Bakken Oil Production Sees Largest Monthly Increase Ever In June - 50,000+ b/d

Bakken Oil Production Forecast - NDPA

Genscape is predicting that North Dakota's monthly Bakken production data will show an increase of 54,000 b/d June. The jump surpasses the record of 41,000 b/d set in February of this year and will drive North Dakota oil production above 860,000 b/d.

June will represent only the third time North Dakota production has increased more than 40,000 b/d in a single month (Jul 2011, Feb 2013, Jun 2013).

“Revised August 15, 2013: NDIC reports Bakken oil production grew a little more than 10,000 b/d from May to June.”

Read more in the article Bakken Oil Production Sets Record At More Than 750,000 b/d In June

May Was A Record Month In The Bakken Too

Production climbed to a record of more than 810,000 barrels per day in May even though it was the wettest month on record in the Bakken. The delays caused by weather primed June to be a good month for production.

Genscape estimates 70% of production moved by rail during the month and that North Dakota production will grow another 68,000 b/d to more than 920,000 b/d by year-end 2013.

Wet Weather Forcing Delays In North Dakota's Bakken Oilfield

North Dakota Bakken Region Precipitation Map May 2013

It has been a tough couple of months for operators in the Bakken.

McKenzie County was forced to initiate a semi-truck ban on gravel roads this past weekend. The ban lasted from noon on Sunday through 6 am on Monday.

The past two months have been rough in North Dakota. Lynn Helms noted in his directors cut that April was the coldest month on record and May was the wettest. It hasn't let up much in June and McKenzie County estimates road damage from the past several weeks will cost the county as much as $50 million.

“Operators have not been able to catch a break.”

— Lynn Helms

Nine inches of rain fell over the past two weeks in McKenzie County alone. More than one-third, or 67 of the 188 rigs targeting the Bakken are active in McKenzie County.

Expect mention of delays to creep into earnings calls and operational updates over the coming weeks. A truck ban on a Sunday won't slow down the industry too much, but damaged roads and continued rain might.

Resolute Energy Bakken Operations Update - Planning Sale

Resolute Energy Operating Areas

Resolute Energy plans to sell its Bakken properties in 2013 to fund development of other assets, but the Bakken does account for 8% of the company's production. Production was down slightly in the first quarter, but is expected to rebound in the next few months.

The company cited weather related delays for lower production, but expects the Bakken will rebound to between 1,100-1,200 boe/d in the second quarter. Spring break up could delay production in the quarter, but four wells are clear and waiting on pumping units. There should be room for production to outperform expectations.

Read the company's full press release at resolutenaturalresources.com