Bakken Rig Count at 25

May 6, 2016 Elizabeth Alford

Abraxas Buys Bakken Acreage — Bakken Rigs

The Bakken-Three Forks rig count fell this week with 25 rigs running across our coverage area by midday Friday.

A total of 414 oil and gas rigs were running across the United States this week, down five from last week. 86 were targeting natural gas (one less than the previous week) and 328 were targeting oil in the U.S. (four less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)25 of the rigs active in the U.S. were running in North Dakota.

Bakken Oil & Gas Rigs

Bakken oil rigs fell to 25 this week with Bloomberg reporting WTI oil prices dipping to $44.62 on Friday afternoon. WTI-Brent also decreased this week to $45.32. The Bakken has zero natural active gas rig in the area this week with futures trading to $2.10/mmbtu by midday.

McKenzie County continues to lead development with 12 rigs running this week, far outpacing other counties. View the full list below under the Bakken Drilling by County section.

Activity continues to be dominated by horizontal drilling:

25 rigs are drilling horizontal wells
0 rigs are drilling directional wells
0 rigs are drilling vertical wells

Bakken Drilling by County

What is the Rig Count?

The Bakken Shale Rig Count is an index of the total number of oil & gas drilling rigs running across Montana and North Dakota. The rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Bakken formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Bakken Shale Rig Count Down Two

April 9, 2016 Elizabeth Alford

The Bakken-Three Forks rig count fell by two this week landing at 27 rigs running across our coverage area by midday Friday.

A total of 443 oil and gas rigs were running across the United States this week, which is a drop of seven over last week. 89 were targeting natural gas (one more than the previous week) and 354 were targeting oil in the U.S. (eight less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 27are in ND alone.

Bakken Oil & Gas Rigs

The Bakken oil rigs were at 27 this week with Bloomberg reporting WTI oil prices trading at $36.79 on Friday afternoon. WTI-Brent held steady at $41.94. The Bakken has zero natural active gas rig in the area this week with futures increasing to $1.99/mmbtu by midday.

McKenzie County continues to lead development with 15 rigs running this week, far outpacing other counties. View the full list below under the Bakken Drilling by County section.

Activity continues to be dominated by horizontal drilling:

27 rigs are drilling horizontal wells
0 rigs are drilling directional wells
0 rigs are drilling vertical wells

Be sure to visit our Bakken Job Listings to search openings and come back weekly for updates or sign up for alerts - Daily or Weekly Email Alerts

Bakken Drilling by County

What is the Rig Count?

Tesoro Buys Bakken Midstream Assets

December 22, 2015 Elizabeth Alford

Halliburton and Baker Hughes to Merge — Tesoro Gains Bakken Midstream Assets

Tesoro increases its presence in the Bakken with the purchase of strategic midstream assets.

Tesoro Corporation announced earlier this month that it will grow its midstream operations to provide more efficient, flexible and cost-effective integrated logistics services to customers in the Bakken region. They will acquire Great Northern Midstream LLC and will gain pipelines, gathering systems, transportation, storage and rail loading facilities in the Williston Basin of North Dakota.

Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation commented that, "Combining the Great Northern Midstream assets with our Tesoro High Plains Pipeline will create a leading crude oil pipeline system in the most prolific region of the Bakken."

The transaction includes the 97-mile BakkenLink crude oil pipeline, a proprietary 28-mile gathering system and a 154,000 barrel per day rail loading and a 657,000 barrel storage facility in Fryburg, North Dakota.

In late 2014, Tesoro purchases QEP Resources Inc.’s natural gas pipeline and processing business, QEP Field Services, which brought with it 2,000 miles of natural gas and crude oil gathering and transmission pipeline, with locations in North Dakota’s Bakken Shale and the Rocky Mountain region. The assets have have a combined 2.9 billion cf/d of natural gas and 54,000 b/d of crude oil throughput capacity.

The terms of the Great Northern deal are not public, but Tesoro said the acquisition price represents five to six times Tesoro-estimated future EBITDA for the Great Northern Midstream business. The transaction is expected to close early in 2016.

ConocoPhillips To Hold Steady in Bakken

December 15, 2015 Elizabeth Alford

EOG Releases 2015 Q1 Report — ConocoPhillips Announces 2016 Spending

ConocoPhillips revealed 2016 plans for the Bakken in the midst of huge spending cuts.

ConocoPhillips announced its 2016 budget last week, revealing they will continue to operate four drilling rigs in the Bakken next year. The $2.6 billion earmarked for the lower 48 operations is nearly 30% less than it had previously planned for earlier this year. The company says the funding reductions come mainly from lower major project spending, deflation capture and efficiency improvements.

“Chairman and Chief Executive Officer Ryan Lance said that overall production by the company in 2016 will grow by one to three percent and added, “We’re setting an operating plan for 2016 that recognizes the current environment, which remains challenging. We are significantly reducing capital and operating costs, while maintaining our commitment to safety and asset integrity.”

Chairman and Chief Executive Officer Ryan Lance said that overall production by the company in 2016 will grow by one to three percent and added, “We’re setting an operating plan for 2016 that recognizes the current environment, which remains challenging. We are significantly reducing capital and operating costs, while maintaining our commitment to safety and asset integrity.

Other Highlights

Total 2016 capital budget is $7.7 billion
Capital spending will focus predominantly on the unconventional plays including six rigs in the Eagle Ford, four in the Bakken and three in the Permian Basin.
Operational efficiencies have the company confident in the low oil price environment.
In the past year, drill rig spud-to-total depth times have decreased by 25 percent in both the Bakken and Eagle Ford.
Third quarter production was 551 thousand barrels of oil equivalent per day (MBOED), an increase of 8 MBOED compared with the same period in 2014.
The Eagle Ford and Bakken collectively delivered 234 MBOED for the quarter, a 10 percent increase compared with the third quarter of 2014.
Lower 48 crude production grew 12 percent year over year.

Williston Votes to Evict Man Camps

December 8, 2015 Elizabeth Alford

Bakken 'man-camps' are fighting for their existence after Williston City voted to let them die.

Man camps provide temporary employee housing to oilfield workers and have been a prominent feature dotting the landscape since the oil boom brought an influx of people to the Bakken region. But many have emptied in recent months due to the downturn and at least one local government wants to ban them altogether.

Last month, the Williston City Commission approved of an ordinance that would deny man-camps occupancy permit extensions beyond July 2016. This marks the first time that a community has evicted a man camp, though other communities in Texas and North Dakota have blocked their arrival or expansion.

Williston leaders want oilfield workers to plant permanent roots or use existing hotels when they must stay for extended periods. They say that there is already plenty of housing in the city.

Williston mayor Howard Klug told Reuters that “The man camp industry should understand we allowed them to come here on a temporary basis.”

As expected, providers of temporary housing have pushed back against the ordinance, warning that this will mean layoffs for up to 200 workers and a loss of revenue and donations for the community. They also are afraid that this might set a precedence for other communities who are considering pushing out man-camps.

The November 24th meeting was expected to be a non-event, but the an official 11th-hour protest to the ordinance caused a disruption in the proceedings. The ordinance passed by a 3-2 vote, but the mayor promised that the the city will be working on an amendment that might may include allowing some of the city’s crew camps to remain open.