Bakken production data released today.
The North Dakota Dept. of Mineral Resources released the data today for October oil and gas production. As expected it hit a new record of 941,637 barrels per day with 93% of the production coming from the Bakken and Three Forks. Natural gas production also hit a new record high. More gas was sent into pipelines reducing the percentage being flared to 28%.
The number of producing wells also hit a new record reaching 9,900. The state wide well count rose 199 but 195 of those were in the Bakken and Three Forks.
The surprise comes though when the increase in well count in the Bakken is viewed in light of how much net new production was added. Total daily oil in the Bakken climbed by only 8495 barrels per day reaching a new high of 876,544 barrels per day. For a comparison in September only 134 new producing wells add 20,359 net new barrels of production in the Bakken. Each of those 8495 new wells add in November only contributed 44 barrels of net new production to the total. Does this means that the combination of legacy declines and the ending of some production in legacy wells eroded a very large portion of the gross new production from nearly 200 new wells in the Bakken? Or as the director’s cut asserted it was a function of roads being closed in McKenzie County due to rain.
The price of North Dakota crude reported is still running more than $20 per barrel below WTI at $73 today.
Next week’s report will take a further look at the data from North Dakota.
Panel discussion on energy at Rice University
This three person panel did a great job of discussing a wide ranging number of topics that related not only to hydraulic fracturing but national energy policy and environmental concerns surrounding energy extraction.
The panel consisted of three energy industry experts —Arthur E. Berman, a Texas geologist and shale skeptic; Scott W. Tinker, the director of the Bureau of Economic Geology at the University of Texas at Austin; and Kenneth Medlock III, an energy fellow at the James A. Baker III Institute for Public Policy.