Energy Prospectus

Production up 5k barrels a day from October to November. Gas production at all-time high in Nov...

1/15/2016
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Director’s Cut
Lynn Helms
NDIC Department of Mineral Resources
Oil Production
October 36,304,687 barrels = 1,171,119 barrels/day
November 35,289,413 barrels = 1,176,314 barrels/day (preliminary)(all-time high was
Dec 2014 at 1,227,483 barrels/day)
1,119,379 barrels per day or 95% from Bakken and Three Forks
56,934 barrels per day or 5% from legacy conventional pools
Gas Production
October 51,364,187 MCF = 1,656,909 MCF/day
November 50,039,809 MCF = 1,667,994 MCF/day (preliminary)(NEW all-time high)
Producing Wells
October 13,190
November 13,077 (preliminary)(all-time high was October 2015 13,190)
10,655 wells or 81% are now unconventional Bakken – Three forks wells
2,422 wells or 19% produce from legacy conventional pools
Permitting
October 152 drilling and 1 seismic
November 125 drilling and 0 seismic
December 95 drilling and 0 seismic (all time high was 370 in 10/2012)
ND Sweet Crude Price
October $34.37/barrel
November $32.16/barrel
December $27.57/barrel
Today’s $20.00/barrel (lowest since March 2002)(all-time high was $136.29 7/3/2008)
Rig Count
October 65
November 64
December 64
Today’s rig count is 49 (lowest since August 2009 when it was 45)(all-time high was 218
on 5/29/2012)
1/15/2016
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The statewide rig count is down 78% from the high and in the five most active counties
rig count is down as follows:
Divide -77% (high was 3/2013)
Dunn -74% (high was 6/2012)
McKenzie -72% (high was 1/2014)
Mountrail -88% (high was 6/2011)
Williams -88% (high was 10/2014)
Comments:
The drilling rig count decreased 1 from O

Production in the Bakken will roll over big in Q1.

I worked for Hess and we had extensive operations in North Dakota. Each year the North Dakota regions scrambled like crazy to get as much done as they could before winter set in. Operations are more expensive in the winter and then you have Spring Break-Up in April & May.