Multi-Part Series on Bakken Trends, 1Q13 -- Michael Filloon

The first in the series was linked earlier.

Here is Part II.

Again, Mike is stressing the cost of wells, which is coming down faster than most folks realize, he has previously said:

There are many variables driving what could be a run on Bakken stocks (and others). The first is pad drilling. This not only decreases drilling costs and time, but most importantly allows zipper fracs. Without going into a great amount of detail, it essentially means the completion crew can complete several wells at the same time.

For some operators, three completions can be done in the same amount of time as doing just one completion on a single well. Other costs are decreasing, such as proppant and f rac fluids. All said, costs are down 20% from 2012 and look to drop another 10% to 20% by 2013 year end. Pipe continues to be put in the ground providing for clean water to the well site.

It also allows for crude, produced water and gas to leave the well site without using trucks. Bidding jobs have become easier as wait times have decreased to a manageable level. Not only can operators choose the least expensive, but also have the option to pay a little more for a Haliburton crew for a little more to make sure things get done right.