Extra Road Investments Needed to Support Oil Gas Production and Distribution in North Dakota - PowerPoint PPT Presentation

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Extra Road Investments Needed to Support Oil Gas Production and Distribution in North Dakota PowerPoint Presentation
Extra Road Investments Needed to Support Oil Gas Production and Distribution in North Dakota

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Extra Road Investments Needed to Support Oil Gas Production and Distribution in North Dakota

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  1. Additional Road Investments Needed to Support Oil & Gas Production and Distribution in North Dakota Upper Great Plains Transportation Institute North Dakota State University

  2. Presentation Topics • Overview of study and results • Details of analysis • Details of unpaved road analysis • Types of improvements and analysis methods • Details of paved road analysis • Types of improvements, costs, and effects • Conclusions and discussion

  3. Study Overview • Purpose: • Forecast road investment needs in oil and gas producing counties of North Dakota over the next 20 years • Objective: • Quantify the additional investments necessary for efficient year-round transportation for the oil industry while providing travelers with acceptable roadway service

  4. Study Overview • Scope: The focus is on roads owned or maintained by local governments – e.g. counties and townships. • Study Area: 17 oil and gas producing counties • Counties include: Billings, Bottineau, Bowman, Burke, Divide, Dunn, Golden Valley, McHenry, McKenzie, Mclean, Mercer, Mountrail, Renville, Slope, Stark, Ward, and Williams

  5. Primary Data Sources • Analysis based on: oil production forecasts, traffic data, county road surveys • Types of roads analyzed: paved, graveled, and graded & drained • 2010 survey→ information on impacted routes and conditions • 2008 survey→ information on typical road characteristics

  6. Production Forecasting • Oil &Gas Division of North Dakota Industrial Commission • Existing and near-term drilling locations • Based upon current rig activity and permit applications through end of 2010 • Future locations of rigs estimated from lease data from North Dakota Land Department

  7. Drilling Phases • Initial phase: lease expirations 2010-2015 • Assume drilling begins in final year of lease • Fill-in phase: 3-5 additional wells placed • Private leases will occur in same areas as public leases • 21,250 wells drilled in next 10-20 years • Assume 1,500/year→14 years to drill 21,250 wells

  8. Traffic Prediction Model • Forecasted output of wells is routed over road network using detailed GIS model • Oil movements converted to equivalent truck trips following least-cost routes • Projected inputs (e.g., sand and water) and outbound movements (salt water) similarly routed • Movements of specialized equipment (such as workover rigs) included

  9. Road Investment Analysis • Predicted inbound and outbound movements accumulated for each impacted segment • Oil-related trips combined with baseline (non-oil) traffic to estimate total traffic load on each road • Economic/engineering methods used to estimate additional investment needs

  10. Field Data: Traffic Counts • Counters deployed at 100 locations • Raw data adjusted • To represent traffic for 24-hour period • Monthly variation • ADT=145; Trucks=61 (26 multi-units) • Paved roads ≈ 100 trucks/day • Data used to calibrate trip model and estimate baseline traffic loads

  11. Estimated Investment Needs2012-2013 -- 2030-2031 (Millions)

  12. Investment Needs by Biennium (Millions)

  13. Details of Analysis • Data Collection • Network Flow Modeling • Unpaved Analysis • Paved Analysis

  14. Data Collection • Roadway Data • Traffic Classification • Traffic Counts • Condition Data • Cost and Practices Data • Oil Development Data • Number and Locations of Wells • Inputs to Production • Origins and Destinations • Production Output • Origins and Destinations

  15. Roadway Data • Traffic Classification • Maps sent to county point person with instructions to classify roadways by traffic levels • Used to identify potential sample traffic count sites • Traffic Counts • Selected using the classification data provided by the county point people • Used to calibrate the GIS network routing model and to verify vehicle classification • Photos were taken of many of the road segments where counters were placed, and used to verify surface type and condition data

  16. Cost and Practices Data • Survey of County Contacts • Component costs - Unpaved • Gravel • Blading • Location • Delivery • Placement • Dust suppressant • Paving costs

  17. Cost and Practices Data • Survey of County Contacts • Maintenance Practices • Gravel Overlay Interval • Gravel Overlay Thickness • Blading Interval • Dust Suppressant Usage

  18. Cost and Practices Data • County Level Cost Calculations • Due to the variations in reported costs and practices, unpaved costs were calculated at the county level • Reflects actual practices and actual costs at the time of the analysis

  19. Roadway Data • Condition Data • Maps were sent to the county point person with instructions to classify roadways by surface condition • Specific classification instructions were given, per the South Dakota Pavement Condition Survey Guide • 692 miles listed as either poor or very poor condition

  20. Oil Development Data • Numbers and Locations of Wells • Initial rig and well locations obtained from NDIC Oil & Gas Division website • Forecasted locations estimated from ND Land Department GIS shapefiles of public land leases • Leases for public lands only • Private land development assumed to be in the same geographic region as the public leases • Buffer public lands to estimate development areas on private land

  21. Oil Development Data • Forecasted locations estimated from ND Land Department GIS shapefiles of public land leases • ND Land Department data has lease expiration dates • Assumption that drilling will occur in the final year of the lease, and is a single well • Oil & Gas estimates 1,450-2,940 wells/year – 2,140 expected, 21,250 in 10 to 20 years • Lease expirations available through 2015 • Post 2015 – filling in phase of drilling • 4-6 additional wells on the site

  22. Oil Development Data • Inputs • Data collected from Oil & Gas, NDDOT, and industry representatives • The goal was to quantify the number and type of truck trips that the well drilling process generates • The major trip generators were water, equipment and sand

  23. Bakken Well Inputs

  24. Oil Development Data • Outputs • Production (Oil & Gas) • County average IP rates • Production curve and pipeline access • Saltwater production • Oil collection/transload sites (Oil & Gas) • Current list of operating oil collection points • Saltwater Disposal Sites (Oil & Gas) • Current list of operating SWD sites

  25. Network Flow Modeling • Origins and Destinations • OD Pairs • Sand – Rig • Freshwater –Rig • Rig – Rig (Equipment) • Supplies (chemical, pipe, cement, fuel, etc.) – Rig • Rig - SWD • Rig – Collection Point • Assignment of Pairs • Closest destination chosen • Routing is based on the least cost path between origin and destination

  26. Network Flow Modeling • Scenarios • Baseline – Summer 2010 • June Oil Sales • Existing Well and Rig Locations • Network Development and Refinement

  27. Network Flow Modeling • Forecast Flows • 2011, 2012, 2013, 2014, 2015, 2016-2020, 2021-2025, 2026-2030 • Associated Volumes • Inputs (Water, Sand, Equipment, etc.) • Output (Oil and SWD) • Model Forecasted Traffic Movements • Generate Volume Estimates for Individual Roadway Segments

  28. Unpaved Road Analysis • Estimation of the additional maintenance and improvement activities due to oil development • Impacted Miles: 11,834 gravel, 884 graded & drained

  29. Unpaved Roads

  30. Unpaved Roads • Impacted means that at least one oil related truck was routed over the section in the network flow model • Impacts and needs vary by traffic levels • Impact Classification • Low: 0-25 (10,930 miles) • Elevated: 25-50 (1,094 miles) • Moderate: 50-100 (409 miles) • High: 100+ (284 miles)

  31. Unpaved Roads • Improvement Types • Graded and Drained • Low: No additional improvements • Elevated: Maintenance increase • Moderate: Upgrade to gravel roadway (reconstruct) • High: Upgrade to gravel roadway (reconstruct) • Roadway Width • Initial condition of graded and drained roads are often deficient with respect to roadway width • Reconstruction includes regradingthe road, and addition of width to a minimum of 24 feet with gravel overlay

  32. Unpaved Roads • Improvement Types • Gravel • Low: Decrease blading interval • Elevated: Decrease gravel interval by 33% (3-4 years) • Moderate: Decrease gravel interval by 50% (2-3 years) • High: Upgrade to double chip seal surface • Additional Enhancements/Improvements • Dust Suppressant • Reconstruction to eliminate deficiencies – roadway width and structural deficiencies

  33. Unpaved Roads • Chip Seal Improvement • Single Chip Seal • Constructed from a single application of binder followed by a single application of uniformly graded aggregate • Selected for normal situations where no special considerations would indicate that a special type of chip seal is warranted Source: TRB: Chip Seal Best Practices

  34. Unpaved Roads • Chip Seal Improvement • Double Chip Seal • Constructed from two consecutive applications of both the bituminous binder followed by a single application of uniformly graded aggregate • Double chip seals have less noise from traffic, provide additional waterproofing, and a more robust seal in comparison with a single chip seal • Used in high stress situations, such as areas that have a high percentage of truck traffic or steep grades Source: TRB: Chip Seal Best Practices

  35. Key Factors: Paved Road Analysis • Thickness of aggregate base and asphalt surface layers • Condition (extent of deterioration) • Graded width • Soil support (spring load restrictions) • Truck weights and axle configurations • Volume of oil-related traffic and other trucks

  36. Paved Road Thickness (Inches) Medium-design: 4" AC, 8" Aggregate Base, 8" Subbase

  37. Paved Road Conditions • 68 miles in poor or very poor condition • Experiencing heavy oil-related traffic • Cannot be cost-effectively resurfaced • Must be reconstructed • 334 miles in fair condition • Expected to deteriorate rapidly under heavy truck traffic • Reduced service lives

  38. Spring Load Restrictions • Relative damage from load may increase by 400% • > 80% of miles are subject to 6- or 7-ton load restrictions or 65,000-lb gross weight • Reduced payloads for trucks • Ideally, the most heavily traveled oil routes should be free from seasonal restrictions • Reconstruction only guaranteed solution

  39. Graded Roadway Width • Determines if thick overlays are feasible without narrowing lanes and shoulders • ≈ 50% of county roads ≤ 28 ft wide • Narrower roads affect roadway capacity (e.g., vehicles per hour) as well as safety • Predicted crash rate for a two-lane road with 11-ft lanes and 2-ft shoulders is 1.38 x crash rate with 12-ft lanes and 6-ft shoulders

  40. Reduced Road Service Lives • Using AASHTO design equations, the service life of each impacted road is projected with and without oil traffic • The average reduction in life is five years • Williams, McKenzie, and Mountrail Counties have the most predicted miles with reduced service lives

  41. Type of Road Improvements • Reconstruction: $1.25 million per mile • Eliminate spring restrictions • Standard lanes with shoulders • Improved base-surface thickness ratio • Structural overlay: $300,000 per mile • Base-case: thin overlay • Renewal costs: $8.90 per front-haul truck mile

  42. Annual Road Maintenance • Maintenance includes two optimally-timed seal coats, crack sealing, patching, striping, etc. • Increases by 50% when traffic increases from low to medium levels • Increases by 35% when traffic increases from medium to high levels • Excludes administrative overhead

  43. Additional Paved Road Funding Needs (Million $2010)

  44. Estimated Investment Needs2012-2013 -- 2030-2031 (Millions)

  45. Conclusion and Discussion • Estimates for oil-impacted roads only • Needs in addition to other road needs • Investments will provide improved service for all road users; benefits include: • Year-round legal loads on key paved roads • Wider safer roads with more capacity • Reduced transportation cost • Lower life-cycle costs (incl. road user cost)