Happy Thanksgiving to all! Thanks for taking timeout for a helping of Bakken during the holiday.
The market looks to have stabilized in the short term in anticipation of a deal in the works to avert a fall off the fiscal cliff. After a downturn earlier this month, the Dow saw a rebound of 2% this past week and most Bakken plays also pared some of their losses from a few weeks ago. Here are some of the tidbits that surfaced over the last week.
- Reuters analyst John Kemp stated Crude production from the Bakken and Three Forks formations could rise by another 50-100 percent in the next three years, and not start to decline until 2020 or even 2025, according to official projections from the North Dakota Oil and Gas Division.
- Similarly , Chris Micsak, senior energy analyst with energy researcher Bentek, estimates that daily production will reach 748,000 barrels in November, with an additional 81,000 barrels coming from the Bakken’s Montana side
- Canadian and Bakken crude grades strengthened against the benchmark U.S. oil price as TransCanada Corp.’s Keystone pipeline returned to service. The 590,000-barrel-a-day pipeline was shut down unexpectedly for five days, constraining flows from North Dakota, when an “anomaly” was found on the pipeline during routine work.
- Hess (HES: 39.29 -3.46%) third-quarter oil and gas production rose 17 percent to 402,000 barrels of oil equivalent per day (boe/d). Production from the oil-rich Bakken nearly doubled to 62,000 boe/d, while the Waha concessions in Libya added 23,000 boe/d to output. Net income attributable to Hess rose to $557 million, or $1.64 per share, from $298 million, or 88 cents per share, a year earlier.
- Continental Resources (CLR: 32.68 -1.39%) disclosed on November 7 that it has entered into an agreement to acquire producing and undeveloped properties in the Bakken for $650 million. The property includes leasehold of approximately 120,000 net acres, primarily in Divide and Williams counties, North Dakota, and production of approximately 6,500 Boe/d
Until next time, keep drillin’