New energy company enters the Bakken post-2020 oil downturn

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The petroleum industry is steadily climbing back after the pandemic and market forces caused oil prices to slip in early 2020.

Last week oil and gas leaders gathered in Watford City for the North Dakota Petroleum Council’s 40th Annual Meeting. Like any other conference, it was a meeting of the minds to discuss new trends in the industry.

The petroleum industry is steadily climbing back after the pandemic and market forces caused oil prices to slip in early 2020. The downturn drove some shuffling of players in the Bakken, with some companies seeing it as a time to sell their assets while others saw opportunity.

Grayson Mill Energy is a young petroleum extraction company founded in 2016. Their emphasis was originally drilling in The Rockies, but in March of 2020 during the height of the pandemic, after doing a national search, they set their sites on The Bakken.

Grayson Mill Energy took the annual meeting as a time to introduce their new company to North Dakota.

“We were doing Basin studies throughout, seeing where the best time to invest and the best places to invest, along with assets that might make sense for us as a management team, and it was perfect timing for us. Equinor was considering leaving the basin; we wanted in the basin, and we were able to work with them to acquire the assets, so it was perfect timing,” explained Grayson Mill Energy Executive VP of Business Development & Land, Dewey Gerdom.

Gerdom tells KX after many years of steady growth, The Bakken has reached a mature stage where some companies are exiting while there is also a lot of consolidation happening with companies merging. He says it’s a cycle seen in other basins, and The Bakken still has a tremendous amount of oil and gas left to be extracted.

Grayson Mill Energy employs 150 people, with about 85 working in the field. Gerdom says the first rig is scheduled to be put up in November.

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