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POLICY revenue records, that money can’t be used selectively pursuing hub-class exploration
until next biennium. As Your News Leader opportunities. If we can grow it, we want to.”
North Dakota budgeters reported Tuesday, the state’s budget is set in been “selectively rebuilding” its portfolio in
In recent years, Hill said the company has
two-year cycles. That means, it won’t - and
expect to see record oil tax can’t - be accessed until the next Legislative the US Gulf, and since that time has acquired
session.
60 new lease blocks in the region for a current
revenue KFYR total of 80 Hess-leased blocks.
Those opportunities are balanced between
Drivers hate high gas prices. But with high gas high return tiebacks – prospects near
prices come high oil prices, and that could be COMPANIES existing production hubs that are relatively
seen as a good thing for North Dakota. cheap to drill and can be tied in fairly quickly,
The price for a barrel of oil has been above Hess encouraged by Huron but also may have a lower reserves – and
$90 since about Valentine’s Day. Back when hub-class new exploration prospects that often
the state legislature built the budget in 2021, well contain large reserves but could take five or
lawmakers expected that number to hold more years to drill, appraise, build and bring
steady at around $50 per barrel. Hess Corp. is reportedly “encouraged” by online.
Because of oil’s high price tag, the money drilling operations at its operated Huron well Hess is planning an appraisal sidetrack on
the state receives from oil tax revenue has in the US deepwater Gulf of Mexico, a top Huron, and the company is enthused over
skyrocketed, and Office of Management and company executive said July 27. the results they have seen there, Hill said. But
Budget Director Joe Morrissette expects the The well, drilled in Green Canyon block he added that even more encouraging is the
Legislature will have a lot more money than 69 to a depth of nearly 29,000 ft, showed fact that the well has opened up additional
predicted once the 2023 session rolls around - “very encouraging results…particularly for opportunities in the surrounding areas nearby.
billions of dollars more. the Northern Green Canyon basin, where we “As a result of what we’re seeing at Huron,
“Essentially, in round numbers, we’ve have a very competitive leasehold,” said Greg we see additional prospectivity in that
been double the actual price of what was Hill, the company’s COO and president of Northern Green Canyon area, and we have
in the budget. So, where we expected to exploration and production. Hill, quoted in a very competitive leasehold position there,”
have oil revenues of around $3.5 billion for an S&P Global report, offered his views in a Hill was quoted to say in the S&P Global
the biennium, we’ll likely have a record of second-quarter earnings conference call. report.
closer to $7 billion for the biennium,” said Huron had targeted a new Miocene subsalt Hill declined to provide pre-drill reserve
Morrissette. fairway in the Northern Green Canyon area, estimates, saying the company does not
Not all of the money from oil tax revenue and Hess discovered “high-quality oil in good release that information. However, he noted
is the state’s to play with. Some of the money quality Miocene sands,” Hill said. that the well is still under evaluation, and
gets allocated to cities, counties, school Hill added, “Our objective in the Gulf is to that more information will be released as the
districts, and the Three Affiliated Tribes. add a minimum sustained production cash company appraises the asset.
Even though the state is on pace to set oil flow through tieback opportunities and also OFFSHORE

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