To those of you with expertise in this industry, thoughts please on how this would affect ND.;:;popcorn
it doesn't cost near what it used to here in the bakken. everything is much cheaper from drilling to fracing to lease operating expense. I also don't think you'll see any more infrastructure built regardless what the price does unless the rig count goes up. which it probably will. we will probably be looking at 70 rigs drilling by first of July if things continue down this path. Activity has continued to increase out here even with the cold ass winter we are experiencing. I think we will see a continued increase in activity as long as oil steadies or continues to go up. But don't look for massive increases in production from here anymore. Oil companies don't want to drive up the oil stocks.
At this point OPEC is pretty well fucked. They are in a total damned if you do damned if you don't setup. if they don't start pumping the US and Russia will take up more and more of their market share and one by one their economies will start collapsing because they're getting pretty low on cash and if they bump they under cut their own price and get shafted well the Shale plays will just go back into hibernation like they did last time and then just pop back out like a gopher in spring as soon as the price goes backup.
do you mean the lease operating cost?What is the break even point is for a Bakken well now days ?
Drilling , production , transportation and the whole smear. I know it varies but What are the claims in price per Barrel where a well breaks even ?do you mean the lease operating cost?
they don't really talk in those terms anymore because the costs have changed so dramatically. And production is all over the place. With the company I work for our lease operating costs in the bakken (once well is actually producing)are roughly $8 a barrel. Most wells are paid for in 6 -8 months. The cost to operate that well after that point is what really matters. That's the long term outlay. Our lease operating costs on a company wide average around around $9.80. So the bakken is cheaper than our other fields. At $55 oil it would take 90-180 days to pay for that well based on what our average wells initial productions have been.Drilling , production , transportation and the whole smear. I know it varies but What are the claims in price per Barrel where a well breaks even ?