EmPower ND Commission Justin J. Kringstad Geological Engineer Director North Dakota Pipeline Authority February 4, 2020
North Dakota Pipeline Construction Sources: NDIC & PHMSA JJ Kringstad - North Dakota Pipeline Authority 3 3
Bakken & Three Forks Formations Bakken Formation Three Forks Formation JJ Kringstad - North Dakota Pipeline Authority 4 4
North Dakota Well Completions and Spatial Development 2011 2018 1,304 New Wells 1,260 New Wells JJ Kringstad - North Dakota Pipeline Authority 5 5
North Dakota Well Completions and Developed Sections JJ Kringstad - North Dakota Pipeline Authority 6 6
North Dakota Gathering Pipeline Development JJ Kringstad - North Dakota Pipeline Authority 7 7
North Dakota Pipeline Construction Sources: NDIC & PHMSA JJ Kringstad - North Dakota Pipeline Authority 8 8
Cumulative Remaining Wells Peak Month Minimum BOPD 30-Day Initial Production (BOPD) JJ Kringstad - North Dakota Pipeline Authority 9 9
Years Remaining* / Minimum Wellhead Oil Price *Assumes 1,200 Completions Per Year and 7MM Well Costs (20% After Tax IRR) JJ Kringstad - North Dakota Pipeline Authority 10 10
Statewide Initial Oil Production Rates 24hr JJ Kringstad - North Dakota Pipeline Authority 11 11
Statewide oil Performance 4% Improvement Over 2018 JJ Kringstad - North Dakota Pipeline Authority 12 Statewide Average BKN/TF Well Performance 12
Presentation Forecast Note: Many forecasts are in draft status as the EIA has recently released their 2020 Annual Energy Outlook with a revised oil price forecast. Final forecast updates/revisions will be available in…
EIA Oil Price Forecasts - Reference Case JJ Kringstad - North Dakota Pipeline Authority 14 14
North Dakota Oil Production Forecast Assumes Current Technology Enhanced Oil Recovery Not Included DRAFT JJ Kringstad - North Dakota Pipeline Authority 15 15
Williston Basin Oil Production & Export Capacity, BOPD DRAFT Production forecast is for visual demonstration purposes only and should not be considered accurate for any near or long term planning. JJ Kringstad - North Dakota…
Rail Destinations Market Share (Oct 2019) Data for Rail Destination Market Share Provided by the US Energy Information Administration JJ Kringstad - North Dakota Pipeline Authority 20 20
Natural Gas Update Production Gathering Processing Transmission Technology Capacity Capacity Dry Gas Markets Connections Location Natural Gas Liquids JJ Kringstad - North Dakota Pipeline Authority 21 21
Statewide Gas Performance 10% Improvement Over 2018 JJ Kringstad - North Dakota Pipeline Authority 22 Statewide Average BKN/TF Well Performance 22
Statewide Gas-Oil Ratio JJ Kringstad - North Dakota Pipeline Authority 23 Statewide Average BKN/TF Well Performance 23
NDPA North Dakota Gas Production Forecast Assumes Current Technology Enhanced Oil Recovery Not Included DRAFT JJ Kringstad - North Dakota Pipeline Authority 24 24
Natural Gas Update Production Gathering Processing Transmission Technology Capacity Capacity Dry Gas Markets Connections Location Natural Gas Liquids JJ Kringstad - North Dakota Pipeline Authority 25 25
Solving the Flaring Challenge GREEN % of gas captured and sold Blue % flared from zero sales wells Orange % flared from wells with at least one mcf sold. Simple Terms Blue Lack of pipelines Orange Challenges on existing…
Solving the Flaring Challenge JJ Kringstad - North Dakota JJ Kringstad Pipeline - North Authority Dakota Pipeline Authority 27 27
Solving the Flaring Challenge Gas Connections JJ Kringstad - North Dakota JJ Kringstad Pipeline - North Authority Dakota Pipeline Authority 28 28
Natural Gas Update Production Gathering Processing Transmission Technology Capacity Capacity Dry Gas Markets Connections Location Natural Gas Liquids JJ Kringstad - North Dakota Pipeline Authority 29 29
Gas Processing Expansions JJ Kringstad - North Dakota Pipeline- Authority JJ Kringstad North Dakota Pipeline Authority 30
Solving the Flaring Challenge Assumes Current Technology Enhanced Oil Recovery Not Included DRAFT JJ Kringstad - North Dakota JJ Kringstad Pipeline - North Authority Dakota Pipeline Authority 31 31
Solving the Flaring Challenge Assumes Current Technology Enhanced Oil Recovery Not Included DRAFT JJ Kringstad - North Dakota JJ Kringstad Pipeline - North Authority Dakota Pipeline Authority 32 32
Natural Gas Update Production Gathering Processing Transmission Technology Capacity Capacity Dry Gas Markets Connections Location Natural Gas Liquids JJ Kringstad - North Dakota Pipeline Authority 33 33
Solving the Flaring Challenge Assumes Current Technology Enhanced Oil Recovery Not Included DRAFT JJ Kringstad - North Dakota JJ Kringstad Pipeline - North Authority Dakota Pipeline Authority 34 34
Major Gas Pipeline and Processing Infrastructure Whiting WBI Transmission JJ Kringstad - North Dakota Pipeline- Authority JJ Kringstad North Dakota Pipeline Authority 35
WBI Energy North Bakken Expansion Project Project Highlights 63 Miles - 24 Pipeline 20 Miles - 12 Pipeline 220+ Million 350,000 MCFD Capacity (expandable) End of 2021 Proposed Completion Residue Gas Service From North of Lake…
Northern Border BTU at Glen Ullin, ND JJ Kringstad - North Dakota Pipeline Authority *Data Source: Northern Border IPS 39
NB Pipeline Interconnects With Known BTU Limits JJ Kringstad - North Dakota Pipeline Authority 40
JJ Kringstad - North Dakota Pipeline Authority Map Source: TC Energy Website 41
JJ Kringstad - North Dakota Pipeline Authority Map Source: TC Energy Website 42
Northern Border BTU Calculations* DRAFT JJ Kringstad - North Dakota Pipeline Authority *Assumes Equivalent Net Replacement of 1,035 Canadian Gas 43
Solving the Flaring Challenge Assumes Current Technology Enhanced Oil Recovery Not Included DRAFT JJ Kringstad - North Dakota JJ Kringstad Pipeline - North Authority Dakota Pipeline Authority 44 44
Bakken Natural Gas Infrastructure 45 JJ Kringstad - North Dakota Pipeline Authority 45 45
Northern Border Proposed Expansion Options Two Proposed Options: Stateline/Watford City to Ventura -580 Mdth Incremental (525 MMCFD) -Phase 1: Q3 2021 -Phase 2: Q4 2023 Stateline/Watford City to Cheyenne -430 Mdth Incremental…
WBI Energy Tioga to Emerson Proposal Non-Binding Open Season January 10 - February 28, 2020 -600 Mdth Incremental (560 MMCFD) -Proposed In-Service Q4 2023 -330 Miles of 24 Pipe JJ Kringstad - North Dakota Pipeline Authority…
Regional NGL Infrastructure Kinder Marathon Petroleum JJ Kringstad - North Dakota Pipeline Authority 48
Natural Gas Processing Ethane Capture Consumer Quality Methane Dry Natural Gas 57.67% Residue Gas Ethane 19.94% Raw Natural Gas NGLS (8-12 gallons Processing Plant (1400+ BTU) per 1,000 cubic feet Propane of raw gas) 11.33%…
Natural Gas Processing Ethane Rejection Methane 57.67% Consumer Quality Dry Natural Gas Residue Gas Ethane 19.94% Propane Raw Natural Gas NGLS (8-12 gallons Processing Plant 11.33% (1400+ BTU) per 1,000 cubic feet of raw…
Bakken Three Forks Average NGL Content (GPM) 51 JJ Kringstad - North Dakota Pipeline Authority Data Source: Operator Gas51 Analysis 51
Bakken Three Forks Average NGL Content (GPM) 52 JJ Kringstad - North Dakota Pipeline Authority Data Source: Operator Gas52 Analysis 52
Bakken Three Forks Average Ethane Content (GPM) 53 JJ Kringstad - North Dakota Pipeline Authority Data Source: Operator Gas53 Analysis 53
Bakken Three Forks Average Gas BTU 54 JJ Kringstad - North Dakota Pipeline Authority Data Source: Operator Gas54 Analysis 54
Assumed NGL Content for NDPA NGL Forecasts Mole % Source: Energy & Environmental Research Center (EERC) 55 JJ Kringstad - North Dakota Pipeline Authority 55 55