April 29 - The U.S. Geological Survey is considering if it will reassess the size of North Dakota's oil resources.
Researchers with the survey met with oil industry representatives and state government officials Thursday morning to gather information to help decide if it will initiate a multi-year process of estimating the oil resources underlying the state.
Sen. John Hoeven, R-N.D., has asked the survey to consider the project. He opened the morning meeting at Bismarck and was joined by Gov. Jack Dalrymple and Rep. Rick Berg, R-N.D.
The Geological Survey estimated the state's oil resources to be 3.65 billion barrels of recoverable oil in 2008. Many in the oil industry have said that the amount is greater.
"I know all of you think it's substantially higher than that, and I agree with you," Hoeven said, addressing representatives of the oil industry.
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Survey officials said that it is unusual for them to do another assessment after only three years and 13 years was more typical. Hoeven said the technological advances in oil exploration have increased what could be considered recoverable oil from North Dakota.
Chris Schenk, project chief for oil and gas assessment for the Geological Survey, said a new assessment would not guarantee an increase in the amount of resources. He said that while the geology of the Williston Basin is well-known, a reassessment can still produce new data. He said that the process of gathering and analyzing geological data could take two to three years.
Survey officials will base their decision in part on information that got from industry representatives Thursday.
"The information sharing has been really productive and the USGS will decide how to proceed over the next several week," said spokesman David Ozman.
Hoeven said that if the recoverable oil in the state is found to be larger than now thought, it would send a signal to private investors that the oil activity would continue for decades and justify long-term investments in oil-and-gas-producing counties in businesses outside of oil exploration.
While the Legislature has spent heavily on roads and public infrastructure in the oil patch during this session, communities there are still behind in meeting housing needs and the commercial activities that serve new residents arriving for oil work.
"Just as we need public sector investment, we need private sector investment," Hoeven said.
Oil companies working in North Dakota have made higher estimates of the state's oil resources. Berg said that more data on recoverable oil would encourage private companies to plan long-term investments here.
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"It gives them the confidence that, again, this is not just hype. It's reality," Berg said.
Hoeven said that even if the survey does not raise the estimate for oil resources, oil operators will still be in the state for a long time.
"If they say we are where we are, that's still a lot of oil," he said.
