I recall seeing this article when it was first posted some time ago, but elected not to post it. A reader recently referenced it so I thought it best to post the link for archival purposes.
This is Art Berman suggesting that data in December, 2016, suggested that we were seeing the "beginning of the end" for the Bakken. The article begins:
It’s the beginning of the end for the Bakken Shale play.Perhaps he mentioned it, but if so, I missed it:
The decline in Bakken oil production that started in January 2015 is probably not reversible. New well performance has deteriorated, gas-oil ratios have increased and water cuts are rising. Much of the reservoir energy from gas expansion is depleted and decline rates should accelerate. More drilling may increase daily output for awhile but won’t resolve the underlying problem of poorer well performance and declining per-well reserves.
December 2016 production fell 92,000 barrels per day (b/d)–a whopping 9% single-month drop. Over the past two years, output has fallen 285,000 b/d (23%). This was despite an increase in the number of producing wells that reached an all-time high of 13,520 in November. That number fell by 183 wells in December.
- an emphasis that this was December data (winters can be tough in North Dakota); and,
- the Saudi surge had resulted in huge drop in price of WTI
Art Berman is a proponent of peak oil.
The NDIC Director's Cut is scheduled to come out today. It will be interesting to see where the Bakken is today. [Update: June data released in the Director's Cut today.]
Such a depressing story (the Art Berman story above). Time for some music. Art Berman caught in his own echo chamber?
Why the Muffins, you ask? Probably because all the animal and insect names had been taken.