Energy Matters- Tim’s Take November 11, 2014 Tim Fisher- Bakken Energy Service Inc

First of all my sincere thanks to all of those who have served in the armed forces of the United States of America. God Bless you all and Master Sargent William H Fisher my dad… Thank you for serving in Korea and being as good a man out of uniform as you were in.

My goal is to give the residents of the Bakken and anyone next to a rail road a little comfort on the progress of tight oil stabilization or what we refer to as Bakken Oil stabilization. In the same breath I am going to plead with the state of North Dakota if they truly want to help must make major changes in their tax policies.

I am grateful to Energy Matters  AM 50 for first asking me to be a part of the show and then being flexible in allowing me to be on when possible. One of the main reason I continue the program is my hope in bringing more insight to the public into many tough issues the gas and oil industry face.

I am fortunate to get a seat at many tables with many influential industry CEOs, Presidents    and production planners. It is in these meetings I am always reminded that the government has a role to play in the industry but for the most part the government is to collect taxes from the oil and gas companies’ revenue.

And as politicians   talk, the oil and gas companies are already far ahead of them in providing the money and talent needed to make their industry and those they serve a better place.

Too often I feel the state and federal officials think improvements in safety, the environment   , and workers security happen because they talk about it or threaten to mandate it. The truth is actually 180 degrees. The gas and oil companies always want what is best for the environment, their workers and the communities they operate in.

So now, here is my challenge to the state and federal government. If you are truly concerned with flaring and the stabilization of tight oil i.e. Bakken crude then give all the oil and gas companies a tax holiday on any and all gas captured,  stripped and or sold as a bi-product of tight oil. It cost approximately $60 million just to build a 100,000 barrel a day  stabilizing facility not taking into consideration the cost of operations for about $35 million in revenue $3.5 in gross profit and loss at the end of the year.

Here is why:  by the time we pay the 28% tax and gas royalties we lose money! You want us to spend our shareholders money and or our private equity on capturing a gas or stripping a gas that we lose money on. If you are serious then stop the taxing this bi-product and be satisfied with the huge windfall you receive from oil.

I know what the process costs and the bottom line is there is little to no money in it. Add in the dramatic fall in the price of oil and “Houston, we have a problem”

So I asking the North Dakota Industrial commission to work with Senator Rich Warden to call a special session and introduce a bill that will give gas and oil companies a tax holiday on any and all gas collected. Otherwise you may find 700,000 less barrels    of oil leaving ND each day because of a lack of stabilization.

And that is my take. 

Ed Schafer Former Gov ND & Tim Fisher Founder Bakken Energy Service- Interviewed by Heidi Bell Gease- Rapid City Journal

Ed Schafer, former Governor of North Dakota, Former  Secretary of Agriculture – Tim Fisher, Founder Bakken Energy Service  Interviewed by Heidi Bell Gease of the  Rapid City Journal on December 12, 2012 •  Heidi Bell Gease Journal staff   Heidi Bell Gease at 605-394-8419 or  during the Opportunities in the Bakken Seminar.

Former North Dakota Gov. Ed Schafer delivers the keynote address Tuesday morning at the opening of the Bakken oil conference in Rapid City. Schafer said there are opportunities for South Dakota to gain new business from the North Dakota oil boom.

Former North Dakota Gov. Ed Schafer delivers the keynote address Tuesday morning at the opening of the Bakken oil conference in Rapid City. Schafer said there are opportunities for South Dakota to gain new business from the North Dakota oil boom. CEO and Founder of Bakken Energy Service Tim Fisher later supplied eye-opening and detailed Bakken Shale information.

“It’s not too late to get involved,” agreed keynote speaker and former North Dakota Gov. Ed Schafer, now a board member for Continental Resources. “And it certainly is going to be a long-term play.” Schafer said South Dakota’s similarities to North Dakota — particularly, people who are honest and caring and hard-working — will be to its benefit in attracting businesses and investors that may want to be near the oil patch, but not in it.

“They need to park someplace,” he said. “I’m encouraged about the possibilities in South Dakota.” There are roughly 5,500 oil wells in the Bakken today, Schafer said, yet experts say the area can support more than 50,000 wells. “We haven’t even gotten to 90 percent of the opportunity that’s in North Dakota,” he said.

“The size of the pie is huge,” said Tim Fisher, founder of Bakken Energy Service. “There is enough for everyone and then some.”Fisher, who describes his Bakken Energy Service business as the “world’s largest third-party logistics company because it is our job to get services from one location to another in a reliable, cost effective manner  ” for its 38 coalition members, urged South Dakota not to compare itself and its oil potential to its northern neighbor.

“North Dakota’s Wal-Mart and South Dakota’s Ace Hardware,” he said. But South Dakotans shouldn’t be afraid to “open an Ace Hardware” because there’s a Wal-Mart next door. “Drop the scarcity mentality,” Fisher said, adding that businesses need to work together to benefit everyone. “You’re not the enemy. Start working together … This is your backyard.”

South Dakota’s geology will prevent it from ever seeing an oil boom like the one now happening in North Dakota’s Bakken Formation. But there are still plenty of great oil-related opportunities for western South Dakota, speakers said at a local seminar Tuesday.

That was good news for about 175 people who signed up for the one-day summit, “Opportunities in the Bakken,” held at Hilton Garden Inn in Rapid City. It was one in a series of seminars being presented around the country, said Jeff Johnson of Midwest Real Estate News, one of the event sponsors.

Tuesday’s audience was a mix of business people, potential investors, real estate developers and others interested in learning more about North Dakota’s oil industry and the economic opportunities it has to offer. Eldene Henderson of Rapid City was one of just 20 or so women in the audience. “I’m kind of an information collector,” she said, explaining her decision to attend. But Henderson is also working on a development project for senior citizens who want to relocate from North Dakota. From that standpoint, she found the speakers “very informative.”

Jim LeMar, a salesman with Canada-based Northstar Homes, appreciated the summit’s networking opportunities as much as the information it provided. “I’m just looking to make contacts in the business communities that are working up in North Dakota,” he said. “Hopefully, I’ve met a couple people that will lead to some business.”

So is South Dakota State Geologist Derric Iles. Because while South Dakota’s geology ensures it will “never see production come to the extent that North Dakota has,” there’s still a lot of unexplored potential.

Iles pointed to studies done in western South Dakota in the 1950s that showed “tight shale” — similar to what’s found in the Bakken — that was of little commercial interest at the time. But with the capabilities of today’s technology, Iles believes those areas might be worth a closer look. “I think we’re  under explored ,” he said.

Tim Fisher, Founder Bakken Energy Service and Ed Schafer, former Governor of North Dakota were    Interviewed by Heidi Bell Gease in Rapid City Journal on December 12, 2012 •  Heidi Bell Gease Journal staff   Heidi Bell Gease at 605-394-8419 or