The comeback of oil may have been slower than desired or expected, but the numbers building up behind the scenes show it is building for a comeback that may be stronger than some might wish, the state’s top regulator of oil and gas said Wednesday.
“OPEC doesn’t want oil at $25 and they don’t want it at $75,” Lynn Helms, director of North Dakota’s Department of Mineral Resources, said. “That $50 is no miraculous number, it’s where most of the shale plays aren’t going to play.”
I've said the same thing for quite some time now: the sweet for the US when it comes to oil - $46 - $52.
Scenarios:The reasons he is so confident include the fact that half of the project well numbers are either already in the queue or in the process of being permitted for drilling and completion, as well as moves he is aware of, to keep industry moving in the Bakken.
He has prepared three price scenarios to help agencies in their planning efforts. These include a price shock scenario, with oil prices suddenly going back to $75 and $80 ranges, as well as a more likely medium scenario, where it sits at $45 a barrel through much of 2017, hits $55 in 2018 and hits $65 in 2019. That one has rig counts at 30, 50 and 70 respectively.
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