The exponential growth and huge reserves of North Dakota's Bakken field puts it on course to...

The exponential growth and huge reserves of North Dakota's Bakken field puts it on course to produce more than 1M bbl/day by mid-2013, which would rank it among the world's most elite oil fields. Just 5K wells have been completed, but Continental (CLR) thinks the core could support up to 52K wells with four to eight wells per 1,280-acre unit for full development.

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Comments (2)
  • Uncle Pie
    , contributor
    Comments (4321) | Send Message
    The shale oil wells have a very steep decline curve...according to one report, after 2 years the typical well has produced about 75% of all the oil it will ever produce. Therefore the companies in this play have to keep on drilling, drilling, drilling. Since the best spots are drilled first, as the drilling extends into the less productive areas, either the ROI goes down or the oil price has to go up to maintain the economics.
    This writer prefers the economics of the oil sands mines, which are enormously expensive to build, but which, once built, produce oil for decades with No production decline and No exploration risk. They've been producing oil at the Syncrude mines since 1978, for example, and the production is slowly rising, not falling. Their planning is for the resources there to last into the 2030s.
    13 Nov 2012, 12:35 PM Reply Like
  • cgm
    , contributor
    Comments (208) | Send Message
    Oil sands are not very economical. If the oil price declines much more, it may not be even worth mining. The costs are high and the environmental issues are significant. I'd rather be in the Bakken.
    13 Nov 2012, 01:48 PM Reply Like
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