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Page added on June 18, 2015

Status on the Bakken ”Red Queen”

This post presents a study of developments of Light Tight Oil (LTO, shale oil) extraction for 8 companies in Bakken(ND) that as of April 2015 had added around 600 (or more) producing wells in the Bakken/Three Forks formations since January 2008.

The 8 companies are; Continental Resources, EOG Resources, Hess Bakken Investments, Marathon Oil Company, Oasis Petroleum, Statoil Oil & Gas, Whiting Oil and Gas Corporation and XTO Energy.

These 8 companies had around 63% of total LTO extraction from Bakken as of April 2015.

The decline in the oil price has so far reduced the number of rigs drilling in Bakken and a decline in total Light LTO extraction in Bakken. This study shows there are differences in responses amongst the studied companies to the oil price decline.

As with most other things, size matters, also in Bakken.

Data from the North Dakota Industrial Commission (NDIC) shows that in April 2015 Bakken LTO extraction was at 1.11 Mb/d, down from a high of 1.16 Mb/d as of December 2014.

For the period December 2014 – April 2015 those in decline lost about 76 kb/d (close to 10%), while those with growth added around 21 kb/d, curtailing total decline at 55 kb/d (close to 5%).
The 4 companies with growth added about 300 producing wells (46%) of a total of 645 for the months January – April 15 and contributed about 37% of the total Bakken LTO extraction per April 2015.

kb; kilo barrels = 1,000 barrels

The decline in the oil price and LTO flow (for some companies) is likely to move focus to CAPital EXpenditures discipline, profitability and balance sheets healing.

The low oil price has already affected the scale of the drilling and will in the near future lead to a decline in the monthly producing wells additions.

At present oil prices ($60/Bbl, WTI) the net cash flow from operations could unabridged pay for the addition of around 100 wells/month (from spud to flow).

As of the recent months an average of 160 producing wells was started monthly and LTO extraction declined.

NOTE: Actual data used for this analysis are all from North Dakota Industrial Commission (NDIC). For wells on confidential list, data on runs were used as proxies for extraction.

Production data for Bakken, North Dakota: Monthly Production Report Index

Formation data from: Bakken Horizontal Wells By Producing Zone

Data on wells kindly made available by Enno Peters’ continuous excellent work.

General for all companies and charts in this post

The shown production developments are gross for each company. The companies’ entitlement production needs to be adjusted according to the companies’ Working Interests (WI) (and/or other contractual arrangements) for each well.

There may be a combination of causes of changes to the production, therefore some caution should be exercised before deeming future development trajectories. Also note that some of Marathon’s 2008/2009 vintage wells apparently were revitalized in 2014 (ref also figure 5)

The charts for the companies also illustrates that those who got in early in Bakken also got to the better acreage and late comers got the less prospective acreage as suggested from developments in well productivity.

For a Bakken type well (with a cost of $8 Million from spud to flow) it is estimated that at an oil price of $60/Bbl (WTI) it should nominally (0% return) and on a point forward basis break even with a first year flow of about 90 kb.

It likely makes a 7% return with a first year flow of around 120 kb (all things equal).

As LTO wells have steep declines (typically 70% over the first 12 months) their economics is heavily front end loaded and thus becomes very sensitive to the oil price during their initial 2 – 3 years of operation.

A company with a daily flow of around 12 kb/d has the potential to add 1 – one – producing well a month from net operating cash flows with WTI at $60/Bbl.

This illustrates that size matters, as flow above a certain threshold allows for continuous well manufacturing and operations of the scale.

Companies with lower flows may have to do their well manufacturing on a discontinuous basis, which may affect both efficiency and costs.

(All the above should be considered rules of thumb.)

Since January 2008 and as of April 2015 the presented 8 companies started around 6,300 (or 64%) of the 9,900 wells. They had about 63% of all LTO extractions in April 2015.

In Bakken/Three Forks formations the NDIC well data show;

Jan 2014 – Apr 2014:

600 producing wells (an average of about 150 per month) were added and LTO extraction grew around 73 kb/d, more than 8%.

Jan 2015 – Apr 2015:

645 producing wells (an average of more than 160 per month) were added and LTO extraction declined around 55 kb/d, around 5%.

The numbers above demonstrate that the present pace of producing wells additions does not keep up with the Red Queen.

Continental Resources

The average first year flow for all Continental’s wells are around 74 kb and 82 kb for those of the 2014 vintage.

46% of the LTO extraction were from wells that started during the recent 12 months (May 2014 – April 2015).

EOG Resources

The average first year flow for all EOG’s wells are around 127 kb and 145 kb for those of the 2014 vintage.

38% of the LTO extraction were from wells that started during the previous 12 months (May 2014 – April 2015).

Hess Bakken Investments

The average first year flow for all Hess’ wells are around 82 kb and 93 kb for those of the 2014 vintage.

63% of the LTO extraction were from the wells that started during the recent 12 months (May 2014 – April 2015).

Marathon Petroleum

The average first year flow for all Marathon’s wells are around 77 kb and 101 kb for those of the 2014 vintage.

42% of the LTO extraction were from the wells that started during the recent 12 months (May 2014 – April 2015).

Note the increased flow as from mid 2014 from some of the wells of 2008/2009 vintage.

Oasis Petroleum

The average first year flow for all Oasis’ wells are around 70 kb and 67 kb for those of the 2014 vintage.

47% of the LTO extraction were from the wells that started during the recent 12 months (May 2014 – April 2015).

Statoil

The average first year flow for all Statoil’s wells are around 85 kb and 75 kb for those of the 2014 vintage.

37% of the LTO extraction were from the wells that started during the recent 12 months (May 2014 – April 2015).

Whiting Petroleum

The average first year flow for all Whiting’s wells are around 90 kb and 93 kb for those of the 2014 vintage.

49% of the LTO extraction were from the wells that started during the recent 12 months (May 2014 – April 2015).

XTO Energy

The average first year flow for all XTO’s wells are around 76 kb and 98 kb for those of the 2014 vintage.

54% of the LTO extraction were from the wells that started during the recent 12 months (May 2014 – April 2015).

Summary

The deciding factor for future developments of LTO extraction in Bakken will be the companies’ access to cash.

With the lower oil price it is expected that the companies will focus on the most productive areas and reduce drilling in the periphery.

This study has shown that the companies in Bakken responded differently to the decline in the oil price and 4 of the 8 presented companies has so far had a strong growth in their LTO extraction.

The companies also have a backlog of wells awaiting to be fracked/completed (fracklog) and working through this fracklog comes with a cost.

If the oil price remains low (at about $60/Bbl, WTI {and for what it matters are my present expectations}) it is expected that companies will exercise more CAPEX discipline, strengthen focus on profitability and the state of their balance sheets, thus raising the prospects for further declines in additions of producing wells and total LTO extraction.

Some companies have harmonized their well manufacturing (use of drilling rigs) with the lower net operational cash flows and some have apparently strengthened their focus on profitability and the state of their balance sheets.

The companies operating in Bakken come in different sizes, with different financial capabilities and different expectations for the future oil price which now seems to be reflected in their adjustments of activities. Some of those with the poorest wells have pulled less back than those with the better wells (like EOG). This introduces another important variable that will affect the future total LTO extraction from Bakken.

Continuing to add wells that likely are unprofitable may in the short term sustain cash flows, but hurt profitability in the long term.

FRACTIONAL FLOW by Rune

39 Comments on "Status on the Bakken ”Red Queen”"

Nony on Thu, 18th Jun 2015 5:36 pm

Rune, in 2013 predicting Bakken peak:

“Now and based upon present observed trends for principally well productivity and crude oil futures (WTI), it is challenging to find support for the idea that total production of shale oil from the Bakken formation will move much above present levels of 0.6 – 0.7 Mb/d on an annual basis”

http://www.theoildrum.com/node/9748

IOW, with an expectation of high oil price, he STILL predicted 650,000 +/- 50,000 for a peak. WRONG, WRONG, WRONG!

Oh…and noticed how he never bothers saying “I WUZ WRONG!” in any of his followup posts. What a peaker…

Bob Owens on Thu, 18th Jun 2015 6:40 pm

A drop of 5% production in such a short time indicates that the end is near for LTO oil production. Without rivers of $$$$s its fate is sealed. Down, Down, Down. If we now add to this decline the decline of legacy wells It starts to look more like a cliff and less like a gentle tail. Add to the decline the wars that are cutting off supplies from Iraq, Yemen, Syria, etc. and it doesn’t look good. Make your next car purchase an economical one!

coffeeguyzz on Thu, 18th Jun 2015 7:25 pm

The above charts show (in red) the increasing output in 2015 from XTO (Exxon’s subsidiary), Hess (been in North Dakota since the early 50’s), Marathon, and Whiting.
The declines from Oasis, EOG, and Continental are to be expected as, not only have those companies’ CEOs repeatedly, emphatically stated they would reduce output at the current low pricing (ATW Bakken price hit $30 a few months back), the monthly production reports show wells are being both choked back as well as taken offline several days per month.
Anyone projecting a lessening of output to anything other than low pricing is mistaken.
These wells are, after all, located almost exclusively in the most productive areas of the play.

Nony on Thu, 18th Jun 2015 8:11 pm

near flat. Yawn. Peakers be all pointing and stuff. Even though the Bakken kicked their butts for six years now…and had an important role as the marginal barrels making gas for my 2 seater sports car cheaper!

rockman on Thu, 18th Jun 2015 8:24 pm

Not a bad effort by Rune but still premature IMHO. If oil prices stay around current levels we need to wait at least until January to see the developing trend more clearly. In fact mid 2016 would be better. After all the shale boom didn’t manifest itself for the better part of two years. No reason to see it decline much faster.

Davy on Thu, 18th Jun 2015 8:26 pm

NOo, I just purchased a 2001 Dodge 1ton dually flatbed truck with a 5.9l Cummins diesel to haul my stock and hay trailer. Tell me more about your sport car.

Nony on Thu, 18th Jun 2015 8:35 pm

Davy (being serious):

It’s a 20 year old Z car. Loved it. But it has almost 200,000 miles. IT looked great for a long time (15 years), but lately has shown it’s age externally. I’ve had to do more and more maintenance, too. Now they want 1500 to rebuild some of the wheel bearings (or such, don’t know the exact name). I’ve just recently done the clutch and differential and AC.

I am in the mind to get a truck or an SUV. Sick of living like Tom Cruise in a sports car. Want something to fit stuff in. Just finished a project where I drove a pickup at times and it was a lot of fun.

Just hard for me to get my head wrapped around a new vehicle…don’t know what is out there. Also, I have driven a manual for my whole life. And I am told most stuff is automatic now. Somehow I just hate the idea of buying a car, I can’t push start.

Not sure what to buy. Don’t like the new Zs (they went backwards). Maybe another sports car, even a porshe, but I think mybe I’m over that. There are few SUVs and trucks that are still manual. low end JEep and Subaru. Or maybe some German car. Just don’t know, man.

Nony on Thu, 18th Jun 2015 8:38 pm

Congrats on your truck, Davy. Sounds like fun. I’m not sure about a diesel though. Do you live in a warm weather climate?

GregT on Thu, 18th Jun 2015 8:41 pm

Buy a Toyota pick-up Nony. You’ll never look back.

Nony on Thu, 18th Jun 2015 8:51 pm

Do you have the back covered? Do you get one of those big things with a back seat and all or just a pickup with a bed? where do you put groceries (in the bed)?

P.s. Thanks man.

Davy on Thu, 18th Jun 2015 9:08 pm

NOo, I also have a Jetta TDI for commuting and a Toyota Tacoma 4×4 for farm truck and short trips to town. The dodge is just a work truck for the heavy lifting. I am with Greg you can’t go wrong with a Toyota Tacoma. Get an extended cab for your groceries.

GregT on Thu, 18th Jun 2015 9:09 pm

Extra-cab. If you can find an older one in good shape with the 22RE, they were the bomb. Tacomas are also great vehicles. Canopy on the back, and you can even put a mattress in it and sleep there if need be.

Face-Plant on Fri, 19th Jun 2015 12:55 am

Notice the EIA has never said they were wrong either. Nony is such a fucking troll

Nony on Fri, 19th Jun 2015 12:58 am

I will check out Toyotas thanks.

Nony on Fri, 19th Jun 2015 1:08 am

It’s actually not a bad analysis. Kind of worth a seeking alpha post. I did have a hard time engaging with it because of how he writes. Charts don’t always correspond to the discussion. Points are not always connected to the thesis, etc. But it’s a decent try. Wish it were just a little clearer.

GregT on Fri, 19th Jun 2015 1:11 am

For what it’s worth Nony, girls like them too.

Kind of half way between the Red Necked, Dodge Ram Tough, Detroit Cummins Diesel type guys, and the german engineered das auto crowd.
(especially the ones that refuse to post pictures of their doomsteads) Not that any of us here know anyone like that. 🙂

Plantagenet on Fri, 19th Jun 2015 1:20 am

Toyota Land Cruisers here. I sold my FJ-40 a couple of years ago, but I’ve still got the wonderful FJ-60.

GregT on Fri, 19th Jun 2015 1:33 am

Best vehicles ever planter. One of my best friends has an FJ-60 turbo diesel that he’s done a full restoration on.

An exceptionally solid off road vehicle.

Nony on Fri, 19th Jun 2015 1:44 am

OK, trying to read the article:

a. what does it mean that the 2014 year flows are around X and Y? I just don’t even understand what he means. Are those max and min? Bimodal distribution? Why doesn’t he just state the average?

b. The info on 2014 flows would seem to say who has the better rock (e.g. EOG better than CLR). Not sure how he connects it to the point about company decisions though.

c. The % from 2014 s interesting but I don’t see how it is connected to the issue of how the companies act differently. Also, this would correlate with who got in earlier (e.g. EOG).

d. The point about 2009 Marathon coming up was interesting. Great insight.

e. The graphs are pretty but not sure how the really connect to the different decisions. I think simpler charts that just show a ranking of each company by % 2014 wells and avg yield of the wells (maybe an X-y plot) would be much easier to follow. Then we could color the growers and shrinkers differently and see if there is a quadrant grouping.

f. I also don’t think showing the price on every single company individual chart is so helpful. Maybe do it for the play overall. But repeating it times is distracting. And we don’t really discuss how the area buildup charts correspond to the price either.

g. Also, having thr scales different on each chart is confusing.

h. “The deciding factor for future developments of LTO extraction in Bakken will be the companies’ access to cash.” is introduced as a summary. But it’s not discussed before.

i. I’m not sure that access to capital can explain the different actions of the companies. After all, Whiting grew (and has talked about not slowing down..unlike CLR/EOG), but is much more cash challenged than the others. It almost seems more like a management decision.

j. And I guess you could say Statoil, Exxon, Marathon, Hess have access to huge amounts of cash as they are integrated wit refining and also have lots of base conventional flow, or even are gas heavy. The other four are more classic shale companies. Although even within that group, one has the impression that EOG is the most stable, CLR next. And then Whiting and Oasis more shakey.

k. Just a technical detail but Whiting did a big acquisition and there have been various land purchases and sales. So not sure if that could be affecting the numbers or was looked at.

k. “The companies also have a backlog of wells awaiting to be fracked/completed (fracklog) and working through this fracklog comes with a cost.” I don’t see how this connects to an argument of the page. For instance there’s no comparison amongst the companies nor is this factor compared to the growth. For example, looking to see if EOG and CLR are doing what they said they would (about holding up completions).

l. And watch with EOG as they have always held off on winter completions. So need to look year to year to see how much they changed from price worry.

m. “Some companies have harmonized their well manufacturing (use of drilling rigs) with the lower net operational cash flows and some have apparently strengthened their focus on profitability and the state of their balance sheets.” I don’t even know what this means.

n. “Some companies have harmonized their well manufacturing (use of drilling rigs) with the lower net operational cash flows and some have apparently strengthened their focus on profitability and the state of their balance sheets.

o. “Some of those with the poorest wells have pulled less back than those with the better wells (like EOG).” I don’t see how the author proves that. There are 8 players here and no clear trend of better wells versus grow/shrink. And the author didn’t bother doing a comparison (even of the averages, let alone a significance test of the two groupings).

p. “Continuing to add wells that likely are unprofitable may in the short term sustain cash flows, but hurt profitability in the long term.” Actually it is the opposite. If you want to preserve cash, you don’t do any investment. Pass even on profitable wells.

Nony on Fri, 19th Jun 2015 1:48 am

q. Not sure how he handles wells on the confidential list.

r. Not sure what he thinks is slowdown from not drilling, from drilling but not completing, from choking back, and from less days production (e.g. scheduling workovers while prices were low).

s. Also, we are back at 60 now from 45. So things have changed a bit in last few months and is a but of a moving target (ma get sope evolution of strategies).

GregT on Fri, 19th Jun 2015 1:55 am

I have a 2013 Tacoma TRD Off Road with a 3″ lift and 33″ BFGs. I also have a 1973 fibreglass trailer that has been completely rebuilt in and out, that has off-road suspension. I can drag it pretty much anywhere.

Do you spend much time off the beaten path with your FJ planter?

Davy on Fri, 19th Jun 2015 5:52 am

Greg, Planter, The NOo kind of funny how cars bring us together. Must be the basics of our car culture. I really wish we could be talking about our horses and buggies but that’s the shit. I have used vehicles with miles. I opted not to buy new because new meant more ecosystem production instead of using and existing production.

I know I am still a carbon and consumption whore because I have cars and trucks and drive. If you really want to be green do not have a vehicle and do not travel even with mass transit. Walk, bike, use horses, and or sail but internal combustion or EV is not green period. With that said I feel judgment day is near (so to speak) IOW forced greenness is ahead. I am carbon hogging in prep that will be over soon.

I must live in BAU and use BAU to transition out of BAU. I tried going off line in 03 and I only made it 2 months then my family dragged me back kicking and cursing. I doom and prep for more reasons than doom and prep. I do it because I am an 18-19 century person living in the 20-21 century. Dooming and prepping is easy for me because I want to devolve not evolve materially.

Spiritually I am all for evolving but material and consumption I want to get back closer to mother earth. Too bad it will likely be part of an ugly painful process. Why can’t life be different and we would be entering a golden age of a reconnection to nature and the shedding of the chains of modernity. In previous times there was open spaces for societies to dissipate into and rebirth. Now there is nowhere to go and not much to go to. We will inherit Jelly fish oceans and parched savannas.

I am trying to practice relative sacrifice per my socio economic position. Limit consumption, practice efficiency, limit food waste, and do less with less. I am trying to live what I preach. I am trying to help other who may be interested. I am treating God’s creatures with respect and practice animal husbandry. I also want to make a mention on prepping for those of you considering it. I sometimes feel overwhelmed. I have the time, money, and the motivation and it still is tough. I think to myself “self you are preaching prep to people many of whom do not have the time, money, and are unsure about any of it”. That seem futile sometimes maybe impossible for many.

I see society hell bent on the growth trajectory with little understanding of a brick wall ahead. This is my moments of surreal and helplessness. What could be stranger than living in BAU to transition out of BAU? strange indeed. I can say this do a small prep at least. Psychologically prep a minimum and make it part of your week at a minimum. Try to grow some food or learn an old world skill that will have use in the descent. Maybe you can trade moonshine for food or something. If you are in a bad local and can move then get the frig out. Location is one of the biggest issues to prep. You can short term prep but longer term it is all about your local.

Call me a nutter and I gladly except the label. I do not want to worship something insane per our Mother Nature. Folks BAU is insane at every level completely insane at this point in time. I preach to you and I know how people hate preaching but some of it could be of use if not ignore me.

I hope collapse is 10 years away and Davy and his message is forgotten. Can you remember much about the sites you were on in 05? I can’t remember much. I was out on the drum, energy bulletin, and Kunstler. But the names and conversations are gone. Time is the big issue here for us time loving creatures. When is the big question, when?

Davy on Fri, 19th Jun 2015 5:54 am

Greg, the wife showed me how to photo bucket. I need to take good photos one of these days. I will get with it eventually. It is on the list like 100 other things that I am ranking by priority.

Davy on Fri, 19th Jun 2015 7:08 am

NOo is this ok? MSM news

http://www.bloomberg.com/news/articles/2015-06-18/next-threat-to-u-s-shale-rising-interest-payments

Lawfish1964 on Fri, 19th Jun 2015 7:32 am

Just try to find a Toyota Tacoma that’s less than 8 years old with less than 150,000 miles on it for less than $10,000. I dare you. I’ve been shopping for years to replace my 2000 Acura 3.2 TL with 186,000 miles on it (a light second – haha). I don’t do car payments, I do car payment, as in one very difficult payment of the full purchase price up front. It’s hard to justify spending 10 grand on a truck with 150,000 miles on it when you can get a new one for $24,000. This may be the only market where buying a vehicle new actually makes sense. If I bought a new Tacoma, it would probably be the last vehicle I ever buy.

Davy on Fri, 19th Jun 2015 8:08 am

Law, I have a cherry 2002 standard cab 4×4 Tacoma with 170,000 mi I bought for $6K. I guess things are cheaper in the Ozarks with us being poor hillbillies. But you make a good point there is almost a cult following of the Tacoma’s making the price marginal value. I have had 3 and never had one problem except with plastic body parts.

I got my Dodge stnd cab 2wd dually flat bed with a cummins diesel for $7K with 129,000 mi. I priced a new on out at $55K.

I have a VW Jetta with 70,000 mi and never had a problem. It gets 45MPG hwy and I use it to commute to the big shitty. I bought it new back in 10.

marmico on Fri, 19th Jun 2015 9:40 am

You consume a lot of petroleum, Doomer-Davy boy, for zero output. Tacoma, Dodge, Jetta.

You are negative EROI. Go back to the cave with your crayolas.

Davy on Fri, 19th Jun 2015 9:47 am

Yeap, Marmi, I am man enough to admit I am a carbon whore hypocrite. You are just a pussy plain and simple.

Ted Wilson on Fri, 19th Jun 2015 10:40 am

Few more small shale players went down.

Now even the mainstream media has started reporting this.

http://finance.yahoo.com/news/small-u-frackers-face-extinction-amid-drilling-drought-050703684.html

Nony on Fri, 19th Jun 2015 11:12 am

I actually barely drive when at home. Live in the city and bike and walk a lot. Even groceries (sometimes), I just do a big duffle bag on my back. It’s not for green-ness but for exercise and because I like being outside (in the city neighborhoods).

However work projects involve lots of airplanes and rental cars. But even here I try to minimize air travel. Again, not for green-ness. Just hate being cooped up in those tubes. Rather do a weekend or two at the job site, even if they are paying for weekly trips.

Davy on Fri, 19th Jun 2015 11:18 am

You sound like a cool dude NOo now if we could just lure you away from the dark side.

Nony on Fri, 19th Jun 2015 11:21 am

Grea story on GoFrac closure. Not great in terms of what happened, but great in terms of the research and the detail and insight.

That’s capitalism. Save your money on the way up. I would not worry too much about availability of labor or equipment for a restartd boom. First, I think it’s very unlikely to happen (prices will stay down in the 60s, rigs will stay where they are). Second, there is a lot more stuff available now than there was 4 years ago. Third, if we really did have a squeeze, big deal. We handled it last time.

Nony on Fri, 19th Jun 2015 11:39 am

Good story on the distressed debt of shale companies. Really surprised we haven’t seen more BKs. I guess give it time. Some will die, some will live. That is life being the world’s marginal barrel.

GregT on Fri, 19th Jun 2015 12:15 pm

My 2013 Taco has 7500km on it, and I just passed my ’96 on to my son with 128K. (or 80000 miles) Mint, not a scratch on it, I probably couldn’t have sold it for any more than about $12 grand. The 2013 was 42 grand all in, not including lift and tires. That cost me an extra 4.

There are good deals out there, especially stateside. We even have a dealership in Vancouver that deals strictly in Tacomas imported from the US. My brother in law picked up a supercharged California Taco with low miles for 22K. In Washington State there seems to be more Tacomas on the road than any other vehicle. Same thing in Hawaii.

I have no doubt that my 2013 will be the last truck I ever buy. We will be ‘upgrading’ our Honda Civic to something that gets better gas milage, and I’m currently looking for an on/off road motorcycle for ‘running chores’ in town.

Lawfish1964 on Fri, 19th Jun 2015 12:16 pm

Nony, I’m with you. I’d rather go to jail than get on an airplane. I’ve always been claustrophobic, but add anxiety disorder with panic attacks on top and flying is a no-go for me. If I absolutely have to fly, I take a late flight and get hammered before I get on the plane. I’d like to say I’m looking forward to the return of rail travel, but that’s likely to happen past my lifetime, if at all.

Davy on Fri, 19th Jun 2015 12:48 pm

Greg, here in the hoosier hills of the Ozarks they call them yoders.

Nony on Fri, 19th Jun 2015 1:06 pm

Rockman:

Texas RRC is now showing DEC as the peak month for C&C (or either subcomponent), not AUG. Now, DEC may hold (or not, the Permian has a little runway). But AUG was never going to be the right answer. That was just the reporting lag.

http://peakoilbarrel.com/texas-oil-and-gas-production-for-april/#more-8244

Lawfish1964 on Fri, 19th Jun 2015 2:38 pm

That’s why I want to get a Yoda, GregT. My daughter has a Tundra and it’s a dream to work on. She and I changed the timing belt over a weekend (done by noon, Sunday). Everything’s standard nuts and bolts with even metric sizes (lots of 10, 12 and 14 mm). The engine was designed to be worked on. And it’s tight as a drum at 110,000 miles.

I figure I could keep a Taco running for the rest of my life. When the fuel injection goes, I’ll convert to a carb and bypass all computer junk. Just have to have 4WD to access the timber property and haul the fishing boat.

shortonoil on Fri, 19th Jun 2015 9:33 pm

May 2015
……………………/barrel
Williston Basin Sweet $48.44
Royalities…………….7.27
State Tax……………..2.50
OPEX………………….6.00
Drilling Cost…………………88.88….first year @ 90kb

First yr total cost per barrel $104.65
Income per barrel first yr…..$ -56.21

Status on the Bakken ”Red Queen”

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