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.
- 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.
Read more at conocophillips.com