Super Shales | Russell T. Rudy Energy LLC
When crude prices collapsed last fall, some industry observers predicted hard times for shale operators. While this has been true in some cases, a recent article in “Rigzone” cited a study by consulting firm Wood Mackenzie. Their analysis indicates that there is still a great deal of upside for both the Bakken and Eagle Ford shales. Together, these two plays produce over 2.5 million barrels of oil per day (bopd), or almost two-thirds of all domestic tight oil.
Bakken
Wood Mackenzie predicts that production will keep growing in the North Dakota’s Bakken shale, but at a slower pace. Admittedly, rig counts have dropped from a high of around 190 last fall to just 84 the week of May 15. However, the drop in rigs has not been across the board. In the fringe areas of the play, rig counts have decreased about 70%. Conversely, as operators retreat to the “core of the core”, rig counts in McKenzie County, where the West Nesson and Nesson Anticline are located, drilling activity is proving much more stable.
In 2014 the Bakken produced 1.1 million bopd and Wood Mackenzie foresees this increasing to 1.2 million this year. With 12-13 significant operators in the West Nesson, healthy growth is anticipated for the next 5 years in this area in particular.
Eagle Ford
Operators in the Eagle Ford shale in South Texas are following the same strategy of “retreat to the core”, which in this case means the Karnes Trough and the Edwards Condensate subplays. Both initial production rates and Ultimate Economic Recoveries have recently exceeded expectations.
The Eagle Ford has benefited from advances in management and completion practices. Operators in the play have refined the use of drilling pads, supply chains, and drilling operations to state of the art. As for completions, better lateral placement, faster pump rates, and advances in both proppants and frac fluids best suited to the play, have all paid off. Consequently Wood Mackenzie sees production increases continuing in the Eagle Ford as well.
To read the article in its entirety, please go to http://www.rigzone.com/news/article.asp?hpf=1&a_id=138668&utm .
