Here are the top five stories from Bakken.com for the week of December 29, 2014, through January 2, 2015. Enjoy!
1. The end of North Dakota’s oil boom is here
The Williston Herald is reporting that the Bakken Club, a business which made national headlines by operating as an exclusive, members only club in a tiny western North Dakota town, has fallen on tough times. The club has been evicted by its landlord for allegedly failing to pay rent. The club’s owners, for their part, claim the landlord wasn’t keeping up the property they were renting.
Whatever the outcome, the struggles of the Bakken Club and its surreal business model relying on membership dues ranging as high as $25,000 per year are fraught with symbolism portending the end of North Dakota’s oil boom.
The crazy times are over. What remains for North Dakotans is to find out what the new normal is in the after-boom era. To read more, click here.
2. Continental Resources announces further budget cuts
Continental Resources (NYSE: CLR) has recently announced its plans to further cut its capital expenditures for the upcoming year but also projects the activity will increase production growth by up to 20 percent when compared to last year.
Last month the company announced it would be cutting its budget from $5.2 billion to $4.6 billion. However, those figures have been updated and expenditures will now be cut from $4.6 billion to $2.7 billion. Since the summer, oil prices have dropped by nearly 50 percent with this month seeing prices hovering around $60 per barrel. Continental Chairman and Chief Executive Officer Harold Hamm said, “This revised budget prudently aligns our capital expenditures to lower commodity prices, targeting cash flow neutrality by mid-year 2015.” To read more, click here.
3. American Eagle Energy suspends drilling operations amidst falling oil prices
The recent fall in oil prices has claimed yet another victim, for now. American Eagle Energy, based out of Littleton, Colorado, has announced that the company is suspending its drilling operations and likely won’t resume until oil prices improve, according to the Wall Street Journal. American Eagle Energy provides exploration and productive long-term reserves from some of North America’s most productive gas and oil formations in the Three Forks and Middle Bakken formation in the Williston Basin. To read more, click here.
4. Oilfield housing firm’s stumble may herald more oil industry pain
WILLISTON, N.D., Dec 31 – A nasty profit warning and deep job cuts. A gutted capital budget, a suspended dividend and shares tumbling by more than half on a single day.
The retrenchment at Civeo Corp, which provides temporary housing for oilfield workers and miners, is the most-severe symptom of pain inflicted on the oil service industry by the slide in crude prices, and may presage similar steps by peers.
It also exposes the transient nature of the “man camp” business of dormitory-style temporary housing the company helped pioneer. To read more, click here.
5. U.S. agency gives quiet nod to light oil exports
WASHINGTON – The main U.S. export authority is telling some oil companies that they should consider exporting a lightly processed form of crude oil called condensate without formal permission, according to people familiar with the discussions.
In conversations that may help clear the way for more overseas sales of U.S. shale oil, the Commerce Department’s Bureau of Industry and Security (BIS) has told companies seeking clarification on the legal status of so-called “processed condensate” that self-classification – whereby companies export their product without any formal authorization – could be a way forward, the people told Reuters. To read more, click here.