Shale oil production in Bakken, Eagle Ford up 31.5% compared to 2013 levels

Oct. 1, 2014

Oil production from shale formations in North Dakota and Texas increased by more than 78,000 barrels per day (b/d) in August, a 3.1% rise, according to Bentek Energy, an analytics and forecasting unit of Platts, a leading global provider of energy, petrochemicals, metals and agriculture information.

 The latest data shows that South Texas, Eagle Ford oil production was 37% higher than August 2013, just short of 400,000 incremental barrels per day available to the domestic market, according to Jack Weixel, Bentek Energy director of energy analysis.

 "This production is important to sustain storage levels at Cushing OK in the face of higher refinery demand in the United states," Weixel said. "Bentek estimates that from August 2013 to August 2014, total US crude oil production has increased by over 1.5 million b/d."

 Crude oil production in the North Dakota section of the Bakken shale formation of the Williston Basin averaged nearly 1.2 million b/d in August, according to Bentek. This was 227,000 b/d higher than levels seen in August 2013.

 "Prices of Bakken shale oil fell to the mid-$80.00 per barrel (/b) area between mid-August and mid-September, while prices of Eagle Ford shale oil trended below the $100.00/b level since mid-August," said Richard Capuchino, Platts managing editor of Americas crude.

 The Platts Eagle Ford Marker, a daily price assessment launched in October 2012 and reflecting the value of oil out of the Eagle Ford Shale formation in South Texas, has dropped 0.9% since January 1, with an average year-to-date price of $103.234/b. The marker has fluctuated between $94.20/b and $110.71/b since the first of the year.

 The price of oil out of the Bakken formation at Williston, North Dakota, has ranged between $83.35/b and $96.27/b since April 22, according to the Platts Bakken price assessment. It reached a high of $96.27/b in mid-June before leveling off and trading closer to the $90.3669/b average for the year.

 For more information on data models, reports, or Bentek's methodology, contact [email protected].