Right here in America there is a modern day oil & gas boom. Using a geology-based assessment methodology, the U.S. Geological Survey estimated mean undiscovered volumes of 3.65 billion barrels of oil, 1.85 trillion cubic feet of associated/dissolved natural gas, and 148 million barrels of natural gas liquids in the Bakken Shale Formation of the Williston Basin Province, Montana and North Dakota.

Thursday, August 30, 2012

Oil Giants Pour Billions Into Bakken Shale


The biggest concern for potential investors in the Bakken Shale oil-producing region of western North Dakota is: "How long will it last?"

A completed Bakken well, which has an average life of 29 years, generates $22 million in net profit over its lifetime, according to the North Dakota Industrial Commission's Oil and Gas Division.

The wells here, which use the hydraulic fracturing or "hydrofracking" technology, cost about $8.5 million on average to drill and complete, with break-even pricing linked to market prices at $55 to $70 per barrel.

Bakken oil is a light, sweet crude that should be able to replace some of the expensive North Sea and West African crudes that make up some of the US supply. It recently traded at about $10 to $15 below the benchmark West Texas Intermediate ("WTI") market price, which was at $95 for October delivery and has averaged about a $17 per barrel discount to the North Sea Brent benchmark crude recently.

"The Bakken Shale of Montana, North Dakota, Saskatchewan, and parts of Manitoba have an abundance of oil and natural gas available in the reserve. A conservative estimate is that it holds 4.3 billion barrels of oil, but other recoverable resources at much, much higher," stated President 
Timothy Smith of Petro Lucrum, Inc.

President Smith continued to state, "North Dakota officials say the state has already jumped into second place, behind only Texas, with an average daily production of 650,000 barrels while some already claim is the number one producing region within the USA."  

Read more: http://www.minyanville.com/sectors/energy/articles/thestreet-HAL-HES-Hess-Halliburton-energy/8/29/2012/id/43602#ixzz255i8qR00

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