Seeking Alpha

Decades of life left in the Bakken shale, Continental exec says

  • Continental Resources (CLR -0.9%) President Rick Bott pushes back against arguments that the U.S shale oil revolution will be short-lived, insisting that there are decades of life remaining in North Dakota’s Bakken formation alone.
  • “There is a steep decline” in the Bakken, Bott admits, “but then there is a very, very long tail. You get flush production, but it’s the tail you really count on.”
  • With a potential 900B barrels of oil, even at the current 3.5% recovery rate, the industry can extract ~32B barrels, or three decades worth of growth, Bott says.
  • Suggesting vast Bakken resources remaining, CEO Harold Hamm tells Jim Cramer that CLR believed two years ago that 50K wells were needed but the number has since doubled.
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Comments (4)
  • nemonemo
    , contributor
    Comments (334) | Send Message
     
    Question is how economical it is. If you need to spend $10 per NG unit, no point how many decades left.
    5 Mar 2014, 01:05 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1310) | Send Message
     
    As the initial rush of oil abates and we get into the long tail, they will have to frack more rock per unit of oil, and they will need more propant per unit oil to do so. This is why, in my opinion, sand is the best bet in energy right now. Long SLCA.
    5 Mar 2014, 01:37 PM Reply Like
  • Hendershott
    , contributor
    Comments (1635) | Send Message
     
    All wells have declines, not just shale. Conventional deposits have 50-60% declines in 2 years.
    5 Mar 2014, 01:49 PM Reply Like
  • Kee Delany
    , contributor
    Comments (21) | Send Message
     
    the bakken will continue to produce i am long clr
    5 Mar 2014, 02:14 PM Reply Like
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