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July 2020 Monthly Update North Dakota Pipeline Authority Justin J. Kringstad July 17, 2020

July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

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Page 1: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

July 2020 Monthly Update

North Dakota Pipeline Authority

Justin J. Kringstad

July 17, 2020

Page 2: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

US Williston Basin Oil Production - 2020

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Page 3: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

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Monthly Production Change

Page 4: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

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March to May 75+% M-O-M Oil Drop

(Non-Confidential Wells Only)

Page 5: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

5JJ Kringstad - North Dakota Pipeline Authority (Non-Confidential Wells Only)

Vintage Year of Shut-In Wells – May 2020

Page 6: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

Estimated Williston Basin Oil Transportation

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May 2020

Page 7: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

Estimated Williston Basin Oil Transportation

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Page 8: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

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Estimated ND Rail Export Volumes

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Page 9: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

Rail Destinations Market Share (Apr. 2020)

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Data for Rail Destination Market Share Provided by the US Energy Information Administration

Page 10: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

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Major Rail Lines and Refineries

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$26.28

$19.41

$15.72

$16.10

$23.40

EIA April 2020 Refiner Acquisition Cost

JJ Kringstad - North Dakota Pipeline Authority

Page 11: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

Cushing $40.86

Brent $43.36WTI + $2.50

Crude Oil Prices – July 17, 2020

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Pricing Data: Bloomberg &

CME (LLS-Argus)LLS (Argus)WTI + $1.61

Page 12: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

Williston Basin Truck/Rail Imports and Exports with Canada

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Data for imports/exports chart is provided by the US International Trade Commission and represents traffic across US/Canada border in the Williston Basin area.

Page 13: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

Simple Terms

Blue – Lack of pipelines

Orange – Challenges on existing

infrastructure

GREEN – % of gas captured and sold

Blue – % flared from zero sales wells

Orange – % flared from wells with at

least one mcf sold.

May 2020 Data – Non-Confidential Wells

Statewide

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Solving the Flaring Challenge

Page 14: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

14JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge

Page 15: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

1515JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge

Page 16: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

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EIA Oil Price Forecast*

*EIA July 2020 SEO and January 2020 AEO Blend

Page 17: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

17JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge

Page 18: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

18JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge

Page 19: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

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Major Gas Pipeline and Processing Infrastructure

WBI Transmission

M.P.

Page 20: July 2020 Monthly Update North Dakota Pipeline Authority Justin … · 2020. 7. 17. · Simple Terms Blue –Lack of pipelines Orange –Challenges on existing infrastructure GREEN

Justin J. Kringstad, DirectorNorth Dakota Pipeline Authority

600 E. Boulevard Ave. Dept. 405Bismarck, ND 58505-0840

Phone: (701)220-6227Fax: (701)328-2820

E-mail: [email protected]

Websites: www.pipeline.nd.gov

www.northdakotapipelines.com

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Contact Information

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