Your Custom Text Here
The Bakken is producing almost 1 million barrels per day and it along with other plays are pushing the U.S. to the forefront of worldwide oil producing countries.
The play has grown to produce almost 15% of all oil in the U.S. and the number of producing wells in the play has grown from 25 in 2005 to almost 4,000 today.
We're not affiliated with the company that produced the video nor to we endorse signing up for their report. We simply enjoyed the video and thought you would as well.
Reuters published an article detailing why many real estate developments in North Dakota can't get construction financing. The big lenders simply haven't stepped up to the plate in North Dakota.
There are many reasons, but one is the reluctance of workers to build homes in the area. In Williston, only 20 permits for homes were issued through May of 2013, but 482 permits for apartments had been issued over the same period. The type of Bakken housing being developed sends a signal to lenders that residents are here to stay.....and will be spending a bigger portion of their paychecks in the area. Home building indicates people plan to reside in the area much longer than apartment rentals.
There were several items of note in the article:
You can read the full article at reuters.com
Bakken jobs are booming in Dickinson too.
Have a safe and happy Independence Day. We hope everyone is enjoying a day away from the field or office. We'll be back in full force on Monday.
Have a great day!
Hess is spending less in 2013, but it might simply be spending it smarter. The company only spent $535 million developing its Bakken acreage in the first quarter. Honestly, it's still a big investment, but down over $300 million from the first quarter of 2012 when Hess spent $852 million in the area.
The main reason for lower investment levels is improving costs. Hess can drill the average well in just 26 days compared to 32 days in the second quarter of 2012. That along with other costs savings measures has driven Bakken drilling & completion costs down from $13.4 million to $8.6 million over the past year.
Hess has also let a significant amount of acreage go over the past year. The company has an interest in 665,000 net acres compared to 833,000 net acres in Q1 2012.
Hess produced 65,000 boe/d in the first quarter of 2013 and just 11% of the company's production is operated by other companies. Hess has an average working interest of 84% in operated wells and 12% in non-operated wells.
With many corporate changes underway at Hess, it will be interesting to see if the company's strategy changes over the coming months. I can't imagine a scenario where the Bakken isn't core to the company's development plans.
Quisque iaculis facilisis lacinia. Mauris euismod pellentesque tellus sit amet mollis.