Native American Energy Group Inc. (fka NAGP)

[jcrom56]

Interesting article:

North Dakota may be bigger oil player than Alaska
By LAUREN DONOVAN
Bismarck Tribune

A geologist who estimated the Bakken formation in western North Dakota has far more oil than the Arctic National Wildlife Refuge died before other scientists could authenticate his study.

Leigh Price, a scientist with the U.S. Geological Survey, published a study in 1999 that estimates the Bakken shales formation, which underlies much of several western and northwestern counties, may hold up to 400 billion barrels of oil.

By comparison, the Arctic refuge oil reserve is estimated at 16 billion barrels.
*

Now, Sen. Byron Dorgan, D-N.D., is pushing the federal agency to complete scientific work on Price’s paper as part of a national inventory of the nation’s oil resources.

The Bakken formation is being developed to some extent in North Dakota, but with better success so far on the Montana side of the formation.

Recently, Marathon Oil, a major national and international oil developer, acquired 200,000 mineral acres from Billings to McKenzie counties and plans to drill as many as 300 wells into the Bakken in the next five years.

The company has leased office space in Dickinson and is being closely watched in hopes the expertise and knowledge it brings to bear on the field can unlock the key to successful production from the Bakken.

Price died in 2000 and his study was never peer reviewed, or compared to other studies of the Williston Basin.

Dorgan said the study could have major implications for future oil development in the state.

“If some of the estimates about the Bakken Shale are anywhere near accurate, there may be substantial new oil production in North Dakota’s future,” Dorgan said. “This could create a new, long-term boost to North Dakota’s economy and help move our country toward energy independence. I think USGS has an obligation to put the completion of this study on the fast track.”

Lynn Helms, director of the State Oil and Gas Division, said U.S. Geological Survey credibility coupled with Price’s original estimate could bring major oil activity into North Dakota, along with federal research dollars.

Helms said the state agency supports an estimate of around 200 billion barrels in the Bakken formation, still a huge number.

Patrick Leahy, acting director of the federal Geological Survey, said because of recent interest in Price’s report he has directed the agency to review Price’s conclusions and release appropriate data.

In the meantime, Leahy said it would be irresponsible for Price’s study to be disseminated. It is posted on the state Energy and Environmental Research Center’s Web site.

Leahy said the 2000 Energy Policy and Conservation Act, and amendments, call for creating a scientific inventory of all national oil reserves.

He said the next formal study and inventory of oil and gas in North Dakota’s Williston Basin — the overriding formation that includes the Bakken — is scheduled for 2007-08.

Leahy said the Bakken formation and Williston Basin inventory can’t be accelerated without disrupting other inventories that are well under way.

He said the estimates in Price’s study were not found with the same methods developed for the Energy Policy and Conservation Act inventory.