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NORTH Dakotas oil boom


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IMHO it is time to dial back on the leases. Coming from an oil rich state I can tell you that there are some big down sides to the oil industry. Until we can figure out how to minimize some of these concerns I think we should limit expansion. 

No doubt the oil industry creates some jobs and brings in royalties. But the State's also deal with a whole array of problems that are not offset by the revenue.

We have the richest oil property in the entire nation in New Mexico. Some of the richest on the planet. And while the revenue is a big part of our economy the damage the oil patch is doing to our water supply and infrastructure almost offsets the gain. Not to mention the societal and economic problems it creates.

I don't object to a pragmatic approach to expanding the oilfields. And neither does the mining industry here. There is a lot more to it than the temporary jobs and corporate gain that expansion would create. It's about time we start taking it all into consideration when allowing new leases. It is not always about the immediate profits. At some point we must consider the huge expense that the industry leaves behind for the other taxpayers and businesses that remain after the boom is over.

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15 minutes ago, Bedrock Bob said:

 

We have the richest oil property in the entire nation in New Mexico. 

 Ay, yer a sly one.^^^^^^^^^

Reserves in-ground, yes?

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12 minutes ago, Stillweaver hillbelli said:

 Ay, yer a sly one.^^^^^^^^^

Reserves in-ground, yes?

No. Producing acreage. We have the richest. Our wells produce 3:1 when compared to any other oilfields outside of the Permian Basin.

When it comes to oil patch we are the top producing leases in the United States. Absolutely the most valuable oil property in the nation.

We have produced more oil than North Dakota two years in a row. And we have half of the acreage in production. Only Texas rivals our production and they have exponentially more wells and acreage in production.

New Mexico has the richest oilfields by quite a big margin. We are also dealing with the problems that come with that. And the revenues we bring in still do not offset the long term expense.

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Ok. Production per acre leased. Must be all that "hot rock" underground.

 Not, total production for the state. That's  a Texas domain.

  Yeah , there's  gotta be shenanigans going on between lobbyists, regulators and the companies getting the leases..

I remember with the Deep Horizon blowout it was revealed that the MMS  had a little conflict of interest.,,  not ignoring the lack of drilling mud in the pipe, the damaged  blowout preventer  and bottom-of-hole pressures never encountered.

Edited by Guest
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Our big problems are the boom and bust cycles. It cost millions in unemployment and creates boomtown environments rife with crime and abuse. The jobs just don't last and the permanent industries pick up the tab. 

Also we have a rich potash mining industry that competes for land and water. Those potash mines are good, permanent careers. They are severely limited by the oil patch.

We have several billion in damages left over from many years of oilfield work. The oil companies and contractors don't pay for that. The taxpayer does. So while oil patch can boast big rewards in a snapshot in time, the overall picture is much different.

Water is our biggest problem. And oilfield work really aggravates that. Many industries (Potash, dairy, farmimg and manufacturing) compete directly for the water. Oilfield gets the water even if the overall returns are less. And the people drink salty mud in the towns.

So it is not all about the evil enviros wanting to shut down the petroleum industry. There are real concerns that require real solutions. And the oil companies seem to be stuck on top dead center refusing to give up a little of their profits.

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30 minutes ago, Dakota Slim said:

AHEM!

 

 Now, Slim, I think there are some good  parallels here.  Oil is oil , wherever it comes from.  We know if that if there are corners to be cut, industry will do it. 

Hardrock mining  is no exception.

In ND, they'd  be  pumpin' the Ogallala  for frac water, I would assume.   And, also  injecting  WELL below  that major aquifer (assuming there're  injection wells for waste frac water.) 

A "well-sealed casing" ( is that like rainbows and unicorns, government intelligence , plastic silverware and jumbo shrimp?) ,from the surface to well below the aquifer, of course, is needed for the injection well to not risk contamination of the Ogallala  above.  Or an aquifer.

And  we know from USGS data that Kansas  has had a whole lotta shakin going on around injection well sites.

And the Ogallala is overpumped.

I know there is way more acreage leased, than developed.  The oil companies  have backup. , ,, some would say leaseholds are in too few hands. 

Has someone done a bang for the buck comparison on Average return on oil lease dollars , for these companies? Leaseholders?

Let's  go to DC    and    steal   the      K Street signs:). The lobbyists  will get lost on the  way to work.

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Slim,

The moratorium on federal leases is not just about North Dakota. It is nationwide. The lawsuit in North Dakota is just like the other lawsuits in other States. And the moratorium was enacted because of the problems that expansion poses in all oil producing areas. Not just North Dakota.

I think the comparison with what is happening in the New Mexico oil patch is a very good example for discussion. Talking about that here certainly shouldn't be a point of contention.

At least not from my perspective.

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According to the original article, the subject of this topic:

The Federal government’s leasing ban is wrong on the law and is hurting North Dakota’s economy and its citizens, says Stenehjem

BISMARCK, ND – Late yesterday afternoon, North Dakota sued the Federal government, including the Department of Interior and the Bureau of Land Management, because BLM has unlawfully canceled the regularly scheduled auctions of oil & gas leases of public mineral rights in North Dakota that BLM is required by federal law to hold.  “I have taken this action to protect North Dakota’s economy, the jobs of our hard-working citizens, and North Dakota’s rights to control its own natural resources” said Attorney General Wayne Stenehjem.

Without following the legally required procedures, BLM arbitrarily canceled the March and June lease auctions and shows every sign of continuing to violate its statutory duties. Due to North Dakota’s unique “split estate” land and mineral rights structure, BLM’s illegal actions have disrupted the State’s programs for efficiently managing the State’s resources and are blocking the development of significant State and private mineral interests. Stenehjem says that the cancellation of the March and June auctions will cost the State over $80 million in lost revenues, a number that could grow to into billions in the coming months unless BLM’s illegal cancellations are stopped.

This lawsuit was filed shortly after a Federal court in Louisiana preliminarily enjoined a BLM lease cancellation policy on June 15. “I welcome and support the Louisiana federal district court’s decision,” Stenehjem said, “and I look forward to defending North Dakota’s vital interests in its natural resources and continuing to put the pressure on the Federal government to do the right thing for our state.”

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Yes Slim. I read the article. And it does say that. It is an opinion that you may agree with.

There are two sides to every issue and I was simply presenting the other side. 

There is no doubt that limiting expansion will hurt the oil industry's profits. And it will also limit future jobs in the industry.

The article does not address the reasons for the moratorium nor does it present any solutions to those problems. It simply outlines the arguments against the moratorium from a purely legal standpoint.

Ten years ago the United States massively ramped up oil production. We became a major producer and exporter of oil. With that effort came a lot of real concerns. And in my opinion it is time to re assess our expansion and address those very real concerns. 

Many people will ask how much is enough? At this point in time there is no shortage of jobs nor is there a shortage of petroleum. We do however have real problems with the legacy issues of the oil field. It is time to address those issues as they are negatively affecting life, health and other industry.

I believe that there must be a fair balance when dealing with limited resources. Public land and water are limited resources and the oil companies use much more than their fair share. They compete with many other industries for these limited resources and are negatively affecting the economy in many ways. They also are affecting our communities and our lifestyles.

At some point their expansion must be limited and in my personal opinion it is time to have that discussion. The land and the water is needed for other industry to flourish. Those other industries are often much more critical to the economy than petroleum. We are to the point where the oil patch is costing us more than it benefits us. 

We are the world's biggest consumer of oil. We produce even more than we consume. But we are running out of the critical resources needed to sustain our economy. And we should figure out workable solutions before we continue down this dead end path.

Oil companies are greedy and will use the very last drop of drinking water in the West to make a profit. They will gladly turn our communities into boomtownss and kill other industry. They will tear up the roads, leave billions in damage, rely on private business to subsidize them, ruin our water supply and influence Our decision makers with bribes. We know this is the case because we have a hundred years of history to prove it.

 Our government is doing its job when it tries to control and regulate The petroleum industry. They should do even more than limit expansion in my personal opinion. But limiting new leases is a good start. Hopefully while this moratorium is in place they will be able to address some of the real problems that exist and force the industry to change in ways that will allow sustainabity and not negatively influence our lifestyles, environment and economy for the sake of corporate profits 

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Sorry Bob. There is one fact here.

1. BLM has unlawfully canceled the regularly scheduled auctions of oil & gas leases of public mineral rights in North Dakota that BLM is required by federal law to hold.

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12 minutes ago, Dakota Slim said:

Sorry Bob. There is one fact here.

1. BLM has unlawfully canceled the regularly scheduled auctions of oil & gas leases of public mineral rights in North Dakota that BLM is required by federal law to hold.

That is indeed one fact. And if it were the only fact in this issue then it would be simple. 

Let's let the lawyers argue that one fact. I'm sure they are capable of doing that. 

The rest of the facts remain. And until they are addressed the issues with the petroleum industry will present major problems for the people and economy in the west. 

 

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16 minutes ago, Bedrock Bob said:

That is indeed one fact. And if it were the only fact in this issue then it would be simple. 

Let's let the lawyers argue that one fact. I'm sure they are capable of doing that. 

The rest of the facts remain. And until they are addressed the issues with the petroleum industry will present major problems for the people and economy in the west. 

 

The lawyers probably will get it straightened out but thanks for posting your opinions about all the unrelated stuff.

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6 minutes ago, Dakota Slim said:

Another result of this unlawful action is without these lease auctions the government's revenue will go down. That should be a concern for every American who can add 2 plus 2. 

I suspect that we’re also going to lose our energy independence....my main concern is national security, followed closely by high utility and transportation costs....IMNSHO, the inflation we’ve been seeing this past half year is only a fraction of what we’ll see within the next year or two....

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