As revolutionary innovations and inventions continue, more and more wells in the Bakken are reaching lower breakeven points – points which are competitive with production from the Middle East.
It was recently announced that “break evens” on wells in the Bakken has dropped another $5 to $13 in the price of a barrel of oil. Break-even wells are lowest n Dunn County at $15 and in McLean County at $16, McKenzie County at $17 and in Williams County at $24. One county posted a break even increase of $1.
North Dakota’s Director of the Department of Mineral Resources, said “Industry efforts have moved to lower and lower break-even prices, so when we get into the third quarter of this year, we can break even on wells under $30 a barrel, meaning all counties in North Dakota are better than break-even for drilling,”
But, it’s not just the Bakken. Other fields in the US are reporting lower break evens.
Rig counts are expected to increase in 2017 and even more in 2018.
Total production in the Bakken continues to fall, hitting 971,658 barrels per day for September.
Projections regarding price estimates have been based on the idea that U.S. production would drop by a million barrels a day, however, President Trump has indicated he would make it easier to drill and frac oil, as well as move it. That will mean less of a drop in U.S. production, and a slower rise in prices, pointed out Helms.