We need to learn quickly to keep up with the massive change around us so we don't get run over. We need to outrun change.
Lots of news sites are reporting on some data released by the North Dakota Department of Mineral Resources.
Here’s the key data:
Typical well in Bakken and Three Forks fields will produce about 540,000 barrels of oil during a 29 year lifespan.
Cost to drill is typically $7.9M
During that run a typical well will generate: Continue reading “Expected lifetime production data for a Bakken well”
Previous post provided daily production and number of wells in the Bakken area and North Dakota overall.
The accountant in me wanted to see the per well data with that same breakout. What did I find?
Productivity of wells outside Bakken is declining. In the Bakken area productivity is much higher and increasing.
Here is the average barrels per day per well. The averages are for NOrth Dakota in total, Bakken only, and then all others outside Bakken:
Geo ExPro has good background on drilling in the Bakken field in their article From Trickle to Gusher: the Bakken Oil Story, by Thomas Smith.
Some historical data:
North Dakota’s Bakken Formation oil production was just 1,500 bpd in 2004…
The increase of Bakken oil production in North Dakota has come within the past five years. In the beginning of 2007, North Dakota had 303 wells producing 12,000 bopd. By early 2009, that number had risen to 904 wells producing 106,000 bopd. Jump to November of 2011 (the most recent date published for North Dakota) where 3,118 wells were producing 443,425 bopd.
Continue reading “Some moderately technical background on drilling history in Bakken”
Update: Bottom line on the back of the envelope – 1.9 year breakeven point.
I’ve been wanting to do some math on the economics of drilling. Now’s the time.
UPDATE – Revised for higher productivity of Bakken wells of 142 barrels per day.
Previous post provided some data from an article in the Chicago Tribune for Occidental Petroleum – Insight: Peak, pause or plummet? Shale oil costs at crossroads
The Chicago Tribune provides a few pieces of info for drilling costs in their aricle Insight: Peak, pause or plummet? Shale oil costs at crossroads
The article, by Selam Gebrekidan, gives some pricing data from Occidental Petroleum.
The cost of bringing one Bakken well into production has grown from an average $6.5 million in 2010 to $8.5 million in the first quarter this year, data from company reports and the state regulator show.
Break even point:
Efficient forms of fracking are also helping companies extract more oil from each well, lowering the break-even cost of production, now estimated between $55 and $70 a barrel.
For the economics of drilling, here is some market data: Continue reading “One set of data points for the cost of drilling in Bakken and the beauty of pricing signals”
North Dakota Oil is an introduction to the amazing oil boom in the Bakken field. The Bakken spreads across North Dakota, Montana, and Saskatchewan and is the source of the economic boom in western North Dakota.
The report is a 21 page overview of the Bakken field, oil drilling in general, fracking in particular, and the astounding opportunities for jobs and oil production. It was produced by Oppidan.
Continue reading “Introduction to the Bakken field, drilling in general, and the economic impact”
Count of oil field drilling rigs week of May 11 – 209 & 282.
Continue reading “Rig count in Bakken and Eagle Ford fields – 5-11-12”
The Williston Herald reports that Average Wage in Williams County nearly $71,000 a year.
In 1¾ years through September ‘11, there were 12,000 new jobs in the city.
Wages? Check this out: Continue reading “Oil boom equals high pay for lots of jobs”
Let’s talk round numbers. Half a million barrels of oil a day from each of two new fields, Bakken and Eagle Ford. Minimal production just a few years ago. I’m making a totally wild guess that production will double in the next year or less.
There’s an old game of If such-and-such was its own country, it would be the Xth largest in the world. For example, if California were its own country, only six European countries would be larger in population.
Let’s play that game with just the Bakken and Eagle Ford fields.
Continue reading “Putting the Bakken and Eagle Ford shale fields into perspective”
Found a source for lots of data on oil production in North Dakota. Mentioned this in an earlier post.
Other cool stats: Continue reading “More North Dakota oil production stats”
Courtesy of the credits on graphs from Mark Perry at Carpe Diem I found the mother lode of data for oil production in North Dakota.
Piece of cake to produce these cool graphs. Source of data: ND Monthly Oil Production Statistics
The following graphs show the daily production of oil in North Dakota. I’ve presented three time horizons, since that shows difference time perspectives.
Continue reading “Daily production graphs of North Dakota oil”
The Wall Street Journal has a brief article on the boom times in the Dakotas oil field – Oil Fuels Population Boom in North Dakota City.
Continue reading “Short background article on oil boom in Williston ND”
I have a couple of graphs of production in North Dakota here. In today’s Wall Street Journal, there is a good month-by-month graph from 2007 through 2011. You have to scroll down some, but you can find it here: Oil Boom Sparks River Fight.
After reading about oil production in North Dakota surpassing California here, I pulled some data from the U.S. Energy Information Administration here. Created a couple of graphs.
Took the annual average daily production in North Dakota for 2000 through 2010. Added the average monthly production for 2011. Came up with this graph. Continue reading “Graph of North Dakota oil production”
And North Dakota pulls into third place!
Federal stats show oil production in North Dakota was 535k bbl/d in December compared to 531k bbl/d in California. – Five states accounted for about 56% of total U.S.crude oil production in 2011
Check out the graph of monthly production. North Dakota has been accelerating since 2008 while Alaska and California have been declining for 10 years.
Continue reading “In December North Dakota passed California in oil production”