Friday April 28, 2016
In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.
Let’s take a look.
1. Bakken is rebounding
(Click to enlarge)
- North Dakota was hit hard by the oil price downturn, with companies scrapping rigs and laying off workers. Oil production in the Bakken fell from a peak of 1.2 mb/d in late 2015 to below 1 mb/d a year later.
- The Bakken was hit again when oil companies realized that the Permian was much more competitive. Shale companies began withdrawing from the Bakken and redeploying assets into the Permian.
- The lack of pipeline infrastructure pushed down the prices that Bakken producers could obtain, forcing them to offer discounts to get their crude onto pipelines. Otherwise they had to move crude by rail.
- But the rise of oil prices to $50 has some companies drilling again in the Bakken. The rig count is up and production is finally starting to rise again, putting output back above 1 mb/d.
- In fact, Reuters reports that the first shipment of Bakken crude was recently exported abroad. The completion of the Dakota Access Pipeline will boost the competitiveness of the Bakken, allowing more oil from North Dakota to make its way to the Gulf Coast.
2. Jobs in renewables surging