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Shale oil output at Bakken and Eagle Ford starts a descent
Market Watch ^ | May 11, 2015 | Myra P. Saefong

Posted on 05/12/2015 4:37:48 AM PDT by thackney

Oil production from the Bakken and Eagle Ford shale plays look like they’ve peaked and other shale plays may not be far behind.

Oil production from seven major U.S. shale plays is expected to fall by a total of 86,000 barrels a day in June, according to a monthly report from the Energy Information Administration released Monday. The previous report released a month ago also showed a forecast for a fall of 57,000 barrels a day in May.

Oil output at the Eagle Ford shale play in South Texas is forecast to see the biggest decline, down 47,000 barrels a day in June. The Bakken shale play, which stretches from Canada into North Dakota and Montana, is expected to see output fall by 31,000 barrels a day, the report said. That would follow forecast declines in both regions for the month of May.

“The data shows that production in the Bakken and Eagle Ford [plays] peaked in March at 1.33 million barrels a day and 1.73 million barrels a day, respectively,” said James Williams, energy economist at WTRG Economics.

(Excerpt) Read more at marketwatch.com ...


TOPICS: News/Current Events; US: North Dakota; US: Texas
KEYWORDS: bakken; eagleford; energy; oil; oilindustry; oilprice; oilproduction
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To: DuncanWaring

That’s crazy. Here in GA in the 90’s, fuel prices went up so everyone and their uncle went out and bought diesel trucks so the local market jacked up Diesel prices to reflect the surge in demand.


21 posted on 05/12/2015 5:51:01 AM PDT by patro (Phrogs Phorever)
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To: patro

Diesel reached parity with regular gasoline here last week

The price at Sam’s for both was $2.34 per gallon last Friday

My van murmured appreciation as I filled the tank


22 posted on 05/12/2015 5:52:37 AM PDT by bert ((K.E.; N.P.; GOPc.;+12, 73, ..... No peace? then no peace!)
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To: thackney

can you zoom in on the last couple of years and plot this production history against the # wells drilled and the # of uncompleted wells?

I think we will find this interesting.


23 posted on 05/12/2015 6:06:50 AM PDT by bestintxas (every time a RINO loses, a founding father gets his wings.)
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To: thackney

*sigh* I hate the EPA.


24 posted on 05/12/2015 6:07:10 AM PDT by sauropod (I am His and He is mine.)
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To: Tolerance Sucks Rocks

“I wonder how much of that decline is due to the oil price plunging over the past year, thus putting some wells out of business for the time being.”

You may misunderstand how this works:

The response to oil price in this case is not shutting in wells so one loses production. Once drilled, these wells certainly make enough money to cover their operating costs so are not shutin, save on rare occasions.

Instead, what happens in the decline of oil prices is that fewer new wells are drilled and completed. The newer wells have much higher production characteristics than already producing wells, so the impact on production is large.

These newer wells will ultimately be drilled at some time in the future, so nothing is really ‘lost’, just delayed.


25 posted on 05/12/2015 6:11:19 AM PDT by bestintxas (every time a RINO loses, a founding father gets his wings.)
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To: bestintxas

I don’t know a source that charts uncompleted wells. Only a couple of articles that gives totals without much/any breakdown.


26 posted on 05/12/2015 6:13:08 AM PDT by thackney (life is fragile, handle with prayer)
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To: patro

“It’s too bad Diesel will never fall below the price of Regular again.”

The feds tax diesel more, so that is a very significant item as why it may not.

BTW, the feds want to raise it even more.

http://www.transportation-finance.org/funding_financing/funding/federal_funding/motor_fuel_taxes.aspx


27 posted on 05/12/2015 6:22:52 AM PDT by bestintxas (every time a RINO loses, a founding father gets his wings.)
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To: thackney

ok, just the engineer in me trying to take the data to a new place of understanding.


28 posted on 05/12/2015 6:32:31 AM PDT by bestintxas (every time a RINO loses, a founding father gets his wings.)
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To: bestintxas

Yep, I would like to see that data as well.


29 posted on 05/12/2015 6:34:46 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Do you have a source that charts “rate of well completions”?

If so, the rate-of-dropoff of completions could be used to estimate a “number of wells not completed”.


30 posted on 05/12/2015 12:30:06 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: DuncanWaring

No.


31 posted on 05/12/2015 12:32:40 PM PDT by thackney (life is fragile, handle with prayer)
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To: Tolerance Sucks Rocks

“I wonder how much of that decline is due to the oil price plunging over the past year, thus putting some wells out of business for the time being.”

100%


32 posted on 05/12/2015 1:01:30 PM PDT by 21twelve (http://www.freerepublic.com/focus/f-news/2185147/posts It is happening again.)
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