DOE Awards $36M for Major Bakken Enhanced Oil Recovery Initiative

The U.S. Department of Energy has officially awarded a $36 million grant to a major initiative aimed at unlocking enhanced oil recovery (EOR) in the Bakken formation, a move backers say is critical for extending the life of North Dakota's premier oil fields. Senator John Hoeven announced the award on Friday, May 8, according to a report from the North Dakota Monitor.

The funding is for the "Crack the Code 2.0" initiative, a $157 million project that also includes financial contributions from the state of North Dakota and several oil companies. The goal is to develop cost-effective EOR technologies specifically for shale formations like the Bakken, where oil is extracted through hydraulic fracturing.

"The key component of all of this is the EERC," said North Dakota Petroleum Council President Ron Ness, referring to the Energy and Environmental Research Center at the University of North Dakota, which will lead the effort. "Every company and every engineer has got a better idea than their competitor. We’ve got to bring the best of all those ideas together. That’s what the EERC does."

The project will involve multiple large-scale pilot projects in North Dakota run by four different oil companies, with the EERC acting as the central coordinating hub. The federal funds are available immediately, and Hoeven noted the award coincides with the renewal of a separate $25 million cooperative agreement between the DOE and the EERC.

This injection of capital comes at a critical time for the research center. UND confirmed EERC staffing cuts on Thursday, May 7, furloughing 13 employees and cutting 27 positions due to federal funding delays. The university stated it intends to bring furloughed workers back when funding is available.

The push for viable EOR is driven by the need to significantly boost ultimate recovery rates from the Bakken's tight rock. Lynn Helms, North Dakota's former top oil regulator now leading EOR efforts for the Petroleum Council, explained that smaller pilot projects have shown technical success but not economic feasibility.

"That’s what these major, large demonstration projects are all about," Helms said. "We’ve had smaller demonstration projects that have shown we can increase oil recovery, but not at economic levels... The costs are very, very high."

John Harju, a vice president with the EERC and a leader of the effort, said the new pilot projects scheduled to begin over the next 12 months are on a much larger scale than previous attempts. The work is expected to "kick into high gear later this year," according to the report.

For Bakken operators and royalty owners, the success of these large-scale pilots is paramount. Economically viable EOR would allow for a substantial increase in the total recoverable oil from existing wells, potentially adding billions of barrels to the basin's lifespan and production profile.