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Page 26 North Dakota Crude Oil Prices


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Spring 2011 • BAKKEN BREAKOUT


Tesoro plans $35 million expansion of ND refinery Associated Press— Tesoro Corp. announced March 21 that it plans to increase capacity at its North Dakota refinery by 10,000 barrels a day, partly because of record production in the rich Bakken shale and Three Forks formations in the western part of the state.


Jan Feb Ma Apr r Ma Jun y Source: U.S. Energy Information Administration North Dakota Wells Producing 7 Jul Aug Sept Oct Nov Dec


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The cost of expanding the Mandan factory to be able to handle 68,000 barrels a day is pegged at $35 million, with the project slated to be complete by April 2012, the San Antonio-based company said. “From our perspective, this is a no-brainer ... an opportunity to fully utilize our assets,” said Tesoro spokesman Mike Marcy. “We believe we will continue to see growth in Bakken production and we see our refinery in a uniquely advantaged location.”


The facility, built in 1954, is the only refinery in North Dakota. It is supplied with crude via pipelines from the Williston Basin in Montana and North Dakota.


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Tesoro said it refined an average of 52,000 barrels a day over the last three years at the Mandan refinery, converting Williston Basin crude into gasoline, diesel, jet fuel, propane, butane and residual fuel.


4 3 Jan Feb Ma Apr r Ma Jun y Source: Industrial Commission of North Dakota, Oil & Gas Division U.S. Natural Gas Wellhead Prices


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About 80 percent of the diesel and 35 percent of the gasoline produced at the refinery stays in North Dakota, the company said.


Bakken Air to begin scheduled air service


between Bismarck and Williston BISMARCK — Executive Air Taxi Corporation has announced the beginning of Bakken Air, a new air transportation solution with service between Bismarck and Williston. Service will begin on April 1, 2011, with regularly scheduled round-trip flights on Mondays and Fridays. “Bakken Air is excited to provide an important new service to companies and individuals doing business between Bismarck and the city of Williston in support of the Bakken Oil Field area,” said Chris Susie, project manager for Bakken Air. “We feel our shuttle service to Williston will help provide time savings and better access for travelers and business people to the area.”


Following is the Bismarck/Williston flight schedule effective April 1, 2011.


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Bismarck to Williston: Every Monday — Departs Bismarck 8 a.m. Arrives Williston 9 a.m. Every Friday — Departs Bismarck 8 a.m. Arrives Williston 9 a.m.


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Including the planned expansion, Tesoro will have invested more than $135 million in environmental and production upgrades since then, Marcy said. Tesoro said the bulk of Mandan refinery’s products are shipped through pipelines to eastern North Dakota and Minnesota and sold to customers in the Dakotas, Minnesota and Wisconsin. Gasoline makes up about 60 percent of the refinery’s production on average.


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Number of Wells Producing in Thousands


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