Why It Matters
North Dakota officials and oil industry leaders are preparing to expand enhanced oil recovery research in the Bakken, a move they say could increase recoverable oil and extend production for decades. The effort also could provide more stable revenue for governments and energy companies.
What Happened
Officials, industry representatives and Sen. John Hoeven are supporting a second phase of an enhanced oil recovery project. The technique injects gas into underground reservoirs to restore pressure and extract additional oil.
The first phase, announced in May, includes six large-scale pilot projects. Three are underway, one has received a permit, and two are awaiting regulatory approval.
The proposed second phase would move beyond individual-well tests and apply the approach across an area involving as many as 200 wells. North Dakota is pursuing multiple phases at the same time.
Hoeven is working with Energy Under Secretary Kyle Haustveit to obtain federal loan guarantees for the expanded initiative. Ron Ness said state funding is expected to be requested during the upcoming legislative session.
Kelly Armstrong said enhanced recovery could raise output from older wells and sustain production for decades. Referring to the potential scale, Armstrong said, “That’s an entire new oil boom without the infrastructure challenges.”
By the Numbers
$400 million — federal loan guarantees sought for the expanded initiative
$157 million — phase-one effort
Six — large-scale pilot projects in phase one
10 to 20 times — planned duration and volume of gas injections compared with earlier demonstrations
Up to 200 — oil wells potentially covered by phase two
End of 2032 — expiration target for the federal carbon dioxide enhanced-oil-recovery tax credit
10 billion barrels — additional oil potentially recoverable, according to Danny Brown
1.5 million barrels of oil a day — prior production level cited by Hoeven
1.1 million barrels of oil a day — current production level cited by Hoeven
1,000 barrels of oil per day — production of a new Bakken well when it comes online, according to Armstrong
200 barrels of oil per day — production a year and a half later, according to Armstrong
30 barrels of oil per day — production of an aging oil well cited by Armstrong
100 barrels per day — potential increased production of an aging oil well
Half a century — potential duration of economic benefits cited by Armstrong
20 years — period of North Dakota economic benefits referenced by Armstrong
Zoom Out
Hoeven said enhanced oil recovery would need broad use by the end of 2032, when the federal tax credit for using carbon dioxide in the process expires. Chord Energy is participating in the coalition supporting the research.
Brown said the potential is substantial: “We think there’s tremendous potential here.”
What’s Next
Project participants will continue advancing the three active pilots, seek approval for the two pending projects and pursue permits for the broader second phase. Hoeven will continue work on federal loan guarantees, while state funding could be considered during the upcoming legislative session.