First North Dakota Oil Well
After decades of dry holes drilled from one corner of the state to the other, in 1951 new technologies and determination – true grit – brought North Dakota’s first oil discovery. Photo courtesy BakenBlog.com.
The exploratory well on the farm of Clarence Iverson northeast of Williston endured blizzards and was “shot” with perforation tools several times before finally producing oil on April 4, 1951.
The discovery in Mr. Iverson’s wheat field launched the first drilling boom of the North Dakota Williston Basin.
At about one in the morning on April 4, after four months of hard drilling and with snow piled high from recent blizzards, the Clarence Iverson No. 1 well produced oil.
Amerada Petroleum’s 1951 discovery – the first commercial oil well in North Dakota – will help reveal a prolific petroleum basin stretching from North and South Dakota, Montana, and into Canada.
Although this wildcat drilling attempt had been regarded with great skepticism, within two months of the strike 30 million acres were under lease. A 2008 article in the Bismarck Tribune, quotes Sid Anderson, the former state geologist, who was a college student at the University of North Dakota when oil was discovered.
“It was brand new, then, and pretty exciting times,” said Anderson. The amber-colored oil in the area was of such high quality, Anderson recalled, that “you could have run a diesel with it straight from the well.”
The Williston Basin will produce more than five billion barrels of oil by 2008.
“This was the first major discovery in a new geologic basin since before World War II,” James Key writes in Word & Picture Story of Williston & Area.
By 1952, Standard Oil of Indiana was building a 30,000 barrel per day refinery, he notes. Forty-two oilfield service and supply companies had opened offices in Williston. In June, Service Pipeline Company announced it would build a pipeline to the Standard refinery.
Key adds that although the Williston Basin is named after the city of Williston, it was first exposed in 1912 by Dr. W. T. Thom, Jr. , “a sophomore studying geology when he happened into a creek bed in the area of the Cannonball River. It was his discovery of coral that led him to believe that the area was once inundated by an ancient sea.”
On June 17, 2014, North Dakota oil production surpassed one million barrels per day thanks to development of the Bakken shale formation in the western part of the state. State officials reported North Dakota produced 1,001,149 barrels of oil a day from a record 10,658 wells. Industry journalists, proclaiming the milestone a sign America was freeing itself from foreign oil, referred to the state as “Saudi Dakota.”
North Dakota Dry Holes
The earliest permit issued for oil exploration in North Dakota came from the state geologist in 1923. By the late 1930s, petroleum companies were working with a growing North Dakota Geological Survey to improve the science behind exploration, which often featured difficult formations, including granite, thwarting drilling technologies of the day.
According to historian Clarence Herz, despite repeated failures, companies continued to come to North Dakota and spend large amounts of money on leases and drilling.
“There were no indications from any of the wells they drilled that they were even close to production, but that did not deter them,” says Herz, adding that the expensive lessons even resulted in positive developments.
“A more skilled labor force and continuous technological innovation that included the use of explosives, acid and newly invented scientific instruments meant an acceleration of the drilling process as wells were not only being drilled faster, but deeper and at a much higher cost,” Herz explains.
One such invention came from two Frenchman, Conrad and Marcel Schlumberger,” he adds. “Schlumberger was fast becoming a household name in the oil industry for the development of an electrical resistivity well log created by the French brothers in 1927.
Although it failed to find oil in the 1930s, the California Oil Company used technological and scientific breakthroughs like rotary drilling and seismometers to reach a depth previously unheard of in the state. A well spudded in October 1937 had to be abandoned in August 1938 when the drill pipe twisted off in the hole almost two miles deep. Attempts to “fish” the pipe out failed.
California Oil’s failure did not stop exploration in other areas of the state, Herz says, citing a report noting that most major oil companies sent men to North Dakota to investigate and in many instances to buy leases. It took the Carter Oil Company three months with modern equipment to drill nearly 5,000 feet – and end up with a dry hole in 1940. Two years later the company still had not found any oil.
Herz reports that after World War II, “From one corner of the state to the other companies leap-frogged one another in anticipation of being the first to identify an oil producing zone.” Continental Oil Company in cooperation with the Pure Oil Company moved into North Dakota in the spring of 1949 after having leased about 1.5 million acres.
In September 1950, Magnolia Petroleum Company became the latest company to drill a North Dakota dry hole. Drilled to a depth of 5,556 feet, it hit granite and was plugged and abandoned. Soon, however, men from all over the country will come to work on North Dakota drilling rigs.
The Discovery Well
Throughout the entire discovery period dry holes were not looked at as failures, but as learning experiences as valuable geologic and technical knowledge was gained from each attempt, Herz explains.
An independent oilman and investor, Thomas W. Leach was a former chief geologist for an Oklahoma oil company who was convinced oil could be found. In the late 1930s he had convinced Standard Oil Company of California to drill a 10,281-foot well there. It was a dry hole that cost the company almost a million dollars.
After World War II, where he served as a Captain of U.S. Army Artillery, Leach returned to North Dakota and continued leasing land. The geologist eventually convinced Amerada Petroleum of Tulsa that success could be found in the Nesson Anticline about 50 miles northeast of Williston.
A site was selected on Clarence Iverson’s family farm near Tioga and drilling began on September 3, 1950, Herz says. There was little to report until January 1951, “except the depth of the bit, the conditioning of the mud, and the occasional tripping pipe.”
Following a January 29 blizzard that shut down the well, drilling continued until total depth – 11,744 feet – was reached on February 4, 1951. No oil was found. It was decided to try “shooting” the well.
“The practice of perforating a well, or using explosives to perforate the rock, is not new,” says Herz. Colonel Edward A. L. Roberts first used his “Roberts Torpedo” in 1865. The practice was successful and soon the dry holes of Pennsylvania were turned into producers by “shooting” the well with nitroglycerin torpedoes. Learn more in Shooters – A “Fracking” History.
On March 1, the Clarence Iverson No. 1 well was “shot” from 11,706 feet to 11,729 feet using Lane-Wells Koneshot, Herz reports. Still no oil was found.
According to Herz, perforation became a standard practice whereby multiple charges attached to a gun were lowered into the wells casing. Once into place the charges were fired, perforating the well at small intervals, hopefully releasing the oil from the rock.
“The Koneshot was a type of perforating gun that used a shaped charge. It was another innovation,” he says, adding that it “contained shaped charges in a spiral placement in a steel housing at a three-inch centerline distance from each other.” The design was an improvement over some of the early perforators, notes Herz. Learn more history about perforating with shaped charges in Downhole Bazooka.
Work on the Iverson well was again halted the week of March 5 by another blizzard. The well would remain idle for several weeks until the snow choked roads could be cleared for passage. With the well plugged back to a depth of 11,669 feet, the work stopped to make repairs and prepare for another perforation.
The well was again perforated, this time from 11,630 feet to 11,640 feet with four holes per foot.
At 12:55 a.m. on the April 4, 1951, the Clarence Iverson No. 1 began producing about 240 barrels of oil a day. The state of North Dakota finally had its first discovery well.
According to a 2008 Associated Press article, at first Clarence Iverson wasn’t pleased when seismologists exploded dynamite in his wheat fields looking for oil. His son Cliff, who was 20 when oil was found on the family farm, remembers his father smiling when oil surfaced.
“He worried a lot about his water wells,” Cliff said of his father. The farm became one of the biggest tourist attractions in the Upper Midwest after oil was discovered there. “They came from as far as Minnesota and all over North Dakota and Montana,” he added. “People knew it was history in the making, and it changed a lot of people’s lives.”
The Clarence Iverson No. 1 well alone produced 585,000 barrels oil for 28 years. Clarence Iverson died in 1986, a wealthy man “who never got used to all that money.”
The Bakken Shale
The earliest producing wells of the Bakken shale formation were drilled in the early 1950s on Henry O. Bakken’s farm less than five miles from the Clarence Iverson No. 1 well.
Occupying about 200,000 square miles within the Williston Basin, the oil shale of the Bakken formation may be the largest domestic oil resource since Alaska’s Prudhoe Bay, according to many experts. But petroleum industry efforts to extract shale oil using conventional vertical wells historically have proven difficult.
“The Clarence Iverson well produced from the Silurian, Duperow and Madison formations, but not the Bakken, according to Kathy Neset, a geologist who moved to Tioga from New Jersey in 1979. “There are several oil-producing formations at different depths within the larger Williston Basin.”
The Bakken formation frustrated a lot of geologists for years, “because they knew the oil was there but they didn’t have the technology to extract the oil,” Neset adds in a 2012 article, Famous Bakken Formation Named For North Dakota Homesteaders. The Bakken formation first produced in 1953 from a well named after Henry Bakken, the landowner. Like the Williston discovery well, it was also drilled by Amerada Petroleum. This first shale well was on the Nesson Anticline, now known as a “sweet spot” of the Bakken, home to natural fractures in the rock, according to the Energy Policy Research Foundation, Inc.
Although North Dakota has been an oil producing state since 1951, only during the past decade has the Bakken oil boom made it the fourth largest oil producing state in the country and one of the largest onshore plays in the United States. “The Bakken is a shale oil play. It is conventional, light-sweet crude oil, trapped 10,000 feet below the surface within shale rock,” the foundation explains. The Bakken shale play consists of three layers – an upper layer of shale rock, a middle layer of sandstone/dolomite, and a lower layer of shale rock. The middle sandstone layer is what is commonly drilled and fracked.
“Production was mainly from a few vertical wells – until the 1980s when horizontal technology became available,” adds a 2008 article in the Oil Drum. “Only recently after the intensive application of horizontal wells combined with hydraulic fracturing technology did production really take off.”
U.S. Geological Survey has estimated 3.0 billion barrels to 4.3 billion barrels of undiscovered oil in America’s portion of the Bakken formation, elevating it to a “world-class” accumulation. The Geological Survey’s 2008 assessment of the Bakken shale’s potential is a 25-fold increase in the amount of “technically recoverable” oil compared to the agency’s 1995 estimate of just 151 million barrels of oil.
According to state statistics, oil production from the Bakken in North Dakota has steadily increased from about 28 million barrels in 2008, to 50 million barrels in 2009 to approximately 86 million barrels in 2010.
“The Bakken formation is producing an ever-increasing amount of oil for domestic consumption while providing increasing royalty revenues to American Indian tribes and individual Indian mineral owners in North Dakota and Montana,” Secretary of the Interior Ken Salaza concluded 2011.
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