Tneme-News
THIS OIL FIELD ‘PLAY’ MEANS SERIOUS
BUSINESS FOR DRILLERS
Business is booming for drillers in the
Bakken formation, a shale-rich area
stretching from Canada down into North
Dakota and Montana. This summer,
the number of rigs actively drilling in
North Dakota reached a 28-year high,
according to Lynn Helms, director of
the North Dakota Oil and Gas Division.
Helms reported the number of operating
rigs in the state reached 127 in June,
which was up from 102 in March. Last
year, North Dakota produced a record
79.7 million barrels of oil, placing it
fourth among the oil-and-gas-producing
states. A part of the state’s Department
of Mineral Resources (DMR), the oil
and gas division regulates the drilling
and production of oil and gas in North
Dakota.
Helms credited the development of
improved horizontal drilling techniques
and fracturing technology with the
increased oil production in the Bakken
formation, which occupies 8.4 million
acres in western North Dakota. Overall, the Bakken
formation is estimated to hold more than 3.65 billion barrels
in oil reserves, representing the largest continuous resource
in the lower 48 states, according to the U.S. Geological
Survey (USGS).
The Bakken formation lies under the Williston Basin, where
drilling companies have used vertical wells for decades to
extract sour crude containing hydrogen sulfide (H2S), which
is toxic and expensive to remove. “The entire play up there
consisted of sour crude,” recalled Tnemec coating consultant
Mike Cox of M.P.I. Warehouse Specialty Company. “A play is
what oil and gas investors call an area of activity. Now, with
the Bakken formation, North Dakota is back on the map
as an extremely viable area with massive volumes of sweet
crude oil, which offers a high yield of gasoline and other
petroleum products.”
Early drilling efforts in the Bakken
formation using conventional vertical
wellbores with an existing fracture system
were unsuccessful, which discouraged
most operators from drilling there. Today,
operators are finding success with deep,
long horizontal wells with multiple
hydraulic fracture treatments that are
similar to the technology used to produce
natural gas from other shale formations.
These horizontal wells require drilling
vertically first and then horizontally into a
formation’s target layers rather than through
them. “The present middle Bakken play in
North Dakota and eastern Montana is an
example of third generation horizontal
drilling applications,” Helms reported in
an article written for DMR Newsletter. “The
third and current generation of horizontal
drilling is a result of attaining much longer,
deeper and more accurate placement of
multiple horizontal well bores to exploit
fractured source rocks (where it is coupled
with new hydraulic fracturing technology).”
Continued on back.
Among the active drillers in North Dakota is Oklahomabased Bronco Drilling Company, which operates higher
horsepower rigs that are capable of drilling horizontal and
directional wells. Prior to being placed in service, these rigs
are refurbished and, depending on their condition, receive
an overcoat of Tnemec Series 2H Hi-Build Tneme-Gloss, a
high-gloss alkyd that offers good flow, hiding and protection
at 1.5 mils dry film thickness (DFT). Four rigs recoated
during July and August required more than 470 gallons of
Series 2H in the colors white, gray, safety yellow, Cat yellow,
National Blue and gray primer.
Based on current estimates of the Bakken shale recovery,
drilling rigs will be operating in North Dakota into the
foreseeable future. “The proven portion of the middle
Bakken member occupies over 8.4 million acres in western
North Dakota,” Helms informed the House subcommittee last
year. “The current North Dakota drilling rig fleet is capable
of developing 300,000 to 650,000 acres per year meaning full
development could require 13 to 26 years and over 13,000
new wells each hydraulically fractured from 2 to 20 times.”
Originally included in the September 2010 E-News.
“Bronco Drilling Company has made Tnemec the standard
maintenance coating for all their rigs,” Cox acknowledged.
“They require excellent coverage and durability, as well
as color and gloss retention, which Tnemec provides. The
majority of rigs in this region are now standardized on
Tnemec coatings. That’s why we opened a new warehouse
this summer in western North Dakota, because business is
going gangbusters.”
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