Oil Production in McKenzie County

Bakken Facts:

A typical 2011 ND Bakken well will produce for 28 years. If economic, enhanced oil recovery efforts can extend the life of the well in those 28 years, the average Bakken well:

Produces approximately 550,000 barrels of oil

Generates $20+ million net profit

Pays approximately $4,360,000 in taxes - $2,100,000 gross production taxes - $1,900,000 extraction tax - $360,000 sales tax

Pays royalties of $7,600,000 to mineral owners

Pays salaries and wages of $1,600,000

Pays operating expenses of $2,300,000

Costs $7,300,000 to drill and complete

*Source: ND Dept. of Mineral Resources Director Lynn Helms' presentation to the ND Petroleum Council, September, 2011.

Mckenzie County Oil Facts

According to recent data from the North Dakota Oil and Gas Division, McKenzie County’s oil production rose to 821,705 barrels in May of 2009, the largest production since August of 1991 when county wells produced 838,776 barrels of oil.

McKenzie County’s record high production of oil of 1,404,556 barrels occurred during the month of April of 1985.

Statewide, crude oil production in North Dakota rose to nearly 63 million barrels in 2008, an increase of 39.3 percent from 2007. This was the largest production level and percentage gain in the state’s history.

As of August 31, 2008 there are 95 drilling rigs operating in North Dakota and 21 of those rigs are drilling in McKenzie County.

The average McKenzie County oil well produces 25 barrels of oil per day

Each working drilling rig results in approximately 120 direct and indirect jobs.

There are two natural gas processing plants operating in McKenzie County. They produce 13 billion cubic feet each year and are located near Trotters and Arnegard.

The natural gas processed in McKenzie County last year was enough to heat over 100,000 North Dakota households for one year.

McKenzie County produced over 365 million barrels of oil since its discovery here in 1952

McKenzie County is the all-time leading North Dakota oil producing county. Bowman County was the top producing county in 2005. Other high producing counties Billings and Williams Counties.

US Forest Service administered lands in the Little Missouri Grasslands provided oil and gas revenues to $40.7 million during the fiscal year 2005. $10.3 million was returned to McKenzie, Billings, Golden Valley and Slope Counties for schools and roads.

Total McKenzie County oil production is over 5 million barrels per year (less than ¼ day supply for the United States)