Federal Grant Awards $36M for Bakken Enhanced Oil Recovery Push

A major federal grant is set to accelerate the search for economically viable enhanced oil recovery (EOR) in North Dakota's Bakken formation. U.S. Senator John Hoeven announced the official award of $36 million from the U.S. Department of Energy to the "Crack the Code 2.0" initiative on Friday, May 8, according to a report from the North Dakota Monitor.

The total project is valued at $157 million, with additional financial contributions coming from the state of North Dakota and several oil companies. The goal is to develop cost-effective technologies for EOR to extend the productive life of oil fields like the Bakken. “We have to have enhanced oil recovery,” Hoeven said. “It has national ramifications.”

The University of North Dakota's Energy and Environmental Research Center (EERC) will lead the effort, serving as the central hub for multiple large-scale pilot projects to be run by four different oil companies. “The key component of all of this is the EERC,” said North Dakota Petroleum Council President Ron Ness. “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 funding comes as the EERC recently faced staffing cuts. UND confirmed 27 positions were cut and 13 employees were furloughed due to funding delays, with an intention to bring furloughed workers back when funding is available. Hoeven stated the DOE grant, available immediately, along with the renewal of a $25 million cooperative agreement between the DOE and EERC, will help.

The push for EOR in the Bakken is critical because previous small-scale pilots, while technically successful, have not been cost-effective. “We’ve had smaller demonstration projects that have shown we can increase oil recovery, but not at economic levels,” said Lynn Helms, former state oil regulator and now leading EOR efforts for the Petroleum Council. “The costs are very, very high.”

The new, larger-scale pilot projects scheduled to begin within the next 12 months aim to change that equation. John Harju, a vice president with the EERC, said these upcoming pilots are on a much bigger scale than past attempts. The objective is to demonstrate a production increase significant enough “to make this an economic play,” Helms said.

For Bakken operators and the state, unlocking economical EOR represents a potential step-change. It could significantly boost the ultimate recovery of oil from the massive shale formation, securing long-term production and state revenues. The collaborative, industry-backed research model centered at the EERC is designed to rapidly develop and share technologies that could benefit the entire basin.