Oil prices continued to climb…
A year after President Joe…
There was a surprisingly hefty increase in Bakken production in September, up 52,568 bpd to 1,120,031 bpd.
North Dakota production was up slightly less, 52,394 bpd to 1,184,693 bpd. This means production outside the Bakken was down slightly.
These big increases happen every so often and are usually followed by a not so large increase for a few months. I think there is some kind of reporting anomaly here. But as you can see the 12 month average increase gives a better indication of what is really going on.
From the Director’s Cut:
Aug Producing Wells = 11,565
Sep Producing Wells = 11,741 (preliminary)(NEW all-time high)
8,238 wells or 70% are now unconventional Bakken – Three forks wells
3,503 wells or 30% produce from legacy conventional pools
Aug Sweet Crude Price = $78.46/barrel
Sep Sweet Crude Price = $74.50/barrel
Oct Sweet Crude Price = $68.94/barrel
Today Sweet Crude Price = $58.75/barrel (all-time high was $136.29 7/3/2008)
WTI Trigger price is at $77.18 today. The 2014 calendar year extraction tax trigger price
is $52.06. Extraction tax exemptions are triggered after 5 months below that price.
Aug rig count 193
Sep rig count 195
Oct rig count 191
Today’s rig count is 186 (all-time high was 218 on 5/29/2012)
The drilling rig count was up two from August to September, then dropped four
September to October and has since fallen five more from October to today. The number of well completions decreased from 272 in August to 176 in September. The primary cause is the focus on flaring reduction. Several operators have reported postponing completion work to achieve the NDIC gas capture goals. There were no major precipitation events, but there were 5 days with wind speeds in excess of 35 mph (too
high for completion work).
The drillers and completion crews pretty much kept pace in September. At the end of
September there were about 610 wells waiting on completion services, an increase of 10.
This makes no sense at all. Well completions were down by 94 from August yet production increased three times the August increase.
All North Dakota producing wells stand at 11,406, up 196 by the North Dakota published stats. That is considerably different from Lynn Helms’ count of 176. I cannot explain that discrepancy.
Bakken barrels per day per well was up by 3, from 129 t0 132.
I know this is a short post but there is just nothing more to report. Why was production up by a multiple of three while well completions were down by one third? Will someone please explain that?
By Ron Patterson
Source – www.peakoilbarrel.com
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Ron Patterson is a retired computer engineer. He worked in Saudi Arabia for five years, two years at the Ghazlan Power Plant near Ras Tanura…