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Continental Resources Inc. Invests a Quarter of a Billion Dollars in a Sequestration Project in North Dakota

In the next two years, Continental Resources plans to invest $250 million to develop one of the world's most ambitious carbon capture and sequestration projects.

In the Williston Basin, Continental's production region for more than 50 years, the ideal conditions are in place for long-term carbon storage, according to Harold Hamm, founder, and chairman of Continental.

This basin has sandstone in it, and it is more than a mile deep, so it has good caprock above it that will help to keep the carbon in place.

Summit Carbon Solutions, the group leading this project, intends to capture CO2 from ethanol plants and other sources in Iowa, Nebraska, Minnesota, North Dakota, and South Dakota. Upon aggregation, CO2 will be transported via pipeline to North Dakota, where it will be stored in subsurface geologic formations. The formations will be in the Williston Basin, where Continental Resources has been a dominant producer for more than half a century.

CEO Billy Berry calls Summit's carbon capture program a "paragon of excellence for carbon capture." The project intends to capture more than 8 million tons of CO2 each year from 31 ethanol facilities and can handle up to 20 MMTPA of CO2.

Since corn-to-ethanol conversion typically emits high amounts of CO2, it needs to be contained: ethanol plants with high concentrations and low-cost capture fit that narrative.

Besides the initial 31 ethanol plants, the project will secure CO2 reduction commitments from other high emitters in the Upper Midwest, such as fertilizer facilities and coke plants. With the objective of cutting ethanol's carbon score in half. In the future, plants can attain net-zero carbon by taking advantage of the improvements occurring in agriculture, which lead to increased yields, fewer nitrogen yields, and producing more with less and with greater sustainability in the long run.

Continental's investment in a CO2 sequestration project aligns with its long-term vision as well as shareholder and investor desires. Since liquid fuels include greenhouse gases as byproducts, every company involved in the sector prioritizes reducing carbon intensity. As it stands, Continental has reduced its greenhouse gas emissions by 40 percent since 2016, so this is just a continuation of the company's effort to do the proper thing with the government's support.

A project like Summit's can be made possible thanks to North Dakota being granted priority over carbon injection wells or Class 6 wells. Thus, it gained one of the best regulatory environments for oil and gas in the country, with some of the cleanest air and water to boot.

Currently, the project is undergoing the approval process for about 2,000 miles of pipeline, as well as doing all the engineering work within the plants and with the compression equipment. Around 150,000 acres of land potentially affected by pipelines and injection wells have already been signed up, representing about 90% of the affected properties.

And by spring 2024, the Summit sequestration should be underway.

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Merger of Equals: Whiting and Oasis $6B Deal

The two Bakken shale producers announced in a joint statement on March 7 that they had reached an agreement to unite in a $6 billion "merger of equals." Combining these two companies will create a leading Williston Basin position with assets covering approximately 972,000 net acres, production of 167,800 boe/d, and an enhanced free cash flow generation that will generate capital returns to shareholders. A historic collapse in oil prices prompted both Whiting and Oasis oil companies to file for Chapter 11 bankruptcy protection in 2020. Thus, the merger can be viewed as a preventive measure to avoid going out of business.

Devon Energy Corp. believes that the Anadarko Basin is a hidden treasure and aims to use its position in it to fuel a robust cash return model and establish itself as an industry leader in promoting ESG. This E&P company plans to drill 45 new wells in the Midcontinent by 2022, as well as to produce 600,000 boe/d across five operating basins, including the Eagle Ford Shale, Permian, Powder River, and Williston basins. And given that Devon's recent fourth-quarter results were better than Street estimates. It appears that they are doing something right, at least for the moment.

Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.

The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.

Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.

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