[ANALYSIS] North Dakota oil drilling costs have peaked – for now

(Reuters) – The land rush that drove thousands of roughnecks, drillers and leasing agents to North Dakota’s oilfields is cooling off, bringing down costs in the country’s most expensive major energy basin.

Service costs are falling as companies concentrate drilling in fewer locations, industry executives say, while equipment rents are down after demand evaporated due to a nationwide glut of natural gas.

This pricing squeeze has pinched oil service companies around North America from Halliburton Co (HAL.N) and Baker Hughes Inc (BHI.N) on down. But it has helped producers such as Continental Resources Inc (CLR.N) and Whiting Petroleum Corp (WLL.N), big players in the North Dakota-centered Bakken basin.

Leaseholders have a set number of years to start producing on a property or surrender the lease, and that pressure created a frenzy of drilling activity. North Dakota has become the No. 2 oil-producing U.S. state after Texas.



In North Dakota, hard to tell an oil millionaire from regular Joe/Reuters

UN official: Climate skeptics are losing/The Hill 

Share this!

Additional Articles

News Categories

Get Our Twice Weekly Newsletter!

* indicates required

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.