Seeking Alpha

Bakken still has legs and will surprise investors, Goldman says

  • Goldman Sachs is bullish on Bakken after it came away from a trip to North Dakota with greater confidence in its outlook that activity in the shale play should exceed expectations, citing producers and drillers who were "uniformly confident" in resource expansion, efficiency gains and potential for improving well performance in coming years.
  • The firm sees production growth of 130K bbl/day to 210K bbl/day through 2016, above the average of 110K bbl/day for the six months up to this July.
  • Buy-rated Oasis Petroleum (OAS +3.4%) and Continental Resources (CLR +3.3%) (earlier) are Goldman's favorites among Bakken-exposed oil E&P companies; also listed as ready to reap Bakken benefits are Northern Tier Energy (NTI +4%), Halliburton (HAL +0.7%), Enbridge (ENB +0.2%) and Canadian Pacific Railway (CP +0.6%).
Comments (7)
  • bgold1955
    , contributor
    Comments (1879) | Send Message
     
    May exceed expectation but the major play in U.S. Is Eagle Ford where EOG & COP appear to be very efficient. More costly to produce in Bakken, however, I am not clear on land/lease prices vs the two areas.

     

    Anyone have any insight on lease expense?
    24 Sep 2013, 12:30 PM Reply Like
  • PeakOiler
    , contributor
    Comments (284) | Send Message
     
    All I know is that costs for new wells in the Bakken run around $95 per barrel. Breaking even is the goal.
    24 Sep 2013, 01:17 PM Reply Like
  • bigbenorr
    , contributor
    Comments (721) | Send Message
     
    Umm, care to break that down? Because just using rough numbers, $10M / 500k bbls = $20/bbl.
    Plus I think $10M is on the high side while 500k is on the low side.
    granted you have taxes, royalty owners, transportation etc. but even if the net to operator was 250k bbls you would still be at $40/bbl. and that is assuming that the EUR is not increased by secondary recovery at a later date.
    24 Sep 2013, 02:44 PM Reply Like
  • virtalex
    , contributor
    Comments (253) | Send Message
     
    When analysts start liking smth .... SELL SELL SELL !!!!

     

    or wait out the correction and BUY BUY BUY )

     

    hollowing KMP EEP CLMT
    25 Sep 2013, 03:17 AM Reply Like
  • Bob de'Long
    , contributor
    Comments (695) | Send Message
     
    Goldman Sachs has never right on oil. This could be an exception; even a blind crook finds an acorn twice a day.
    25 Sep 2013, 06:22 AM Reply Like
  • Loophole69
    , contributor
    Comments (181) | Send Message
     
    I didn't know blind crooks look for acorns. Learn sometime new everyday.
    25 Sep 2013, 09:16 AM Reply Like
  • bigbenorr
    , contributor
    Comments (721) | Send Message
     
    As a man who enjoys a well butchered American idiom I must say one thing: RESPECT!!
    25 Sep 2013, 09:59 AM Reply Like
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