US Shale oil production increased by 33% or 642,000 barrels per day in North Dakota and Texas

Crude oil production in the North Dakota section of the Bakken shale formation of the Williston Basin averaged 1.1 million barrels per day (b/d) in June, according to Bentek. This is up 28.9% from the monthly average seen in June 2013. In another of the nation’s predominant oil shale plays, the Eagle Ford in Texas, production averaged 1.4 million b/d last month, a 37.6% increase from June 2013.

Oil production from shale formations in North Dakota and Texas increased by more than 33% in June, according to Bentek Energy, an analytics and forecasting unit of Platts. June Production from north Dakota and Texas oilshale are up 642,000 Barrels per day from one year ago.

“Bentek estimates that internal rates of return on drilling and carrying costs exceed 65% in the Eagle Ford and 50% in the Bakken*,” Weixel said. “To the average producer that means for every $1 million they sink into drilling a well, they can expect to recover at least $1.5 million in crude oil, liquids and natural gas over the course of a year.”

Activity in the Wolfcamp shale is expanding and, by as early as 2017, could overtake the Bakken in tight oil spending, according to analysis on the West Texas play from Wood Mackenzie.

Wolfcamp capital expenditures are expected to eclipse $12 billion during this year as rigs ramp up, ranking the Wolfcamp third behind the Bakken and Eagle Ford. That total is equal to about 80% of what will be spent in the Bakken this year.

Crude and condensate production from the play is expected to average 200,000 b/d during the year and reach 700,000 b/d by the end of the decade.

North Dakota oil production in May, 2014 was 1.039 million barrels per day.

WoodMac notes that the Wolfcamp is still in its early development phase with less than 10% of total capital spent thus far. The firm increased the play’s capex forecast for 2015 by more than $4.3 billion to $13.9 billion to account for an influx of new entrants with capital. The Wolfcamp is now projected to generate $30 billion in remaining value.

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