Related Articles
Forward article link
Share PDF with colleagues

Bakken powers ahead with production despite low oil price

Opec countries and other producers hoping that a lower oil price is going to lead to a quick fall in production from the Bakken oilfield in North Dakota, the US' most prolific shale producer, are likely to be left disappointed

The biggest question for the Bakken, and US production as whole, as the oil price has fallen has been at what point producers start packing up their rigs and going home. It is not a straightforward question. Breakeven costs vary widely between shale oilfields and between the core and fringe areas of the same play. Moreover, they are constantly evolving as new technologies and methods are brought into the oil patch. However, it appears that in the Bakken at least, operators have a large enough inventory of relatively low breakeven cost wells in the core of the play to keep production rising for at least another year.  After drilling around 10,000 wells in the play, there are few surprises l

Also in this section
Opec and IEA diverge on world’s capacity cushion
13 July 2018
As trade tensions and disruptions ripple through the market, Opec and the IEA disagree on the risks to supply
Oil markets on the rise
10 July 2018
The oil-price recovery has helped to improve the outlook for oil and gas capital markets
Strategy v market dynamics
6 July 2018
Members must consider a host of complex issues as they wrestle with the problem of managing oil supply