Happy Thanksgiving: A helping of the Bakken

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: 45.69 -0.76%)  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: 36.935 -1.296%) 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’



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