DENVER, July 31, 2015 /PRNewswire/ -- Oil production
from key shale formations in North
Dakota and Texas increased
marginally in June versus May, according to Bentek Energy, an
analytics and forecasting unit of Platts, a leading global provider
of energy, petrochemicals, metals and agriculture information.
Oil production from the Eagle Ford shale basin in Texas remained strong in June, jumping 18,000
barrels per day (b/d), or less than 1%, vs May, the latest analysis
showed. This marked the fourth consecutive month of production
growth, albeit small, since February when production dipped nearly
10,000 b/d month on month. Meanwhile, crude oil production in the
North Dakota section of the Bakken
shale formation of the Williston
Basin remained relatively flat, increasing 6000 barrels b/d, or
less than 1% in June vs May.
The average oil production from the South Texas, Eagle Ford basin last month was
1.6 million barrels per day. On a year-over-year basis, that is up
almost 240,000 incremental barrels per day, or about 17% higher
than June 2014, according to
Sami Yahya, Bentek energy analyst.
The average crude oil production from the North Dakota section of the Bakken in June was
1.2 million b/d, or up nearly 100,000 b/d from year ago levels.
"It is astonishing to see what producers in the Eagle Ford and
Bakken shale basins are accomplishing despite dwindling rig count
numbers," said Yahya. "Rig count in the Eagle Ford basis decreased
by roughly 65% from a year ago, from 233 in June 2014 to the 105 active rigs today. And yet,
production is almost a quarter of a million barrels per day
more."
Similar trend is observed in the Bakken shale, where rig count
dipped about 50% from approximately 160 rigs last year to the
current 80 active rigs, said Yahya. In Bakken too, production is up
about a hundred thousand barrels per day, he said.
The contradictory relationship between rig count decline and
production growth speaks volumes to the efficiency gains producers
have achieved over the past year.
"Gains in efficiency have been swept every facet of the drilling
and production operations," said Yahya. "Drill times have been
reduced on averaged by three to five days in most of the major
shale plays in the country. As well, producers are continuing to
focus more on their more productive acreages, where initial
production (IP) rates are higher."
Bentek analysis shows that from June
2014 to June 2015, total U.S.
crude oil production has increased by about 750,000 b/d.
It's a different story for prices, noted Luciano Battistini, Platts managing editor of
Americas crude.
"The price recovery oil producers were hoping for has been
delayed as the massively oversupplied oil complex continues to
pressure prices. Eagle Ford crossed the $65 per barrel (/b) mark on June 11 and has been sliding since," said
Battistini. "Bakken prices at the Williston basin, however, ranged between
$55/b and $60/b from the end of April to end of June,
showing resilience."
The Platts Eagle Ford Marker, a daily price assessment
launched in October 2012 and
reflecting the value of oil out of the Eagle Ford Shale formation
in South Texas, has increased 31%
between January and June, with an average price of $57.56/b for the first six months of 2015. But it
is down 41% from year-ago levels. The marker has ranged between
$46.22/b and $66.23/b since the beginning of this
year.
The price of oil out of the Bakken formation at Williston, North Dakota, was up 44% between
January and June, with an average price of $49.31/b for the first six months of 2015,
according to the Platts Bakken assessment. Platts
Bakken, however, is down 40% when compared to last year's
corresponding month. The wellhead assessment has ranged between
$37.67/b and $59.32/b since the beginning of January.
The Platts Bakken, introduced April 22,
2014, is a daily assessment of price for oil closest to the
wellhead prior to determination of transportation by rail or pipe.
The assessment reflects a sulfur content of 0.2% or less and an
American Petroleum Institute (API)** gravity of 42 or less, similar
to the nature of North Dakota Light Sweet crude. The Platts
Eagle Ford Marker reflects the value of a median 47-API Eagle Ford
crude barrel, based on the crude's product yields and Platts
product price assessments, adjusted for U.S. Gulf Coast
logistics.
Platts introduced the world's first independent daily price
reference valuing crude oil produced from a shale formation in
May 2010 when it began assessing
Bakken Blend shale oil injected into
pipelines at Clearbrook,
Minnesota, and Guernsey,
Wyoming.
For more information on Platts price assessments methodology
visit these links: Details of Platts Bakken and Platts
Eagle Ford Marker. Bentek Energy's shale oil production
figures are derived from proprietary data models using publicly
available data. For more information on data models, reports
or Bentek's methodology, please contact info@bentekenergy.com.
Platts will publish monthly updates via press release on Bakken
and Eagle Ford shale oil production and price data.
* The Bakken formation spans North and
South Dakota, Montana, Saskatchewan, Manitoba and Alberta.
** API gravity is a measure
of how heavy or light a grade of crude oil is compared to
water.
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SOURCE Platts