Tribal chairman says oil production rivals states

NEW TOWN, N.D. (AP) — Leaders of North Dakota’s Mandan, Hidatsa and Arikara nations say the tribes’ oil production levels are higher than most U.S. states.

Tex Hall, chairman of the Three Affiliated Tribes, said the more than 1,000 wells in the Fort Berthold Indian Reservation produce more than 180,000 barrels of oil a day. Compared directly with state production, that puts them among the top 10 oil producers in the nation.

“It’s a modern day gold rush. It’s a modern day Deadwood, South Dakota,” he said in a video statement that was broadcast at the tribe’s third annual oil and gas expo at the 4 Bears Casino in New Town.

The tribe’s production levels represent about one-fifth of the total oil output in North Dakota, which is ranked second in oil production, trailing only Texas. North Dakota is poised to hit production levels of one million barrels of oil per day by June.

In January, wells on the Fort Berthold Indian Reservation produced more than 162,000 barrels of oil per day, according to the latest production figures available on the tribes’ website. That figure was higher than production in Kansas, which is the 10th biggest oil-producing state.

U.S. Sen. Heidi Heitkamp, D-N.D., applauded the tribes’ oil development.

“Energy development is a critical tool for tribal economic development. It gives tribes the means to improve the safety of their communities, create affordable housing options and tackle education and health disparities,” she said in a statement.

Hall noted that the future of the tribes lies not only in oil production, but also in energy generation, to which he referenced capturing natural gas. North Dakota drillers currently burn off, or flare, more than 30 percent of the valuable gas — compared to the national average of less than 1 percent — because the development of gas pipelines and processing facilities hasn’t kept pace with oil drilling.

The tribes are also building a $450 million oil refinery that will be capable of processing 20,000 barrels of oil per day.

“All of this power that is here needs to be channeled together and developed to create our own power system,” Hall said in his speech.

Today’s situation stands in stark contrast to the tribe’s recent past, tribal councilman Mervin Packineau said. He said that less than a decade ago, the tribe was struggling financially and forced to take out loans from other tribes. It was not immediately known how much revenue the Three Affiliated Tribes bring in from oil production.

Related Content