risk and strong upsidepotential. The Bakken produces a high-quality,light crude oil that attracts a good price. It alltranslates into great netbacks that willmaximize the profitability of our business,”says Dana Johnson, president of Enerplus’sU.S. operations. “This play has and willcontinue to be a centerpiece of our growthstrategy as it provides top-tier economics andlong-term production, reserves and cash flow.”
Enerplus has certainly built a strongfoundation for growth in the Bakken. It holdsover 230,000 net acres of undevelopedBakken land in both Canada and the U.S.
Currently, growth is focused on FortBerthold, in western North Dakota, whereEnerplus holds 75,000 net acres ofundeveloped land. The company is aiming tovault production in Fort Berthold from about6,000 barrels oil equivalent per day (boe/day)currently to more than 20,000 boe/day by2014.
“This will require a lot of drilling and all theactivity that goes with it,” says Johnson. “Andwhile the weatherman hasn’t been our friendin recent months, we are ramping up activitieswith four operated rigs currently running atFort Berthold. We’re looking to drill 26horizontal wells at Fort Berthold during theremainder of 2011, targeting the Bakken andThree Forks formations.”
Enerplus also continues to be a keyBakken player in Montana. In 2005, Enerplusacquired a strong initial position and built aknowledge base from its early position in theElm Coulee play. Since then, it has drilled morethan 150 wells in its Sleeping Giant field inMontana, with 2011 production expected toaverage about 8,000 barrels a day.
In total, Enerplus expects to invest about$250 million in development activities in NorthDakota and Montana this year alone.
But the Bakken is not only a compelling
proposition to advance the company’s growthprospects, it’s also a dream job for the high-caliber team of geoscientists, engineers andland experts that Enerplus has assembled toexecute the Bakken plan. “Our technical andbusiness success is the result of an integratedteam of professionals. Everyone bringssomething to the table here,” explains Johnson.“At Enerplus, professionals have theopportunity to get in on the ground floor ofworld-class resource plays. To help themsucceed, we created a ‘Technical Chief’ rolethat brings in seasoned industry experts ingeology and geophysics, reservoir engineering,as well as production and completionsengineering. Our chiefs mentor project teamsand promote the use of technologies that areboth ‘tried-and-true’ and leading-edge tohelping unlock our resource plays like theBakken.”
“Delivering results from great plays like theBakken creates interesting jobs,” saysJohnson. “I encourage candidates to check outthe careers section of our website atwww.enerplus.com to see all of our availablepositions.”
“We’re a strong, growing companyinvolved in exciting plays throughout NorthAmerica. We have succeeded for over 25years by investing wisely in newopportunities and developing them with skilland expertise. That’s a foundation uponwhich we can build.” ■
Enerplus:Focusing on the
Bakken/tight oil playas a growth area
Dana Johnson,
president of Enerplus USA.
The advent of horizontal drilling with hydraulic
fracturing technology has enabled the Bakken
resource to be unlocked economically.
Enerplus is a successful North American oil and gas producer with a high-quality asset base in key plays like the Bakken in both North Dakota and Montana. We have a 25-year history and are actively investing in our assets for the future. We are committed to the responsible development of energy resources that ensures the health and safety of our workers, respects the environment and builds positive, long-term relationships in the community.
www.enerplus.com
26 | BAKKEN OIL REPORT 2011
CAPITALLODGE
The recent boom in drilling activity in theBakken region has led to significant
shortages in housing and infrastructure inNorth Dakota communities. Housing thecrews that work for oil and gas companiesis particularly challenging, as it requiresspecially designed lodgings that are centrallylocated and that can be constructed quickly.
Newly founded Capital Lodge LLC ismeeting this need by developing three newfacilities that cater to workers in the oil andgas industry. The company’s first crewlodging facility is situated in Tioga, NorthDakota, just 6.3 miles east of Ray onHighway 2. Encompassing 80 acres, theTioga crew facility opened for occupancyOctober 1st, and has a grand openingscheduled for early November. The firstphase of construction began in July, withsubsequent phases planned toaccommodate a total capacity of 2,500people.
The idea to provide comfortableaccommodations with the amenities of homewas the brainchild of Capital Lodge’s fourfounding partners – Myer Stabinsky, RandyBaker, Chad Hansen and Kenny Lobell – allof whom had worked in the constructionindustry in the area, and who were familiarwith the extensive travel times involved ingetting to and from work. “Randy and I werestaying in Bismark and working in Watford
City, which was a three-hour drive, just oneway,” says Myer Stabinsky, managingpartner for Capital Lodge LLC. “We knew thedemand was there, and so purchased landin Tioga, which is in the heart of theBakken.”
Far from a “man camp,” the CapitalLodge facility offers extensive amenities sothat lodgers have plenty of recreational andentertainment venues to enjoy duringdowntime. A focal point of the facility is adomed common area, complete with aswimming pool, hot tubs and a movietheatre. Lodgers also have the opportunity toplay video arcade games, air hockey,foosball, volleyball and horseshoes, andthere is a fully-equipped fitness center,where people can work out. The 900-foot-long recreational center can be extended tohouse four pools, 64 hot tubs and fourmovie theatres by the facility’s final phase ofdevelopment.
“Before we designed this facility, wetalked to a lot of people in different camps tofind out what they like and don’t like,”Stabinsky says. “The general consensuswas that they’d like to see bigger rooms andshowers, and better food and amenities. Alot complained that there was nothing to do.Capital Lodge has a larger facility, so we’reable to offer these extensive amenities.”
Also high on the wish-lists of
interviewed workers was the preference forSouthern-style cooking, and Capital Lodge’sTiago facility accommodates this specialrequest. The facility’s dining room ismodeled after a Las Vegas-style buffet, andhas dedicated cooking stations for Southerncuisine, pizza and sandwiches, as well as anomelette station on weekends. There areindoor and outdoor dining areas and a 24-hour snack bar.
Living quarters at the Tioga facility arecomprised of 32-foot by 76-foot modularunits that can accommodate a maximum of12 people. Three different room designs, fortwo single beds, two double beds or onedouble bed, include a common area and afour-piece bathroom with a five-footshower. Each modular unit has sevenbedrooms and a roomy commonliving/dining area with a kitchenette, whichoffers approximately 140-square-feet ofshared space. In the future, if the facility isturned into a permanent subdivision, unitscan be removed to create requiredroadways, and remaining units wouldrequire very few retrofits to turn the spaceinto a standard home.
Capital Lodge has partnered withMorgan Chase Management, a professionallodging management company, to marketthe Capital Lodge campuses and managethe day-to-day operations of the facilities.
Capital Lodge opensamenity-packed
crew facility in Tioga
By Lisa Fattori
BAKKEN OIL REPORT 2011 | 27
Services include management of the diningroom and amenities, 24-hour security,laundry services, maid services andcarwash with vacuum services. MorganChase Management, together with CapitalLodge, consulted with the neighboring townsto find out how the facility could help supporttown services. In case of fire, for example,laneways between modular units weredesigned wide enough to accommodate apump truck, and Morgan ChaseManagement is looking into providing ashuttle service to and from localcommunities to lessen the traffic volumes inthese areas.
“When we started our research, wedidn’t just look at what workers wanted in afacility; it was equally important to find outwhat the local communities wanted, and to
minimize the facility’s impact on thosecommunities,” says Richard Brown, directorof operations for Morgan ChaseManagement. “We wanted to create anenvironment that is safe and secure, yetincreases the economic prosperity ofneighboring communities. It requires a finebalancing act, so that the workers within thefacility and the people of the communitiesare all happy.”
In August, the North Dakota State LandDepartment awarded $53.5 million throughthe Oil and Gas Impact Grant Fund forinfrastructure development in fast-growingareas of the state, including Watford City,Tioga and Arnegard – a clear indication thatthe high demand for accommodations inthese areas shows no sign of abating. Inaddition to its Tioga location, Capital Lodge is
planning a similar-sized facility in Watford
City, and a smaller, single-family housing
subdivision in Arnegard, which will cater to
executives and their families, as well as
teachers, doctors and other professionals all
looking for permanent housing. Sales at the
company’s Tioga facility have been brisk,
with leases secured for close to 500 beds
and more modular units already ordered.
“In March and April, we spent a lot of
time driving around and looking at the areas
that were most in need of housing,” Brown
says. “We saw many people sleeping in their
cars and trucks, so it was very apparent
where the need was. Capital Lodge facilities
and their extensive amenities create a sense
of normalcy for crew workers and provide
all of the comforts of home.” ■
CAPITALLODGE
“We saw many people sleeping in their cars
and trucks, so it was very apparent where
the need was. Capital Lodge facilities and
their extensive amenities create a sense of
normalcy for crew workers and provide all
of the comforts of home.”
28 | BAKKEN OIL REPORT 2011
NDPETROLEUM
COUNCIL
It’s an exciting time for North Dakota,particularly in the Williston Basin where
the Bakken and Three Forks shale playscontinue to produce great results andcapture the attention of the region and thecountry. For those interested in learningmore about this valuable resource, the 20thannual Williston Basin Petroleum Conference& Expo to be held May 22-24, 2012 willprovide the perfect opportunity.
The conference will be held at the CivicCenter in Bismarck, North Dakota. The NorthDakota Petroleum Council will host the eventalong with the North Dakota Department ofMineral Resources and the SaskatchewanMinistry of Energy and Resources.Attendance for this international conferenceis anticipated to exceed 3,500 individuals.
The Williston Basin PetroleumConference & Expo began in 1992. Theconference goal has been to provide anoutstanding line-up of presenters at a greatvenue for local, regional, national andinternational industry leaders to gather andexchange new ideas and technology. Inrecent years, information exchanges have ledto more efficient oil drilling and completionmethods being implemented in the Bakkenand Three Forks formations. The conferencehas grown throughout the years to become
20th Williston BasinPetroleum Conference & Expo
By Kari Cutting, Vice President, North Dakota Petroleum Council
More than 300 expo booths and outdoor
exhibit spaces will be part of the 2012
Williston Basin Petroleum Conference.
Clarence Cazalot, Marathon Oil Corporation
chairman, president and CEO, was among the
keynote speakers of the 2010 Williston Basin
Petroleum Conference held in Bismarck,
North Dakota.
BAKKEN OIL REPORT 2011 | 29
one of the most important events in North
America for the oil and gas industry.
The Williston Basin Petroleum
Conference & Expo is held annually, with
locations alternating between Saskatchewan
and North Dakota. Every year, this
conference brings together a wide array of
industry representatives, regulators and
political leaders from across the United
States and Canada, all with a vested interest
in the Williston Basin. As always, the
technical presentations will be a highlight of
the conference, as industry experts from
across North America share information on
all the hot topics surrounding the Williston
Basin shale play.
The conference will include more than
75 presenters covering a wide array of topics
such as the latest technology, engineering,
geology, drilling, hydraulic fracturing
techniques, pipelines and marketing. A
Bakken/Three Forks Core Workshop will be
offered on two occasions: Tuesday, May 22
and Thursday, May 24. In years’ past, these
presentations have been of interest to many
conference attendees and resulted in a
fantastic turnout.
The conference will also feature a CEO
panel with participants Harold Hamm,
Continental Resources chairman and CEO;
Bud Brigham, Brigham Exploration Company
chairman and CEO; and Jim Volker, Whiting
Petroleum chairman and CEO.
The conference will feature an expo
comprised of more than 275 indoor booths
and 25 exhibits of large demonstrations and
equipment. Past years’ outdoor exhibitshave included workover rigs, housingunits, construction equipment andindustry related equipment andmaterials.
Registration information will be availableonline February 1, 2012, at www.ndoil.org.Please contact the North Dakota PetroleumCouncil with questions at 1-701-223-6380 orvia email at [email protected]. ■
North Dakota and Saskatchewan announce the
Annual Williston Basin Petroleum Conference20th
May 22-24, 2012 Civic Center Bismarck, North Dakota
N O R T H D A K O T A
C O U N C I LPETROLEUM
Conference and booth registration opens February 1, 2012 at WWW.NDOIL.ORG.
Visit www.ndoil.org for
hotel , travel and other
event details as the
conference approaches.
NDPETROLEUM
COUNCIL
Typical outdoor exhibits include pumpjacks, workover rigs,
portable housing units, and other large equipment.
30 | BAKKEN OIL REPORT 2011
PROFILEMINOT
As the largest city in the booming Bakkenbasin, Minot has transformed from a
minor city in one of the least populousregions of the country to a central hub of themost significant new oil development in theUnited States.
Minot’s comparative size and ideallocation have brought oil companies – andsignificant development.
“It’s helped really bolster our localeconomy,” says Jerry Chavez, president ofthe Minot Area Development Corporation.“And we see that with the addition ofprobably about 30 companies that in the lasttwo-and-a-half years have elected to callMinot home,” including Hess Corporation,
Haliburton, Hunt Energy, Enbridge and KeyEnergy.
In order to handle the oil companiesthat want to set up shop in Minot, cityadministrators are planning to continuecentralizing industry in a dedicatedindustrial park. Large tracts of land that canhouse multiple companies will help the citycope with sprawl.
The city’s plan is “to continue with anindustrial park development so we are able tomeet the needs of these companies as theycome into Minot,” explains Chavez. “And werecognize that a park development is a goodmodel in this community.”
A common complaint in oil boom areas is
that oil workers aren’t integrated into thecommunity and the transient men – sincefew women work in oilfield jobs – damagelocal cities and towns more than they benefitthem.
But oil companies in Minot are looking toreverse that stereotype.
“Many of these companies are looking forlong-term commitments from employees,”Chavez states. “Not only workers, but alsotheir families, come to live in this community.”
Though the city itself is not in the heartof the Bakken basin – that heart is furtherwest – many oil companies have chosen toset up bases in Minot because of the largearray of services available there.
Minot’s many amenities include an arrayof shopping venues, a regional hospital thatemploys more than 2,800 people – the mostof any private business in Minot – Minot StateUniversity and an airport with now nine dailyflights.
Minot International Airport used to haveonly three flights daily, all to Minneapolis.Presently, there are seven daily flights toMinneapolis and two to Denver, with a thirdto be added in December. June throughAugust, the airport set records in number ofboardings each month, a trend city managerDavid Waind expects to continue.
“A lot of that we would credit to oilimpact,” says Waind. “It appears our numberscontinue to grow each month.”
Once they arrive, oilfield workers need aplace to live, however, and lack of housing
Booming Minot seeks toaccommodate oil companies
By Aaron Orlowski
PO Box 730 | 117 North Welo Street | Tioga, ND 58852Office: (701) 664-1492 | Fax: (701) 664-1491 | Email: [email protected]
www.nesetconsulting.com
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32 | BAKKEN OIL REPORT 2011
PROFILEMINOT
and hotel space has put a strain on Minot’shousing market.
“Housing is in short demand,” saysChavez. But, he adds, “We’re a communitywith infrastructure underneath, so we canput up homes relatively quickly.”
The spring flooding wrecked swathes ofhousing in downtown Minot, but cityadministrators say that the oil developmentand skyrocketing housing prices have givenlocals hope that rebuilding will not only behealing but also lucrative.
“Those properties will hopefully continueto see some growth in value as much asanything because of the pressure of growthin housing,” says Waind. “The hope is that themarket here, which has been generated ingreat part by oil development, will continue.”
This demand has caused housing inMinot to be more expensive than in the restof the country. In the first quarter of 2011, thecost of living for housing was seven percenthigher than the national average. Other cost-of-living indicators were significantly lowerthan national averages.
“[The oil boom] has had a tremendousimpact in terms of the housing market andthe lack of housing. The apartment vacancyrate is near zero here. The competition for
the available spaces is very high and thus therent is very high,” Waind explains.
“We’re in the middle of a tough situationtrying to get housing built, in order to meetthat need.”
The demand for housing is only matchedby an equally low unemployment rate – andcorrespondingly high wages.
At 2.7 percent, Minot’s unemployment isboth lower than North Dakota’s three-percentrate and the nationwide rate of 9.1 percent.
Though the potential labor pool in Minotis large – over 33,000 within commutingdistance, out of nearly 70,000 people total,including the Air Force base and theuniversity – the competition for workers hasforced businesses to boost wages: a positiveresult for workers, but a difficult adjustmentfor businesses.
“What we’ve tended to see is ouremployee wages increase,” says Chavez.“There’s a benefit to even the local folks withwages increasing. Obviously it helps. Theyhave more disposable dollars and thosedollars filter through the community.”
The entire city feels the secondaryeffects of increased business.
“We are a very strong economy,compared to the rest of the country,” saysChavez.
“Retail sales are in record-setting paces
and have been for years. Every year
surpasses the previous year,” Waind says.
Hotel access, though currently limited,
has been increasing and is slated to rise
further. Currently, 1,900 hotel rooms are
available, says Chavez, but Minot will have 13
hotels going forward.
The spring floods that swept through
downtown Minot, and drew the attention of a
national audience to the fourth-largest city in
North Dakota, have only further strained an
already oil boom-stretched town.
But oil companies, far from standing by
the wayside, have stepped in to help rebuild
downtown, giving time, expertise and money.
Oil giant Hess Corporation donated $1
million to North Dakota flood relief efforts, in
addition to other company’s charitable
donations. Oil companies collaborated with
barbecues to feed evacuees, hauled in semi-
truck loads of water and lent equipment to
help fight the flood, says Chavez.
“They saw this as an opportunity to lend
some expertise in some areas,” says Chavez,
in addition to the financial assistance.
Actor Josh Duhamel, originally from
Minot, raised flood-relief money by organizing
a benefit concert by the Black Eyed Peas, of
which his wife Fergie is a member. They, too,
raised $1 million.
The band is working on setting up a
system both fair and equitable for dispersing
the funds, says Waind. A voucher system is
in the works for home renovations, water
heaters and similar necessary items. Though
city administrators recognize the money isn’t
that much per evacuated resident, every bit
helps for the devastated community.
Not only celebrities are assisting – North
Dakotans and people nationwide are
contributing to the revival of the city integral
to continued oil development in the region.
“People are appreciative of friends and
neighbors around the country,” says Waind.
“People helping, rolling up their sleeves and
helping.” ■
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34 | BAKKEN OIL REPORT 2011
Unconventional oil, also referred to as
“tight” oil, sources such as the Bakken
Formation represent a significant frontier for
domestic energy development. The U.S.
Energy Information Administration’s Annual
Energy Outlook 2011 forecasts domestic
production of all unconventional liquids at
1.95 to 5.42 million barrels per day (bpd) in
2035. This volume is in relation to current
total crude oil and liquid fuels production at
8.5 million bpd. Therefore, tight oil has the
potential to become a major component of
domestic oil production while contributing
greatly to the U.S. economy. Tight oil is
produced in a similar manner to that of
unconventional shale gas, which hit
a critical mass in 2008, resulting in
jobs, investment, and a secure
supply of domestic energy.
Today, tight oil produced from
shale formations is driving industry
investment, and unlike natural gas,
additional domestic production
offsets imports while maintaining
strong pricing. Currently oil prices
are expected to hover in the range
of $80 to $100/bbl or more over
the next two to three years. The
growth of oil production from shale
plays can be attributed to strong
prices coupled with technological
developments in multistage
hydraulic fracturing and better
geological understanding of the
source rocks and surrounding
formations that contribute to the
production of tightly held
hydrocarbons.
Bakken Formation represents significantfrontier for domestic energy development
New web-based Bakken Decision Support Systemto help users to see vital geological and production info
By Darren D. Schmidt, P.E., Senior Research Advisor, Energy & Environmental Research Center (EERC)
EERC
The EERC’s new web-based Bakken
Decision Support System can be
found at www.undeerc.org/Bakken/.
BAKKEN OIL REPORT 2011 | 35
The Bakken and Three Forks formations
of North Dakota and eastern Montana is the
largest tight oil play in the United States,
producing over 300 million bbl to date. The
U.S. Geological Survey, which estimated the
Bakken Formation to contain 3.65 billion
barrels of technically recoverable oil in 2008,
is currently working to revise the projected
resource potential. In North Dakota alone,
2010 production exceeded 85 million bbl.
The North Dakota Department of Mineral
Resources forecasts production to grow
from the current 350,000 bbl/day to over
700,000 bbl/day in the next four to seven
years, surpassing both Alaska and
California’s production, with Texas remaining
the highest-producing state. The growth in
North Dakota has been described as the
world’s largest construction project given
the new infrastructure demands on the state
for oil production and transportation and the
needs for supporting the influx of people and
services.
The Energy & Environmental Research
Center (EERC) at the University of North
Dakota has developed and launched a web-
based geographic information system (GIS),
the “Bakken Decision Support System”
(BDSS). The BDSS conveniently assembles
data for the Bakken and Three Forks
Formations into a GIS application that
enables the user to visualize geological and
production information. Provided analytical
tools support the evaluation and
interpretation of geological properties such
as thickness, depth, structure, and organic
content. Production data can be utilized to
provide development history and identify
areas of low or high production. Monthly
well production data are downloadable
through a subscription service to the North
Dakota Department of Mineral Resources,
and the provision of additional well
completion data is planned for future
release. The website provides the latest
news feeds regarding oil and gas activity for
the region. Educational material regarding
petroleum geology and oil and gas
development is built into the application,
along with relevant supporting publications.
The website is publicly accessible at
www.undeerc.org/bakken and was made
possible through support of the U.S.
Department of Energy’s National Energy
Technology Laboratory (NETL). ■
EERC
IMAGE COURTESY: THE ENERGY INFORMATION ADMINISTRATION BASED ON DATA FROM VARIOUS PUBLISHED STUDIES. UPDATED: MAY 9, 2011. WWW.EIA.GOV/OIL_GAS/RPD/SHALE_GAS.PDF.
36 | BAKKEN OIL REPORT 2011
FRONTIERENERGY
GROUP, LLC
Oil first sputtered up from the Bakkenregion in 1951. And through the years,
the black gold rush of the Badlands hasencouraged multiple evolutions inhomegrown innovation and technology,resulting in prosperity for its communities.
In 2010 a confident industry player,Frontier Wellhead & Supply, underwent asignificant evolution. A new name, FrontierEnergy Group, LLC, and a fresh, new logoassured the Bakken community that theoilfield service provider was poised for thefuture and yet very much rooted in its richhistory. To complete the facelift, thecompany adopted a new slogan to seal thedeal: “Dedicated to the life of your well.”
But for Frontier Energy Group, LLC,there is an equally important dual meaning
to the company’s new slogan, and that is agenuine dedication to community.
“Our business is focused on buildingfrom the great reputations of oursubsidiaries while looking ahead at thecompany’s future,” says Don Eberhart, CEOat Frontier Energy Group, LLC. “And eventhough the company has grown leaps andbounds, we’re invested in the localcommunities in which our employees liveand work.”
The one-stop oilfield services provider isa direct reflection of community forEberhart. “From our prospective, in order tohave the best employees, it’s important tosolidify our relationship with thecommunity,” says Eberhart. “Thecommunities will provide housing,entertainment, and good resources – all ofthose things are really important to whatFrontier is.”
From its opening 25 years ago in 1986in Watford City, North Dakota, to the recent“tweets” of 2011, Frontier Energy Group,LLC, has evolved with the times, neverstraying from their communal roots. It’s thepeople, reiterates Eberhart; the people makethe company.
Soon approaching its 25th anniversary,the company can be proud of its rapidgrowth. Beginning as one location with asingle employee and then developing to 16locations with 125 employees (which isexpected to double in the next few months),Frontier is proud of their dedication to the
Welcome to the new frontier!Frontier Energy Group investsin local Bakken communities
By Jill Schettler
Frac tree.
Interior of Frontier shop.
38 | BAKKEN OIL REPORT 2011
FRONTIERENERGY
GROUP, LLC
growing needs of its 500 customers, and is
pleased of their customers’ reciprocation.
Though headquarters is currently based
in Phoenix, AZ, the company’s operations
base remains in Watford City, the origin city
of Frontier. The brand has grown to provide
a range of services to companies of all sizes
through three main brands: ND-based
Frontier (Frontier Wellhead & amp, Frontier
Slickline, Frontier Hot Oil, LLC); CO-based
Cable (Cable, Inc., Cable Wellhead); and Luft
Machine. Among the many products and
services are a broad range of API 6A and
API 6D Conventional Completion Systems
(new and refurbished); installation and
maintenance services; frac manifolds;
equipment rentals; wireline and slicklineservices, including wellhead equipmentsales and installation; frac equipment rental;wireline and slickline services; fishing andrental tools; and now includes oilfieldfabrication.
If you need an old piece of nostalgia,chances are Frontier has it, says Eberhart.Their old boneyard has been known to haveextra hard-to-get supplies on hand.
“We had a call about a year ago fromsomebody looking for a part that theycouldn’t find anywhere else in the country,”reflects Eberhart. “None of their suppliershad it, none of the big guys had it; and wehad two of the parts sitting in our boneyard.”
The Bakken has been dubbed“America’s new frontier.” And with that newfrontier comes a fast-growing Frontierbrand. It’s a company that knows success isbuilt on relationships. When asked what canbe attributed to the success of the company,Eberhart makes the following list: fastfeedback, being open 24/7, willing to go theextra mile, resourcefulness and dedication toemployees and customers.
“That is the Frontier way,” saysEberhart. ■
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40 | BAKKEN OIL REPORT 2011
BNSFRAILWAY
As U.S. oil exploration enters a newchapter with the Bakken Shale, BNSF
Railway is along for more than just the ride.BNSF is providing effective transportationoptions for the growing Bakken Shalemarket.
The Berkshire Hathaway-ownedrailroad is using its capacity and strategiclocation of its network to transport crude byrail. BNSF currently runs unit trains of sweetcrude from the Bakken region to other partsof the country.
“We believe our service brings value tothe market,” said BNSF director of industrialproducts Michael Bruce. “It’s important forus to provide our customers the capacityand flexibility to serve multiple geographicmarkets.”
BNSF’s footprint is convincing, as therailroad touts a 32,000-mile network thatstretches from the Mississippi River to theWest Coast. How well positioned is BNSF inthe Bakken region? BNSF operates nearly1,000 miles of its rail infrastructure that
extends through 16 of the top 19 oil-producing counties in central and westernNorth Dakota. In addition, BNSF serves 61stations in the Bakken region, includingmajor North Dakota locations such asWilliston, Minot, Stanley, Dickinson, Mandan,and also Glendive, Mont.
CRUDE-BY-RAIL GROWTHBNSF’s network and its willingness to
collaborate on developing optimal shippingsolutions have contributed to this growingtrend.
What’s been the primary driver of thecrude-by-rail opportunity? The industry’spipeline network isn’t growing fast enoughto move crude to destinations such asCushing, Okla. and St. James, La, whichserve the Midwest and Gulf markets. Simplyput – existing pipelines cannot accommodatethe growing volumes of crude that are beingproduced. In addition, rail offers the flexibilityto easily divert the crude to other marketsthat aren’t served by pipelines.
“Our focus has been on helping enableour customers to reach these new marketsthrough an efficient transportation solution,”Bruce said. “We work with shippers todetermine their specific needs, thencustomize a solution to meet those needs.”
BNSF’s first unit train of crude movedout of the Bakken region on Dec. 31, 2009.Since then, volumes have increased at asteady pace. In 2010 alone, BNSF shippedenough rail cars into and out of the Bakkenregion to stretch more than 500 miles.
“Recent technological developments areallowing producers to increase their outputfrom each well,” Bruce said. Preparationsare already underway to accommodate thatgrowth. Today, BNSF serves 30 facilities inthe Bakken region. And an additional 18Bakken-area facilities are currently indevelopment. In less time than it will takepotential customers to build loadinginfrastructure and secure railcars, BNSF willbe capable of hauling nine daily unit trains –each consisting of 81,000 barrels of crude.
Unit trains of crude can take a day toload, but often they are filled in less than 24hours because of production efficienciesdesigned – with BNSF’s input – into thefacilities. More than just transportation,BNSF provides best-practices consulting onrail-served facility development.
MORE THAN JUST CRUDEBefore the first barrel is pumped from a
new well, BNSF is on-site, havingtransported inbound loads of drilling
BNSF Railway serves thetransportation needs of the
Bakken shale market
Ready to extract more information? It’s at bnsf.com/bakken.
EXPERTISE > Nobody knows the Bakken like BNSF. As the transportation leader in the region, we are successfully hauling increasing amounts of crude, LPG, sand and OCTG through 30 facilities on the BNSF today. And an additional 18 Bakken-area facilities are currently under development. In less time than it will take potential customers to build loading infrastructure and secure railcars, BNSF will be capable of hauling 9 daily unit trains — each consisting of 81,000 barrels of crude.
STRATEGICALLY POSITIONED > With nearly 1,000 miles of rail lines in the Bakken region, our network is perfectly positioned to serve you. In fact, we touch 16 of the top 19 oil-producing counties in Central and Western North Dakota.
CUSTOM SOLUTIONS > BNSF is also a driver of innovative solutions designed to meet our customers’ specific needs. Our experts can guide you, so that you can capitalize on the efficiencies of rail.Dickinson
Minot
Tioga
StanleyWilliston
Beulah
2
85
52
83
94
Mandan
Lake Sakakawea
Snowden
Glendive
BESTin theBAKKEN
Who can ship 730,000 barrels of crude out of the Bakken every day? BNSF.
42 | BAKKEN OIL REPORT 2011
materials, including drilling pipe, mud, sandand clay.
And with increased demand for fracsand, new discussions are under way forkeeping job sites in steady supply. In June,BNSF hosted a forum with shippers,receivers, transloaders and shortlinerepresentatives to discuss plans for howBNSF can best meet their needs amid theincreasing sand volume levels. The conceptof transporting unit trains of sand wasaddressed.
“It’s important for us to streamline thissupply chain model,” said group vicepresident of industrial products Dave Garin.“Growth is happening so fast that we haveto find a way to increase our deliverycapacity.”
The answer to that challenge is througha shift from individual carloads of frac sandto unit trains of frac sand. It’s a concept in towhich BNSF customers are buying. Earlierthis summer, BNSF moved its first unit trainof sand into the Bakken region.
BNSF is resolved to meet a high level ofexpectations from its customers in theBakken Shale. BNSF has a team of expertsthat works with customers who areinvesting in the Bakken to maximize theefficiencies of rail.
The company takes that investmentseriously.
“Our customers have a lot at stake inthis Bakken play,” Bruce said. “It’s up to usto deliver, and we’re in a good position to doso.” ■
BNSFRAILWAY
trusted to deliver INTEGRITY, KNOWLEDGE & STRENGTH
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GLENDIVEP.O. Box 323 | 301 State St.Glendive, MT | 59330 | P: 406.365.5373
WILLISTONDuane Ashley | Williston, NDP: 701.572.4500 | P: 701.770.0088
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ONilliston, NDAshley | W
72.4500 | P: 701.770.0088
5373
44 | BAKKEN OIL REPORT 2011
ENBRIDGE
In some areas of the state, you probablydon’t even know you’ve seen them. Maybe
from the road as you’re driving, while you’reworking outside or hunting; those wide,grassy paths cut through fields, too distinctlyfor Mother Nature’s work. In other areas,you may see crews outfitted in the signatureyellow vest and white hard hat, feverishlyworking amid piles of topsoil and pipe.
At first glance, these areas seem likegreat places for hunting or snowmobiling, orpossibly a new country road is underconstruction. But a closer look will revealyellow and white markers noting that theseareas are actually the right-of-way acrossprivate and public property for anunderground system of petroleum pipelines. Enbridge Pipelines (North Dakota) LLC (“EPND”) is a gathering system that feeds
into the Enbridge mainline at Clearbrook,Minn. EPND has been transporting crude oiland other liquid petroleum for more than 60years. This system is part of the world’slargest petroleum pipeline system, withmore than 8,500 miles of pipeline, and ismade up of pipe ranging from eight inchesto 48 inches in diameter.
Enbridge’s North Dakota System is akey component of the Upper Midwest’senergy supply network. These pipelinessupply us all with the gasoline, diesel, jet fuel
and other petroleum products on which wedepend. In fact, depending on where youlive, there is a 50 to 75 percent chance thefuel in your car or truck was made frompetroleum transported by Enbridge toregional refineries. Even many of the planesthat cross above us use fuel from crude oildelivered on the Enbridge system.
At Enbridge, our job is to transport avariety of crude oil and natural gas liquids,but we do not own the materials wetransport. Petroleum transported throughour North Dakota system comes from the
Enbridge Pipelines (North Dakota) LLCBakken Expansion Program
Moving forward as ND hits record rig count
Pipelines markers indicate where underground pipelines are located and provide emergency
contact information to Enbridge’s control center.
The Enbridge North Dakota
system provides shippers
the transportation needed
out of the Bakken and
Three Forks formations.
BAKKEN OIL REPORT 2011 | 45
STEEL AND RECYCLING, INC
2703 West Towne St.Glendive, MT 59330 1 800 423 5219 406-377-4398 Fax 406-377-8635
13896 W. Front St.Williston, ND 58801 1 800 820 5493 701-572-5493 Fax 701-572-8487
4251 MT Hwy 16Plentywood, MT 59254 406-765-2624 701-572-5493 Fax 406-765-2724
Customer Service is Our #1 Priority
B O R D ER
Bakken and Three Forks formations located
in the western portion of North Dakota and
the northeast corner of Montana. On August
26, North Dakota’s rig count hit an all-time
high of 200 rigs drilling in the state.
Enbridge’s Bakken Expansion Program is
adding critical pipeline infrastructure that
will allow EPND’s system to grow right
along with the state’s increasing oil
production.
The Bakken Expansion Program will
increase crude oil pipeline capacity from the
Bakken and Three Forks formations located
in Montana, North Dakota, Manitoba and
Saskatchewan by 145,000 barrels per day
(bpd). Made up of several separate, yet
complementary projects, the Bakken
Expansion Program includes the Bakken
ENBRIDGE
46 | BAKKEN OIL REPORT 2011
ENBRIDGE
Construction along the Beaver Lodge
Loop Project and the Bakken Pipeline Expansion Project is well under way.
The Bakken Expansion Program is scheduled to go into service in 2013.
Pipelines Expansion Project and the BeaverLodge Loop Project.
The Bakken Pipeline Expansion Project– when combined with a similar project inCanada – will provide an additional 125,000bpd of capacity to the 25,000 bpdincremental capacity added by the PortalLink Reversal Project that was reactivatedand reversed in spring 2011. The U.S.component includes expanding Line 26 byconstructing two new pumping stations andreplacing an 11-mile segment of the existing12-inch-diameter pipeline between Kenastonand Lignite, North Dakota. On the Canadianside of the border, 77 miles of 16-inchdiameter pipeline will be constructed from anew terminal near Steelman, Saskatchewan,to the Enbridge Pipelines Inc. mainlineTerminal near Cromer, Manitoba.
The Beaver Lodge Loop Projectprimarily involves upgrading existingfacilities and installing 55 miles of newpipeline. This pipeline will be laid along theexisting route where Enbridge has beenoperating since the mid-1960s from theBeaver Lodge Station near Tioga, ND, to theBerthold ND Station.
Construction along the BakkenExpansion routes began in early August andwill continue into spring 2012. Currently, youwill find construction crews working in allstages of the pipeline construction processalong the Bakken Expansion Project. Thesecrews are busy grading the right-of-way,carefully stripping topsoil, stringing, bending,and welding the pipe before they can coatand prepare the pipe to be lowered into thetrench.
Enbridge’s system of pipelines has been
providing our region with the fuel we all
need to live, work and play for more than 60
years, and we are continuing to look toward
the future of oil production. Those same
crews you thought were constructing roads
or snowmobile paths are actually building
the much-needed infrastructure to safely
transport North Dakota’s crude oil.
To learn more about Enbridge and our
pipeline system, visit www.enbridgeUS.com.
Call our Montana office
888-832-2874
One of the largest third party logistics companies would like to help you with all of your transportation needs on the Bakken project. We offer Flatbed, Van, Over Dimensional, Heavy Equipment, LTL (less than truckload) services.
C.H. ROBINSONW O R L D W I D E , I N C.
BAKKEN OIL REPORT 2011 | 47
RECOGNIZE THE WARNING SIGNS OF APIPELINE LEAK!• Pooled liquid on the ground• An unusual petroleum or rotten egg odor• Oily sheen on water surfaces• A roaring, blowing or hissing sound• Discolored vegetation or snow• A light-colored vapor cloud near the pipeline
WHAT TO DO IF YOU SUSPECT A LEAK!• Turn off the ignition of your vehicle and walk away –
upwind if possible.
• Leave the area. Warn others to leave and stay away.
• Call 911 from a safe location. If possible, also call the
Enbridge emergency number: 888-838-4545.
• Avoid using any ignition sources – cell phones, pagers,
smoking materials, flashlights, keyless entry remotes
or motor vehicles.
• Don’t touch or go near any liquid you think may have
come from a pipeline.
• Never attempt to operate pipeline valves. It could
prolong an incident or even cause another leak. ■
ENBRIDGE
We specialize in the transportation of drilling fluids and crude oil. Our drivers are proven professionals. We’ll provide you with
the highest level of service.
Watford City | Tioga | Stanley | Dickinson | Minot | Beach | Williston
Watford City | Tioga | Stanley | Dic
ckinson | Minot | Beach | Williston
Enbridge Pipelines (North Dakota) LLCCommitted to safe operations, environmental
stewardship and social responsibility.
48 | BAKKEN OIL REPORT 2011
WANZEKCONSTRUCTION
Wanzek builds on 40 years of industrial,civil, oil & gas experience
in the Williston Basin
Wanzek Construction is all over the
Williston Basin in western North
Dakota, moving equipment and materials
and completing industrial and civil projects
for regional and global customers.
Wanzek’s commitment to work in the
Bakken goes well beyond the norm for a
construction firm, says Tom Griffin, vice
president of construction. The Fargo, ND-
based company recently opened offices in
Minot, ND and Houston to better serve its
customers engaged in extracting oil from the
Bakken Formation. In addition, Wanzek is the
first – and so far the only – construction
company to build, equip and furnish a camp
in the Williston Basin for its own and
subcontractors’ workers.
“The Williston Basin has provided
Wanzek an excellent opportunity put more
than four decades of heavy industrial and
civil construction experience to work in
developing much-needed oil and gas
supplies for the nation,” Griffin says. “We
have all the expertise that regional and
global companies need to put themselves in
a position to extract the resources, and with
our local connections and dedication to
safety, we can place our customers in a
stronger position to succeed.”
With the opening of the two new offices
and additions to its workforce, Wanzek, aMastec company, is now the largest NorthDakota-based heavy industrial contractor inthe United States. And on Sept. 14, 2011,Wanzek celebrated its 40th anniversary inbusiness.
CRANES AND CAPABILITIESIn the Bakken, Wanzek is working in
primarily providing two services: moving andplacing equipment with its cranes andconstructing above-grade civil andmechanical infrastructure work.
The first Wanzek crane rolled into theWilliston Basin in 2007. Since then, Wanzekcranes and operators have completeddozens of projects for 43 differentcompanies. The equipment has ranged fromboom trucks to crawlers with 80- to 275-ton capacities that have executed lifts ofvarious types of equipment in daily, weekly,monthly and yearly rental arrangements.
In terms of heavy industrial and civilwork, Wanzek has completed projectsinvolving earthwork, concrete, structuralsteel, equipment setting, process piping,power piping and electrical andinstrumentation/controls. Projects haveranged from well pad development toconstruction of pump and compressorstations, rail terminal projects, to LPG transloading facilities and gas plants. Wanzek alsohas the capability and experience tocomplete mass site work for oilpaddevelopment once the drilling operationshave been completed.
Left to right: Rush Waite, senior vice president; Kevin Gourde, chief financial officer;
James G. Henry, president; Tom Griffin, vice president of EPC; and
Jason Kaufman, vice president of Business Development.
Wanzek Construction has assembled a talented group of construction professionals with afocus on project execution. From pre-construction services through commissioning and start up of complex projects with a vigilant focus on safety, quality, cost, and schedule.
Our professionals have an average of 20+ years experience in the oil and gas industry, building all types of facilities; compressor stations, crude oil pump stations, loading and unloading terminals, and gas storage. With an impressive equipment fl eet, Wanzek has all the iron to get it done.
If your project requires rapid response and involves a tight schedule, adverse weather or diffi cult site conditions, we deliver. wanzek.com | 701.282.6171
civil | site preparation | concrete pads | mass foundations | crane service | equipment/facility maintenance | equipment setting | mechanical/process piping | process installation | structural steel
50 | BAKKEN OIL REPORT 2011
1 — Setting rebar – Maple River Dam, ND.
2 — Cooling tower foundation – Spiritwood, ND.
3 — Gasifier project – Benson, MN.
4 — Crane service – Grand Forks, ND.
THE REAL ASSETSAll told, Wanzek has more than 125
direct-hire craft and staff people workingon various projects in the Williston Basin.To help retain those employees and attractthe additional qualified workers needed inthe Williston Basin, the company beganconstruction on an employee housing
complex near Tioga, ND in July 2011.
When it is completed, the complex will
comprise 179 lots, each with a three-
bedroom mobile home, yard and parking
space. In addition, there will be a movie
room, exercise and weight facilities and an
on-site store for use by all the complex’s
residents.
The homes will be furnished with
standard kitchen appliances, dishes and
tableware, full-size beds in each room, an
energy-efficient washer/dryer set, living
room furniture, a 40-inch, flat-screen TV
and satellite TV service. Wanzek will
provide cleaning services twice a week, as
well as snow removal, lawn care and road
maintenance.
Wanzek completed the 83 lots in the
first phase of the project in September and
expects to finish the remaining 96 lots in
October 2011.
“It costs money and time to train good
people, people with the skill sets that
Wanzek, our subcontractors and our
customers need to get the job done right,”
Griffin states. “As a company, we’ve always
done everything in our power to attract and
retain a stable and dependable workforce,
and with the unique housing challenges in
the Williston Basin, we’re going a little
further.” ■
WANZEKCONSTRUCTION
Phone: [email protected]
Phone: [email protected]
Phone: [email protected]
TRILOGY OILFIELD LTD.OGYTRILO TLILFIELDO DT
1
2
3
4
52 | BAKKEN OIL REPORT 2011
It’s been nearly 60 years since geologistsdiscovered a promising oil play beneath
Henry Bakken’s farm in northwestern NorthDakota.
While it may have taken awhile for theBakken to truly start rockin’, MDUResources Group Inc. has long believed inthe people and possibilities in the area. Thecompany this year marked its 85th year ofservice to the region, where it first providedelectricity for Henry Bakken’s neighbors inTioga in 1926.
Since then, MDU Resources Group has
grown into an energy, construction andutility company that operates in 44 states. Itis the largest publicly traded companyheadquartered in North Dakota or Montana,the states the Bakken straddles.
MDU Resources is taking advantage ofhaving the Bakken in its backyard. Itscompanies are producing oil and natural gas,building roads, heating homes and poweringbusinesses throughout the Bakken.
OIL AND NATURAL GAS PRODUCTIONFidelity Exploration & Production Co.
has been in the oil and natural gas business
in Montana and North Dakota since the
1930s. The company continues to expand its
presence in the Bakken, where it has been
adding drilling rigs to increase its oil
production.
This year Fidelity will invest about $85
million on its oil and gas-producing
properties in the North Dakota portion of the
Bakken, and is expanding into the Montana
side with the purchase of 20,000 net
exploratory acres in Richland County.
CONSTRUCTION
Knife River Corp. – MDU Resources
Group’s construction materials and
contracting company – has opened an office
in Williston, ND and business has been
booming in the Bakken, where heavy truck
traffic has deteriorated the network of roads.
This autumn Knife River is working on a
$33 million project to resurface and widen
North Dakota Highway 8, an artery in the
heart of the oilpatch between Stanley and
New Town. The company also is paving
several county and city roads in the region.
In Williston, where developers can’t build
housing fast enough to satisfy the influx of
people, Knife River is handling the
underground utility installation in a major
subdivision and is performing curb and
gutter projects. The company also is seeing
tremendous demand for its supplies of
asphalt, aggregate and ready-mix.
‘The Bakken is our backyard’
MDU Resources Group celebrates85 years of service to the Bakken area
MDURESOURCES
A Montana-Dakota Utilities Co. gas crew works to install new natural gas service lines
to homes in Williston, ND. The utility has been busy working to keep up with the growing
population related to the Bakken oil boom.
BAKKEN OIL REPORT 2011 | 53
UTILITIESMontana-Dakota Utilities Co. provides
natural gas or electricity – and sometimesboth – to about 67,000 customers in theBakken area.
The company is working diligently tokeep up with load demand in the region,which goes beyond serving the workers whokeep flockin’ to the Bakken. The largest gainin electric demand has been commercial andindustrial users.
The utility has gained load growth byhooking up oil wells, pumping stations,switch heaters, backup generation, businessparks, industrial parks and more.
On the natural gas side, Montana-Dakotalast year installed 560 new services andmore than 60,000 feet of pipeline. ItsWilliston division is adding 13 positions tohelp keep up with the work.
PIPELINE AND ENERGY SERVICESWilliston Basin Interstate Pipeline Co.
owns and operates the most extensiveinterstate natural gas pipeline in the Bakken.The company has been a major player in theregion for more than 50 years, andcontinues to grow its business there.
This year Williston Basin is addinghorsepower to a major compressor station inthe Bakken, which will allow the company totransport more gas on its system. It is addingan interconnect point with a third-party
pipeline near Belfield, ND, which will be its13th with Bakken-area natural gas producers– more than any other interstate pipelinecompany. Williston Basin also is constructinga 12-mile pipeline near Watford City, ND, tomove gas from a new natural gas processingplant.
Bitter Creek Energy Services hasexpanded the menu of services it provides inthe Bakken. In addition to building andoperating gathering pipelines andcompression facilities, Bitter Creek providescathodic protection, leak detection, waterhauling and natural gas measurementservices.
IN FOR THE LONG HAULIt took 60 years for the Bakken to boom.
If that seems like a long time, consider thatthe rock layers which hold all that oil havebeen there for about 360 million years.
Time is relative. MDU Resources was astrong company and good neighbor inMontana and North Dakota long before theBakken was rockin’. Its employees work hardevery day to continue that tradition.
The company enjoys its success in theBakken and looks forward to 85 more yearsof delivering value for its customers andshareholders. MDU Resources companiesare built on a foundation more solid than allthat shale and dolomite two milesunderground. ■
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Considering a building project, call the Miller team.
Commercial, Healthcare, Worship,Senior Housing, Funeral Homes
MDURESOURCES
At left, Curtis Bennett talks to Bill Hains, both with Knife River Corp., about the
progress on a 24-mile stretch of North Dakota Highway 8 that Knife River is repaving.
56 | BAKKEN OIL REPORT 2011
DON-NANPUMP &SUPPLY
Don Carruth is president, CEO, andowner of Don-Nan Pump & Supply
Company, a company that manufactures,builds, and services subsurface pumps,tubing anchors and gas separators for theupstream oil and gas industry. Founded byVernon Carruth (Don’s father) in 1962,Vernon named the company after his twochildren, Don and Nancy. Today, one of Don-Nan’s wholesale facilities rests on thewestern bank of the Williston Basin in Poplar,Montana.
While the formerly small company nowboasts seven service centers, threewholesale warehouses, and an API-certifiedmanufacturing plant equipped with state-of-the-art machines, Don Carruth is quick tonote that the company struggled during thefirst 10 years of its inception. His fatherstarted the company because, as Carruthsays, “Frankly, there were no jobs being
offered in 1962 in [Midland, TX]. We’vealways had a steady growth. Even duringdownturns in the industry, and we’ve alwaysgrown. But, we did it very, veryconservatively – and we never over-extendedourselves.”
After doing work for his father during histeen years, Carruth soon left the business toserve his country in the U.S. Navy. After acouple of years in the Navy, Carruth returnedhome and began working as an automechanic; just a few years later, Carruthbegan working for himself, having opened hisown mechanic shop. He quickly built up asteady clientele. “I didn’t have any long-termgoals set up. I just kind of walked throughdoors as they opened up,” he says.
All the while, Don-Nan Pump & SupplyCompany was chugging along, slowlyincreasing its business. However, with theincreased business and operating seven daysa week, Vernon needed assistance from asource he knew he could trust to dedicatetime toward long workweeks. With Vernon’shealth in question and knowing the amount oflife-savings that had been poured into thefamily business, Vernon viewed Don’sincredible work ethic and mechanical acuityas the best option for the company.
After Carruth rejoined Don-Nan Pump &Supply Company in 1976, his father passedaway just a little over a year later. “That wasprobably the hardest time of my life, takingover a business at 29 and losing your father
Made in America By Norman Emerson
Jon Yoda seen here manually compensating
computer control for a twin-grip centralist
grinding machine at the Don-Nan Plunger facility.
As part of the Total Quality Control
Plan, Matt Corbitt takes a micrometer
measurement just before sending parts
off for inspection.
BAKKEN OIL REPORT 2011 | 57
at the same time,” says Carruth. He is quickto comment that his mother, Dorothy, wasjust as vital to the survival of the company,contributing more and more of her workhours within the company.
After taking over the company for hisfather, Carruth never lost his faith; he onlyworked harder. “There were two of usworking the business,” explains Carruth.“Chuck [Schlagal] would break down[pumps] all day long for me when I’d run thefields, and then I’d come in and repairpumps well into the night,” he says. WhenCarruth speaks of Chuck Schlagal, thelongest-working employee for the companystill working there today, there is no doubt acertain fondness exists for his long-time co-worker and friend.
Over the years, Carruth’s tireless workethic helped steer Don-Nan Pump & SupplyCompany into direct competition with
industry giants that had been establishedmuch longer than Don-Nan. With thecompany’s 50th anniversary coming soon in2012, the oil and gas industry’s eyes andears outside of west Texas are slowlybecoming aware of this sound and solidpump company that manufactures acomplete line of tubing anchors, gasseparators, and subsurface sucker rod andtubing pumps.
When asked about the secret of hissuccess, Don gives a direct, but gentle,sorry-to-disappoint-you reply of “There areno trade secrets. There’s just hard work.You’ve got to be willing to sacrifice a lot offacets of your life that you don’t really likedoing. But in order to be successful andgrow the company, you have to sacrificesome things,” he says.
Plain and simple, Don-Nan Pump &Supply Company did not succeed overnight.This story is close to 50 years in the makingof a slow and steady growth. “Do the jobright, be honest with your customers, andalways keep in mind that without thecustomer, you don’t have a business,”Carruth confides.
Born before the age of 1,000 channels,fantasy sports, smart electronics, or the
popular mobile gaming app called “AngryBirds”, it’s not surprising that Carruth hasalways held an intrigue for the mechanicsof an object: what makes it work, how itworks, and how can it be improved. Today,there are no signs of slowing down asCarruth still has his hands deeplyentrenched in the innovative parts creationsector of the business, and unofficiallyserves as the head of technical support forhis customers and employees. At thismoment, the idea of shuffleboard, canastaand lemonade sounds more like pennyfiction for the man who cannot evenimagine retirement. Don Carruth began hiscareer working for his father, Vernon; thenworked for his country; and finally workedfor himself; whether one views himthrough a macro-economic lens or a familylens, he is still working for all three – andthat’s just the way he wants it. ■
DON-NANPUMP &SUPPLY
DIAMOND b OILFIELD TRUCKING, INC.Serving The Oilfi eld For All Your TransportaionNeeds and Service Work • Hauling Crude Oil and Water
TERMINALS | Plentywood • Westhope • Tioga • Williston406.765.1376 • 24 Hours • Toll Free 1.800.376.1376
212 W. Cactus Street | Plentywood
b DIAMOND bSteve Bowman Cell | 406.765.7954 | PresidentVictor Lawson Cell | 406.765.7687 | Vice PresidentDaryl Sorenson Cell | 406.765.8563 | Operations ManagerOle Hagen | 701.263.5571 | Westhope Manager
Don Carruth.
58 | BAKKEN OIL REPORT 2011
OILFIELDINTEGRATORS
Oilfield Integratorswas formed in
2010. The mission ofthe company is toprovide integratedsolutions to address
three concerns in the oil and gas industry:production, security and safety management.Oilfield Integrators offers oil companiesnumerous solutions including engineeringand design, video surveillance, license-platerecognition software and full automation andcontrol, as well as electrical contractingservices. As an integrator, this company hasa broad range of expertise to offer theircustomers and their staff understand theproduction, security and safety needs of theoil and gas industry.
Oilfield Integrators is “construction-to-production” capable; this means that thecompany has the products and ability to
provide the engineering and design,electricity, technologies, IT infrastructure,and the communications to deliver a turn-keysolution. Being a part of their projects fromthe early stage of design is what helpsdistinguish the company from theircompetition; it also allows them to betterunderstand their customers’ needs. OilfieldIntegrators can provide design ideas to assisttheir customers in creating better solutions,around-the-clock efficiencies, and a safer,more secure work environment. Their stafftake pride in their ability to not only workwith solutions that have already beendesigned and implement them in their ownway, but also to design new solutions thatwill benefit the customer. Oilfield Integratorssolves problems in the oil and gas industryby using technology and providing oil and gascompanies the information they need toincrease revenues, decrease costs and alsomanage day-to-day risk.
Recently, Oilfield Integrators was askedto design a ticketing system for one of theircustomers that operates salt-water disposalsites. Currently, there is no out-of-boxsolution that is offered on the market thatprovides enough information toaccommodate the needs they had; OilfieldIntegrators designed a solution that gives thiscustomer exactly what they required. OilfieldIntegrators hosts this application along withtheir WellHawk solution using videosurveillance and a custom-designed solution.This solution will dramatically reduce theoffice workload by automating the invoicingfor the client, thus providing them withaccurate information and speeding up theprocess of invoicing. This will also hastencash flow and increase profits for the client’scompany.
The WellHawk solution, a product ofOilfield Integrators, is a software applicationthat works with any SCADA system that acustomer has or chooses to use. The serveris hosted and managed at a secure datacenter so that the customer can concentrateon what they do best, saving them the start-up cost as well as the maintenance cost onmanaging any IT infrastructure. WellHawk isnot only a solution that can be deployed inNorth Dakota and Montana; it is also asolution that will work globally. OilfieldIntegrators has built the software applicationthis way because the energy industry is nota local industry; it is a global one. Once aconnection to the Internet is established viaa Smartphone, PC tablet, PC, etc., and alayout for the individual location is designed,the customer has the power to control andmonitor each facility from anywhere in theworld as if they were at the location. Thishelps to reduce operating costs as well asprevents events that could lead to equipmentdamage or spills that are costly to clean up.
Oilfield Integrators is a very well-rounded, well-thought-out business thatemploys the right people to make sure theirsolutions work for their customers. They arenot afraid to take on any challenge that theirclients offer to them and are 100-percentdedicated to exceeding every customer’sexpectations. The company prides itself onbeing a pioneer in technology specifically forthe oil and gas industry and is constantlylooking to improve processes that lead tofewer headaches and ultimately more profitsfor their clients. Solving problems, addingvalue and exceeding their customers’expectations is the overall focus for OilfieldIntegrators at the end of each and everyday. ■
An industry leader
60 | BAKKEN OIL REPORT 2011
BADGERDAYLIGHTING
Badger Daylighting has grown to beNorth America’s largest hydro
excavation service provider, with over 450trucks and crews, by simply offering itscustomer base “The Best Truck and BestCrew” available in the industry – all thewhile providing true value in what they do.With the same devotion, Badger has becomethe Bakken’s largest provider of non-destructive hydro-excavating services.Servicing the Bakken since 2007, Badgerhas grown to include operation centers inDickinson, Minot, and Williston.
Badger’s key technology is the BadgerHydrovac System, a hydro-vacuumexcavation truck that is used primarily fordigging safely in areas with buried pipes andcables. However, the advantages ofBadger’s services don’t stop there: fromcleaning mud tanks on drilling rigs, cleaningup oil spills, flood debris clean-up, digging
through frozen ground in conditions down to minus 40 degreesFahrenheit, to excavating at distances more than 400 feet away fromthe truck, the strength and versatility of Badger’s hydrovac service givesoptions to the oilfield that are safe, affordable, and productive.
In the Bakken, Badger typically works for contractors, operators, andfacility owners in the petroleum industry. The three main uses for theBadger Hydro Vac in the oilfield are for safe digging applications,tank/vessel cleaning, and drilling rig cleaning.
Operators and drillers use Badger every day to clean mud tanks,frac tanks, flow-back tanks and other drill rig-based vessels. What mostof the operators and drillers have found is that the vacuum system of theBadger unit is the best out there for their time-sensitive purposes.Where in the past, most of these companies would have used a straightvac truck to pull solids from these tanks and found it would take longerthan they could afford, with the Badger unit, solids can be cleaned out ofthese vessels in half of the time. The Badger unit has an on-board
Badger Daylighting: Proud to be the Bakken’s largest provider ofnon-destructive hydro-excavating services
Kiewit Contractor Safety Award(July 2009)
WE DELIVER:Badger Daylighting is a leading provider of non destructive hydrovac excavation services. Badger is committed toproviding customers with the best hydrovac truck staffed by motivated and qualified Operators.Badger’s hydrovac technology is unsurpassed. We design and build our own equipment; the Badger Hydrovac System. Usinginvaluable field experience, Badger continually improves the safety and efficiency of the truck.Equipped with the best truck and an award winning H&S program, Badger’s commitment to you, the Customer, is firmly seton four key pillars of strength: Safety, Productivity, Versatility, and Service.With over 400 trucks on the road, Badger is well positioned to deliver on its commitment whenever and wherever you mayneed it. Experience the BADGER Advantage today.
SAFETY
PRODUCTIVITY
SERVICE
VERSATILITY
Hydro Excavation
Drill Rig Cleaning
Trenching
Vessel Cleaning
Environmental Clean Up
Frac Tank Clean Up
Pit to Pit Clean Up
Sand Trap Clean Out
Potholing
Drill Mud Removal
Culvert Clean Out
Test Holes
Cathodic Protection
Pole Holes
Caissons
And Much More ...
What Can BADGER do for You?
24 Hour Dispatch: (855) RIG-CLEAN(855) 744-2532
62 | BAKKEN OIL REPORT 2011
BADGERDAYLIGHTING
pressurized water system and uses patentedwash wands for spoil break up for cleaningapplications. Each Badger unit can havemultiple wash wands for any type of cleaningapplication on drilling rigs, including theentire derrick. With the cost to operate a rigbeing what it is, it is vital that drillers havequick access to efficient vacuum trucks suchas Badger.
Contractors and operators use Badgerfor a whole host of safe and efficient diggingapplications. As the infrastructure of theBakken continues to get more congested, theuse of hydro excavation will continue to playa vital role as the safest and most-efficientway to dig around existing infrastructure.
Uniquely, Badger units are born, bred,and made for cold-weather digging; every
Badger truck has the ability to heat the waterto dig through any North Dakota or Montanapermafrost. Typical applications include slottrenches, caissons, piling holes, anddaylighting existing utilities. Many of thecontractors and operators have adopted themethod of hydro-excavation to be theprimary means of digging to protect humanlife, and make Badger their first call whenramping up a project.
Availability of services is one of thetoughest obstacles for companies operatingin the Bakken to overcome. Knowing this,Badger has strategically positioned crews,equipment and housing around the Bakkenfield for easier access to the more remotelocations where drilling and constructionactivities are taking place. Badger is rollingnew equipment into the Bakken each monthto keep up with their growing demand, andthere is no limit to their growth.
With the challenges presented by theinflux of workers coming in from out-of-stateand short-term employees, it is important tohave a proper health and safety program forthe benefit and welfare of all. Badger hasbeen recognized for its industry-leadinghealth and safety program, providingcustomers with the added assurance thattheir projects will be completed on time andwithout incident. Badger participates inseveral safety consortiums which arecommon today.
Badger’s core leadership team in theBakken consists of native residents who areveterans of the oil and gas industry. Theaverage leadership position consists of over15 years of oil and gas field workexperience. Badger also employees full-timesafety managers, fleet managers, andmechanics that allow them to be on site, ontime, and perform safely. Badger’sexperience provides its customers with the“Best Truck and Best Crew”, allowing fortop-notch service. Badger performs what isneeded on any given project. Operating 24-hours, seven days per week, Badger can bereached via telephone at 855-RIG-CLEAN(855-744-2532). ■
M E M B E R
64 | BAKKEN OIL REPORT 2011
PIONEERDRILLINGCOMPANY
“Our goal is to provide the highestlevel of service and performance
to our drilling and production servicesclients and, most importantly, to do it in amanner where those working at ourlocations are safe,” says Stacy Locke,president and CEO of Pioneer DrillingCompany.
“In addition, our clients value ourpartnership-based approach because itassures them that we are invested in theirsuccess,” he explains. “We listen to ourclients and collaborate with them to make
sure we stay focused on the achievementof their goals.” To help ensure Pioneerdelivers on promises to its clients, thecompany provides resources, knowledgeand training to empower its employees tomake the right decisions.
Safety is a cornerstone of Pioneer’sculture that permeates every level of thecompany. Recently Pioneer has undertakena major safety initiative to further solidifyand build upon its safety culture; Pioneerengaged JMJ Associates, a leadinginternational safety consultant, to help withthis initiative. “Our new safety programenhances our existing safety efforts toobtain an injury-free work environment,”adds Locke. “We focus on our employees’attitudes and behaviors to create a culturewhere our employees can work safelyevery day.”
DRILLING SERVICES DIVISIONPioneer has established positions in
unconventional and in key shale plays suchas Bakken, Eagle Ford, Marcellus, Niobrara,and Denver, Permian, and Uinta Basins.Currently, there are nine Pioneer drillingrigs working in the Bakken.
“We are very excited about our new-build program, with six new-buildsscheduled for early 2012 delivery,” saysLocke. “Four of the new-builds are plannedfor the Bakken Shale and we have multi-year contracts for them.”
Pioneer’s new-builds have state-of-the-art equipment and technologicalcapabilities that enhance the rigs’ safetyand efficiency. All of the rigs are fully-
automated AC electric rigs equipped with500-ton built-in top drives, ironroughnecks, automatic catwalks andwalking systems for pad drilling. They aredesigned for a crane-free rig up formobilization flexibility. The Driller has aclimate-controlled cabin where the rigsystems are monitored and the hoisting,rotating and pumping systems arecontrolled.
The four Bakken new-builds have2,000 horse-power LeTourneau mudpumps and 7,500-psi fluid heads thatincrease flexibility for down-holeoperations.
“We are proud of the caliber of workour drilling rigs are doing in the Bakken,”says Skip Locken, vice president anddivision manager. “We have two rigs thatdrilled 14-day wells, and one rig drilled awell in 13.2 days. These are outstandingaccomplishments, considering the industryaverage in the Bakken is approximately 20days, with some wells taking as long as 30days.”
In addition, Pioneer’s drilling rigs haveearned safety milestones, with 27 activerigs that have achieved over one year ofworking time without a recordable incident.
“The crews deserve the credit,” addsLocken, “because none of this successwould happen without them. This is a teameffort, with our management, ourengineers, our rig crews and ouroperators. Our rigs have excellentleadership and our rig crews are highlyexperienced.”
Pioneer offers partnership-basedapproach to clients
THE BAKKEN SERVICE LEADERDedicated to staying on the cutting edge of drilling technology, our aggressive new build program includes rigs that are quick-moving and environmentally sensitive.
Phone: 210.828.7689
The highest quality contract services, with new American manufactured 400-600 HP-class rigs and pump packages capable of working at depths of 20,000 feet.
Phone: 701.572.1020
The latest wireless tools for cased and open-hole services, radial and standard cement bond logging casing calipers, production logging, pipe recovery, and a full range of perforating systems.
Phone: 406.652.4400
Phone: 701.572.1087
UNSURPASSED SERVICE. THE BEST PEOPLE. PREMIUM EQUIPMENTWWW.PIONEERDRLG.COM
THE BAKKEN
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66 | BAKKEN OIL REPORT 2011
WELL SERVICESPioneer’s fleet of well service/workover
rigs is one of the newest and most highlycapable fleets in the industry. Pioneer hasestablished positions in unconventional andin key shale plays such as Bakken, EagleFord, Fayetteville, Haynesville, Marcellus,and Tuscaloosa Marine Shale.
Pioneer has 10 well services rigs in theBakken and continues to grow its presencethere. Some of the well service rigs operateas 24-hour rigs. The entire fleet is 550 to600 horsepower rigs that are equipped withmud pump and tank packages, swivels andlaydown machines.
Committed to its people and to its qualityof client service, Pioneer operates a TrainingCenter in Williston where it conducts variouson-going safety trainings and a three-day“New Hire Orientation” for all of its newhires.
WIRELINE SERVICESPioneer is one of the oldest and the
largest wireline companies operating in theBakken. Operating under the company namePenkota, it has been in the businesscontinually for over 30 years.
With its long and proud history,Pioneer/Penkota offers a wide range ofservices to its clients. In addition to pump-and-shoot services, it also provides specialtylogging for cement and casing evaluation,pipe recovery, and conventional and tubingconveyed perforating.
Backed by its long record of outstandingperformance, Pioneer/Penkota continues toprove its commitment to client services withits expertise and knowledge base thatenable it to work efficiently to help clientsmeet their production goals.
Currently, Pioneer/Penkota operates 15wireline units between their Williston andDickinson locations, and plans to add moreunits in the future. Outside the Bakken, thecompany has 21 other wireline districts andis well-established in the Bakken, Barnett,Eagle Ford, Haynesville, Marcellus, andNiobrara shales. ■
GeoResources, Inc., through its wholly owned subsidiary G3 Operating, LLC, conducts exploration and production
operations primarily in the Williston Basin.
The Company also operates core properties in the southwest Gulf Coast through its wholly owned
subsidiary Southern Bay Operating, LLC. GeoResources, Inc. is traded on the Nasdaq.
1407 West Dakota Parkway | Suite 1B | PO Box 1505 | Williston, ND 58802
701.572.2020
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operations pr
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est Dakota Parkway1407 WW
70y | Suite 1B | PO Box 1505 | W
1.572.2020illiston, ND 58802
PIONEERDRILLINGCOMPANY
68 | BAKKEN OIL REPORT 2011
MAC Heaters, in business for nearly
three decades, continues to evolve
and grow with their clients’ needs and
demands. In 1983, MAC Heaters started a
production facility in Glenburn, ND. “As
many of our clients in the Bakken oilfield
already know, this area of North Dakota
can produce some of the most extreme
temperature variations,” says JT Anderson.
“The extremes in temperature prove the
resilience of our products and technology –
and build strong character in our
employees, too!”
MAC HEATERS –
BUILT TO PERFORM, BUILT TO LAST
MAC is known for some of the safest,
most reliable and easy-to-operate heaters
in the industry, and has a wide range of
heaters to fit most every need. “MAC
Heaters are proudly manufactured right
here in North Dakota, with mid-western
values and a desire to exceed our
customers’ expectations every day,” JT
enthuses.
MAC offers heaters ranging from
210,000 BTU/hour, all the way up to
4,200,000 BTU/hour. MAC’s line of heaters
provide a safe, reliable heat source for any
situation where heat is needed for
personnel quarters, equipment warm-ups,
water flooding stations, mining, pipeline
construction, airlines, warehouse and
supply depots, loading docks, construction
heating, maintenance or mechanic shop
heating, paint and coatings applications,
dehumidification – the list goes on. All MAC
heaters are portable and can be moved
where heat is needed.
MAC has listened to their clients’ needs
from the beginning, setting the company
apart from competitors. “If our current
production models are not what you are
looking for, let us know and we can build
one that will meet and exceed your
expectations,” JT affirms. MAC takes pride
in engineering the best quality product, and
will take the extra steps necessary to
ensure there will be no breakdowns in the
field causing lost production and revenue.
In order to meet the demand of these
industries and their clients, MAC recently
expanded its facilities. MAC purchased a
building in Bismarck, ND – now their
corporate headquarters – and also has a
top-notch assembly line.
“This new facility now allows us to
produce heaters more rapidly quickly and
efficiently in order to meet and capture the
demands of the industries. MAC has
doubled, if not tripled, our square footage,
laborers and production to meet these
demands,” JT says.
MAC’s offices across the U.S.A. provide
sales, leasing and service support for all
their customers’ needs. “MAC recently
expanded several departments. We now
have our own leasing division and
service/AMP division. So if purchasing is
not in your budget, then give us a call and
let’s talk about what size heater will fit your
needs and the leasing option that will fit
your budget.
“Our expansion into the service side of
things now enables our customers to give
us a call – we’ll come out and take care of
any and all of their field service
requirements, from a simple service/oil
change to a complete overhaul or
refurbishment of an older unit. Here at
MAC, we try and make every step as easy
as possible,” he concludes. ■
MAC Heaters:“Your reliable heat source”
MACHEATERS
We’ve been in business for almost three decades, growing out of Glenburn, North
Dakota, where the wind chill can get to -60 deg F, or 105 deg F! We suspect
the extremes of temperature not only test our technology, but it builds stronger
character, too.
Quality Sets Us Apart from the RestOur commitment to quality is what makes us unique. Midwestern values, an honest
desire to exceed expectations, and our depth of experience all contribute to the fine
products we sell today. We have heaters ranging in size from 210,000 BTU/HR to
4,200,000 BTU/HR for all types of applications. MAC, Inc. is a leader in quality and
customer service with a dependable line of MAC heaters.
Your Reliable Heat SourceThe MAC line of heaters provide a safe, reliable heat source for any situation where
heat is needed for personnel or equipment including, water flooding stations, mining,
pipeline construction, warehouse and supply depots, loading docks, and heavy
equipment heating. MAC, Inc. was established, in 1983 in Glenburn, North Dakota
specializing in the design, development and production of custom-built, forced
air heating units. For over two decades MAC, Inc. has gained wide acceptance
serving a variety of industries with a reliable heat supply in extreme environmental
conditions. MACs are known for their reliability, simplicity and maintenance free
features. We now have a facility in Glenburn, ND which is where the company
evolved from to its most recent expansion into a top notch manufacturing facility
here in Bismarck, ND which is now our corporate headquarters. We have doubled
if not tripled in square footage and doubled our laborers to produce enough
heaters to meet the demand of our clients. We are expanding to add a full line
service operation to assist our customers out in the field along with a fully stocked
aftermarket parts operation on hand in Bismarck, ND. So now when a customer
needs parts, we can get them out in a timely fashion eliminating as much down
time as possible.
www.macheaters.com | 1.800.272.46042106 East Indiana Avenue, Bismarck, ND, USA. 58504
MAC HEATERS BUILDS INDUSTRIAL AIR HEATERS FOR A NUMBER OF INDUSTRIES
Offices across the USA.Leasing now available. Call 1-800-272-4604 to inquire about our leasing programs.
AIR HEATERS
AIR HEATERS1-800-272-4604
www.macheaters.com
MAC
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70 | BAKKEN OIL REPORT 2011
CANELSON
CanElson Drilling Inc. (“CanElson”)commenced operations in late 2008
with one rig that it had constructed andcommitments for multi-well drillingprograms in Alberta. With a strategy basedon four geographical platforms for growth inNorth America – Western Canada, NorthDakota, Texas and Mexico – CanElson hassince has expanded its operations andgrown significantly. In addition toconstructing its own drilling rigs, thecompany has expanded its fleet of drillingand service rigs through acquisition. Sincethe late 1970s, the CanElson Drilling Inc.management team has founded and builtthree highly successful Canadian oil and gascontract drilling companies; it is now on
track to do the same with CanElson DrillingInc.
CanElson currently operates in theWestern Canadian Sedimentary Basin(WCSB), the United States and Mexico. Thetarget resource throughout the areas inwhich CanElson works is either oil orliquids-rich natural gas. The WCSBoperations are currently focused in Alberta,Saskatchewan and Manitoba and the entirefleet is comprised of small footprint, ultra-heavy telescoping double rigs (“tele-double”).
The United States operations arecurrently focused in the the Bakken resourceplay of North Dakota and the Wolfberry playof the Permian Basin of Texas. CanElson’sMexico operations are conducted through ajoint venture company, Diavaz CanElson deMexico, S.A. de C.V. (“DCM”), of whichCanElson holds a 50-percent ownershipinterest, and is currently focused in theEbano-Panuco-Cacalilao fields of theMisantla-Tampico Basin of Mexico.
CanElson currently operates 33 rigs:four drilling rigs in North Dakota; 19 drillingrigs in the WCSB; six (net: five) drilling rigsin Texas; and two (net: one) drilling rigs andtwo (net: one) service rigs in Mexico.CanElson’s owned drilling rig fleet hasan average age of less than five years,and is capable of drilling horizontal andconventional and unconventional resourcewells with depth ranges from 1,500 metresto 6,700 metres.
These four operating platforms provide
CanElson:Building the drilling leadership
of tomorrow
Suite 700, 808 - 4th Avenue SW,
Calgary, AB, Canada T2P 3E8
Phone 403.266.3922
Fax 403.266.3968
www.CanElsonDrilling.com
TSX: CDI
Since it was established in late
2008, CanElson Drilling Inc.
has grown quickly to become
one of Canada’s premier drilling
contractors. In addition to building
its own drilling rigs, the company
is expanding its fleet of drilling and
service rigs through acquisition.
CanElson now operates
a fleet of 33 rigs (30 net).
With operations in Western
Canada, West Texas, North
Dakota and Mexico, CanElson
Drilling Inc. is setting new
standards for rig utilization.
With right-sized, purpose-built
rigs built for horizontal and
resource play drilling and
experienced, well-trained crews,
the company is achieving new
records for cost-effective,
efficient drilling operations.
Experience, leadership, performance.
72 | BAKKEN OIL REPORT 2011
CanElson with flexibility and diverseopportunities for growth. In North Dakota,Alberta, and Saskatchewan, CanElson’sdrilling rigs are right-sized for the explorationindustry’s current focus on deeper horizontalresource plays, including the Bakken,Spearfish, Shaunavon, Viking, Cardium,Montney, Cadotte, Cadomin, Dunvegan, etc.In the mature oilfields of Texas, wheredrilling rigs can operate year-round,CanElson’s customers are appreciating thecost efficiencies of technologically-advancedtele-double drilling equipment that can move
in one-third the time and cost ofconventional triple drilling rigs, while drillingthe wells faster too. And in Mexico,CanElson’s joint venture with a prominentMexican player in that country’s oil and gasindustry presents exciting opportunities forthe application of Canadian resource playdrilling techniques to help bring newproduction on-stream more quickly.
Building on these strengths, CanElson’sexperienced senior leadership team ispositioned for success by building the drillingleadership of tomorrow. ■
Value delivered, guaranteed!
We sell performance, with experience you can trustand equipment you can count on.
Maximum Uptime Means Optimal Production
(307) 202-2754globaloilfieldservices.com
Global Artificial Lift’s value is in our performance, and now,with a new operation in Minot, North Dakota, we’re at theready with reliable ESPs and the innovative Q-Max* Gas Bypass system. Let us show you we can help you optimizeproduction and reduce well interventions in these challenging Bakken wells.
*Mark of Global Artificial Lift.
CANELSON
BUSINESS SALES | M&A | CONSULTING | FINANCING & BUSINESS INTRODUCTIONS
#1 in Bakken!
John Suprock, Business Broker, Managing Member, Realtor® | P: 406.880.3697 | E: broker@oilfi eldbiz.com
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Zac Griffi n, Business Broker, Realtor® | P: 406.868.9366 | E: zac@oilfi eldbiz.com
www.oilfi eldbiz.comwww.oilfi eldbiz.comOFFICE: 406.728.9410FAX: 406.728.9479
BBUUSSIINNEESSSS SSAALLEES || MM&&AA ||| CCOONNSSUULLTTIINNGG ||| FFIINNAANCIN
ABOUT US
Today, electronic drilling information is an essential part of the oil and gas industry, and with RigManager being a world-wide provider of an industry leading solution, it's a perfect fi t.
RigManager has developed hardware and software solutions, with secure internet access that provides the foundation of drilling information management. RigManager electronic data solutions are used to create meaningful data analysis, increased productivity, improved customer satisfaction and a strength-ened competitive advantage.
RigManager was founded in 2003 by a small group from Calgary Alberta, Canada. Since RigManager's commencement, our engineers, developers and fi eld staff have been devoted to the development and deployment of an open platform hardware/software combination in which the software solution monitors, stores and distributes data from modern drilling rigs to where ever it is needed.
Our open approach provides unrivalled fl exibility to adapt to changes in and requests from the industry. RigManager’s vision is to provide the most complete and interpretive electronic data using up-to-the-minute network communications.
Ri M DPS i dd 2 3 9/22/2011 3 30 57 PM
RigManager provides the foundation of drilling informationmanagement with our next generation Electronic DrillingRecorder (EDR) and top-notch drilling instrumentation fordrilling rigs.
Coupled with our superior service, RigManager providesstate-of-the-art computer hardware and proprietary softwarethat is very flexible, customizable and accurate, along with themost reliable sensors available.
PVT (Pit Volume Totalizer) | Auto Digger
Data Acquisition Hardware | Web Portal
Total Gas | SiteWatch | Mobile Site
Communications for Locations & Camps
SERVICE & SUPPORTRigManager Services Ltd. provides fast, quality 24/7 technicalsupport for issues relating to the equipment or installation workwe’ve provided. We understand that your instrumentation andcommunications are important and we do our best to resolveissues timely. Our technicians are on standby 24/7.
APPLICATIONS• Remote Access • High Speed Internet• Email and Telephone • Simplified Process• Detailed Archives
Our service, equipment and enhanced communicationssystems provide our customers with the necessary tools
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Ri M DPS i dd 2 3 9/22/2011 3 30 57 PM
76 | BAKKEN OIL REPORT 2011
NDFA
North Dakota has worked very hard to
leverage local resources for new
venture creation. With the current success
of the oil industry in the state, North Dakota
has achieved the status as the fourth-
largest oil producing state in the nation!
This year as we look at the 60th
anniversary of striking oil at a farm near
Tioga, the North Dakota Firefighter’s
Association (NDFA) takes time to reflect on
the changes that have been in the state’s
fire service.
This surge in oil production has
positively impacted North Dakota
firefighters in many ways. North Dakota’s
record oil production has had a tremendous
impact on the economy, revenue and high-
paying jobs – 96 percent of the fire service
in North Dakota is comprised of volunteer
fire fighters! As a result, some of the
responding firefighters are employed in the
oilfields as members of the oilpatch
workforce. North Dakota has made, and
will continue to make, important
contributions to the U.S. energy security as
the nation continues its thirst for oil and
natural gas. From a national security
vantage, production here rather than
relying on other war-torn oil producing
nations is in the best interest of the nation.
North Dakota firefighters face greater
risks and dangers than ever before as they
respond to incidents. As firefighters
continue to respond for services such as
EMS, automobile extrication, structural
collapse, trench rescue, hazardous
materials response, and oilfield
emergencies, it is vital that firefighters
continue to train and learn the latest
techniques. The mantra of the NDFA is that
“training is power” and that to remain safe,
firefighters must stay on top of their
training. The North Dakota Firefighter’s
Association is aware of the dangers and
has geared training in areas such as oilfield
emergencies, bio-fuel emergencies, big rig
extrication and other pertinent classes that
will assist firefighters as they respond to
these disasters.
Every response in the energy-rich
Bakken area is different and in many cases,
every situation is new. The NDFA
understands that public service is noble
and these firefighters are putting their lives
at risk every time they respond to oilfield
emergencies. These firefighters stand in
the heat/rain, bitter cold/snow, and
unrelenting winds to protect people who
have met with a danger. It is vital that these
firefighters know their strategic, tactical
and planning responsibilities so that they
can respond to critical fire and life-saving
protocols. Therefore, there has been a
noticeable increase in requests for oilfield
training classes.
Rob Knuth, state training director of the
NDFA, has remarked that the training
opportunities that the NDFA has developed
North Dakota Firefighter’s Association:Prospective
By Renee Loh, Executive Director
BAKKEN OIL REPORT 2011 | 77
over the past year are a direct result of the
recent oil activities. Knuth feels that the
“Responding to Oil Field Emergencies” class
is a cooperative effort between the NDFA
and the Oil and Gas Producing Counties
Association. The curriculum was designed
and developed by Williston State College,
with the partnership of NDFA providing
certified fire instructors with oilfield
experience to take these necessary classes
out to the fire departments.
The hands-on training has been
provided by NDFA instructors, Dickinson
Fire Department, Minot Rural Fire
Department and Minot Fire Department
utilizing their fire-training grounds. The
training grounds provide an ideal area for
numerous live-fire props that simulate
multiple aspects of oilfield emergencies to
include a “boil over” simulator. That way,
students can receive realistic hands-on
training. “The main purpose for this class is
conditioning firefighters to the situations that
may arise on any given site,” Knuth says.
To serve these requests, the NDFA has
brought in national instructors from
different parts of the nation to work with
the firefighters at regional fire schools
using live-burn props where the firefighters
can attend four-hour classes followed by
live burns at the different live-burning
grounds located throughout the state of
North Dakota. The North Dakota Depart -
ment of Transportation has reported that
according to official accident reports in the
Northwest part of North Dakota, there have
been 167 recorded accidents for commercial
accidents that occurred during the time -
frame of August 10, 2010 to August 10,
2011. Additional reports from Dickinson
show that 57 commercial accidents were
recorded for that area during this same
timeframe.
The NDFA has additionally brought
heavy extrication training into the state as a
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NDFA
Every response in the energy-rich Bakken area isdifferent and in many cases, every situation is new.The NDFA understands that public service is nobleand these firefighters are putting their lives at riskevery time they respond to oilfield emergencies.
78 | BAKKEN OIL REPORT 2011
result of the increase in these types of
accidents and the associated traffic with
commercial vehicles traveling North Dakota
roadways. The heavy extrication training
program is designed to supplement the
existing extrication program that deals with
standard passenger vehicles. Taking the
small-vehicle approach to heavy-vehicle
extrication can be very dangerous and put
firefighters’ lives at tremendous risk.
The first class offered for NDFA Heavy
Extrication Training was taught by
Advanced Rescue Solutions from Indiana.
The heavy extrication class deals with
scenarios involving semi-tractors and
trailers requiring different techniques to
stabilize and secure the vehicle. Therefore,
this course takes students through
construction, new vehicle technology,
stabilization and rescue from various
scenarios involving real vehicles and real-
world incidents. The students who take this
class actually work with vehicles that have
been involved in accidents. As a result of
this vital class that was taught by Advanced
Rescue Solutions, the NDFA will now have
a cadre of instructors to go throughout the
state and teach these new techniques.
It is important to remember that every
day firefighters in the state respond to
different situations! North Dakota’s current
oil boom and the resultant tremendous oil
activity has created new training techniques
that have been identified and incorporated
for the benefit of the valued firefighters. The
NDFA is dedicated to proactively providing
the quality training needed for firefighters to
survive these incidents. The most vital
component is that these individuals
knowingly respond safely and effectively to
these incidents so that they can go back
home to their family, homes and
communities after an incident. ■
MVTL Laboratories, Inc.2616 East Broadway Avenue
Bismarck, ND | 58501P: 701.258.9720 | F: 701.258.9724
E: [email protected] Free: 800.279.6885 | www.mvtl.com
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NDFA
BAKKEN OIL REPORT 2011 | 79
Nitrogen Services Pipeline Cleanouts
Estevan: 306.634.8912 | Weyburn: 306.842.8901 | Toll Free: 1.877.580.8901 #3 20th Avenue South East, Weyburn, Saskatchewan
www.essentialenergy.ca
Class I, Class II, Class III
80 | BAKKEN OIL REPORT 2011
SIX GUNHOTSHOT
For three years, Six Gun Hotshot LLChas provided expert hauling services at
competitive prices, by friendly staff who arecommitted to meeting deadlines. Owned andoperated by Brandon and Ashley Miller, andJody Cooper, the company has experiencedtremendous growth. As a result, Six GunHotshot is moving to new, larger premisesand is hiring additional drivers to betterserve its customers.
“Customers appreciate our honesty,which is one of the reasons why we’vegrown so quickly,” says Jody Cooper, co-owner of Six Gun Hotshot LLC. “We prideourselves on being on time, and offering fairpricing. People always comment about howclean our trucks are and that our drivers arevery presentable and professional. Peoplecan call us at any time of the day or nightand we’ll go out of our way to get the jobdone and make our customers happy.”
Six Gun Hotshot’s fleet of vehiclesincludes two semis and eight hotshot pick-up trucks, which are one-ton trucks with32-foot to 40-foot trailers. Within the nexttwo years, the company has plans to expandits fleet to five semis and 15 hotshot pick-ups. Six Gun Hotshot specializes in haulingmaterials to and from oil rigs, includingmetals, piping, casing tools and directionaltools. All employees are experienced andfully certified CDL drivers. The companyservices a wide geographical area, includingnorthwestern North Dakota, easternMontana, Wyoming, Texas and Utah.
Even when business was slow for other
companies, Six Gun Hotshot garnered aloyal following of clients that include H&PDrilling, Marathon Oil Company, Tony Metz,Scientific Directional Tools and PathfinderEnergy. “By the grace of God, we continuedto grow even when there was a slowdownin the industry,” says Brandon Miller, co-owner of Six Gun Hotshot LLC. “We’re sothankful to God for answering our prayersand sending us such loyal customers.”
Originally from Oregon, Jody Cooperand Brandon Miller grew up on ranches.Miller created Six Gun Hotshot with only onetruck, and Cooper added another truck tothe company’s operations one year later,when he became a partner of the company.Given the increased drilling activity in theBakken area, Six Gun Hotshot becameincredibly busy catering to oil and gascompanies. Today, Six Gun Hotshot is onapproximately 95 percent of the oil drillingand production companies’ vendor lists.
“I came to North Dakota to help outBrandon, because he was so busy,” Coopersays. “Every time we added another truck,we became even busier. Just in the last fewyears, I’ve seen a lot more people come tothe area. The economy is very good in NorthDakota right now, with the oil industrycontinuing to create new jobs.”
The company logo for Six Gun Hotshot
is comprised of two six guns in an X, with a
cowboy hat and a wild rag. The emblem
pays homage to Cooper’s and Miller’s
background as ranchers. Among those in
the oil and gas industry, it is a recognizable
symbol that represents honesty,
commitment and expertise.
Open 24 hours a day, Six Gun Hotshot
offers round-the-clock service for hauling
jobs both large and small. The dedication
and hard work of the company’s drivers
has paid off, with more and more contracts
by satisfied customers.
North Dakota is now home for both
Cooper and the Millers, who have put down
roots in the area to raise their families and be
contributing members of their community.
“As much as we love our jobs, we’re very
committed to family,” Cooper says. “Through
prayer, perseverance and the grace of God,
we are here.”
Six Gun Hotshot can be reached
at 701-260-3620 or email
The company’s address is P.O. Box 1780,
Dickinson, North Dakota, 58602. ■
Six Gun Hotshot responds to increaseddemand for hauling services
By Lisa Fattori
Among those in the oil and gas industry,Six Gun Hotshot’s logo is a recognizable symbol thatrepresents honesty, commitment and expertise.
82 | BAKKEN OIL REPORT 2011
BADLANDSINTEGRITY
GROUP
Badlands Integrity Group:Safety compliance and HR management
Badlands Integrity Group is the industry
leader in providing outsourced health,
safety, environmental and human resource
expertise to clients. This expertise helps
their clients reduce human resource
administrative costs by 20 to 30 percent –
guaranteed. Badlands Integrity also helps
their clients achieve up to a 75-percent
increase in revenue. This guaranteed
performance is unique to the industry.
Badlands Integrity Group has
established a track record of helping their
clients reduce administrative costs and
increase revenue and profit. Their safety
training can reduce workers’ compensation
costs and in-house training costs and
minimize the risk of safety fines, violations
and lawsuits. The headache and paperwork
associated with these and other human
resource functions that Badlands Integrity
Group offers expertise in frees up business
owners and management so they can focus
their attention on the core of their business,
the part that really makes them money.
We at Badlands Integrity Group are
dedicated to the safety of all those who
choose to work in the Bakken area. Our
office is staffed with people who not only
help those in the area of safety but who
actively seek out companies who would
benefit from our services.
In our office, companies can come in
and find help with training; DOT compliance
and audits; vendor management (PEC and
ISNetwork); full FRC retail store; HR service
and payroll; and drug testing (urinalysis,
breathalyzer and hair follicle).
TRAINING
Badlands has several trainers who do
in-house training, as well as go to their
clients’ workplaces in order to reduce
downtime. Our trainers take the time to
explain all necessary safety procedures and
to ensure compliance with all OSHA and
Federal DOT safety standards. Among the
many classes that Badlands Integrity offers
are OSHA 10, MSHA, First-Aid/CPR, H2S
(Hydrogen Sulfide) and many other classes.
DOT COMPLIANCE AND DOT AUDITS
Drivers’ logs; IFTA (quarterly taxes);
driver qualification files; MVR and criminal
background checks.
VENDOR MANAGEMENT
(PEC AND ISNETWORK)
At Badlands, their staff understand that
finding the time to keep these databases up-
to-date and in good standing is a time-
consuming and often a nerve-racking
experience. It is their understanding of this
that allows them to be proactive with these
accounts, and to ensure that all protocols
are followed. To be able to keep these
accounts up-to-date ensures that those
contractors will call our clients when help is
needed in the Bakken.
FULL FRC RETAIL STORE
We sometimes hear stories in the news
of accidents of one form or another when it
comes to working in the oil industry. With
new OSHA requirements on fire-resistant
clothing (FRC) and equipment, contractors
and employees are being made aware of the
hazards that exist in the Bakken. The FRC
store carries the basics, like coveralls, safety
glasses, gloves and hard hats, as well as
first-aid supplies, winter FRC clothing, jeans
and shirts. We have made it a point to
ensure the safety of our clients’ employees,
and that each and every one of them comes
home safe.
HR SERVICE-PAYROLL-DRUG TESTING
(URINALYSIS, BREATHALYZER AND
HAIR FOLLICLE)
Badlands Integrity Group understands
the need that some companies have to
ensure that their equipment meets safety
standards and that their employees follow a
strict safety program, as well. With this in
mind, Badlands Integrity Group is a 24-hour,
seven-days-a-week safety company: when
a company has a recordable incident that
requires urinalysis, a breathalyzer or even a
hair follicle test, they can call us and we can
promptly dispatch one of our technicians to
the location. Badlands Integrity Group prides
itself on the dedication to safety and their
clients.
Badlands Integrity Group is a one-of-a-
kind business. Not only are we owned by
women, but we are also a one-stop, one-call
company that you can depend on when it
comes to safety in the Bakken area. With
everything under one roof, our customers
enjoy the peace-of-mind knowing that
Badlands Integrity Group covers their
immediate needs, and can look ahead and
anticipate their future needs. ■
BADLANDS INTEGRITY GROUP, LLCHES and Human Resource Experts
Badlands Integrity Group is the industry leader in providing outsourcedHealth, Safety, Environmental, and Human Resource expertise to our clients.
This expertise helps our clients reduce their Human Resource administrative cost20-30% guaranteed. And, it can help our clients achieve up to a 75% increase inrevenue. This guaranteed performance is unique to the industry.
Safety Equipment
Safety Compliance
DOT Compliance
DOT and NON-DOTDrug”and Alcohol Testing
Human Resource Job Bank
Over 500 Training Courses
366 - 21st Street East | Dickinson, ND 58601
Office: 701-483-6559 | Fax: 701-483-6342
www.badlandsintegrity.com
Everythingin onelocation.
We are able to providethe most value andinnovation per yourdollar spent.
84 | BAKKEN OIL REPORT 2011
SURETUF
Innovative containment system savesthe oil industry time and money
By Lisa Fattori
Lloydminster-based Suretuf Secondary
Containment Partnership is recognized
as a leading specialist in containment
systems. The Suretuf product is a patented
design that is both durable and flexible, and
provides oil industry professionals with
enhanced value and greater convenience in
meeting their secondary containment
requirements.
Suretuf’s slide-in legs and pin-together
panels make the set-up, dismantling and
transportation of the system quick and easy.
The panels are secured by three drop pins
rather than eight to 24 bolts, which saves an
incredible amount of time. All panels andridge caps are made with 14-gauge plate.Support legs are made with 11-gauge plate,and three 1/16-inch plate is used for all pinholders. Standard heights are 36 inch and44 inch, but Suretuf will custom-build acontainment system to meet customers’specific needs. All components are finishedwith corrosion-resistant paint that helps toextend the life of the system.
“This is a very durable containmentsystem that was designed to meet the rigorsof the oilpatch,” says Clayton Gessner,owner and manager of Suretuf SecondaryContainment Partnership. “You can take itand move it to another site several times.I’ve seen companies use Suretufcontainment systems on third and fourthsites, and the system’s as strong as ever.”
Suretuf’s floating leg system keeps thecontainment system square and level withthe base, so that there are no gaps betweenthe walls and the ground. There is nodigging required to secure the legs, thussaving on both time and ground disturbance.The system’s square top edge prevents anysafety hazards and creates a straight edgedown all four sides for a clean, finishedappearance. The top-mounted 40-mm liner
is fastened using tek-screws, whicheliminates the need for caulking and boltingthe liner to the wall.
Suretuf Containments also offerscrossover stairs for easy access to theinside and outside of the containment wall.The company’s 24 inch by 24 inch-squareSting Door is durable, spacious and easy toinstall. Liner accessories and textiles includea geotextile, which acts as an extra barrierbetween the sand and liner, to protect theliner so that it lasts longer. Fire-retardantliners, liner tape, liner welding and all sizesof pipe boots are also available.
The company’s installation crews areCOR-certified, are listed with HSE and I.S.Networld, and possess the required safetytickets and safety equipment. Customers arenot charged for overtime, and there are nofuel surcharges or shop charges.
Suretuf products are also used in themining industry to contain tailings ponds,and in agriculture for grain storage. Thecompany is a fabricator of oil storage tankparts, as well as parts for the mining andagriculture industries.
“Our sales are one-and-a-half timeswhat they were last year, and ourcontainment systems are selling extremelywell in Saskatchewan,” Gessner says. “Weare looking at expanding our market intoNorth Dakota and Montana. Whether or notsecondary containments are required, it’sgood due diligence for an oil company to usethem.” ■
Suretuf’s floating leg system keeps the containmentsystem square and level with the base, so that thereare no gaps between the walls and the ground.
Main: (780) 875-0032
Fax: (780) 808-2273
email:
P. Eng Stamped, Patented DesignFree standing, zero ground disturbance, Slide in legs and pin together system. No Bolted legs or panels. Various Heights and Sizes. Quickest to assemble and quickest to relocate. No gaskets or caulking required.Cuts down on set up time.
coatings available.
We will build to suit our customer needs
“We Have the Solutions”
Edson areas. For all your containment needs
Drayton Valley 780.542.3364 Fax 780.621.0018
Fax 844.621.0018
Fax 403.314.9283
www.westernsolutions2000.com
Email: [email protected]
“The Quickest Way Around”
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86 | BAKKEN OIL REPORT 2011
CAMEX
Camex oilfield equipmentbig in the Bakken
Contact us today!Alberta (403) 934-1222
Saskatchewan (306) [email protected]
Strathmore, AB | Lloydminster, AB | Saskatoon, SK | Alida, SK
Leading the way in safety, environmental stewardship and efficiency.
WIRELINE CORING • CONVENTIONAL CORING • DIRECTIONAL CORING • CORE HAULING
Over 15,000 metres cored at 98% recovery.
ABOUT CAMEX
With a global focus, Camex strives to
be the leading source of specialized oilfield
transportation equipment. By fully
understanding client needs, Camex
provides unique and innovative
transportation solutions that let customers
maximize their potential in a competitive
world market.
Company founder Pat Wilson started
Camex Equipment Sales and Rentals Inc. to
service the oilfield transportation industries
of Canada, America and Mexico in 1992.With a shortage of new and qualityequipment available, it was a naturalprogression for Camex to evolve from anequipment provider to a leadingmanufacturer of oilfield transportationequipment. Camex quickly garnered areputation for solving problems quickly andfor conducting business with honesty andintegrity. Camex works off the key principlethat when it comes to finding a solution fora client, nothing is impossible.
Today, Camex occupies 15 acres ofland, housing extensive inventory yards andmanufacturing facilities.
SALES TO THE BAKKENRAMP UP IN 2011
“Camex has been selling to oilexploration and production companies inthe Bakken oil play for the last four to five
BAKKEN OIL REPORT 2011 | 87
CAMEX Custom Rig-UpsHeavy-Spec Oilfield Equipment
With the largest selection of NEW &USED on-site inventory, Camex provides a one-stop shop for all your oilfield equipment needs.
Bed TrucksWinch TrucksPicker TrucksHeavy Haul TrailersVacuum TrucksWater TrucksFuel/Lube TrucksConstruction Equipment...and more
1511 Sparrow Drive Nisku, Alberta, Canada T9E 8H9
Camex Equipment Sales & Rentals Inc.
High-end Vacuum Trucks & Vacuum Trailers
View over 700 New & Used Trucks and Trailers on-site or on-line at www.camex.com
T/A & Tri Winch TrucksHeavy-Duty Picker Trucks Texas Bed Winch TrucksScissorneck Trailers Heavy-Spec Bed Trucks Extendable Trailers
years, but since the start of 2011, sales tothat area have increased dramatically,”states Wally Taschuk, director of sales andmarketing, Camex Equipment. “Ourcustomers are telling us they really valueour equipment because it is built to handlesimilar environmental conditions andbecause of the quality, fit and finish andadded features of our trucks and trailers.”
“Our North Dakota customers areexperiencing tremendous upswings inbusiness as far east as Maxbass, west to
Watford City, and back north past Tioga.These are real hotbeds of activity, with nosigns of slowing up,” adds Tom Huyge,sales manager at Camex.
“Rig-moving companies and oilfieldservice contractors in the Bakken are prettyamazed at the breadth and scope of theequipment we have on the ground at ourfacility in Nisku,” continues Taschuk.“Customers are able to fill their equipmentrequirements today, go to work tomorrowand immediately start generating revenue.”
Inventory is key to Camex’s businessstrategy – with over 65 million dollars ofon-site inventory, clients can fully outfittheir company from complete rig-movingpackages to tank and vacuum trucks foroilfield service and liquid handling toconstruction equipment. Camex not onlyoffers the most comprehensive line-up ofinventory, but also provides the financialservices, after-sales support and technicaltraining to back it up.
Camex new and used equipment
CAMEX
Camex vacuum truck. Camex crane trucks. Camex bed truck.
MARATHON • BALDOR • RELIANCE • USEMERSON • SIEMENS • LAFERT • STERLING
VARIABLE FREQUENCY DRIVES/SOLID STATE STARTERS/MOTOR CONTROL CENTERS
Single Phase | Three Phase | Open Drip | TEFC | Fractional
Explosion Proof | Premium Effi cient | Severe Duty | IEC
Metric | Close Coupled Pump | Medium Voltage | AC or DC
Custom Built | Vertical Hollow Shaft | Oil Well Pump
MID-PLAINSDISTRIBUTING
LARGEST DISTRIBUTOR OF TECO-WESTINGHOUSEELECTRIC MOTORS IN THE UPPER MIDWEST
46 North 23rd Street, Fargo, North Dakota 58102Toll Free: 1-866-478-4266 Local: 1-701-478-4266
Email: [email protected]
Warehouses inBismarck | Dickinson | Fargo | Williston
Camex
Texas
bed
truck.
CAMEX
includes heavy-spec bed trucks; winch
trucks; picker trucks; lowboy trailers; oilfield
floats; pipe trailers; fluid-handling trucks,
such as vacuum trucks and trailers, tank
trucks and fuel/lube trucks; plus an array of
construction equipment.
“Customers the world over regularly
seek out our website (www.camex.com),
which features detailed product descriptions
and extensive photos and enables them to
shop for equipment with confidence and
make their purchasing decisions easier,”
says Taschuk.
CAMEX FOCUSED ON PROVIDING
‘ONE-STOP SHOPPING’
To support one-stop equipment
shopping, Camex provides full custom
design and manufacturing services for all
types of oilfield transportation equipment, as
well as vacuum tank and water tank rig-ups.
Camex specializes in designing and
developing unique transportation solutions
for radically different terrain and extreme
environmental conditions. New or used
equipment can be rigged up to customer
specifications in short order to meet
budgets and project timelines. Camex has
body builder agreements in place with major
truck manufacturers such as Kenworth,
Western Star, Freightliner, and Peterbilt.
Camex is a fully certified manufacture
and repair facility for vacuum trucks, picker
trucks and tank units, offering a fully
stocked parts department for quick turn-
around and timely repairs. Camex
technicians are highly skilled at fabrication,
repairs and installation, and are trained and
licensed to perform CVIP inspections, hydro
tests and re-certifications.
“As the oil and gas industry continues to
change, we look forward to tackling the new
challenges as they arise in this fast-paced
and exciting environment and bringing out
new products and suppliers to ultimately
become the ‘one-stop transportation shop’,”
concludes Taschuk. ■
88 | BAKKEN OIL REPORT 2011
TIME TO DO BETTERTIME FOR REFORM
IT’S IN THE NAME
We are experienced enough to know the weakness of our industry and
are dedicated to raising the industry benchmark for quality, competency
and safety. Our clients deserve nothing less than a revolution in the way
underbalanced drilling, managed pressure drilling and production testing
services are provided. That revolution is Reform.
HEAD OFFICE, CALGARY, AB
Ph: 403.539.6219 Fx: 403.237.7873
CROOKED CREEK, AB
Ph: 780.814.4124 Fx: 780.957.2871
RED DEER, AB
Ph: 403.348.7301 Fx: 403.342.5152
TOLL FREE
Ph: 1.877.539.6219
WWW.REFORMENERGY.COM
T
HEAD OFFICE,,ICEFFODAHE
h:P 62.953.304
CROOKED CREERCEDOKORC
h:P 14.148.08 7
RED DEER, ABB A,EER DEDR
h:P 3.7843.30 4
TOLL FREEEERFLOLT
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90 | BAKKEN OIL REPORT 2011
PAT’SOFF-ROAD
Pat’s Off-Road Inc.:Providing frac fluid heating services toBakken oilfield production companies
Pat’s Off-Road Inc. has been providing
frac fluid heating services to oilfield
production companies in the Bakken for
over four years and is backed by over thirty
years of experience and knowledge in the
industry. Their business is based on
maintaining cutting-edge equipment, strong
employee support, and providing
exceptional customer service.
Pat’s Off-Road takes pride in their
work, and in their employees. They believe
the success they have is due to having
good hard-working people in the company.
“We are in a recession and have an
opportunity here in the Bakken to bring
hardworking people to our company,
people who leave their homes for weeks at
a time. These are the people who make the
difference,” says Paul and Cale Kaupp,
brothers and owners of Pat’s Off-Road.
The company has a dedicated crew, all
of whom want to ensure customers’ needs
are addressed. The company’s employees
take equal responsibility in all aspects of
getting the job done. There is no totem pole
here; just good people helping each other
to succeed as a group. Everyone at Pat’s
Off-Road makes sure a new hire fits into
this type of career. With shops spread
across North America, every shop shares
each other’s responsibilities. Shuffling
equipment and operators on short notice
enables each shop to maximize on
customer care. This kind of respect shown
between all employees is the backbone of
success for the company.
Pat’s Off-Road and their one-of-a-kind
patented mega-heaters pack a big punch in
a compact package. Built in-house, quality
assurance is maintained to the highest
degree. The research and development
department is constantly moving forward to
improve the already dependable design to
burn more efficiently and heat better. “With
BAKKEN OIL REPORT 2011 | 91
PAT’SOFF-ROAD
our design features, we are able to build a unit on a truck that is extremely
agile on a tight location, and yet is able to outperform a cumbersome
trailer-mounted unit,” says Paul. Fuel efficiency and emissions are of great
importance to the environment and the company. The trucks need to be
reliable when a frac is on the line; reliability is what Pat’s Off-Road
provides.
Pat’s Off-Road is dedicated to its hard-working employees, their
families, and the communities in which they do business. Pat’s Off-Road
contributes to the communities that support the oilfield, and all the good it
brings. “We know the oilfield can be taxing on the communities at times,
but it provides hard-working, good people with a means to provide for their
families,” says Cale. “We must take care of our community, our industry
and everyone working in it to stay out of hard times.” ■
Pat’s Off-Road and their one-of-a-kind
patented mega-heaters pack a big punch
in a compact package. Built in-house,
quality assurance is maintained to the
highest degree.
92 | BAKKEN OIL REPORT 2011
SITEFINDERGPS
Finally, a GPS navigation solutiondesigned specifically for the U.S.
oil and gas industry!
SiteFinder GPS has been providing
navigation solutions to the Canadian
marketplace for over five years, and has
just announced that they are now entering
the American marketplace by launching
their OilTrax navigation software,
compatible with Garmin GPS units, for
regions across the United States.
For years SiteFinder GPS has been
known as a leading supplier of licensed
Garmin GPS-compatible software for the
Canadian oilfields, and is extremely excited
to be bringing their navigation solutions to
individuals and companies working in the
U.S. oil and gas industry.
In addition to Garmin GPS-compatible
software, SiteFinder has also recently built
and released an OilTrax Canada iPhone
app. “We are now putting our popular
OilTrax software on connected devices, this
allows us to get real-time updates to your
phone,” says Allen Abraham, president of
SiteFinder GPS. “Developing OilTrax as a
smartphone product is a natural
progression.” With the Canadian iPhone
product already in the marketplace, an
American version will be coming out in the
near future.
The OilTrax Smartphone app branches
off SiteFinder’s current OilTrax product
developed and licensed for Garmin GPS
devices. The days of looking at a map and
navigating by memory are long gone; the
app offers an instant mapping solution for
those hard-to-find places. “Customers are
able to use OilTrax to get to that oil or gas
well that is in the middle of nowhere,” says
Abraham.
With in-cab navigation, OilTrax
continues as a mainstay for vehicles out in
the Canadian oilpatch, with 200+ retailers
buying in as suppliers. Providing OilTrax as
a smartphone app now means an improved
service with additional features for the
mobile customer. “What we’ve done is
taken it to another level,” says Abraham.
“We’ve progressed from paper maps to
digital maps, and now to real-time online
content.”
The OilTrax smartphone app allows
users to have information with them at all
times. We also have the potential for 3-D
services as the app becomes more refined.
Integral OilTrax services are still the focus,
such as: navigating LSD locations, oilfield
POI addresses and coordinates; searching
for well sites, facilities and oil and gas data.
BAKKEN OIL REPORT 2011 | 93
SITEFINDERGPS
Field Services
www.TJTUSA.com
Work Force Housing• Sales• Rental• Leasing
Work Force Housing Services• Transportation• Installation• Service & Repair
Work Force Housing Supply• Skirting• Steps• Installation Materials
701-842-2676503 - 3rd Avenue S.W., Watford City, ND 58854
Mass Grading and Excavation | Soil Correction | Well Pad ConstructionStorm Water Retention/Settling Pond Construction and Underground Utilities
Landfi ll Construction and ClosureSub-grade Prep for Rail Lines, Tanks, and Conveyance Systems
Contaminated Soil Cleanup and Site RemediationFoundation Solutions including Piling, Drilled Piers, and Soil Retention
INDUSTRIAL SITE DEVELOPMENT
LOCATIONS Minot, North Dakota Alberta, Canada Minneapolis, Minnesota Duluth, Minnesota
The end-user also has the option of using OilTrax to search and
route to a location but view the area or route using satellite
imagery instead of a conventional map; not to mention, access
to overlay oilfield data, POIs, highway cameras, and other
supplementary data.
OilTrax app users also have the ability to link up with
others, allowing the product to act as a safety measure. “You
know the saying, ‘there’s safety in numbers’ – well, this gives
you those numbers,” explains Abraham, who hopes that the
product will aid safety in the industry. Companies who
purchase the product can even have customized mapping,
focusing on areas or information pertinent to their daily
activities. “As the developer of the OilTrax product, we control
the content of the product. This allows us to insert custom
data, when required, for customers who have specific needs,”
Abraham concludes.
For additional information regarding SiteFinder GPS’s
specialty GPS-based mapping products, please visit
www.sitefindergps.com.
– WITH FILES FROM DANIELLA PONTICELLI. ■
94 | BAKKEN OIL REPORT 2011
TCAMARKETING
Secondary containment company TCAproud to serve the Bakken industry
TCAMarketing Ltd. has been a
leading supplier of secondary
containment systems in the western
Canadian oil and gas industry for the past
ten years. As a family-owned and operated
business with a home office in Taber,
Alberta, we felt the opportunity to grow our
business has never been better than now. We have recently teamed with a
southern Alberta manufacturing company toproduce our own line of secondarycontainment products. All of the componentsof our containment systems are Canadian,made by our skilled Canadian labor force.Local manufacturing, combined with localdesign and engineering, has allowed us toanswer our clients’ ever-changingcontainment needs. Currently, TCA isproviding producers with containmentsolutions for everything from small poptanks to large tank farm construction. Our
site-specific designs, along with a widerange of liner products, help us to providethe solutions needed in today’senvironmentally influenced oil industry. Thehelp of local engineering and design hasaided in some challenging sites. We are ableto approach our clients with a design that isalready approved, allowing them to focus onthe site design.
Additionally, TCA offers professionalinstallation of all of our products. Our crewsare experienced in everything from theassembly of the system to the constructionof tank foundation rings. We also offerspecialized liner installations and repairs,allowing the customer the option to repair orreplace. TCA has had a longstandingrelationship with Nilex Inc., which providesus with all of our liner and fabric products.We are stocking standard size containmentsystems in Carlyle, along with liners andgeotextile fabrics.
One of the challenges we have
encountered in the industry is the demand
for an easy-to-assemble and easy-to-move
containment system. We spent a few
months with our manufacturer and
engineers in order to minimize the number
of fasteners in our containment walls; we
tried a lot of scenarios but kept going back
to bolts (a bolted connection has always
been a reliable way of maintaining the
integrity of the containment systems). We
have changed from using 22 bolts in a
standard 45” wall to using six bolts. The
bolts are 5/8”, thereby allowing the installer
to handle them easily and quickly. The initial
response of the new design has been great;
people love it. It allows the user to move the
system more rapidly, without the concern of
losing the smaller bolts that were previously
used.
For further information, please visit us
online at http://www.tcamarketing.com. ■
Left: Secondary containment systems in the
Stoughton area, just west of Carlyle.
Custom site designs available
TCA provides engineered steel containment solutionsfor the Western Canadian Oil and Gas Industry
ENGINEERED CONTAINMENT ADVANTAGES WALL HEIGHTS INCLUDE
For a dealer in your area1-866-TCA-7771
www.thecontainmentanswer.com |
| |
96 | BAKKEN OIL REPORT 2011
BROCK WHITE
Brock White Company LLC, a leading
distributor of construction materials
headquartered in St. Paul, MN, was
incorporated in 1954 to provide specialty
products to concrete and masonry
construction markets in the Upper Midwest
United States. These products include hand
tools; specialty chemicals; waterproofing
materials; caulking; insulation; geotextile
fabrics; erosion control; highway sealants;
concrete; masonry accessories; concrete
repair and restoration materials and
coatings; and landscaping accessories, as
well as fireplace and masonry products
such as brick, natural stone and cultured
stone (through select locations).
Brock White has served the North
Dakota construction and oilpatch markets
since starting business in 1954. In 2010,
Brock White Company opened a new branch
office in Minot, ND. The Minot branch
operates in close association with Brock
White’s existing branch in Bismarck, which
was opened in 1982. As well, they have a
Fargo office, which was opened in 1986.
The Minot office carries Brock White’s full
line of construction materials including
concrete and masonry supplies, geotextiles
and erosion control materials, decorative
concrete products, forming hardware and
ICFs. The Minot and Bismarck offices have
tailored their products to service the needs
of the oilfield market.
As well, Brock White has 14 locations
throughout the Upper Midwest United
States. The central office and warehouse is
located at 2575 Kasota Avenue in St. Paul,
MN. Other locations can be found in St.
Cloud, Rochester, Elk River, Duluth and
Eagan, and Brainerd, MN; Sioux Falls, SD;
and Appleton, Wausau and Green Bay, WI
(BW Supply).
Additionally, Brock White Company LLC
has a Canadian subsidiary, Brock White
Canada Company, which includes 11
locations in Canada: Winnipeg, Manitoba;
Regina and Saskatoon, Saskatchewan;
Thunder Bay, Ontario; Edmonton, Calgary
and Lloydminster, Alberta; and Prince
George, Burnaby and Langley, British
Columbia. Brock White Canada distributes
similar product lines as the United States
offices, and distributes commercial roofing
systems, insulation and pipe, and
mechanical insulation products.
HELPING YOU DO YOUR BEST WORK
With high-quality materials and a
company-wide commitment to responsive,
dependable service, Brock White can help
ensure the most successful outcomes to
your projects.
YOUR SOURCE. YOUR RESOURCE
We carry a full line of construction
materials so we can simplify your ordering,
streamline deliveries and provide you with
one-source accountability. Having local
branches gives us a better understanding of
Whatever you need, you can trustBrock White to deliver
North American green erosion blankets.
BAKKEN OIL REPORT 2011 | 97
the specific needs and construction
challenges of each local market.
KNOWLEDGE IS OUR BEST PRODUCT
With more than 55 years of experience
in the industry, we know more about
solving any problems you may face. From
our delivery drivers to our sales reps to our
office staff, we’ll provide extensive support
to help build and maintain your reputation
for expert workmanship and reliability.
WHATEVER IT TAKES
Whatever you need, you can trust
Brock White to deliver.
HELPING BUILD YOUR SUCCESS!
This is what it is all about. Providing
the goods and service level that will help
you do your best work and help you build
your success in the construction and
oilfield industries. ■
BROCK WHITE
Serving North Dakota, South Dakota, Montana & MinnesotaPifer’s
AUCTION & REALTY
“Ranked as the #4 real estate auction company in America” - Land Report Magazine (March 2011)
Andy MrnakRealtor/Auctioneer
701.206.1095
Jim SabeAuction Associate
701.523.6283
Kevin PiferCEO/Auctioneer
701.238.5810
Alan ButtsRealtor
701.400.8858
www.pifers.com 877.700.4099
Corporate Office1506 29th Ave S
Moorhed, MN 56560
701.523.7366
701.400.8858
Bowman, ND Office3 1st Street NW
Bowman, ND 58623
Pifer’s Gets Results!
Call today to book your auctions & listings!
877.700.4099
Bismarck, ND Office120 West Sweet AveBismarck, ND 58502
View all auctions & listings at www.pifers.com
Propex Geotex 350ST.
98 | BAKKEN OIL REPORT 2011
As someone who frequently travels
through the Bakken oilfields of North
Dakota, eastern Montana and
Saskatchewan, it’s easy to be overwhelmed
by the opportunities for success. I was
introduced to the Bakken in the middle of
last winter, by a customer who “needed a
Snowcat now” and didn’t care what it cost.
Our staff did our best to meet those
demands. This experience began to repeat
itself over and over again – all too common
of an experience for those who do business
in the oilfields. It is important to build a good
reputation that stands on consistent
business; not a flash-in-the-pan company
that will be here today and gone tomorrow. During the busy times in the Bakken, you
want to choose suppliers that will be therefor the long haul. It is often easy to buy a
piece of equipment from some buddy downthe street who can give you a screamin’deal; but when it matters, a relationship witha supplier is imperative. What is it yoursuppliers are willing to do for you? In today’sbusiness climate, they are willing to do justabout anything: drive through the night todeliver a part; spend hours on the phonewith technical advice; even buy you a beer.Building a relationship with your supplierswill prove to be well worth your while whenit counts.
A good Snowcat supplier is a majoradvantage in the oilfields when the snowstarts to fall. The ability of a Snowcat to takeyou places no other equipment can reach isunmatched; this also means reliability anddependability are a must. PetersonEquipment Company has been in theSnowcat business for over 40 years; we sellSnowcats, and that is it. Sorry, no ski lifts,
front-end loaders, or 50 other types ofequipment. Just Snowcats. PetersonEquipment has years of experience in theoilfields, and can supply nearly everyonewith what they need. Whether that need is abrand-new Formatic or Pistenbully Snowcat,a used Bombardier, Tucker, or Thiokol, wehave the machines to get the job done – andwe stand behind every machine we sell.
For further information, please visitwww.oilfieldsnowcats.com.
About the Author: Jim Grewe is the generalmanager of Peterson Equipment Company(PEC). PEC is the largest dealer ofPistenbully and Formatic Snowcats in theU.S.A., and specializes in customapplications including the oil, gas, Antarctic,and much more. Contact Jim by email at:[email protected] or onTwitter: @fireinred. ■
PETERSONEQUIPMENT
When support matters,you can trust PetersonEquipment Company
By Jim Grewe
WHERE PROGRESS MEETS PRESERVATION
Providing cultural resource inventories and GPR services throughout theGreat Plains, our services include:
• NEPA & NHPA compliance assistance • Preservation compliance• Archaeological inventories • Interpretive planning• Native American consultation • Interdisciplinary GIS mapping• Architectural history and geoprocessing analysis
Have a project? Contact us.301 - 1st Street N.E., Suite 201Mandan, ND 58554
100 | BAKKEN OIL REPORT 2011
Quality Mat Company – based in
Beaumont, Texas, with offices in
Killdeer, North Dakota and Houston, Texas –
supplies the world with the mats that
revolutionized the industry.
Joe Penland, founder of Quality Mat,
first began to put timbers together to form
mats in the early 1070s. With over 300,000
new and used mats in stock throughout the
United States, Quality Mat has grown to be
the world’s largest supplier of mats.
Our mats are made from furniture-
grade oak and other hardwoods, steel
fasteners or bolts, and are assembled in our
field-proven, patented configurations.
Quality Mat pioneered the mat industry
in 1981 by installing the first drilling location
built from the patented interlocking oilfield
mat. Built of 100-percent natural material,
these mats allow an efficient solution toaccess challenges in remote locations andenvironmentally sensitive areas, withoutdamaging the native soil and land.Our patented interlocking mat is theenvironmentally friendly solution topreserving nature.
In our 38 years of business, QualityMat has matted some of the harshestenvironments on earth. These mats providea safe work area by creating a stable worksurface.
We like to say, “If a bird can land on it,we can mat it.”
Currently, Quality Mat is installing thesepatented interlocking mats in the Bakkenoilfield for major suppliers in North Dakota.The oilfield mat is bolted with three layers oflumber, making it six-inches thick; solidboards in the center layer ensure maximum
strength in sub-zero conditions. No onebuilds a stronger mat than Quality MatCompany.
Our goal is to have over 200,000 matsin North Dakota by the close of 2012, inorder to be able to supply the growingdemand.
Quality Mat is committed to giving back alarge percentage of its profits to manycharities throughout the United States. Wesupport many wonderful organizations, suchas the Julie Rogers Gift of Life Program,which provides free mammograms; Girl’sHaven; Boy’s Haven; The 100 Club; TexasChildren’s Hospital; and M.D. AndersonHospital, in an effort to fight cancer.
In an unprecedented cancer awarenesseffort that spans from Beaumont, Texas toBismarck, North Dakota, Quality MatCompany is attaching Breast CancerAwareness Ribbons on the sides of railcarscarrying our mats. It is our sincere hopethat this will generate cancer awarenessacross the company.
For further information, please call ustoll free at 1-800-227-8159. ■
QUALITYMAT
Quality Mat Company installs patented,interlocking mats in the Bakken oilfield
102 | BAKKEN OIL REPORT 2011
CALFRACWELL
SERVICES
Calfrac Well Services is a leading oilfield
service provider positioned in some of
the world’s most exciting energy basins.
Active in Canada, the U.S., Russia, Mexico,
Argentina, and most recently Colombia,
Calgary-headquartered Calfrac is a
pressure-pumping firm whose primary
service line is fracturing, although the
company also offers coiled tubing and
cementing services.
The move toward unconventional
resources – initially targeting tight gas and
shale gas opportunities through horizontal
drilling and multi-stage fracturing technology
– is the biggest change Calfrac has seen in
recent years. “Over the last three to five
years, we have been very focused on shale
opportunities in North America,” notes
Calfrac senior vice-president, corporate
development, Tom Medvedic. “Recently there
is significant momentum directed toward the
oil part of the business. We are very much
seeing diversification from a commodity
perspective, and the same technologies
used in shale gas are now being applied to
the oil-producing formations.”
This trend is not exclusive to the oil
shales, he adds. “Plays such as the Permian
Basin in the U.S., which has been producingfor decades and was thought to be interminal decline as far as conventionalproduction goes, have been completelyrevitalized through the use of horizontaldrilling and multi-stage fracking.”
Oil and gas companies are now lookingat many of their reservoirs through adifferent lens and asking where else theycan apply this technology to existing plays,with the hopes of repeatability through theexperiences of some of the other plays. “It’sa fairly sizable shift in the business,” Med -vedic says, noting that the move toward theoil part of the business has highlighted arenewed focus on chemistry: “The productswe pump downhole. It has really broughtcompanies that are strong in chemicaldevelopment – which has been a hallmarkfor Calfrac and its dedicated laboratoryfacility in northeast Calgary – to the forefrontin these developing oil plays.”
Calfrac has established strongrelationships with customers, working withthem jointly to provide custom-tailoredsolutions for the resource base. “A lot ofthese areas are heterogeneous rock, so youcan’t offer off-the-shelf solutions,” Medvedicnotes. “Having the ability to work togetherwith our customer base to closely nurturestrong relationships allows Calfrac todevelop custom-based solutions for ourcustomers’ specific requirements.”
As the industry has evolved more and
Calfrac Well Servicesbreaks ground in the Bakken
Brings outstanding track recordin unconventional oil plays
Calfrac pumping proppant in the Rockies.
BAKKEN OIL REPORT 2011 | 103
more to the unconventional side of thebusiness, the service aspect has becomemore critical. Five years ago, for example,completion costs were only 10 to 15percent of overall well costs; now, however,completion costs make up anywhere from30 to 50 percent of total well costs. Thenumber of frac stages per horizontal leghas also increased dramatically, leading togreater service intensity per well.
“The completion side of the businesshas really become a focal point in thesuccess or failure of many of theseunconventional projects. What that hasdone has been to forge some very strongrelationships with our customer base andCalfrac’s engineering teams in developingcustom solutions,” Medvedic says. “Theother important aspect is a real focus onthe deployment of ‘green chemistry’,environmentally friendly fluid systems. Wehave deployed 12 different systems in thelast 18 months in both Canada and the U.S.that continue to improve the environmentalfootprint.”
“At Calfrac, we partner with ourcustomers to provide environmentallyfriendly, cost-effective solutions. Calfrac’scontinual focus on chemistry, specificallygreen chemistry, is a huge part of ourbusiness, as we believe industry is going tocontinue the trend toward the tighter, moreunconventional reserves.”
Calfrac uses many different fluidsystems that have been tailored to eachformation’s specific geology. SlickWaterwas designed for formations with lesspermeability. For more permeableformations, the company uses foamed andcross-linked water systems.
Execution in these resource plays relieson the latest equipment and technology;equally important are well-trained, well-qualified people, plus good health, safetyand environment programs, the rightcommodities, and logistics. Since itsinception in 1999, Calfrac has enjoyed aproven track record in each of these areas.
“In the U.S., we are still in the very
early stages of incorporating this
technology in oil and shale development.
We believe there will be many applications
to this, and that it will continue to become
more and more efficient through the
passage of time and the improvement of
technology,” Medvedic concludes. ■
CALFRACWELL
SERVICESCalfrac rigging up for another
multi-stage frac project.
104 | BAKKEN OIL REPORT 2011
PETROLEUMSERVICES
“Never Quit!” It’s a motto that has
described Mike Palmer Petroleum
Services from the beginning, and it’s one
that serves a business and an owner well.
Petroleum Services, a locally owned oilfield
service company established in 2003, is
built on integrity, honesty and a strong work
ethic.
Mike Palmer, company owner, has been
in the oilfield since the late ‘70s. He well
remembers the oilfield before the Bakken.
Mike often quips, “I’m painting my picture,”
meaning that he has a plan and a vision for
how this company will look. We at Petroleum
Services have built a team of employees
who take pride in the work they do each
day; we believe that how you work is a
large part of who you are.
Service is what we are all about.
Petroleum Services operates fairly, with
the willingness to do what it takes to get
the job done professionally. Service is in
our name and we proudly earn our name
every day.
Petroleum Services has much to offer
clients in the oil industry. We provide safe
and dependable hot-shot and trucking
services throughout the United States and
Canada, and have bed trucks and winch
trucks for rig moving services as well as
vacuum trucks available.
Our welding team has 50 years of
combined experience, and can fabricate to
meet most clients’ needs. We offer a full
line of new drilling bits in addition to our
retipping services.
We are proud to bring Petroleum
Services’ Mud Motors to the Williston
Basin, which can cut many hours and costs
off the average drilling time. The motors
are adjustable and one motor can drill both
the vertical and the curve sections of the
hole. Petroleum Services is an agent for
CaseTech float equipment as well asDownhole Stabilization. Our breakoutmachine can torque and breakdownconnections up to 30,000 psi. Drilling pipecan be straightened at our shop or on
Locally owned Petroleum Servicesoffers many products and services
to clients in the Bakken
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BAKKEN OIL REPORT 2011 | 105
Hot Shot & TruckingFloat EquipmentDrill BitsRental EquipmentStabilizers & ReamersVac TruckBreakout MachinePipe StraighteningP.S. Mud MotorsWelding & Fabrication
www.PetroleumServicesAndTools.com
701-572-2487
Hot Shot & Float EquipD ill Bi
ruckingTpment
210 82 2
Drill BitsRental EquStabilizers
ruckVac TBreakout MPipe Straig
S Mud MPP
ipment& Reamers
Machineghteningotors
.Pewwww. SeretroleumS
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orvicesAndTTo
otorsFabrication
ools.com
PETROLEUMSERVICES
location. We also supply rental equipment including pipe racksand other drilling rig necessities.
Please check us out on the web atwww.PetroleumServicesAndTools.com. Thank you for the opportunity to serve you! ■
106 | BAKKEN OIL REPORT 2011
INDEX TOADVERTISERS
AE2S 7
American Steel Span Inc. 38
Badger Daylighting Corp. 61
Badlands Integrity Group, LLC 83
Basic Energy Services 63
Beaver Creek Archaeology Inc. 99
Bert Baxter Transport Ltd. 38
BNSF Railway 41
Border Steel and Recycling, Inc. 45
Brady Martz & Associates 15
Brock White IBC
C.H. Robinson Worldwide, Inc. 46
Calfrac Well Services Ltd. 103
Camex Equipment Sales & Rentals Inc. 87
CanElson Drilling Inc. 71
Capital Lodge 51
Continental Resources 21
Derrick Equipment Company 9
Diamond B Oilfield Trucking, Inc. 57
Do All Metal Fabricating Ltd. 62
Don-Nan Pump & Supply OBC
Eagle Welding & Petroleum Equipment 32
Enbridge Pipelines (North Dakota) LLC 45
Energy Efficient Healthy Homes 104
Enerplus 25, 106
Essential Coil & Stimulation Services 79
Farmers Union Oil 19
Frontier Energy Group, Inc. 37
Georesources Inc. 66
Global Oilfield Services 72
Graco Oilfield Services 43
Halliburton 17
Heat Hawg Inc. 22
Jasper Engineering & Equipment Co. 77
Kotana Communications Inc. 90
MDU Resources Group, Inc. 54, 55
MVTL Laboratories, Inc. 78
Mac Inc. 69
Mid-Plains Distributing 88
Millennium Directional Services Ltd. 33
Miller Architects & Builders 53
Monson Corporation 31
Nabors Well Services Co. 5
Neset Consulting Service 30
North Dakota Petroleum Council 29
Oilfield Integrators 59
PCS Business Brokers 73
Pat’s Off-Road Inc. 91
Peterson Equipment Company 98
Petroleum Services And Tools 105
Pierce RV 39
Pifer’s Auction & Realty 97
Pioneer Drilling Company 65
Power Fuels 47
Quality Mat Company 101
Redline Well Control 19
Reform Energy Services 89
Rig Manager Services Ltd. 74, 75
Rocking Horse Energy Services 86
Rocky Mountain Rod 97
Schlumberger 79
Six Gun Hotshot LLC 81
Steamboat Energy Consultants 23
Suretuf Secondary Containment Partnership 85
TCA Marketing 95
TJT International 93
Thru Tubing Solutions 3
Train ND Northwest 42
Trilogy Oilfield Ltd. 50
Veit & Company Inc. 93
Wallwork Truck Center 67
Wanzek Construction 49
Ward Williston Oil Company 13
Whiting Petroleum Corporation IFC
At Enerplus, we embrace our responsibility to our employees and the communities where we live, work and operate. We are committed to creating stronger relationships through volunteer involvement and contributions to non-profit and community based organizations.
Through our donations of time and resources, Enerplus is building relationships with our neighboring communities.
www.enerplus.com
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