Cost reductions, lower gas prices and falling oil stocks will not have a large impact on SCOOP production, according to one Continental Resources vice president.
Warren Henry, vice president of research and policy for Continental said although reductions in capital expenditures have been substantial, the company’s investment in the SCOOP is too much for it consider slowing down due to the current market.
“It will take quite awhile for production growth rate to slow down very much,” he said.
The growth rate will slow down a bit in the second half of 2015, but Henry said Continental’s continued success in the SCOOP keeps the company interested.
“As we move south and southeast further delineating the play we are having continued success,” he said. “Because we are early in the maturity development of the play we are still defining how big it is.”
Henry said the situation in North Dakota’s Bakken region is very different, where that play has been well defined.
“Some of these decisions are not purely economic,” he said. “Theses issues aren’t just based on oil and gas prices, but momentum you have in an area.”
Henry said the company bases growth rates over the last 12 months and not the last two or three.
Drastic reductions in staff will not be something seen in Continental, according to Henry.