Warmer weather to boost Bakken oil producers, RBC says

Oil and gas producers in the Bakken Shale saw a pickup in production in March and should see an even bigger increase as the weather turns warmer, according to a new report from RBC Capital.

Bakken development activity rose to 200 well completions in March vs. 70 in February, and well backlog remains high at ~635 wells, RBC says, expecting operators to work through the backlog since North Dakota has experienced a relatively warm spring.

"As completion activity catches up in the early summer and drilling activity remains strong, oil production should top 1M bbl/day around mid-year, the report says.

The projection bodes well for producers with a heavy footprint in the Bakken, such as Continental Resources (CLR), EOG Resources (EOG) and Kodiak Oil & Gas (KOG).

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Comments (3)
  • Philip Marlowe
    , contributor
    Comments (1601) | Send Message
    This will be good for SLCA. They sell into all basins but they do most of their business in the bakken and they have a lot of infrastructure for moving sand into the bakken.


    When they had their slight slowdown a couple of months ago it was because drilling in the bakken was slowing down due to the cold winter. Now that drilling is improving, look for SLCA results to improve too.
    21 May 2014, 06:43 PM Reply Like
  • Mind
    , contributor
    Comments (210) | Send Message
    Nat gas to lower or rise ? Thanks
    21 May 2014, 06:49 PM Reply Like
  • King Rat
    , contributor
    Comments (1847) | Send Message
    Natgas price or production? All else being equal, price down, production up with this, but who knows what effect the small export market may have or how weather may affect use this summer.


    Incidentally, some funds I hold are more heavily weighted in natural gas than usual.
    21 May 2014, 11:22 PM Reply Like
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