North Dakota Bakken Oil Facts

What Does Every New Bakken Oil Well Mean to North Dakota? 

A typical 2011 Bakken well will cost $7,925,000 to drill and complete, and will produce oil for 29 years (27 years longer than the average stimulus-funded "green" company, as Che comments).  

In those 29 years the average 2011 Bakken well will: 

 

1. Produce approximately 540,000 barrels of oil 

2. Pay approximately $4,585,000 in taxes 

a) $2,200,000 gross production taxes at 5%

b) $2,000,000 extraction tax at 6.5%

c) $385,000 sales tax 

3. Pay royalties of $7,500,000 to mineral owners 

4. Pay salaries and wages of $2,100,000 

5. Pay operating expenses of $2,300,000 

6. Generate over $20 million in net profit

Source: North Dakota Department of Mineral Resources 

MP: There are currently almost 7,000 wells producing oil in North Dakota.