Bakken production growth expected to slow as the play matures

Production growth from the Bakken tight oil formation is expected to moderate in the next 2 years as older wells decline and new wells strain to offset natural production declines, analysis by Wood Mackenzie Ltd. shows.The research and consulting firm expects Bakken oil production will increase at a rate of 100,000 b/d/year, rising from an average of 1.1 million b/d in 2014 to 1.7 million in 2020. By comparison, US Energy Information Administration data show oil output increased by 220,000 b/d in 2012 and 260,000 b/d in 2013.Jonathan Garrett, upstream analyst for Wood Mackenzie, said the estimates take into account the steep declines seen in the initial years of production for any given well.”Any time you have an unconventional well, whether it be in the Bakken or otherwise, the declines are pretty significant during the first year and you must drill more wells to offset those declines,” Garrett told UOGR. “So we think that while production will continue to increase, the rate of growth will begin to slow a bit.”

via Bakken production growth expected to slow as the play matures – Oil & Gas Journal.

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