Weekly Bakken Roundup – OAS and SLCA stay strong

Our 2013 picks have gotten off to a great start this year with Oasis (OAS: 8.60 -0.81%) up about 15% since the start of the year and US Silica (SLCA: 28.11 +1.08%) is up 20% since the start of the year.    With oil prices steadily creeping up as the market strengthens,   Bakken stocks have increased steadily over the last few weeks buoyed with the overall market.  In addition,  some key developments have occurred in the Bakken region in the past few weeks:

  • A new report out this month from the Federal Reserve Bank of Minneapolis indicates that the Bakken oil boom is now five times larger than the area’s oil boom of the 1980’s. Oil production from the Bakken increased 16 % from May thru October of 2012, while the Bakken area now accounts for 11 % of total U.S. oil production  (SOURCE:  kbzk.com)
  • Continental Resources (CLR: 36.89 -1.42%),  the top producer and leaseholder in the Bakken said it increased its year end 2012 proved reserves 54% to 785 million bbl of oil equivalent. With the 2012 increase, CLR said, it has grown its proved reserves 45% per year since the end of 2009.
  • Enbridge’s (ENB: 41.22 -0.70%) pipeline system has been underused for the past three months as railroads move more oil out of the Bakken shale play, a refining company told U.S. regulators. Enbridge plans to expand its pipeline network out of the Bakken but expects railroads to continue to create a competitive landscape for oil transportation out of the Bakken region.
  • Not everyone is so bullish on the Bakken,  Arthur Berman has a compelling article on why the Bakken Boom will not last forever.   Take a look at it, here


Until next time,  Keep drillin’