Hess Corporation recently announced revisions to its 2015 capital and exploratory budget that includes a big cut in the Bakken. The company plans to reduce spending in the region by 18% from 2014 numbers, hoping to allow the company to remain flexible in the face of an extreme pricing environment.
The company has revised its budget several times in response to the sharp decline in crude prices throughout 2014. The company reduced 2014 capital expenditures below its planned capital budget of $5.8 billion and the capex budget for 2015 is is $4.7 billion.
Related: Hess Increases Bakken Production Guidance Through 2020
“Greg Hill, President and COO, stated that “We are reducing our 2015 spending in the Bakken to $1.8 billion, compared with $2.2 billion in 2014. In 2015, we plan to operate an average of 9.5 rigs and bring approximately 210 new operated wells online, compared with 17 rigs and 238 operated wells brought online in 2014. Hess has some of the best acreage in the Bakken, and we will continue to drill in the core of the play which offers the most attractive returns. As oil prices recover we will increase activity and production accordingly.”
Overall, Hess reported an $8 million net loss for the fourth quarter of 2014 with oil and gas production increasing to 362,000 (boepd). This is an increase of 16% (55,000 boepd) from the fourth quarter of 2013. Bakken oil and gas production was up 50% from 2013 to 102,000 boepd. This increase was due to continued drilling activities and the completion of the Tioga gas plant expansion project.
Related: Hess Production To Soar in Bakken By the End of 2014
Hess Corporation has been involved in the Bakken Shale Play since they first discovered oil in North Dakota in 1951. Today the company owns substantial acreage in the region and has operations in Tioga, Minot, Keene, Killdeer and Fryburg, making Hess one of the largest oil and gas producers in North Dakota.
Read more at hess.com