Like a broken record: North Dakota oil production hits another high

October production stats are out.  New graphs at end of this post.

Bakken-only daily production hit 682,393 for the month. Increase of 2.9% over revised September info (late reports arrive which result in increasing prior data).  That’s the first month of over 20M barrels from Bakken.

Compared to December 2012 Bakken production, which was 469,769 bopd, that is an increase of 212,624 bopd in 10 months, a 45.3% increase in 10 months.

Statewide production is 747,239 bopd for the month.

Back of the envelope calculation for the dollar volume of oil revenue  

Do a little math if you want to see how staggering this is.

  • Revenue:  Bakken only production of 21.1M barrels, revenue about $81/bbl in Oct per Director’s Cut, equals about $1.71 billion per month gross revenue.  Annualized that would be about $20.6B a year. 
  • Investment:  There are 4,415 producing wells in Bakken.  Let’s assume current cost of a new well is $7m to $10m and let’s assume that means an average well cost $7 million (probably high for an average).  That means there has been around $30.9 billion invested in those wells.
  • Return picture:  That’s an annualized $20B revenue on roughly $31B invested.  Amazing.

Graphs:

ND production 89 to 10-12

ND production 08 to 10-12

Carpe Diem has great discussion

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