Welcome to the Henry Hill Oil Services October 2019 Newsletter
Henry Hill Oil services expands as the industry output soars.
There are three new technology trends emerging in the Bakken that are attributed to the Bakken’s consistent growth rate during the current slowdown period. One of the new systems that is being used is an adaptation from old technology. It is called gas lift, which involves injecting compressed natural gas down into the well, creating bubbles, lowering the fluid’s density, and helping it flow more efficient ly . Another new technology is automated directional drilling that is helping improve performance in shale plays. It decreases inefficiencies on the rigs and lowers human error. New technology has also added the ability to revive wells that were completed with old technology and to be re-stimulated with this new technology.
 
With technology advances resulting in a higher oil production per site, the need for saltwater disposal will be directly increased. Henry Hill Oil is focused on designing, building and operating saltwater gathering systems and disposals for its partners to offer them the most effective solution to their saltwater needs. Our customers can focus their energies on their oil and gas production, while Henry Hill Oil plans and executes transportation and saltwater disposal for their wells. Henry Hill Oil is putting miles of pipeline into production, building disposal systems, and creating connections between third party disposal sites to help support the increased production.



As abandoned oil wells climb, regulators consider ways to stop problem from worsening

The number of abandoned oil and gas wells are becoming a problem within North Dakota. It has grown 10% over the past two years to total more than 700. The problem can escalate to a similar challenge that Pennsylvania faced when the cost of plugging and reclaiming of the sites become the responsibility of the state. New rules drafted by the Industrial Commission are scheduled to appear in front of hearings in October.

The changes that are being proposed is that abandon wells sold by one company to another must be fully bonded by the purchaser. The bond is an assurance of money that would pay for the closing of the sites.
Wells can stay unplugged for years without action, however state law passing in 2015 that resulted in a change in law that landowners can request that regulators act on the wells after seven years. There is also an increase of “temporarily abandoned” wells that are inactive after a year. Under the proposed new rules, the seven year will apply to these wells and will acquire additional bonding if wanting to stay within that status. An additional rule change that is proposed is to double the bond requirement for commercial inject wells that are used to dispose of saltwater underground.

McKenzie County Oil Production Tops Nation; Bakken Oil Fields Set New Records

The Bakken oil fields have been hitting records this year. North Dakota’s oil production has been setting records and seated as the Number 2 producer state in the nation. In January, McKenzie County beat out all other counties in North Dakota and the nation and was placed at the number 1 spot. McKenzie County produced 17.88 million barrels of oil in January of 2019. Williams County produced a new record also in the month of January with 7.41 million barrels of oil. KXLH Helena reported a record summer for the Bakken oil fields. ND hit records in July with 1.442 million barrels a day, along with a new high number of producing wells.
 
With the increase in oil and gas production, there is an increased need for saltwater transportation and disposal. Henry Hill Oil has added to the relief within both Watford City and Williston by putting into operation miles of pipeline with more pipeline scheduled before the end of year. As Henry Hill Oil builds more pipeline, we are not only connecting into Henry Hill owned salt water disposal systems but also making connections into third party systems. These new connections will ultimately streamline production across the region.

Henry Hill Oil's integrated water services will address your saltwater disposal needs with the highest standards in safety and service.
Henry Hill’s water solutions are designed with you in mind. By combining unique design features in our Class II salt water disposal wells with efficient gathering systems and managing those systems with state of art SCADA software, Henry Hill Oil can reduce the cost of salt water disposal, reduce wear on well pads, and help position our partners to handle their salt water disposal needs for the foreseeable future.
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Henry Hill Oil was founded in 2016 to provide North Dakota’s oil industry with a midstream partner that operates with the highest standards in safety and service.

Henry Hill Oil Services Tel: 701-353-5450 - Fax: 701-353-0028
120 26th Street East
Suite 200
Williston, ND 58801