Blinking Red Light: Big Trouble Ahead For Bakken Oil Production
By: Steve St. Angelo
GoldSeek.com
Tuesday, 20 January 2015
The glory days of the Great Bakken Oil Field are soon coming to an end. With the collapse of the price of West Texas Intermediate Crude, shale oil production from the Bakken is in big trouble. How much trouble? Well, if we understand how much of its production growth came in 2014, the situation is dire indeed.
Ironically, Americans have been lulled into believing that the United States is heading towards energy independence, while the opposite is the case. Not only has the Bakken given us a false sense of energy security, when it finally peaks… it will decline in stunning rapid fashion. This is what the media, oil industry and public fail to realize.
The rate of Bakken oil production growth over the past six years was quite impressive. However, it did so based on certain requirements:
1) High oil prices
2) Low interest financing
3) Massive drilling program
Without these three conditions, the majority of oil in the Bakken would have remained in the ground. According to the EIA’s January Drilling Productivity Report, the Bakken is estimated to produce a record 1.28 million barrels a day (mbd) in January. That’s a lot of oil, but actually not that much in the whole scheme of things.
The Rest…HERE
