Bakken Shale Expected to Hit 1.19-Million b/d in Nov. 2014

EIA Bakken Production Data
EIA Bakken Production Data

The Bakken Shale is expected to produce 1.193-million b/d of oil in November, up 22% from the same time last year, according to the Energy Information Administration's (EIA) Drilling Productivity Report. October's total production from the play is expected to be 1.164-million b/d.

Despite lower crude prices, EIA data shows gains in production across all major U.S. shale fields. According to the International Energy Agency (IEA), only 4% of U.S. shale production needs prices above $80 for drillers to break even. In April of 2014, consultancy Wood Mackenzie issued a report that estimated break-even costs in the Bakken based on sub-plays. Break-even rates in the Sanish basin, one of the better areas for development in the Bakken, are estimated to average $58/bbl, according to the Wood Mackenzie report. Break-even costs were higher in other areas of the play.

Bakken operators continue the trend to be more efficient. EIA data for October shows new-well oil production per drilling rig is at 530. This is expected to increase to 537 by November.

Gains in Texas

In the Eagle Ford Shale in South Texas, and the Permian Basin in West Texas, gains were similar to the Bakken on a month-to-month basis.

The EIA estimates the Eagle Ford will produce 1.614-million b/d of oil November, up 29% from the same time last year. That's also a ~2% increase from October's expected production of 1.579-million b/d.

The Permian's October production is expected to be 7.765-million b/d, and increase ~2% to 1,807-million b/d in November.