Director's Cut -- August 18, 2011 -- Bakken, North Dakota, USA

Overall theme: more of the same; no surprises.

Link here.

Production hits (another) all-time high in North Dakota:

• May, 2011, oil: 361,407 bopd 
• June, 2011, oil: 384,678 bopd (all time high) (6.4% increase m-o-m)
• May producing wells: 5,579
• June producing wells: 5,558

Permitting

• May, 2011: 154 drilling
• June, 2011: 138 drilling

Pricing

• May, 2011: sweet crude, $94.69
• June, 2011: sweet crude, $91.69
• Back of envelope calculations: April, 351,183 x 103.91 = $36.491 million; May 361,407 x 94.69 =$34.221344 million; June, 384,678 x $91.69 = $35.271 million

Director's comments:

The summer surge is picking up steam. But, idle well count sured to over 900 wells in June. Crude take away capacity is more than adequate. As fall approaches and the rig count rises, permit activity is expected to increase so locations can be built prior to winter weather.

Rigs

• 20,000-foot capable rigs: over 90% utilization rates
• 7,000 or less-capable rigs: about 50% utilization rates