Increased production from the Bakken might be the saving grace for Marathon Oil after posting a $386 million loss for the second quarter.
As reported by United Press International (UPI), the company said that for its North American operations, net production averaged 274,000 barrels of oil equivalent per day (boed). The increase is 21 percent greater for its year-to-year figures, but a 3 percent decline from the previous quarter. Marathon President and CEO Lee Tillman partly attributed the overall decline to decreased spending on exploration and production.
In a statement, he said, “Capital spending in the quarter was down about 40 percent sequentially as we’ve moderated activity levels in the U.S. resource plays.” In other areas of operation, Marathon reported mixed results. In Texas’ Eagle Ford shale play, the company saw a 32 percent net production increase for the second quarter when compared to 2014, but an 8 percent decrease compared to this year’s first quarter. In its Oklahoma operations, production increased 33 percent from last year and remained mostly unchanged from this year’s first quarter.
Rather than focusing on the market and fluctuating oil prices, the company focused on things within its control, such as well productivity and operational efficiencies. Tillman said, “Looking to the second half of the year, we expect to maintain production levels and achieve our year-over-year production growth of 5-7 percent for the total company and 20 percent in the U.S. resource plays.”