The Million Dollar Way (The Bakken Oil Blog): There's A Lot More Happening In The Bakken Than You Might Think -- RBN Energy -- May 28, 2024

Tuesday, May 28, 2024

There's A Lot More Happening In The Bakken Than You Might Think -- RBN Energy -- May 28, 2024

Locator: 47967B.

I'm having difficulty thinking of a bigger Bakken story than the Chord-Enerplus merger. This deal is tracked at the sidebar at the right.

From last week: folks are misreading the reason for the doubling of the price being offered from 2022 to 2024.

RBN Energy: there's a lot more happening in the Bakken than you might think. Archived.

On the surface, the Bakken story in the mid-2020s may seem as boring as dirt. The boom times of 2009-14 and 2017-19 are ancient history. Crude oil production has been rangebound near 1.2 MMb/d — well below its peak five years ago. And that output has been getting gassier over time, creating natural gas and NGL takeaway constraints that have put a lid on oil production growth. But don’t buy into the view that the Bakken is yesterday’s news. Beneath the surface (sometimes literally), the U.S.’s second-largest crude oil production area is undergoing a major transformation that includes E&P consolidation, production (and producers) going private, the drilling of 3- and (soon) 4-mile laterals, novel efforts to eliminate flaring, and even a producer-led push for CO₂-based enhanced oil recovery (EOR). As we’ll discuss in today’s RBN blog, these changes and others may well breathe new life into the Bakken and significantly improve the environmental profile of the hydrocarbons produced there.