•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Bakken well costs likely peaked for the next two years

    Depressed natural gas prices continue to plague oil and gas companies, but those operating in the Bakken Shale continue to reap the benefits of the unconventional oil revolution.

    North Dakota has recently pulled in front of Alaska (onshore production) as the second largest oil-producing state on a daily basis. Texas, home of another prolific oily play–the Eagle Ford Shale– is the only state producing more, noted Global Hunter Securities analysts in a June 15 note to investors.

    The analysts note that under an $80.00+ per barrel scenario, exploration and production companies “should continue to increase the rig count.” Drilling rigs in the Williston Basin, including both Montana and North Dakota, currently stand at roughly 225 and the number is expected to grow to 230-235 by the end of the year.

    Rig counts in the Bakken grew significantly in 2011, as well, with the ten largest operators in the play accounting for 90% of its growth for the year.

    “Given the soft natural gas prices, operators are witnessing a plateau of service costs. Coupled with PAD drilling, the plateauing costs create significant economies of scale. Well costs in the Bakken have more than likely peaked for the next 12-24 months, in our view,” the analysts noted.

    The Bakken, primarily an oil play, straddles the US border with Canada and runs through two states – North Dakota and Montana – and two Canadian provinces – Saskatchewan and Manitoba, and is estimated by the US Geological Survey to contain roughly 3.65 billion barrels of recoverable crude oil.

    Most Popular

    Related Articles

    Measuring unconventional well performance

    06/08/2015

    Multiple parameters should be considered

    Bakken, Eagle Ford production flat in April

    06/01/2015

    Oil production from key shale formations in North Dakota and Texas were mostly flat in April as compared to March, according to Bentek Energy, an analytics and forecasting unit of Platts.

    Synergy Resources appoints Peterson as president

    05/29/2015

    Lynn Peterson has joined Synergy Resources Corp. as president of the company. 

    American Midstream launches open season for Bakken gathering system

    05/26/2015 American Midstream Partners LP confirms that American Midstream Bakken LLC, a wholly owned subsidiary of the Partnership, is conducting a binding open season for a proposed 50-mile Bakken crude oil...

    Enable Midstream completes initial phase of gathering system in Bakken

    05/22/2015 Enable Midstream Partners LP says that the first phase of its Nesson Crude & Produced Water Gathering System is operational. The pipeline serves wells located in Williams and Mountrail counties...

    GlobalData: Core Bakken assets remain economical despite low oil prices

    05/21/2015 While the 12 counties with Bakken production between North Dakota and Montana have lost the majority of their horizontal rigs over the last eight months, core areas of the shale play remain attract...

    More Oil & Gas Financial Articles

    Measuring unconventional well performance

    Mon, Jun 8, 2015

    Multiple parameters should be considered

    Bakken, Eagle Ford production flat in April

    Mon, Jun 1, 2015

    Oil production from key shale formations in North Dakota and Texas were mostly flat in April as compared to March, according to Bentek Energy, an analytics and forecasting unit of Platts.

    Synergy Resources appoints Peterson as president

    Fri, May 29, 2015

    Lynn Peterson has joined Synergy Resources Corp. as president of the company. 

    American Midstream launches open season for Bakken gathering system

    Tue, May 26, 2015

    American Midstream Partners LP confirms that American Midstream Bakken LLC, a wholly owned subsidiary of the Partnership, is conducting a binding open season for a proposed 50-mile Bakken crude oil gathering and transportation system in the core of McKenzie County, North Dakota (the Bakken System), to transport up to 40,000 barrels per day (Bbl/d) of crude oil for delivery to major intrastate and interstate pipeline systems beginning in June.

    Enable Midstream completes initial phase of gathering system in Bakken

    Fri, May 22, 2015

    Enable Midstream Partners LP says that the first phase of its Nesson Crude & Produced Water Gathering System is operational. The pipeline serves wells located in Williams and Mountrail counties of North Dakota, in the Bakken shale play.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ