North Dakota average daily oil production climbed three percent in the month of June to 1.167 million barrels per day, the highest amount in more than two years.

In his monthly Director's Cut news conference, Lynn Helms, director of the Department of Mineral Resources, said natural gas production was also up three percent to 3.25 billion cubic feet per day, and the state now has a record 18,085 producing wells. Helms said gas capture slipped a little during the month falling to 94 percent, which he said reflects the fact that more wells are being drilled outside Tier 1, the core of Bakken production. Helms said the industry's migration into Tier 2 and Tier 3 areas will challenge the industry to maintain gas capture numbers.

Click here to listen to Helms' comments.

Oil prices have been steadily creeping up, averaging more than $80/bbl in recent days. Helms said higher prices should encourage more drilling activity, but it is being constrained by more regulatory threats from the federal government. He said producers are hesitant to invest in the face of the "all-of-government federal firehose."

Click here to listen to Helms' comments.

Helms said another threat looming for North Dakota oil producers is the potential shutdown of the Dakota Access Pipeline. The US Army Corps of Engineers has still not released a draft Environmental Impact Statement for the DAPL easement crossing the Missouri River south of Bismarck. Despite not having an easement, DAPL has been allowed to continue to operate, moving up to 750,000 barrels of crude per day to market in Illinois. In March 2020, U.S. District Court Judge James Boasberg ordered the Corps to conduct a full environmental impact analysis of the DAPL river crossing, and Helms said the direction the Corps will take with the EIS is still anybody's guess.

Click here to listen to Helms' comments.

The potential shutdown of the pipeline, which has been in operation since June 2017, is also making ag producers nervous because it would force crude oil shipments to move by rail. Shutting down DAPL could disrupt grain and ethanol shipments in the Midwest, costing the agriculture industry billions of dollars. Click here to read a Twin Cities Pioneer Press article about the possible consequences for ag producers.

Click here to read or download Helms' Director's Cut. Click here to watch video of the news conference.

Danish economist Bjorn Lomborg told attendees at Basin Electric's annual meeting this week that although climate change is a real problem, the danger has been badly exaggerated by many of the world's leading political figures.

Lomborg began his keynote speech pointing out the misconceptions many people have about the current state of the climate and the frequency of extreme weather. He pointed out that most people believe the world is seeing an increasing number of hurricanes, mainly because satellites have allowed better observation of weather on Earth. But Lomborg said the data shows the number of landfalling hurricanes has actually trended slightly downward in the past century. Likewise, he said the area burned by wildfires is significantly less than it was 100 years ago, costs associated with flooding as a percentage of GDP have gone down dramatically, and deaths attributable to natural disasters are down 98 percent since 1920.

Lomborg said humans have made great strides in adapting to extreme weather events, so costs associated with disasters are continuing to go down.

Click here to listen to Lomborg's comments.

Lomborg said current policies proposed to address climate change such as de-carbonizing the electric sector and banning gasoline engines are "unrealistic and unsustainable." Instead, he said policy makers should focus on solutions that make sense, such as making sure people have access to air conditioning when the weather gets hot.

Click here to listen to Lomborg's comments.

Lomborg said the news media has played a major role in misinforming the public about the threat of climate change. He said the media is not likely to change its ways, but he said people can help reduce irrational climate fears by pointing out the falsehoods being spread about the frequency of severe weather events.

Click here to listen to Lomborg's comments.

Lomborg has written several books on the subject of global warming and climate change. His first book, The Skeptical Environmentalist published in 2001, challenged beliefs that environmental conditions were getting worse. His most recent book, Best Things First published earlier this year, points out that rather than squandering trillions of dollars on climate policies that don't work, political leaders should address problems such as tuberculosis, malaria, global hunger and education that can be solved for a lot less money.

Basin Electric Power Cooperative reported strong 2022 financial results to members attending the co-op's annual meeting this week in Bismarck.

Katrina Wald, Basin interim vice president and chief financial officer, said consolidated net margins and earnings were $155 million. She said Basin also experienced a 7.8% increase in member load growth and established a record for peak demand in December at 4,679 megawatts.

Basin's consolidated margin was actually much higher at $470 million, but was adjusted downward after the impact of "value creation activities." Wald said that included a $115 million bill credit to members in 2022. Basin also took steps to reduce financial risks, with early amortization of regulatory assets, $28 million of which occurred in 2022. Additional risk mitigation occurred with the resolution of certain tax items and recognition of a gain related to an interest rate lock. Basin also added $155 million to its rate stability fund, which put the balance at $415 million at the end of 2022. The fund provides a shock absorber for rates in the event of extreme weather events, unexpected maintenance, a spike of power prices, or other events that could impact rates.

Wald reported that Basin subsidiary Dakota Gasification Company had a record year in 2022 with net income of $186 million. She said high fertilizer prices and diesel exhaust fluid (DEF) revenue were a large contributor to the record results. Ammonia production was at record levels and DEF volumes were 35% higher than in 2021. In addition, synthetic natural gas prices averaged close to $6 per million BTU resulting in higher revenue from natural gas sales.

Basin Electric’s financial goal for 2023 is to achieve a net cost per member megawatt hour sales equal to or less than $53.23 and achieve a consolidated net margin equal to or greater than $199.4 million. Wald said through the month of June, Basin is on target to meet both objectives.

Three U.S. Senators, who were part of a panel discussion on energy topics during Basin Electric Cooperative's annual meeting this week, said despite the divisiveness in Washington, there are opportunities to improve the legal and regulatory climate and enhance American energy production.

North Dakota Senators John Hoeven and Kevin Cramer were joined by Montana Senator Steve Daines at the event. The three Republicans agreed that federal regulatory policies are now a huge burden on US energy producers, but said a little give-and-take with Democrats could improve the situation. Hoeven said North Dakota is already advancing renewable generation and pursuing technology to capture carbon dioxide, areas that Democrats support. But he said the party of the Left also needs to be realistic about allowing companies to continue delivering affordable, reliable power.

Click here to listen to Hoeven's comments.

Cramer agreed there were opportunities to work with Democrats, particularly in the area of permitting reform. He said regulations must be streamlined in order to further facilitate the "clean energy" transition. But Cramer said the fossil fuel industry needs to be equipped to push back against federal regulatory overreach, citing the EPA's proposed Clean Power Plan 2.0, which he said violates the same law which led the US Supreme Court to throw out the first rule in the case of West Virginia vs. EPA.

Click here to listen to Cramer's comments.

Cramer said federal administrative agencies can only exercise power and write rules in areas authorized by Congress. He said members of the public need to be continually reminded of the threat to grid reliability posed by regulatory overreach, and should help push back so the country doesn't have to learn the hard way with power outages.

With reference to the Supreme Court, Daines talked about the importance of Republicans winning a Senate majority in 2014. He reminded those in attendance the Senate refused to confirm Obama nominee Merrick Garland to the court before the 2016 Election. And when Donald Trump won, he said Republicans were able to confirm three conservative justices who have delivered rulings against government overreach. But Daines said the current 6-3 conservative majority could change based on the outcome of the 2024 Election.

Click here to listen to Daines' comments.

Click here to watch video of the panel discussion (advance to the 5:37:30 mark), as well as the entire program during the Basin annual meeting.

Comments submitted last week by regional transmission organizations (RTOs) covering more than half the country were extremely critical of the EPA's proposed rule aimed at eliminating carbon dioxide emissions from natural gas and coal-fired power plants.

America's Power, a trade group whose sole mission is to advocate on behalf of the U.S. coal fleet, compiled excerpts from comments submitted by PJM Interconnection (PJM), Midcontinent Independent System Operator (MISO), Electric Reliability Council of Texas (ERCOT), and the Southwest Power Pool (SPP). The RTOs submitted comments jointly and individually on the proposed rule.

Their comments explain why the proposed rule poses major risks to grid reliability, despite EPA’s claims to the contrary. The excerpts address five topics: the threat to grid reliability, loss of reliability attributes, chilling effect on investment, technologies not being demonstrated, and the need for meaningful analysis:

“… the challenges and risks to grid reliability associated with a diminishing amount of dispatchable generating capacity could be severely exacerbated if the Proposed Rule is adopted.” Joint Comments

“EPA’s Proposed Rule thus could, and likely will, undermine the mission of providing reliable power to the communities and consumers that MISO and others serve.” MISO Comments

“SPP is concerned that the Proposed Rule could exacerbate the already serious challenges posed by generator retirement, inadequate generation replacement, and increasing demand.” SPP Comments

"Even with the recognized growth of alternative and renewable energy sources, MISO continues to be concerned about the risk of a looming shortfall of resources and attributes needed to ensure grid reliability in the region.” MISO Comments

“There is true concern regarding the chilling impact of the Proposed Rule (and the cumulative effect of all of the recent EPA rulemakings) on attracting investment to maintain existing units within the current fleet as well as planned or proposed resources." Joint Comments

Click here to read more.

David L. Goodin, president and CEO of MDU Resources Group, announced this week that he intends to retire on January 5, after a 40-year career with the company.

The board of directors unanimously selected Nicole A. Kivisto, currently president of MDU's electric and natural gas utility companies, to succeed Goodin as MDU Resources' president and CEO effective January 6. Kivisto will become a member of the board of directors at the same time.

"Dave has done an outstanding job leading MDU Resources through significant strategic initiatives, helping to grow subsidiary companies to a size and scale that can stand on their own as business entities while positioning the remaining corporation as a bigger, stronger regulated energy delivery business," said Dennis Johnson of Dickinson, chairman of the board.

"Through our succession planning process, it was clear to the board that Nicole has the strategic vision, shareholder focus, core values and regulated energy operations experience necessary to continue growing the company and enhancing shareholder value," Johnson said.

Goodin began his career in 1983 as an electrical engineer with subsidiary Montana-Dakota Utilities Co. He served in various positions of increasing responsibility, becoming MDU Resources' president and CEO in 2013.

Kivisto began her career with the company in 1995 and has held a number of positions of increasing responsibility, including previous roles as MDU Resources' controller and chief accounting officer. She was named president and CEO of MDU Resources' utilities, which include Cascade Natural Gas Corporation, Intermountain Gas Company and Montana-Dakota Utilities, in 2015.

Kivisto is a native of Beulah, ND. She has a degree in accounting from the University of Minnesota-Moorhead and is a graduate of the Carlson School of Management Minnesota Executive Program and the University of Idaho's Utility Executive Course.

Get the date on your calendar! The annual meeting of the Western Dakota Energy Association will be held:

October 11-12
Astoria Hotel & Event Center
Dickinson, ND

The opening day will feature presentations on the current and forecast state of North Dakota oil production, an update on pipeline takeaway capacity, the latest developments in coal, oil and gas research, updates regarding LoadPass Permits, a panel discussion on transportation issues, and a panel discussion on the outlook for the state's oil industry.

Day Two will feature an update on the ND Petroleum Council's effort to recruit workers from Ukraine, a discussion of electric reliability concerns, a panel discussion on education policy and funding issues, a report on development of the Southwest Area Career & Technical Education Academy and the Theodore Roosevelt Presidential Library, a report on interim legislative activity, and the latest developments in the Biden administration's War on Fossil Fuels.

The meeting concludes with election of the WDEA Executive Committee, and a vote by delegates on a bylaws amendment to repeal Executive Committee term limits. Board members up for election who are eligible to serve an additional three-year term include Mountrail County Commissioner Trudy Ruland, Bowbells City Councilman Shannon Holter, and Stanley Public School Superintendent Tim Holte. The delegates will also choose two members to fill Executive Committee vacancies created by the resignation of Stanley City Councilman Zach Gaaskjolen and Williams County Commissioner David Montgomery.

The winners of five $1,000 WDEA scholarships will also be announced at the meeting.

Click here to see the tentative agenda. Sponsorships and exhibit space are available. Click here for sponsor/exhibitor opportunities. Click here to register to attend.

Governor Doug Burgum this week announced the resignation of ND Department of Health and Human Services (HHS) Commissioner Chris Jones, thanking him for his six years of service to the citizens of North Dakota. 

Jones has served since March 2017 after Burgum appointed him as executive director of the Department of Human Services. Jones has served as HHS commissioner since September 2022, following the integration of the departments of Health and Human Services.

Jones resigned his role to pursue a position as vice president and senior fellow at The Cicero Institute, a nonpartisan public policy organization, where he will collaborate with legislative members across states to promote innovative health care reform policy.

"We are deeply grateful for Chris’ exceptional leadership and significant contributions to the health and well-being of North Dakota citizens,” Burgum said. “He and his team increased access to behavioral health care and addiction services, helped children ages zero to 5 realize their potential through quality early childhood experiences, supported the state’s workforce needs by leading an effort to improve access to quality, affordable child care, and reduced costs for long-term care and Medicaid."

Jones’ last day will be September 15. Burgum has appointed HHS Deputy Commissioner Sara Stolt to serve as interim commissioner beginning September 16.

KFYR Television broadcast a story this week highlighting the shortage of teachers in North Dakota, visiting the Alexander Public School District which is down three teachers heading into the new school year.

Alexander Superintendent Leslie Bieber, a WDEA board member, said the district needs teachers for kindergarten, first grade and middle school. To resolve the problem, Bieber said the district would start with just one kindergarten class with 23 students, a student teacher will assist with first grade, and the administration will cover classes for the middle school.

“Myself and my two principals are each teaching one class," she said. "The sixth graders have all administrators teaching at least one core class for them.”

Bieber added that a student teacher is starting as an aide for the first semester and would become a contracted teacher in January.

The district has experienced constant growth in enrollment since Bakken development began. The number of students in grades K-12 has jumped nearly five-fold, from just 65 students in the 2009-10 school year, to 306 in the 2022-23 school year. And the number continues to climb. Bieber said enrollment is up another 15 students this fall.

Click here to see the KFYR-TV story.

Williston State College is planning a September 18 ribbon cutting on the state-of-the-art Bright Beginnings Daycare, located within the Crighton Building on the WSC campus.

There will be a brief program, with remarks from the City of Williston, Williams County, the Williston Chamber, Valley City State University President Alan Lafave, as well as Bright Beginnings owner Janie Cox. The public is invited to attend.

The Bright Beginnings Daycare will provide childcare services, enabling parents to juggle their personal and professional life. The center is dedicated to giving kids a solid foundation for their future by delivering a nurturing environment that encourages early childhood development.

"We look forward to getting to know new families and to work with Williston State College and Valley City State University students passionate about Early Childhood Education," said Cox. "Mostly, we are excited to provide a safe, welcoming learning environment to allow us the ability to provide high quality care to the children of our community."

WSC students pursuing elementary education with an early childhood endorsement will have the chance to complete their practicum hours at the pre-school housed within the Crighton Childcare Center thanks to a partnership with Valley City State. This collaboration delivers both the education of aspiring teachers and the high-quality care and instruction given to the children enrolled at the daycare.

Click here to learn more about the partnership between WSC and VCSU. Click here for more information about Bright Beginnings Daycare.

The Western Dakota Energy Association will award five $1,000 scholarships this fall to students in an energy-related field at a North Dakota college, university or technical school.

WDEA President Trudy Ruland said the association is offering the scholarships to help the industry and western communities meet the workforce challenges historically experienced with oil industry growth.

“We recognize that North Dakota will see benefits from the oil industry only if it is able to attract the workforce it needs,” said Ruland. “We want to do everything we can to encourage young people to explore the many opportunities for a rewarding career in the energy sector.”

Funding for the scholarship program is generated by sponsorships of WDEA’s annual meeting.

Click here to learn more about the selection criteria and how to apply. Click here to view or download an application form.

The application deadline is September 30. Scholarship winners will be announced at WDEA's annual meeting October 11-12 in Dickinson.

As summer begins to wind down in western North Dakota, big thunderstorms become less of a threat and the region's ag producers begin working on harvesting crops. Cameras on Wise Roads weather stations captured a few photos of ag in action, and some pleasant scenery as well. Images from Wise Roads cameras are updated continuously throughout the daylight hours on the Wise Roads web page.

The Wise Roads project (Weather Information System to Effectively Reduce Oilfield Delays and Disruptions) was developed by WDEA to increase the efficiency of the movement of oilfield truck traffic. Most weather stations were placed in the core area of Bakken production, focusing on Dunn, McKenzie, Mountrail and Williams Counties. The project provides more accurate weather information to county road managers, especially about rain events, to minimize the need to impose weight restrictions when gravel roads get wet. It was developed in partnership with NDAWN, which maintains the stations for WDEA. The project was also assisted with a $250,000 grant from the Oil & Gas Research Council.

Thus far, 49 new stations have been installed, 39 of which are located in the four core counties. Prior to the start of the project, Dunn and McKenzie Counties had just one station each, Mountrail County had three and Williams County had four. Weather station data and high-resolution photos can be found at wiseroadsnd.com. Additional information is also available from NDAWN. 

Featured shots this week are clockwise from upper left, Liberty 5E with a distant thundershower, Belfield 4NE with small grain harvest underway, Amidon with hay bales in a field that may get another cutting, and Twin Buttes 4W with some colorful midday clouds. Click on the link for a high-resolution image.