Only 1 Percent Of Bakken Shale Is Profitable At These Prices

Friday, November 6, 2015
By Paul Martin

by Arthur Berman via OilPrice.com,
ZeroHedge.com
11/06/2015

Only 1 percent of the Bakken Play area is commercial at current oil prices based on my analysis that follows.

Only 4 percent of horizontal wells drilled since 2000 meet the EUR (estimated ultimate recovery) threshold needed to break even at current oil prices, drilling and completion, and operating costs.

The leading producing companies evaluated in this study are losing $11 to $38 on each barrel of oil that they produce, the very definition of waste.

Although NYMEX prices are about $46 per barrel, realized wellhead prices in the Bakken are only $30 per barrel according to the North Dakota Department of Mineral Resources. At that price, approximately 125,000 acres of the drilled play area of 10,500,000 acres is commercial (green areas in Figure 1).

The Rest…HERE

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