The EIA’s Drilling Productivity Report missed it for July. They will make the correction next month.
Barrels per day per well held steady in July, 91 for the Bakken and 79 for all North Dakota.
The trend is down in spite of the slight increase in July.
From the Director’s Cut
Oil Production
June 30,813,924 barrels = 1,027,131 barrels/day
July 31,914,711 barrels = 1,029,507 barrels/day (preliminary)(all time high was Dec 2014 at 1,227,483 barrels/day)
977,342 barrels per day or 95% from Bakken and Three Forks
52,165 barrels per day or 5% from legacy conventional pools
Producing Wells
June 13,248
July 13,255 (preliminary)(all time high) 11,168 wells or 84% are now unconventional Bakken Three forks wells 2,087 wells or 16% produce from legacy conventional pools
Permitting
June 65 drilling and 0 seismic
July 86 drilling and 0 seismic
August 99 drilling and 1 seismic (all time high was 370 in 10/2012)
ND Sweet Crude Price
June $38.75/barrel
July $35.57/barrel
August $33.73/barrel
Today $32.00/barrel (all time high was $136.29 7/3/2008)
Rig Count
June 28
July 31
August 32
Today’s rig count is 33 (all time high was 218 on 5/29/2012)
Comments:
The drilling rig count increased three from June to July, then increased one from July to August, and increased one more from August to today. Operators remain committed to running the minimum number of rigs while oil prices remain below $60/barrel WTI. The number of well completions dropped from 45(final) in June to 41(preliminary) in July. Oil price weakness is the primary reason for the slow down and is now anticipated to last into at least the fourth quarter of this year and perhaps into the second quarter of 2017. There was one significant precipitation event, 12 days with wind speeds in excess of 35 mph (too high for completion work), and no days with temperatures below 10F.
Over 98% of drilling now targets the Bakken and Three Forks formations.
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