Is the Bakken America’s Last Oil Boom?

EOG CEO Bill Thomas Says There's Not Another Bakken Out There
EOG CEO Bill Thomas

EOG CEO Bill Thomas

At the Thirtieth Annual Sanford C. Bernstein Conference on May 29, 2014, EOG Resources CEO Bill Thomas indicated the company doesn’t see another shale play of the same magnitude as the Bakken or Eagle Ford on the horizon.

According to Thomas, the Bakken and the Eagle Ford currently produce 75% of all horizontal oil production in the U.S., but he notes the two plays are beginning to mature, and their growth rates are beginning to slow.

 

 

Thomas said, “we don’t see another play out there that’s like an Eagle Ford or Bakken that will maintain this tremendous growth that we have had going forward. So production we believe is beginning to slow. In 2012, [production] was about 1-million b/d per year and then last year was a little over 800,000 b/d per year. We are looking at maybe this year 750, maybe in 2016 650,000 b/d per year and really over a fairly short period of time we really believe that the U.S. will be in kind of a very low growth mode. So oil is not going to just go on forever because there is not really another Eagle Ford or Bakken out there.”

Thomas’ postulation about the Bakken and Eagle Ford, which is likely an accurate depiction, doesn’t diminish the impact these plays have already had, or will continue to have on the oil and gas industry, and the U.S. economy. According to the EIA, production in the Bakken Shale has now exceeded the 1-million b/d mark. Recently, Continental Resources, the Bakken Shale’s largest producer, released data showing the Bakken field of North Dakota and Montana reached the milestone of 1-billion bbls of cumulative light, sweet crude oil produced during first quarter of 2014.

Read more: Continental Resources: Bakken Hits 1-Billion Barrel Mark

EOG Resources Nearly Doubling Bakken Activity in 2014

EOG to Drill 80-Net Wells in the Bakken in 2014
EOG Bakken Acreage Map

EOG Bakken Acreage Map | Click to Enlarge

EOG Resources sees the Bakken as a high rate of return growth play, and plans on drilling 80-net wells in 2014.

That’s nearly double the number of net-wells drilled in 2013, which was 54. At that rate, the company has a drilling inventory in the Bakken of ~8 years.

Read more: EOG Will Utilize Self Sourced Sand in Bakken Completions

[Read more...]

EOG Will Utilize Self-Sourced Sand in Bakken Completions

The Best Wells in Q3 Came Online Producing More Than 2,000 b/d
EOG Resources Bakken Map

EOG Resources Bakken Map | Click to Enlarge

EOG Resources is shifting to self-sourced sand for use in completions in the Bakken and Three Forks. The company has owned and operated sand mines supplying other plays for years.

EOG’s sand mines will contribute to significant well cost savings. [Read more...]

EOG Resources’ Secrets To Success In The Bakken & Other Shale Plays

Rail Cars, Sand Mines, & Microseismic Add Value In EOG's Shale Plays
Oil Rail Car Image

Click to Enlarge

EOG Resources opened North Dakota to the modern oil industry when the company discovered the Parshall Field in 2006. The company led the shift to horizontal drilling and hydraulic fracturing in oil plays like the Bakken and Eagle Ford. Forbes published an interesting article on the company in July. [Read more...]

EOG’s Bakken Downspacing & Three Forks Second Bench Look Promising

EOG Grows Company-Wide Crude Oil Production 33% Year-Over-Year
EOG Resources Bakken Shale Map

EOG Bakken Map | Click to Enlarge

EOG Resources announced results from the first quarter of 2013 and impressive well results in the Bakken and Three Forks were included.

The first test of the second bench of the Three Forks yielded promising results in the company’s Antelope Extension acreage in McKenzie County, ND. The Riverview 03-3130H was completed to sales at 3,150 b/d of oil. Additional tests are planned in the same area. [Read more...]

Top 10 Bakken Operators – December 2012

Whiting & Continental Battle It Out For Top Spot In ND
Bakken Shale Operated Production Dec 2012

Bakken Shale Operated Production Dec 2012 | Click to Enlarge

The top ten Bakken operators ranked by gross operated production include the normal list of companies. Whiting Petroleum edged out Continental Resources by a mere 15 b/d to claim top operated in December of 2012:

  1. Whiting Petroleum
  2. Continental Resources
  3. Hess
  4. Statoil
  5. EOG Resources
  6. ExxonMobil (XTO)
  7. Marathon Oil
  8. Petro-Hunt
  9. Slawson Exploration
  10. Kodiak Oil & Gas

 

EOG Resources’ Bakken Core Acreage Could See 160-Acre Development

Downspacing at 320-Acres Proven in 2012
EOG Resources Bakken Shale Map

EOG Bakken Map | Click to Enlarge

EOG Resources reported improvement in wells after implementing new completion techniques in 2012. In the company’s core acreage centered around the Parshall Field, 320-acre spacing success has been confirmed and the company is encouraged by early results at 160-acre spacing. Recent wells are indicating cumulative production over previously drilled wells has improved by a range of 30-70%. [Read more...]

EOG Resources Planning 320 Acre Bakken Wells – Parshall Field

Focusing in on the company's core acreage and slowing down in 2012

EOG Resources released a mixed bag of news for the Bakken in its year-end conference call. The company has successfully tested down-spacing to 320-acres in the Parshall Field of Mountrail County, but is also lowering its Bakken rig count to seven in 2012. EOG will drill 60 net wells in the Bakken and commence a secondary recovery pilot in its core area. The company reported 162 million boe of proved reserves in the Bakken/Three Forks at the end of 2011.

It will be real interesting to see how secondary and even tertiary recovery will fair in the Bakken. Secondary recovery can as much as double the amount of hydrocarbon produced in traditional fields, but it could be much less in unconventional reservoirs like the Bakken. [Read more...]

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