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I'm not expert on this issue, but I have been reading a lot about the Bakken. I think the rig decline recently has to do with companies cutting expenses to remain competitive. Some costs of fracking have increased, and they're trying to streamline their operations to compensate.
Also, rigs are getting more efficient, and more "walking rigs" are being used, which reduces the number needed to drill the same amount of wells.
I think, as long as oil is above $80 a barrel, then it's still profitable to drill. I think there may be some short term volatility, like there is in any boom. But, long term, they're going to be working the Bakken for many years to come.
I'm not expert on this issue, but I have been reading a lot about the Bakken. I think the rig decline recently has to do with companies cutting expenses to remain competitive. Some costs of fracking have increased, and they're trying to streamline their operations to compensate.
Also, rigs are getting more efficient, and more "walking rigs" are being used, which reduces the number needed to drill the same amount of wells.
I think, as long as oil is above $80 a barrel, then it's still profitable to drill. I think there may be some short term volatility, like there is in any boom. But, long term, they're going to be working the Bakken for many years to come.
Well, the Oil Executives, in an interview, are the ones that said if prices dropped below $100 a barrel, that it wouldn't be profitable to continue opening new wells. But, they could be wrong.
Well, the Oil Executives, in an interview, are the ones that said if prices dropped below $100 a barrel, that it wouldn't be profitable to continue opening new wells. But, they could be wrong.
Well, my understanding is that oil from the Bakken sells at a discount compared to the West Texas Intermediate index, due to a supply glut because they can't get the oil to market fast enough. They're increasing rail shipment, and building pipelines, to expand that. So, that discount ought to decrease this year.
I'm basing this on reading a guy named Michael Filloon on Seeking Alpha, which is an investment site. I recommend checking him out if you're interested. He focusses a lot on the Bakken, and he really seems to know what he's talking about.
Well, my understanding is that oil from the Bakken sells at a discount compared to the West Texas Intermediate index, due to a supply glut because they can't get the oil to market fast enough. They're increasing rail shipment, and building pipelines, to expand that. So, that discount ought to decrease this year.
I'm basing this on reading a guy named Michael Filloon on Seeking Alpha, which is an investment site. I recommend checking him out if you're interested. He focusses a lot on the Bakken, and he really seems to know what he's talking about.
I will check it out. I'm currently without a job right now.
Yeah, rig count and production have both declined a bit recently. That's most likely a temporary thing though. Good luck on the job hunt.
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