The North Dakota Legislature's House Finance and Taxation Committee convened on April 15, 2025, to discuss critical issues surrounding oil recovery in the state. A significant focus of the meeting was the low recovery rates of oil from the Bakken formation, with experts highlighting that only about 3% of the original oil in place (OIP) is currently being extracted.

During the session, a representative presented data from the U.S. Geological Survey, indicating that North Dakota and Montana hold approximately 400 billion barrels of oil in place. However, the current extraction efforts have yielded only 11 billion barrels, raising concerns about the efficiency of recovery methods. The representative emphasized that this 3% recovery factor is inadequate, especially when compared to other mining industries, which report recovery rates of 90% or higher for minerals like gold and copper.

The discussion also touched on the potential for technological advancements to improve oil recovery rates. The representative expressed optimism about the future, urging for incentives to encourage innovation and exploration in the oil sector. He noted that while the industry has made significant strides, there remains a vast untapped resource that could benefit from new technologies and methods.

In conclusion, the committee acknowledged the need for a strategic approach to enhance oil recovery in North Dakota. The discussions underscored the importance of fostering innovation and investment in the energy sector to maximize the state's natural resources and ensure sustainable development for future generations.