Bakken Formation Oil Investments: The Play That Launched America's Shale Revolution

The Bakken Formation in North Dakota and Montana is a Devonian-Mississippian shale that emerged as a major producing basin with the horizontal drilling revolution of 2007–2012. At its peak in 2019, the Bakken produced approximately 1.5 million barrels per day, making it the second-largest producing basin in the United States at that time.

The Bakken's geological characteristics are favorable: consistent formation depth (9,000–10,000 feet), predictable mineralogy, and a well-defined oil-producing window in core Mountrail, McKenzie, Dunn, and Williams counties. Initial production rates in core Bakken wells are competitive with Eagle Ford and Wolfcamp B, and the formation's long production history provides meaningful type curve data.

For private investors, the Bakken's limitations relative to the Permian Basin are primarily structural and fiscal, not geological. North Dakota levies a 2.9% state income tax on investors' production income. Severance tax is 5% at the well level. Infrastructure constraints — particularly natural gas gathering and processing — have periodically forced operators to flare associated gas or reduce oil production to stay within allowable gas-to-oil ratios. Winter weather adds operational complexity and cost.

North Dakota maintains the Oil and Gas Division database through the North Dakota Industrial Commission (NDIC) at ndic.nd.gov. This database provides similar functionality to the Texas RRC — production records, completion reports, permit status, and operator compliance records — but with less historical depth and somewhat less user-friendly access than the RRC. For any Bakken program introduced through our partner network, we encourage investors to pull the operator's production history from the NDIC database and apply the same type curve verification process that works for Texas programs: compare actual 12-month cumulative production for the operator's comparable Bakken wells against their projected type curves. The verification methodology is identical; the database is different.

Texas Oil Investments does not operate wells, manage funds, or act as a broker-dealer. Our role is to help accredited investors understand Bakken formation oil investments, provide education around the opportunity, and facilitate introductions to vetted projects through our network of experienced energy industry partners. The operators and energy sponsors we work with structure and manage the investments, bringing decades of technical expertise. Our focus is access, education, and strategic connections — helping investors evaluate opportunities with experienced professionals while maintaining full transparency about our role.