Bakken Shale, 2011 - Oil Shale Market Analysis and Forecasts to 2020

Report Summary

Bakken Shale, 2011 - Oil Shale Market Analysis and Forecasts to 2020 provides insight into the exploration and development activities in the Bakken shale play. The report highlights the gas exploration potential of the Bakken shale play, providing details of the key exploration areas, and the major exploration companies in Canada and the US. The report also emphasizes the essential parameters for Bakken gas exploration and production, providing an overview of the various strategic developments for improving infrastructure in the Bakken shale in North Dakota and Montana of the US.

Scope
The report analyzes Bakken shale oil and gas exploration and production activities in the US. The scope of the report includes -

• An overview of the oil and gas exploration in the Bakken shale.
• Discussion of the drivers of the shale oil and gas exploration in the Bakken shale.
• The report provides an overview of the competitive landscape of shale gas exploration in the Bakken shale and provides details of the major companies operating in the region.
• Current exploration and production statistics for the North Dakota and Montana Bakken shale. It also provides a forecast for Bakken shale production from 2011-2020.
• Information on the coverage and an overview of operations in the Bakken shale.
• Information on the major mergers and acquisitions in the Bakken shale during 2008-2011
• Details of the major recent infrastructure developments in the shale.

Reasons to buy
The report will enhance your decision making capability. It will allow you to -

• Develop business strategies with the help of specific insights into Bakken shale gas exploration in the US
• Identify opportunities and challenges in Bakken shale gas exploration in the US.
• Plan strategies based on expected developments in shale gas exploration activities in the US.
• Understand the competitive landscape of the Bakken shale.
• Keep yourself informed of the key developments in this potential game changing market.

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Bakken Shale Emerging as a Major Oil Producing Play in the US

The Bakken shale has emerged as one of the most promising oil and gas producing shales in the US. This shale is primarily an oil producing shale. Total production from the Bakken formation increased at a growth rate of 55.2% year-on-year during 2010. The total production grew at a CAGR of 51% from 2004-2010. The oil production in the Bakken shale increased from approximately 8.4 MMboe in 2004 to 97.5 MMboe in 2010 at a CAGR of 50%. A large part of this increase came from the North Dakota Bakken shale formation. The figure below provides historical and forecast production data for the Bakken Shale play from 2004-2020.

North Dakota Experiencing a Significant Increase in Production

Bakken shale production from North Dakota accounts for nearly 88% of the total production from the Bakken Shale play in the US and has significantly outpaced the production from the adjoining state of Montana during 2010-2011. In North Dakota, the production from the Bakken play increased substantially from 49.5 MMboe to 85.6 MMboe at a growth rate of 72.8% during 2009-2010. The oil and gas production from the North Dakota Bakken shale formation increased from 30.3 MMboe in 2008 to 96.4 MMboe in 2010 at a CAGR of approximately 78.1%. Therefore, oil produced from the North Dakota state has contributed greatly to the overall production from the Bakken shale play in the US.

Improved Infrastructure Development Plans to Enhance the Bakken Shale Play in 2011-2012

Major oil and gas companies such as Continental Resources have been undertaking activities to increase their production with the help of improved infrastructure and developmental facilities in the Bakken shale during 2010-2011.

These producing companies have worked with many of the large pipeline companies to address the need for transiting the crude extracted from the producing wells to the end-user markets. Large transportation pipeline companies such as Enbridge Pipelines and BakkenLink Pipeline are evaluating the possibility of transporting crude from the Bakken oil play in the Williston Basin in Montana and North Dakota to a wide range of refinery markets in the US. The Enbridge Bakken pipeline project, or the “Bakken Pipeline Expansion Project: Berthold to Cromer,” promises to deliver 145,000bbl/d of crude oil from the Bakken shale to various refineries in North Dakota. The expansion project may further support the transport of crude oil from the Bakken shale at a rate of 325,000bbl/d. The whole expansion program is expected to be completed by January 2013. Similar projects in the Bakken shale play are expected to increase the productivity of the shale in future.

1 Table of Contents
1 Table of Contents 2
1.1 List of Tables 3
1.2 List of Figures 4

2 Introduction 5
2.1 Overview 5
2.2 GlobalData Report Guidance 5

3 Bakken Shale, Overview 6

4 Bakken Shale, Operational Overview 8
4.1 Bakken Shale, Initial Production Rates 8
4.2 Bakken Shale, Planned Wells 9
4.3 Bakken Shale, Planned Rigs 10
4.4 Bakken Shale, Well Profile 11
4.5 Bakken Shale, Production Trends, 2004-2020 13
4.5.1 Historical Production, 2004-2010 13
4.5.2 Historical and Production Forecast, 2004-2020 16
4.6 Bakken Shale, Cost Trends, 2010-2011 18
4.7 Bakken Shale, Drilling Activity, 2010-2011 20
4.7.1 Bakken Shale, Drilling Activities in North Dakota, 2011 20
4.7.2 Bakken Shale, Bakken Horizontal Wells by Major Producing Zones in North Dakota, 2011 24
4.7.3 Bakken Shale, Drilling Activities in Montana, 2011 30

5 Bakken Shale, Competitive Landscape 32
5.1 Bakken Shale, Major Companies by Acreage, 2011 32
5.2 Bakken Shale, Major Companies By Production, 2010 34
5.2.1 North Dakota Bakken Shale, Major Companies by Production, 2010 38
5.2.2 Montana Bakken Shale, Major Companies by Production, 2010 40
5.3 Bakken Shale, Major Companies Operational Analysis, 2011 44
5.3.1 Continental Resources Inc 44
5.3.2 Hess Corporation 45
5.3.3 Whiting Petroleum Corporation 47
5.3.4 Crescent Point Energy Corp 49
5.3.5 EOG Resources Inc 51
5.4 Bakken Shale, Capital Expenditure by Major Companies 52

6 Bakken Shale, Mergers and Aquisition Activities, 2011 54

7 Bakken Shale, Infrastructure, 2011 58

8 Appendix 62
8.1 Abbreviations 62
8.2 Methodology 62
8.2.1 Coverage 62
8.2.2 Secondary Research 63
8.2.3 Primary Research 63
8.3 Disclaimer 63

List of Tables
1.1 List of Tables
Table 1: Bakken Shale, Some of the Recent Wells Drilled and Initial Production Rates by Major Companies, boe/d, 2011 8
Table 2: Bakken Shale, Planned Wells by Major Companies, 2011 9
Table 3: Bakken Shale, Planned Wells by Major Companies, 2012 10
Table 4: Bakken Shale, Planned Rigs by Companies, 2011 10
Table 5: Bakken Shale, Planned Rigs by Companies, 2012 11
Table 6: Bakken Shale Wells, Decline Rate (%), 2011 11
Table 7: Bakken Shale, Historical Crude Oil and Natural Gas Production, The US, MMboe, 2004-2010 13
Table 8: North Dakota, Historical Production from the Bakken Shale (MMboe) and its Share in North Dakota's Crude Oil Production (%), 2004-2010 14
Table 9: Montana, Historical Production from the Bakken Shale, MMboe, 2004-2010 15
Table 10: Bakken Shale, Historical and Forecast Production from the Shale, MMboe, 2004-2020 17
Table 11: Bakken Shale, Cost per Well for Major Companies, $m/well, 2011 18
Table 12: Bakken Shale, Finding & Development of Major Companies, $/boe, 2011 19
Table 13: Bakken Shale, North Dakota Bakken Formation, Number of Producing Wells Completed, January 2011-October 2011 21
Table 14: Bakken Shale, North Dakota, Major Areas by Number of Producing Wells, 2010 23
Table 15: Bakken Shale, North Dakota, Number of Producing Wells, 2007-October 2011 24
Table 16: Bakken Shale, North Dakota, Total Number of Horizontal Producing Wells in Some of the Major Producing Zones in North Dakota, 2007-October 2011 25
Table 17: Bakken Shale, North Dakota, Major Companies by Total Number of Horizontal Wells Drilled in the Middle Bakken Formation, 2007-October 2011 26
Table 18: Bakken Shale, North Dakota, Major Companies by Total Number of Horizontal Wells Drilled in the Three Forks Formation, 2007-October 2011 28
Table 19: Bakken Shale, North Dakota, Major Companies by Total Number of Horizontal Wells Drilled in the Middle Bakken/Three Forks Formation, 2007-October 2011 29
Table 20: Bakken Shale, Number of Wells Reported by Field in Montana, 2007-2011 31
Table 21: Bakken Shale, Major Companies By Acreage, Canada and The US, Net Acres,2011 33
Table 22: Bakken Shale, Top 10 Companies by Production, Canada and The US, MMboe, 2010 34
Table 23: Bakken Shale, Major Companies by Production, The US, MMboe, 2010 36
Table 24: North Dakota Bakken Shale, Major Companies by Production, MMboe, 2010 38
Table 25: Montana Bakken Shale, Top Companies By Production, MMboe, 2010 41
Table 26: Montana Bakken Shale, Top Companies by Production, MMboe, 2011 43
Table 27: Continental Resources Inc, The Bakken Shale Key Operational Parameters, 2011 44
Table 28: Hess Corporation, The Bakken Shale Key Operational Parameters, 2011 46
Table 29: Whiting Petroleum, The Bakken Shale, Bakken Horizontal Wells in Sanish Area, 2011 47
Table 30: Whiting Petroleum Corporation, The Bakken Shale Key Operational Parameters, 2011 48
Table 31: Crescent Point Energy Corp, The Bakken Shale Key Operational Parameters, 2011 50
Table 32: EOG Resources Inc, The Bakken Shale Key Operational Parameters, 2011 52
Table 33: Bakken Shale, Planned Capital Expenditure by Major Companies, ($m), 2011 52
Table 34: Bakken Shale, Planned Capital Expenditure by Major Companies, ($m), 2012 53
Table 35: Bakken Shale, Merger and Acquisition Activities, Number of Deals and Deal Value ($m), The US, 2008-December 2011 55
Table 36: The US Bakken Shale, Major Mergers and Acquisitions by Deal Value ($m), 2010-2011 55

List of Figures
1.2 List of Figures
Figure 1: Bakken Shale, Operational Map and the Shale's Formation, 2011 6
Figure 2: Bakken Shale Formation, Stratigraphy, 2011 7
Figure 3: Bakken Shale, Well Profile, 2011 12
Figure 4: The US Bakken Shale, Historical Oil and Gas Production, MMboe, 2004-2010 13
Figure 5: North Dakota, Historical Production from the Bakken Shale, MMboe, 2004-2010 14
Figure 6: Montana, Historical Production from the Bakken Shale, MMboe, 2004-2010 15
Figure 7: Bakken Shale, Historical and Forecast Production, MMboe, 2004-2020 16
Figure 8: Bakken Shale, North Dakota, Number of Producing Wells Completed, January 2011-October 2011 20
Figure 9: Bakken Shale, North Dakota Bakken Formation, Major Areas by Number of Producing Wells, 2010-2011 22
Figure 10: Bakken Shale, North Dakota, Number of Producing Wells, 2007-October 2011 23
Figure 11: Bakken Shale, North Dakota, Total Number of Horizontal Producing Wells in Some of the Major Producing Zones in North Dakota, 2007-October 2011 24
Figure 12: Bakken Shale, North Dakota, Major Companies by Total Number of Horizontal Wells Drilled in the Middle Bakken Formation, 2007-October 2011 25
Figure 13: Bakken Shale, North Dakota, Major Companies by Total Number of Horizontal Wells Drilled in the Three Forks Formation, 2007-October 2011 27
Figure 14: Bakken Shale, North Dakota, Major Companies by Total Number of Horizontal Wells Drilled in the Middle Bakken/Three Forks Formation, 2007-October 2011 29
Figure 15: Bakken Shale, Number of Wells Reported by Field in Montana, 2007-2011 30
Figure 16: Bakken Shale, Major Companies by Acreage, Canada and The US, Net Acres, 2011 32
Figure 17: Bakken Shale, Top 10 Companies by Production, Canada and The US, MMboe, 2010 34
Figure 18: Bakken Shale, Major Companies by Production, The US, MMboe, 2010 35
Figure 19: The US Bakken Shale, Percentage Share of Major Companies in Production (%), 2010 37
Figure 20: North Dakota Bakken Shale, Major Companies by Production, MMboe, 2010 38
Figure 21: Montana Bakken Shale, Top Companies by Production, MMboe, 2010 40
Figure 22: The Bakken Shale, Major Companies by Production, Montana, MMboe, 2011 42
Figure 23: Hess Corporation, The Bakken Shale Operational Map, 2011 45
Figure 24: Whiting Petroleum Corporation, The Bakken Shale Operational Map, 2011 47
Figure 25: Crescent Point Energy Corp, The Bakken Shale Operational Map, 2011 49
Figure 26: EOG Resources Inc, The Bakken Shale, 2011 51
Figure 27: The US Bakken Shale, Merger and Acquisition Activities, 2008-December 2011 54
Figure 28: The US Bakken Shale, Bakken Pipeline Expansion Project, 2011 58
Figure 29: The US Bakken Shale, Proposed BakkenLink Project, 2011 59
Figure 30: The US Bakken Shale, Proposed TransCanada MarketLink, 2011 60
Figure 31: The US Bakken Shale, Plains Bakken North Pipeline, 2011 61