By June 3, 2015 Read More →

Eagle Ford, Bakken production flat in April

Eagle Ford production expected to decline in near future – Bentek

The decline in drilling rigs working in the Eagle Ford shale basin is finally taking its toll, as oil production grew only 1,000 barrels in April and is expected to drop in May, according to Bentek Energy.

Eagle Ford

Eagle Ford production will follow declining rig count in near future – Bentek.

Production in the Bakken formation of North Dakota followed the same trend, growing only 1000 barrels per day (b/d) month on month.

Eagle Ford production averaged 1.6 million barrels per day in April, up 284,000 incremental barrels per day or nearly 22 per cent higher than April 2014, says Sami Yahya, an energy analyst with Bentek, an analytics and forecasting unit of Platts.

The number of active rigs in the Eagle Ford basin currently stands at 116 rigs, down 27 rigs from the previous month.

“The efficiency gains noted in the region – such as the trimming of average drill time per well from 13 to 11 days between 4Q2014 and 1Q2015 – have helped in preventing oil production decline so far,” Yahya said.

“Nonetheless, we do expect to see declines, however marginal, in Eagle Ford oil production as soon as next month.”

The Platts Eagle Ford Marker, a daily price assessment launched in October 2012 that reflects the value of Eagle Ford oil, was up 21 per cent between January and April, with an average price of $54.37/b for the year. The marker has ranged between $46.22/b and $65.17/b since the beginning of this year, according to Bentek.

Bakken production also remained relatively flat in April, increasing about 2000 bbls/day, or less than one per cent.
Production in the North Dakota section of the Williston Basin averaged 1.2 million bbls/day last month, Bentek data shows, which is 173,000 bbls/day higher than year ago levels.

Yahya says Bakken production is expected to continue to grow but at a slower pace.

“Producers will likely continue to focus on efficiency gains and shift their rigs to the core areas, where initial production rates are more favorable,” he said.

The Bakken price was up 22 per cent between Jan. and April, with an average price of $47.55/b for the year, according to the Platts Bakken assessment. It has ranged between $38.43/b and $57.45/b since the beginning of Jan.

Bentek analysis shows that from April 2014 to April 2015, total U.S. crude oil production has increased by nearly 1 million b/d.

“Prices of both Eagle Ford and Bakken shale oil have been on an upward trajectory since mid-March and reached a new year high by the end of April,” said Jacqueline Puig, Platts associate editor of Americas crude.

Posted in: News

Comments are closed.