The Core Of The Bakken -- In One Graphic -- As Understood By Wall Street -- May 26, 2016

I've posted this link/story earlier. It was from The Wall Street Journal. The reason I'm posting it again is to show folks in the Bakken what Wall Street and the folks in New York City are being told about the Bakken, as seen in this graphic:

I guess if the shaded area is the "Core," the actual Bakken must extend east into Minnesota and south into Nebraska. Whatever.

And this reminder: Donald Trump will be in Bismarck tomorrow. It would be great to see a photo of the Trump logo on his jet on the Bismarck airport tarmac, or on his helicopter on a Bakken 12-well oil pad. LOL. 

The accompanying article did not mention Dickinson, though it did mention Williston (as the by-line), and Tioga:

Just 27 drilling rigs are active in North Dakota, matching a low last seen in July 2005 and down from an all-time high of 218 in 2012, according to the state’s Department of Mineral Resources. But data from the Energy Information Administration show output per rig has increased by more than one-third over the past year in the Bakken.

Exxon Mobil increased net production in the Bakken and another shale play in Texas called the Permian by nearly 25% last year. “With cash operating cost at less than $10 per barrel, our Bakken and Permian developments remain attractive and competitive even in the current environment,” CEO Rex Tillerson told investors on a conference call in March.

I thought this was interesting:

“If we make the right calls in 2016, it’s going to define the next decade,” Torgrim Reitan, Statoil’s Houston-based executive vice president for U.S. operations, said in an interview.

Mr. Reitan said that even with higher prices, growth will remain subdued as the industry has learned to do more with fewer rigs and workers. “We will not go back to the activity levels we used to have,” he said.

And then this:

Hess, which exported the first cargo of Bakken crude from the U.S. Gulf Coast last month, says it is implementing lean manufacturing techniques borrowed from Toyota Motor Corp. such as just-in-time supply chain logistics and greater use of standardized parts. 

It is operating three rigs, down from a high of 17 in 2014, but it has increased the number of wells drilled per rig to 22 a year, up from 16 wells a year 18 months ago.

Standing near a quartet of pump jacks surrounded by farm land, David McKay, the vice president of what Hess calls its Bakken “Well Factory,” credits the downturn for forcing producers to rethink their operations. “There was a time when we were all cheeks and heels” in the rush to boost output, he said in an interview. “The slowdown actually has helped convince people of the need to do everything more efficiently,” he said.

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Sea of Love, Narvel Felts