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NCND | The price will be different for different areas. Eog down in parshall is around 25/barrel iirc. Other areas like around Alexander is higher around 70 barrel. Lets just say on average maybe 55-60???
I think the story this year is that the entire bakken is HBP. We have around 175 rigs I think currently. I'd be shocked if its that high come fall. Finish year around 120-130???? Rigs.
So we don't drill quite as many wells possible going forward. Pure speculation on my part but as I've stated before the oil companies had to ramp up crews to get state HBP. They added less than perfect labor. So why not slow down and do a good job with your best guys instead of rushing along??? Our states infrastructure is strained due to all the extra guys here. It's strains everyone! So if I were boss I'd cut back and make life simpler and work with my best. Send the rest to the Permian where the infrastructure is in place.
The wild card is whether we can keep all these rail cars rolling on their wheels not skidding on their sides. If something were to happen and they were to shutdown oil by rail temporarily I'd bet we all loose. Basis collapses and oil goes up 10-20 a barrel?????? We are churning out a million a day. Take 700k off that maybe not quite that much but would cause much uncertainty going forward. Would be a bad bad bad deal for many. Except the fellas in Texas.
I just got back from the Permian. Made me feel like the bakken was small compared to size and sheer number of businesses there. Was looking for real estate but the growth isn't that crazy considering they have 4 times the rigs working there. The infrastructure is there. The extra hotels are being built. The housing demand is mediocre. Just didnt have that same panic feel to it as we do up here or had here when we really ramped up 2010-0"2012. Was quite the trip there but it really opens the eyes to how far we have to go up here. I'm really still scratching my head when trying to explain that whole thing down there.
Sorry but off topic | |
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Fall 2014 basis meeting with PNW shippers
