The Bakken Shale Rebound

Production is rising in The Bakken Shale, with over 1 million barrels-a-day being successfully produced over the past year, compared to around 940,000 last December. North Dakota companies are becoming increasing more active, working to boost productivity and learning to cope with current price levels. Innovation and technology have also become extremely important in the industry throughout recent years. With new technologies making oil and gas easier, cleaner, safer, and cheaper to extract, boosting the oil industry significantly.

The Bakken Shale Play, which is mainly located in Western North Dakota and Eastern Montana, is one of the largest oil developments in the U.S. The Bakken Shale has single-handedly driven North Dakota's oil production over the past 40 years. The US Geological Survey estimates there are 3.65 billion barrels of recoverable crude oil in the Bakken, with estimates from Continental Resources going as high as 40 billion barrels. 

“When you work in the oil field, you work in a boom-and-bust world.” 

It has of course been a difficult few years for oil recovery and production, with the oil price crash halting North Dakota’s petroleum boom and industry jobs vanishing. Prices dropping to $30 early last year meant significant financial losses, and even bankruptcies, for companies that had invested in North Dakota production. 

However, it now seems there are strong signs of an oil rebound in North Dakota. Drillers are bringing rigs back leaving companies desperate to find enough workers. This is a phenomenal sign for an industry that just recently lost almost half its jobs. “The industry is coming back,” said Monte Besler of FRACN8R Consulting in Williston, N.D. 

Continental Resources has also reported its Bakken team has recently managed to double their rate of return. During the second quarter of 2017 it was reported that the rates of return for Bakken wells had doubled to 82% and the drilling costs are now 26% lower than the previous 2016 average. Gary Gould, the Senior VP of Production and Resource Development states: “this is a step-change improvement in Bakken economics”. 

It seems it is definitely not the end for The Bakken Shale. With Bakken resources expected to be productive for decades to come, continuously contributing to the energy independence of the United States. 

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