Saturday, April 16, 2016

One Picture Is Worth A Thousand Words; Just How Incredible Is The Bakken? Re-Visiting The Red Queen -- April 16, 2016


April 17, 2016: cost of producing a bbl of oil; worldwide breakout
Original Post
Source: wells on multi-well pads.

Just How Incredible Is The Bakken? The Red Queen Re-Visited

If "they" are not drilling (only 29 rigs vs 200 during the boom) and they are not fracking in North Dakota, what are "they" doing? Compare with number of rigs on the Arabian peninsula. Rising exponentially.

Wells in the Bakken are being shut-in for weeks and months at a time.

Even producing wells are being taken off-line for days and weeks at a time; production is being managed.

There are estimated to be at least (in round numbers) fifteen hundred (1500) inactive wells. They can be back on-line in less than a week.

There are almost 1,000 DUCs. It takes three days to frack a well. Once fracked, moments later, the "new" oil is in the national pipeline system.

The February, 2016, production data is "preliminary." We won't know "final, revised data until next month, but if the final, revised production increases by just 4,250 bopd, North Dakota's daily production month-over-month will have increased.

Just how incredible is the Bakken? Pert near pretty incredible. 

Again, if "they" are not drilling, and they are not fracking, what are "they" doing? At least one operator has said "they" can make money on $25-oil in the Bakken. My hunch is some "new" operators (buying stressed property at fire-sale prices) can make money on $10 oil. They're not fracking and they aren't drilling. The aren't building new pads. They aren't building new roads to the pads. They aren't signing huge lease checks.

Rhetorical questions and comments. 

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