The Bakken Trend: Lost Dutchmen Mine of the Oil Patch? - Seeking Alpha

Then the stuff of legends came, along with one geochemist by the name of L. C. Price. Mr. Price, working for the US Geological Survey [USGS] performed extensive chemical analysis of abandoned oil wells, primarily in North Dakota and came away with an astonishing conclusion—The Bakken trend contains up to 200 billion to 500 billion, yes that is with a “B”, of original oil in place.

Here is where the story starts to take on the likeness of the Lost Dutchman Mine of the Superstition Mountains.

Price turned in his report to the USGS in 1999 and the USGS started its own review of Price’s work. Price died in 2002 with the USGS still holding onto his report and refusing to release the findings of Price and the USGS Review.

Like the German immigrant miner, Jacob Walz, who claimed he had found the legendary gold of the Supersticion Mountains, Price died without vindication of his fantastic claim, like the Lost Dutchmen mine itself, the Bakken oil remained elusive and to some illusory, the stuff that makes a good story around bars filled with oil men.

To add to the legend, the USGS, 9 years later, still has refused to release Price’s report and their review of Price’s work citing, “Price’s unorthodox approach”. Even Federal Senator Byron Dorgan of North Dakota couldn’t pry the USGS loose with a demand for release of the two reports.

But then comes along oil geologist Richard Findley. Now the seeds of legend grow stronger. Findley, a highly competent geologist with a strong penchant for independent work, suffered for years scrimping by financially unable to interest anyone with money to invest in his ideas. Financial matters were so bad for Findley that Findley came close to leaving the oil business entirely.

True to the stuff of legends, he didn’t.

Findley reviewed old drilling logs and old seismic data from abandoned wells and fields in the Bakken. Findley, in a moment of true inspirational genius came to the conclusion that all other attempts at the Bakken had missed the oil source entirely and had drilled right through it bypassing the oil that lies between two shale layers. Findley got Lycos Energy of Houston interested in the theory and Lycos brought in Halliburton to try at that time new techniques of horizontal drilling and fracturing.

What Findley, Lycos and Halliburton discovered is the Elm Coulee Field in eastern Montana. Elm Coulee now pumps 45,000 to 50,000 barrels a day of light sweet crude, real Texas T, at a 40 to 42 degree API.

Further research reveals that other analysis by geochemists and geologists not associated with the USGS confirm that Price was in essence correct. The estimates range from a low of 10 billion barrels to confirmation of Price’s 200 to 500 billion barrel estimate. After Findley and company’s 1997 discovery of the Elm Coulee one would think the rush would be on, but It wasn’t and didn’t in the U.S. But Canada was a little different story.

I love oil-patch stories. Especially big fucking plays. I hope the NoDaks pump enough to rename it something besides Texas Tea.

Apparently, Thursday is the day the USGS releases their estimates of sweet light crude. Not tar sands, babies, sweet light crude. The stuff the Arabs found themselves sitting on after Texas oil men pointed it out to them.

The motivation to pull out another 100 billion barrels would be $9 trillion at todays prices.

Of course, being TFG readers, you know that the supply-side of the equation is going to make that $9,000,000,000,000 shrink a tad. Still, a trilliion here, a trillion there, and pretty soon you’re talking about some real money.

Now, let’s see just how many poor-mouthing sons-a-bitches pick this up and run with it. Thursday’s the day to watch. Me, I’m going to be driving to Laredo and working all day, but you best bet I’ll be checking that evening.

And Charles can go write his name in the snow on Al Gore’s grave, in May. In a V-10 Expedition. In a convoy of V-10 Expeditions. It must harelip the hell out of those assholes that we just keep finding oil.

NOTICERIA: If my long-lost pal, the Texas Jew, an oil-man of much renown, would chime in here, I’d appreciate it. Me, I just want to go sell Budweiser and burgers to the rough necks, but I’d love to hear what an expert thinks.