Part 1 – General Information on the Field

The Bakken Formation is one of the most significant oil-producing regions in North America, located primarily in North Dakota, Montana, and extending into parts of Canada (Saskatchewan and Manitoba). It is a vast underground rock formation rich in shale oil and has played a major role in the U.S. energy market expansion. In this report, the size, importance, recent development, process stages and the related companies are discussed. The companies mentioned in this report are those that appeared on the search and there could be other companies involved in the development of this field and missed in this report.

Figure 1: Williston Basin overview showing the size of the layer; Bakken shale update 2024 (rextag.com)

Size and Production

• Area: The Bakken Formation spans about 200,000 square miles (520,000 km²).
• Reserves: The U.S. Geological Survey (USGS) estimates 4.3 to 11.4 billion barrels of recoverable oil using current technology.
• Production: At its peak, Bakken contributed over 1 million barrels per day (bpd), making North Dakota the second-largest oil-producing state in the U.S. after Texas.
• Depth & Thickness: Oil-bearing rock layers are about 10,000 feet (3,000 meters) deep and 35 to 50 feet thick.

Figure 2: Continental’s wells, showing the oil production activity in this region (rextag.com)

Top players

These are the big companies with the right to produce oil and gas within this region.

• Continental Resources
• Exxon Mobil and ConocoPhillips
• Hess (Chevron acquiring it)
• Energy Transfer
• Enbridge
• ONEOK

Importance

1. Major Contributor to US Energy Independence: The Bakken helped the U.S. reduce reliance on foreign oil imports and contributed significantly to the shale oil revolution.
2. Economic Impact: The boom in Bakken oil led to a population and job surge in North Dakota, creating a robust local economy with high wages and rapid infrastructure growth.
3. Technological Advancements: The field demonstrated the effectiveness of hydraulic fracturing (fracking) and horizontal drilling, which later expanded to other U.S. shale plays.
4. Geopolitical Influence: Increased U.S. oil production from fields like Bakken has impacted global oil markets, reducing OPEC’s control over oil prices.
5. Environmental Concerns: Fracking and oil transport (pipelines and rail) have raised environmental and safety concerns, including groundwater contamination, flaring, and methane emissions.

Previous forecast on increasing production:

2025 Update

There is an article (link published in 2025) discussing the discovery of a new reservoir segment in the Bakken shale that will increase the production. In another article (link) it is shown that the production increased in 2024 and the field still has the potential to be a key player in the market. The reason for this increment was some IOR and EOR techniques that improved the production. Now it produces around 10% of total oil in the US (others are 55% permian Texas and New Mexico, 5% Alaska, 5% Colorado, 5$ Oklahoma, …).

In January 2024, North Dakota’s Oil & Gas Division reported a total oil production of over 34 million barrels, with an average daily output reaching about 1.1 million barrels across 18,674 producing oil wells. The month also saw significant drilling activity, including the start of 76 new wells, the extension of 76 others, and the completion of 108 workovers, all supported by 38 operational drilling rigs.

In February 2024, Chord Energy announced it would acquire Enerplus Corp. for nearly $4 billion in a combination of stock and cash, aiming to become the largest producer in the Williston Basin. The merger will result in an $11 billion operation in the basin, marking the end of Enerplus’s nearly two-decade-long presence in the Bakken, which started with its early investments in Montana’s horizontal shale formations.

The merged entity will operate as a leading company in the Williston Basin, controlling 1.3 million net acres with a combined production capacity of 287,000 barrels of oil equivalent per day (boe/d). Of this total production, about 100,000 barrels are from what used to be Enerplus’ production and it is added to the daily output for the acquirer. Crude oil will constitute 56% of the new company’s total production output.

Part 2 – Stages

This part of the report is arranged to discuss different stages of the crude oil’s journey from extraction, transportation, testing, refining, to lubricant production and the companies involved. ​

1. Extraction: The companies (listed alphabetically) operated in the Bakken and some of them are still active in that field: Apache Corporation, Arsenal Energy Inc., ConocoPhillips, Continental Resources, Earthstone Energy, Enerplus, EOG, Resources, ExxonMobil, Forestar Group, Halcon Resources, Hess, Kodiak Oil & Gas Corp, Linn Energy, Marathon Oil, MDU Resources Group, Inc., Newfield, Norstra Energy, Northern Oil & Gas Inc., Oasis, Occidental Petroleum (Oxy), Penn Virginia Corporation, Petro-Hunt, Petro-quest, Prima Exploration, Questar, Resolute Energy, Samson Resources, Slawson Exploration, SM Energy (St. Mary Land & Exploration), Statoil (Brigham), Triangle Petroleum, US Energy, Whiting Petroleum, WPX Energy, XTO, Yuma.
2. Transportation: Once extracted, the crude oil requires transportation to refineries. This is achieved through pipelines and rail systems.
   • Dakota Access Pipeline (DAPL): A 1,172-mile underground pipeline transporting crude oil from North Dakota to Illinois. It is operated by Dakota Access, LLC, a subsidiary of Energy Transfer Partners, with minority interests from Phillips 66, Enbridge, and Marathon Petroleum. You can find more information about DAPL in this link.
   • Double H Pipeline: A 462-mile pipeline carrying crude oil from North Dakota to Wyoming, owned by Kinder Morgan Inc. For more info on this pipeline refer to this link.
   • Rail Transport: Companies like Canadian Pacific Railway facilitate the movement of Bakken crude oil to various markets, especially when pipeline capacity is limited.
3. Testing and Inspection: Ensuring the quality and safety of the crude oil during transportation and before refining is crucial. This is a lab so we can check with them on the unit requirements:​
   • Intertek: Provides testing, inspection, sampling, and certification services in the Bakken region, supporting shale oil, natural gas, refining, and transportation operations. This is the link to their website discussing their activities related to the North Dakota region.
4. Refining: The transported crude oil is processed into various petroleum products at refineries. ​
   • Marathon Petroleum: Engages in refining operations and holds a minority interest in the Dakota Access Pipeline, linking it to Bakken crude supplies.
   • PBF Energy: Owns and operates multiple refineries across the U.S., including facilities in Delaware, New Jersey, Ohio, Louisiana, California, and Illinois, where Bakken crude is processed into fuels and lubricants.
5. Lubricant Manufacturing: Post-refining, specific companies specialize in producing lubricants. ​
   • Calumet Specialty Products Partners, L.P.: Manufactures lubricating oils, solvents, waxes, and other specialty products. They operate facilities in various locations, including Illinois and Louisiana.