Bakken Shale News http://bakkenshale.com Bakken Shale News, MarketPlace, Jobs Wed, 17 Dec 2014 15:00:25 +0000 en-US hourly 1 http://wordpress.org/?v=4.0 Bakken Oil Transport Still Not Safe http://bakkenshale.com/news/bakken-oil-transort-still-not-safe/ http://bakkenshale.com/news/bakken-oil-transort-still-not-safe/#respond Wed, 17 Dec 2014 15:00:25 +0000 http://bakkenshale.com/?p=6681 Lac-Mégantic rail disaster

Helicopter view of the Lac-Mégantic rail disaster | Image courtesy of Sûreté du Québec: CC BY-SA 1.0

When the North Dakota Industrial Commission issued its landmark ruling last week concerning the conditioning of oil, it appeared that they were making a serious move towards improving the safety of transporting crude out of the Bakken. But according to an article in the StarTribune, the new regulations, which go into effect April 2, 2015, won’t bring the industry any closer to a solution for a serious problem that is drawing fire from legislators, concerned citizens and environmental groups.

Alan Stankevitz, an expert on the DOT 111 tanker car, explains in the StarTribune that the standards set by the commission, which includes Gov. Jack Dalrymple, are not enough to adequately address the problem. The order establishes new regulations that demand facilities to maintain an operating pressure at less than 13.7 psi. This is a much larger number than the volatility point for Bakken crude, which is between 11.5 and 11.8 psi.

Stankevitz writes, “The bottom line is that the limit has been set so high by North Dakota that the mandate is toothless. The same volatile oil that caused the massive explosions in Casselton, N.D., and Lac-Mégantic would still have been allowed to ride the rails, according to this new mandate.”

Stankevitz goes on to charge the commission with using ‘smoke and mirror tactics’ to divert attention away from the real issue, which he believes to be the routine use of old and outdated tanker cars that are leased by the petroleum industry for transportation.

Read more in the Star Tribune.

]]>
http://bakkenshale.com/news/bakken-oil-transort-still-not-safe/feed/ 0
New Regulations for Oil Transportation in the Bakken http://bakkenshale.com/news/new-regulations-bakken-transportation/ http://bakkenshale.com/news/new-regulations-bakken-transportation/#respond Tue, 16 Dec 2014 14:00:08 +0000 http://bakkenshale.com/?p=6668 new regulations for Bakken add strict guidelines

Commission Adds New Restrictions for Oil Transports

In an effort to improve the safety of crude production in the Bakken region, the North Dakota Industrial Commission issued an order on December 9th that will impose new regulations on oil producers.

The order (no. 25417) is the result of an investigation that began at an emotionally charged hearing in September. Over the past two months, commission members Gov. Jack Dalrymple, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring considered oral and written comments from technical witnesses, manufacturers, land/royalty owners and the general public.

The new regulations will go into effect on April 1, 2015 and require that all new wells in the Bakken Petroleum System utilize equipment that controls vapor pressure in order to lessen the likelihood of explosions during transportation. This order comes as a series of troublesome events in 2014 escalated a growing national concern over the transportation methods of Bakken crude.

The commission issued a joint statement that “The North Dakota Industrial Commission reiterates the importance of making Bakken crude oil as safe as possible for transportation. This order will bring every barrel of Bakken crude within standards to improve the safety of oil for transport.”

In order to come into compliance, producers will have to shell out millions of dollars for new equipment, updated facilities and increased personnel. The order also establishes the Commission’s jurisdiction over these matters and provides for potential criminal and civil penalties for producers that are deemed noncompliant.

Read the Commission Report here.

]]>
http://bakkenshale.com/news/new-regulations-bakken-transportation/feed/ 0
Bakken Shale Rig Count Decreases by One to 187 http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-decreases-by-one-to-187/ http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-decreases-by-one-to-187/#respond Mon, 15 Dec 2014 15:00:10 +0000 http://bakkenshale.com/?p=6646 Oil torch against the cloudy skyThe Bakken-Three Forks rig count decreased by one t0 187 rigs running across our coverage area by the end of last week. The NDIC notes 181 rigs are active in North Dakota, but around 12 of those are in the process of moving in and rigging up.

In recent Bakken news, a new study led by researchers from The University of Texas hopes to provide clues to better understand the correlation between well technology and methane emissions during the natural gas production process.

The findings, published December 9th in Environmental Science & Technology, indicate that the overwhelming majority of methane emissions are from two types of wells; those that use pneumatic devices and those that use liquid unloading.

Read more: Methane Emission From Two Main Sources Says UT Study

The U.S. rig count decreased by 27 to 1,893 rigs running by the end of last week. A total of 346 rigs were targeting natural gas (up 2 from the previous week) and 1,546 were targeting oil in the U.S. (29 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.). 188 rigs are running in the Williston Basin across MT, ND, and SD. 179 are in ND alone.

Not all rigs counted in our census are drilling for the Bakken, but it’s close. The NDIC estimates 95% or more of activity in this region targets the Bakken and Three Forks formations.

Note: The NDIC reports 181 rigs are active in North Dakota. That figure is seven less than Baker Hughes reports in the Bakken area, and two more than the company reports in North Dakota. On any given week, a certain number of rigs are in route to the next well location or idle waiting to drill the next well. The NDIC notes that around 12 rigs are in the process of moving in and rigging up.

Bakken Oil & Gas Rigs

The number of oil rigs decreased by one to 186 rigs running by the end of the week . WTI oil prices decreased by ~$6.00 from the previous week, trading at $57.99/bbl on Friday afternoon. Williston Basin Sweet crude traded at $43.69/bbl on December 12th. The WTI-Brent stayed the same, settling at just under $4 by the end of last week.

One natural gas rig was recorded in the region. Natural gas futures (Henry Hub) were trading at $3.74/mmbtu by the end of last week. A little more than 10% of the production stream from the Bakken and Three Forks is attributable to natural gas and roughly half of that is NGLs.

McKenzie County continues to lead development with 66 rigs running. Mountrail, Williams and Dunn counties are the only other counties with more than 26 rigs running each. View the full list below under the Bakken Drilling by County section.

Activity is dominated by horizontal drilling:

  • 172 rigs are drilling horizontal wells
  • 12 rigs are drilling directional wells
  • 3 rigs are drilling vertical wells

Bakken Oil & Gas News

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

County State Previous Week Current Week County State Previous Week Current Week
MCKENZIE ND 67 66 WIBAUX MT 1 1
WILLIAMS ND 41 42 MCLEAN ND 1 1
MOUNTRAIL ND 30 28 STARK ND 1 1
DUNN ND 26 26 MCHENRY ND 1 1
RICHLAND MT 5 5 DANIELS MT 0 0
DIVIDE ND 4 4 DAWSON MT 1 0
BILLINGS ND 3 3 FALLON MT 0 0
ROOSEVELT MT 2 2 VALLEY MT 0 0
BOTTINEAU ND 2 2 GOLDEN VALLEY ND 0 0
BURKE ND 2 2 MERCER ND 0 0
RENVILLE ND 1 2 WARD ND 0 0
SHERIDAN MT 0 1

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.

]]>
http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-decreases-by-one-to-187/feed/ 0
North Dakota’s Future – The Legislature Wants to Know http://bakkenshale.com/news/north-dakotas-future-legislature-wants-know/ http://bakkenshale.com/news/north-dakotas-future-legislature-wants-know/#respond Mon, 15 Dec 2014 01:32:31 +0000 http://bakkenshale.com/?p=6651 Bakken population will increase ~30%

Population increase for Bakken Predicted | NDSU Dept of Agribusiness and Applied Economics

Throughout 2014, the energy market experienced unprecedented production along with wildly fluctuating prices in crude, leaving many to wonder about the long-range future of the Bakken Shale region.

The North Dakota legislature recently commissioned a massive study from KLJ, Inc. to analyze the economic forecast and possible trends for 19 counties through the year 2019. This unprecedented study concentrated on areas such as population growth, employment, housing.

The oil boom means more job opportunities in companies directly involved in oil and gas production as well as in industries that indirectly support this production. The study predicts that these jobs will spur a population increase in some North Dakota counties of more than 30%, a staggering number compared to the national average of 1.5%. This increase will add a strain on the already overtaxed housing market in the area, where a great deal of permanent housing has been depleted. In even the most modest scenario, the study anticipates that housing needs will increase by close to 30,000 units for the Minot, Dickenson and Williston regions. This may play a factor in the population projection as workers will have to make hard decisions about whether to bring family along as they move to the area for work.

“Permanent population will be largely driven by the supply of permanent housing in the region,” the study says. “Due to a lack of housing, the region will continue to have a total (service) population that is substantially larger than the permanent population measured by the U.S. Census.”

KLJ’s study was completed before oil prices began to drop sharply. Analysts will watch closely to see if falling prices affect the accuracy of this forecast.

Read the full summary at kljeng.com.

]]>
http://bakkenshale.com/news/north-dakotas-future-legislature-wants-know/feed/ 0
Methane Emissions from Two Main Sources says UT Study http://bakkenshale.com/news/methane-emissions-sources-ut-study/ http://bakkenshale.com/news/methane-emissions-sources-ut-study/#respond Thu, 11 Dec 2014 00:09:57 +0000 http://bakkenshale.com/?p=6623 alt="Methane Emissions"

Natural Gas Emissions

A new study led by researchers from The University of Texas hopes to provide clues to better understand the correlation between well technology and methane emissions during the natural gas production process.

The findings, published December 9th in Environmental Science & Technology, indicate that the overwhelming majority of methane emissions are from two types of wells; those that use pneumatic devices and those that use liquid unloading.

According to the study, 19% of Pneumatic Devices were responsible for 95% of methane emissions and were highest in the Gulf Coast Region, which was a similar result to the first part of the study conducted in 2013. As for Liquid Unloading, 20% of these devices account for 65-85% emissions. Conversely, this finding showed emissions were highest (~50%) in the Rocky Mountain Region due to the higher number of wells that utilize Unloading.

David Allen, principal researcher and professor at Cockrell School gives some perspective on the findings by sharing that “over the past several decades, 10 percent of the cars on the road have been responsible for the majority of automotive exhaust pollution,” said Allen. “Similarly, a small group of sources within these two categories are responsible for the vast majority of pneumatic and unloading emissions at natural gas production sites.”

 

Hopefully this study, and others like it, will provide important data to help industry leaders as they work to create solutions to the growing concern over methane emissions in the Bakken and around the country.

To view a full research summary, visit Cockrell School of Engineering.

]]>
http://bakkenshale.com/news/methane-emissions-sources-ut-study/feed/ 0
Bakken Shale Rig Count Decreases by Three to 188 http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-decreases-by-three-to-188/ http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-decreases-by-three-to-188/#respond Mon, 08 Dec 2014 18:53:31 +0000 http://bakkenshale.com/?p=6616 Falling Oil PriceThe Bakken-Three Forks rig count decreased by three t0 188 rigs running across our coverage area by the end of last week. The NDIC notes 190 rigs are active in North Dakota, but around 15 of those are in the process of moving in and rigging up.

In recent Bakken news, analysts and industry leaders are worried about the effects low oil prices will have on the booming shale industry, including investment and drilling interests in the Bakken play. Since extracting shale oil is currently a more expensive process than conventional production methods, Bakken producers may be more vulnerable to lower crude prices.

Read more: Falling Oil Prices: How Low is too Low for Bakken Producers?

The U.S. rig count decreased by 3 to 1,920 rigs running by the end of last week. A total of 344 rigs were targeting natural gas (flat from the previous week) and 1,575 were targeting oil in the U.S. (three less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.). 189 rigs are running in the Williston Basin across MT, ND, and SD. 180 are in ND alone.

Not all rigs counted in our census are drilling for the Bakken, but it’s close. The NDIC estimates 95% or more of activity in this region targets the Bakken and Three Forks formations.

Note: The NDIC reports 190 rigs are active in North Dakota. That figure is one more than Baker Hughes reports in the Bakken area, and ten more than the company reports in North Dakota. On any given week, a certain number of rigs are in route to the next well location or idle waiting to drill the next well. The NDIC notes that around 15 rigs are in the process of moving in and rigging up.

Bakken Oil & Gas Rigs

The number of oil rigs decreased by three to 187 rigs running by the end of the week . WTI oil prices decreased by ~$3.00 from the previous week, trading at $64.33/bbl on Monday morning. Williston Basin Sweet crude traded at $49.44/bbl on December 5th. The WTI-Brent stayed flat, settling at just under $4 by the end of last week.

One natural gas rig was recorded in the region. Natural gas futures (Henry Hub) were trading at $3.70/mmbtu by the end of last week. A little more than 10% of the production stream from the Bakken and Three Forks is attributable to natural gas and roughly half of that is NGLs.

McKenzie County continues to lead development with 67 rigs running. Mountrail, Williams and Dunn counties are the only other counties with more than 27 rigs running each. View the full list below under the Bakken Drilling by County section.

Activity is dominated by horizontal drilling:

  • 172 rigs are drilling horizontal wells
  • 13 rigs are drilling directional wells
  • 3 rigs are drilling vertical wells

Bakken Oil & Gas News

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

County State Previous Week Current Week County State Previous Week Current Week
MCKENZIE ND 66 67 MCLEAN ND 1 1
WILLIAMS ND 42 41 RENVILLE ND 1 1
MOUNTRAIL ND 29 30 STARK ND 1 1
DUNN ND 27 26 MCHENRY ND 1 1
RICHLAND MT 5 5 DANIELS MT 0 0
DIVIDE ND 5 4 FALLON MT 1 0
BILLINGS ND 3 3 SHERIDAN MT 0 0
ROOSEVELT MT 3 2 VALLEY MT 0 0
BOTTINEAU ND 2 2 GOLDEN VALLEY ND 0 0
BURKE ND 2 2 MERCER ND 0 0
DAWSON MT 1 1 WARD ND 0 0
WIBAUX MT 1 1

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.

]]>
http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-decreases-by-three-to-188/feed/ 0
Falling Oil Prices: How Low is Too Low for Bakken Producers? http://bakkenshale.com/news/falling-oil-prices-low-low-bakken-producers/ http://bakkenshale.com/news/falling-oil-prices-low-low-bakken-producers/#respond Fri, 05 Dec 2014 01:24:18 +0000 http://bakkenshale.com/?p=6602 Falling Oil Price

Price per Barrel: How low is too low?

In light of falling crude oil prices, there is growing speculation about how low will be too low for U.S. producers. In just a few short months, prices have plummeted from $100 a barrel to around $70 today. This has left analysts and industry leaders worried about the effects this will have on the booming shale industry, including investment and drilling interests in the Bakken play. Since extracting shale oil is currently a more expensive process than conventional production methods, Bakken producers may be more vulnerable to lower crude prices.

OPEC turned up the heat on Thanksgiving Day and sparked what some are calling an ‘oil war’, by announcing that it will hold steady on current production. This has garnered worldwide attention and assured that this downward trend in price will continue. (Read more: OPEC Challenges Bakken Shale Drillers) Certainly, this ‘war’ will have its casualties, as some shale producers will not be able to keep up. One indication of this was that drilling permits declined sharply over November, anticipating a slump for the near future. However, the deafening cries of doom are probably premature.

Keeping in step with the IEA estimate that most production in the Bakken play will remain profitable at or below $42 per barrel, Exxon Mobil CEO, Rex Tillerson told Houston Business Journal on Wednesday that the energy giant can maintain profitability until crude prices hit $40 a barrel. He also maintained his confidence in their Bakken shale initiatives.

“What you do is ensure that you can invest and be successful at the bottom of the cycle,” Tillerson said. “We test across a range that’s all the way down to $40 and up to $120.”
]]>
http://bakkenshale.com/news/falling-oil-prices-low-low-bakken-producers/feed/ 0
OPEC Challenges Bakken Shale Drillers http://bakkenshale.com/news/opec-shale-drillers/ http://bakkenshale.com/news/opec-shale-drillers/#comments Tue, 02 Dec 2014 16:53:43 +0000 http://bakkenshale.com/?p=6572 Bakken Stock Declines |Click to Enlarge

Bakken Stock Declines

In a decision that caused energy stocks to plunge on Friday, OPEC announced last week that it will not decrease production in order to curb the falling price of crude.

Viewed by many as a sort of Thanksgiving Day game of ‘chicken’, this effort is meant to drive oil prices down further in order to force U.S. shale drillers to fold in the face of falling profits. This announcement comes as the boom in shale production has produced a growing worldwide oil surplus, thus changing the global energy landscape and status quo. Some are making dire predictions about what this may mean for U.S. interests, including one Russian oil tycoon who announced to Bloomberg that he predicts a huge crash in the industry that will necessarily weed out the weaker players.

Whether this tactic by OPEC will be effective remains to be seen. In October, Continental Resources CEO, Harold Hamm, announced that prices would have to fall another 20% before Continental would cut back significantly. That precise scenario happened Friday as crude hit its lowest rate since 2010 and energy stock plummeted. Other Bakken interests similarly affected include Apache (- 11%), Marathon (-11%), EOG (- 8%) and ExxonMobil (-4.2%).

Read more: Continental Resource’s Harold Hamm on Falling Oil Prices

Read more: IHS: U.S. Shale Production Growth Will Slow, but Still Remain High

While these numbers are alarming, the IEA estimates that most production in the Bakken play are profitable at or below $42 per barrel, (which is significantly lower than the ~$70 per barrel price we see today).  It is our opinion that this $42 number is certainly shy of a threshold number on which to continue investing significant capital.

]]>
http://bakkenshale.com/news/opec-shale-drillers/feed/ 1
Bakken Shale Rig Count Increases by Three to 191 http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-increases-by-three-to-191/ http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-increases-by-three-to-191/#respond Mon, 01 Dec 2014 17:58:59 +0000 http://bakkenshale.com/?p=6575 ND Pump Jack Photo

ND Pump Jack | Click to Enlarge

The Bakken-Three Forks rig count increased by three t0 191 rigs running across our coverage area by the end of last week. The NDIC notes 185 rigs are active in North Dakota, but around 14 of those are in the process of moving in and rigging up.

In recent Bakken news, research consultancy IHS Energy reports most shale plays are economic and ~80% of potential drilling in 2015 would remain strong at WTI crude oil prices as low as $70 per barrel.

WTI traded at ~$67 today, a nearly 40% drop from June of 2014. As a result, Bakken operators, including Emerald Oil, Inc., have already announced plans to potentially scale back their drilling programs in 2015.

North Dakota’s Department of Mineral Resources (DMR) Director Lynn Helms updated lawmakers in October on the status of oil & gas development in the state. Helms said two factors could negatively impact oil production – lower oil prices and new flaring regulations.

Read more: IHS: U.S. Shale Production Growth Will Slow, But Still Remain High

The U.S. rig count increased by decreased by 12 to 1,917 rigs running by the end of last week. A total of 344 rigs were targeting natural gas (11 less than the previous week) and 1,572 were targeting oil in the U.S. (two less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.). 191 rigs are running in the Williston Basin across MT, ND, and SD. 180 are in ND alone.

Not all rigs counted in our census are drilling for the Bakken, but it’s close. The NDIC estimates 95% or more of activity in this region targets the Bakken and Three Forks formations.

Note: The NDIC reports 185 rigs are active in North Dakota. That figure is six less than Baker Hughes reports in the Bakken area, and five more than the company reports in North Dakota. On any given week, a certain number of rigs are in route to the next well location or idle waiting to drill the next well. The NDIC notes that around 14 rigs are in the process of moving in and rigging up.

Bakken Oil & Gas Rigs

The number of oil rigs increased by three to 191 rigs running by the end of the week . WTI oil prices decreased by ~$10.00 from the previous week, trading at $67.48/bbl on Monday morning. Williston Basin Sweet crude traded at $49.69/bbl on November 28th. The WTI-Brent stayed flat, settling at just under $4 by the end of last week.

One natural gas rig was recorded in the region. Natural gas futures (Henry Hub) were trading at $4.05/mmbtu by the end of last week. A little more than 10% of the production stream from the Bakken and Three Forks is attributable to natural gas and roughly half of that is NGLs.

McKenzie County continues to lead development with 66 rigs running. Mountrail, Williams and Dunn counties are the only other counties with more than 27 rigs running each. View the full list below under the Bakken Drilling by County section.

Activity is dominated by horizontal drilling:

  • 176 rigs are drilling horizontal wells
  • 13 rigs are drilling directional wells
  • 2 rigs are drilling vertical wells

Bakken Oil & Gas News

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

County State Previous Week Current Week County State Previous Week Current Week
MCKENZIE ND 66 66 WIBAUX MT 0 1
WILLIAMS ND 40 42 MCLEAN ND 1 1
MOUNTRAIL ND 29 29 RENVILLE ND 1 1
DUNN ND 26 27 STARK ND 1 1
RICHLAND MT 6 5 MCHENRY ND 1 1
DIVIDE ND 5 5 DANIELS MT 0 0
ROOSEVELT MT 3 3 SHERIDAN MT 0 0
BILLINGS ND 3 3 VALLEY MT 0 0
BOTTINEAU ND 2 2 GOLDEN VALLEY ND 0 0
BURKE ND 2 2 MERCER ND 0 0
DAWSON MT 1 1 WARD ND 0 0
FALLON MT 1 1

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.

]]>
http://bakkenshale.com/drilling-rig-count/bakken-shale-rig-count-increases-by-three-to-191/feed/ 0
IHS: U.S. Shale Production Growth Will Slow, but Still Remain High http://bakkenshale.com/news/ihs-u-s-shale-production-growth-will-slow-but-still-remain-high/ http://bakkenshale.com/news/ihs-u-s-shale-production-growth-will-slow-but-still-remain-high/#respond Tue, 25 Nov 2014 15:37:31 +0000 http://bakkenshale.com/?p=6567 ND Pump Jack Photo

ND Pump Jack | Click to Enlarge

The dip in oil prices isn’t making a huge impact yet on the vast majority of U.S. shale production.

According to a report by research consultancy IHS Energy, most shale plays are economic and ~80% of potential drilling in 2015 would remain strong at WTI crude oil prices as low as $70 per barrel.

“Since 2008 the cumulative growth in U.S. tight oil production has been 3.5 million b/d—far exceeding supply gains from the rest of the world combined—making tight oil the key driver of global supply growth,” said Jim Burkhard, Vice President, IHS. “While current lower crude oil prices do present challenges for new investment, IHS analysis shows that the vast majority of potential U.S. supply growth in 2015 remain economical at $70 for WTI.”
                                                                        Jim Burkhard, VP IHS        

WTI traded at ~$76 on Monday, a nearly 20% drop since September. As a result, Bakken operators, including Emerald Oil, Inc., have already announced plans to potentially scale back their drilling programs in 2015.

Read more: Emerald Oil May Scale Back Bakken Drilling Program in Q1 2015

North Dakota’s Department of Mineral Resources (DMR) Director Lynn Helms updated lawmakers in October on the status of oil & gas development in the state. Helms said two factors could negatively impact oil production – lower oil prices and new flaring regulations.

Read moreBakken Drillers Could Be Forced to Scale Back 2015 Efforts

Growth Still High, But Expected to Slow in U.S. Shale Plays

At lower prices, growth will slow, but still remain high, according to the report. In 2015, IHS estimates U.S. shale production will grow by 700,000 b/d at an average price of $77 per barrel in 2015. By contrast, in 2014, growth from U.S. shale plays was more than 1-million b/d.

“Expectations of the future—and the trajectory of oil prices—means that prices do not need to fall to the breakeven price before psychology, investment, and thus output, is affected,” Burkhard said.”

Approximately 80% of anticipated production has a break-even price between $50 to $69 per barrel, according to the report.

]]>
http://bakkenshale.com/news/ihs-u-s-shale-production-growth-will-slow-but-still-remain-high/feed/ 0