Oil prices have continued on a downward slide, but production in the Bakken and Eagle Ford Shale formations increased slightly between June and July, reports the Houston Chronicle.
According to Bentek Energy, an energy market analytics company, oil production in North Dakota’s Bakken continued to pump over 1.2 million barrels per day in July, up by about 500 daily barrels compared to June figures. From the same time last year, production in North Dakota has increased by roughly 90,000 barrels per day.
Production in the Eagle Ford averaged about 1.6 million barrels per day for the month of July, an increase of roughly 10,000 barrels per day when compared to June production. In a press release, Bentek Energy Analyst Sami Yahya said, “Initial production rates have been improving, especially in the oily window of the Eagle Ford Basin.”
Yahya continued, “As well, producers in the Eagle Ford are currently drilling 2.5 wells per rig per month, which is higher than the national average of 1.5 wells. Drill times have been improved from an average of 15 days per well in 2014 to roughly 11 days per well in 2015.” The timeframe for drilling new wells in the Bakken has also improved, dropping from the 15 days per well late 2014 to about 13 days per well during the second quarter of this year.
“It is the flight to quality and higher returns that is keeping crude production going in those two key shale basins,” Yahya said. “Substantial cost savings protocols alongside reduced drill times have kept internal rates of return in the Bakken shale formation among the best in the country. Current rates of return in the Bakken shale formation are around 15 percent, which is comparable to the 18 percent found in the Eagle Ford Basin.”