Everyone has heard of the Bakken. The Bakken is the reason why North Dakota has emerged as the second largest oil producing state in the U.S., jumping from just 310,000 barrels per day in 2010 to nearly 1.1 million barrels per day in 2014.
Upstream oil and gas companies have flocked to the Bakken, gobbling up acreage and drilling at a torrid pace in order to cash in on the basin. Drilling has certainly slowed down as oil prices have collapsed, but the Bakken still has long-term potential. Companies are putting much of their plans on hold, but will almost certainly spring back to life when oil prices rise.
The Alberta Bakken
However, there is a basin to the west of the Bakken that garners a lot less media attention, even though there is also a tremendous amount of potential. The Alberta Basin, which stretches across the border between northern Montana and southern Alberta, shares a lot of similarities to the North Dakota Bakken, located in the Williston Basin. Due to these similar features, the Alberta Basin has been dubbed the “Alberta Bakken.”
The Alberta Bakken could hold 2 to 3 billion barrels of light to medium, recoverable oil. It has good porosity and permeability, and is thought to be “less tight” than other tight oils.
The Alberta Bakken has been on the radar of some companies, but has been quiet in recent years as North Dakota has taken all the attention. Newfield Exploration (NYSE: NFX)…