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The Bakken Report

Inside the North Dakota Oil Boom
Brought to you by Bakken Dispatch

What is the Bakken formation?

The Bakken is a shale formation covering about 200,000 square miles of North Dakota, Montana and Saskatchewan. It is most notable for being one of the largest oil reserves ever discovered in North America, and creating a huge oil boom, mainly in North Dakota, which has led to thousands of aspiring oil eld workers moving to the state to look for work. As a result, North Dakota currently has the lowest rate of unemployment in the country. Oil was rst discovered in the Bakken in 1951, and has been producing oil ever since. But, due to technological and economic limitations, it has only been until fairly recently that large amounts of oil have been extracted from the formation. The development of a process called hydraulic fracturing, or "fracking," has been largely responsible for the huge increase in oil production in the Bakken during the last few

years. As you can see from the graph below, oil production in North Dakota remained static for decades until pretty recently when it's taken off.

How much oil is in the Bakken formation?

The total amount of oil trapped in the Bakken shale is not known exactly, but it may be well into the hundreds of billions of barrels. But, the important fact to keep in mind is that only a small percentage of that oil is recoverable. The exact amount of oil in the Bakken that is recoverable is not known at this time. In 2008, the USGS released a report that estimated the total amount of recoverable oil in the Bakken formation at between 3 and 4.3 billion barrels. However, it is worth noting that other estimates have been much higher. For instance, the North Dakota Department of Mineral Resources estimates there is closer to ten billion barrels of recoverable oil in the shale. And, Harold Hamm, CEO of Continental Resources, one of the largest Bakken oil companies, has guessed that as much as 24 billion barrels will be extracted.

These higher estimates might lead one to suspect the original USGS report was too low, and that may be true. In fact, the USGS themselves have undertaken a new study to reassess the Bakken and come up with a new estimate based on recent production data and technological renements. That report is due to be released at the end of 2013.

What is fracking?
The fracking process itself is quite remarkable. First, the well is drilled vertically down several thousand feet, into the shale formation that contains the oil. The depth varies depending on what part of the shale formation is being targeted. Then, by using a special collar on the drill chuck, the shaft is gradually turned ninety degrees so that it can drill laterally, some times for as much as two miles. Once the lateral section of the well is drilled, the entire well is cased with pipe and sealed with cement. The lateral part of the shaft is cased in sections that can be sealed off independent of one another, which allows the well to be fracked in stages. Once that is complete, a series of explosives called a "wire line" is lowered down the well. When detonated, these explosives both perforate the well casing, and also fracture the surrounding shale. This is the rst stage of the fracking process. The second stage of fracking involves pumping millions gallons of water combined with sand and other particulates down into the well. The water permeates the fractured shale, and the particulates help to hold the fractures open and allow the oil to run out of the shale and into the well. If youd like a much more comprehensive explanation of fracking in the Bakken and the greater oil shale revolution thats sweeping the nation, check out the Shale Oil Revolution eBook by Matt King. It will give you a much more in depth look at the technology and process that has made these shale formations accessible to development. Both novice and more experienced readers will gain a much better understanding of the unconventional oil revolution from this important book. Click here to check out the report.

How can I get a job in the Bakken oil elds?

This is one of the most common questions about the Bakken, and one of the main reasons people visit our site at BakkenDispatch.com. With the economy being in the dismal state it is, the low rate of unemployment in North Dakota and abundance of highpaying jobs is a big attractor. And, the stories youve heard about oil eld related jobs being plentiful and paying well is certainly true. Not just that, but jobs in all sorts of related elds (such as service

industry jobs, health care, retail, etc) are also easy to nd, particularly in areas most impacted by the oil boom, such as Williston, ND. Some fast food joints are paying $15 per hour for workers, as the supply of any employees has been totally outstripped by demand.

Having said that, although its pretty easy to nd a job if you have a steady pulse and are willing to work hard, that same can not be said of housing. Housing is in extremely short supply, especially in the busiest areas. Thousands of people have moved to these small communities in the last few years, and housing availability has plummeted, and costs have naturally risen. So, if youre seriously considering a move to North Dakota to look for work, its important to plan ahead and do your best to secure housing before you go. Although a lot of people live in vehicles until they can secure work and housing, some communities are cracking down on the practice. Not to mention, living in a vehicle during the colder part of the year in North Dakota could be pretty uncomfortable, if not outright dangerous. With that said, below are some good resources for job searching. How to Get a Job on the Rigs If youre serious about getting a job in the oil elds, check out this rst hand report by an experienced oil rig worker. It includes tips on nding an entry level job, job training requirements, the #1 mistake new job applicants make, and much more. Its not free, but the $34.95 price is totally refundable, with a 60 day money back, no questions asked. Job Service North Dakota A good place to start is the North Dakota State Governments own job service website. They have information on apprenticeships, training, as well as a very useful guide to oilfield employment (pdf). North Dakota Oil Jobs Heres a private site that has quite a few listings and is worth checking regularly for jobs

in the oil fields and related. These are mainly oil field jobs specifically, such as roustabout, derrickhand, tool pusher, wireline operator, etc. Craigslist for North Dakota Everybody loves Craigslist, and the North Dakota section lists lots and lots of jobs of various types. This is a good place to look for jobs that arent in the oil fields themselves, but are supporting the fields and development, such as trucking, construction, welding, maintenance, health care, information technology, etc. Simply Hired Job Board Simply Hired is a job aggregator for jobs all over the country, and there are currently thousands of listings for North Dakota. This board includes all types of jobs, not just oil field jobs, such as administrative, health care, retail, and more. Williston Herald Job Board As you may know, Williston, North Dakota is pretty much ground zero for the Bakken oil boom. The Williston Herald is the local newspaper, and their classifieds section contains a lot of jobs. Like Craigslist, this is a good place to look for jobs that arent directly in the oil fields, such as truck drivers, construction, health care, etc. Rigzone.com Rigzone is probably the biggest oil industry job board out there. Its specifically oil industry related, and many jobs are quite technical. These jobs are all over the world, and not limited to North Dakota.

Conclusion
We hope that helps you understand the Bakken oil boom a bit better, and some of the issues surrounding one of the biggest discoveries of oil in North American history. The Bakken promises to be a vibrant player in U.S. domestic oil production for many years to come. If you have any questions at all, comments about this report or our website, or any feedback at all, please dont hesitate to contact us at info@bakkendispatch.com. We read all the emails we receive, and we very much appreciate you taking the time to let us know your thoughts. Regards, Bakken Dispatch www.bakkendispatch.com