Dec Oil 38,051,988 barrels = 1,227,483 barrels/day Jan Oil 36,905,179 barrels = 1,190,490 barrels/day (preliminary)(all-time high was Dec 2014 1,227,483 barrels/day)
Has the Bakken reached its peak production and finally we see production coming down in response to all the Capex cuts and deferred well completions
Just for interest here is the Bakken production from pretty much when it started (in 1953) https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf
The last page is a very clear illustration of the "Red Queen" - look at how many wells added and you can visualize how the steep decline curve just keeps speeding up the treadmill.
Also on pricing - just to highlight that what I use in the Cash Margin posts is reasonable Jan Sweet Crude Price = $31.41/barrel (I used $31.65) Feb Sweet Crude Price = $34.11/barrel (I used $34.54)
The rig count:
Dec rig count 181
Jan rig count 160
Feb rig count 133
Today’s rig count is 111 (lowest since April 2010)(all-time high was 218 on 5/29/2012)
From a different (later) source (BHI) they note: "For the fourteenth consecutive week, Baker Hughes’ (ticker: BHI ) rig count dropped by double digits losing 67 rigs to 1,125. In aggregate, the rig count is down 806 rigs from the recent peak, including a 743 (46.2%) decline in oil rigs to 866. The Permian Basin has experienced the largest decline, falling 257 rigs (45.2%) to 311 rigs. The Williston has seen a drop of 94 rigs (47.5%) to 104 rigs while the Eagle Ford rig count has fallen 72 rigs (33.0%) to 146."
So in percentage terms highest laydowns occurred in Bakken.
SSN Price at posting:
1.3¢ Sentiment: None Disclosure: Not Held
