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This report outlines the Native American Initiative's strategic efforts to enhance energy resource development on tribal lands from 1997 to 2007. The program targets significant oil and gas resources, including 890 million barrels of oil and 5.6 trillion cubic feet of gas. Through partnerships, innovative technologies, and funding for 22 projects, it aims to stimulate economic growth while protecting the environment. Notable successes include improved oil recovery techniques and successful seismic exploration, resulting in increased jobs and revenue for participating tribes.
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Native American Initiative For GAO Review 1997-2007 August 09, 2007 Strategic Center for Natural Gas and Oil
Program Description • Targets resources on tribal lands • 890 million bbls oil • 5.6 trillion ft3 of gas • Helps tribes develop and manage energy resources while protecting the environment • Stimulates economic development of oil & gas • Promotes Tribe-industry partnerships • 22 projects funded from 1994 to 2004
Participating Tribes • Assiniboine & Sioux • Crow (2) • Eastern Shoshone & Northern Arapaho • Hopi • Inupiat • Jicarilla Apache (3) • Northern Cheyenne • Osage (5) • Southern Ute • Three Affiliated Tribes • Ute • Ute Mountain Ute
Goals • Promote dialogue among tribes, industry, and researchers • Develop and demonstrate innovative petroleum technologies • Increase exploration and development activity on tribal lands • Increase oil and natural gas production on tribal lands • Create jobs for tribal members
SuccessEnhanced Oil Recovery by Horizontal Waterflooding Osage Tribe and Grand Resources Inc. Goal: • Demonstrate that horizontal waterflooding can be technically and economically successful Accomplishments: • An abandoned field was revived • Technology successfully used in a nearby 100 year old field • Production went from 0 to a total of 100 bopd for the two fields • Expected ultimate production for the test wells is 29,000 bo
Enhanced Oil Recovery by Horizontal Waterflooding - Osage Tribe cont’d Benefits: • Technology can increase production in poorly performing waterfloods and thereby reduce field abandonments • Demonstration scale horizontal waterflood could generate $2.9 million over 6 years • Vertical waterflood would generate $1.4 million in 30 years
SuccessNorth Hill Creek 3-D Seismic Exploration Ute Tribe and Wind River Resources Corp. Goals: • Use 3D seismic surveys to assess oil and gas potential Accomplishments: • 15 wells drilled with a 100% success rate • Royalty revenue for the Ute Tribe was $5,000 per day • Identified 1 formation that had never been produced commercially • 1 formation had never been produced in that part of the basin
North Hill Creek 3-D Seismic Exploration Ute Tribe and Wind River Resources Corp. cont’d Benefits: • Demonstrated the value of 3D seismic surveys • Success spawned 11 additional surveys during the year following project • Survey cost of $1.5 million is less than cost of 1 dry hole • Increased gas production on Ute Tribal lands • Provided a new revenue stream for the Ute Tribe
Program Accomplishments • 1.84 BCF natural gas produced • 2 TCF unconventional gas resource identified • 19 Exploration leads discovered • 2 plays with high potential for oil and gas • Estimated $260 million in economic activity on tribal lands plus • $40 million in direct tribal royalty payments expected from the program over next 20 years