July 2020 Monthly Update North Dakota Pipeline Authority Justin J. - PowerPoint PPT Presentation

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

US Williston Basin Oil Production - 2020 2 2 JJ Kringstad - North Dakota Pipeline Authority

Monthly Production Change 3 JJ Kringstad - North Dakota Pipeline Authority

March to May 75+% M-O-M Oil Drop (Non-Confidential Wells Only) 4 JJ Kringstad - North Dakota Pipeline Authority

Vintage Year of Shut-In Wells – May 2020 (Non-Confidential Wells Only) 5 JJ Kringstad - North Dakota Pipeline Authority

Estimated Williston Basin Oil Transportation May 2020 6 6 6 JJ Kringstad - North Dakota Pipeline Authority

Estimated Williston Basin Oil Transportation 7 7 7 JJ Kringstad - North Dakota Pipeline Authority

Estimated ND Rail Export Volumes 8 8 JJ Kringstad - North Dakota Pipeline Authority

Rail Destinations Market Share (Apr. 2020) Data for Rail Destination Market Share Provided by the US Energy Information Administration 9 9 JJ Kringstad - North Dakota Pipeline Authority

Major Rail Lines and Refineries $23.40 $15.72 $26.28 $16.10 EIA April 2020 Refiner Acquisition Cost $19.41 10 10 JJ Kringstad - North Dakota Pipeline Authority

Crude Oil Prices – July 17, 2020 Brent $43.36 WTI + $2.50 Cushing $40.86 Pricing Data: LLS (Argus) Bloomberg & CME (LLS-Argus) WTI + $1.61 11 JJ Kringstad - North Dakota Pipeline Authority

Williston Basin Truck/Rail Imports and Exports with Canada 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. 12 12 JJ Kringstad - North Dakota Pipeline Authority

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 infrastructure Statewide May 2020 Data – Non-Confidential Wells 13 JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge 14 JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge 15 15 JJ Kringstad - North Dakota Pipeline Authority

EIA Oil Price Forecast* *EIA July 2020 SEO and January 2020 AEO Blend 16 JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge 17 JJ Kringstad - North Dakota Pipeline Authority

Solving the Flaring Challenge 18 JJ Kringstad - North Dakota Pipeline Authority

Major Gas Pipeline and Processing Infrastructure M.P. WBI Transmission 19 JJ Kringstad - North Dakota Pipeline Authority

Contact Information Justin J. Kringstad, Director North Dakota Pipeline Authority 600 E. Boulevard Ave. Dept. 405 Bismarck, ND 58505-0840 Phone: (701)220-6227 Fax: (701)328-2820 E-mail: jjkringstad@ndpipelines.com Websites: www.pipeline.nd.gov www.northdakotapipelines.com 20 20 JJ Kringstad - North Dakota Pipeline Authority