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SHALE Bakken oil production: Can the giant oil formation reach 1 million barrels a day?

Home Forums Refining Community Refinery News SHALE Bakken oil production: Can the giant oil formation reach 1 million barrels a day?

This topic contains 6 replies, has 3 voices, and was last updated by  Anonymous 8 years, 9 months ago.

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  • #1769

    Anonymous

    Can the Bakken produce one million barrels a day of oil?
    If so, it would join an elite group of oil fields able to produce at that rate. Only six other fields, including Saudi Arabia’s famed Ghawar field, have ever topped 1 million barrels per day–they are Burgan (Kuwait), Cantarell (Mexico), Daqing (China) and Samotlor (Russia) and Kirkuk (Iraq).

    Monday, January 07, 2013, OilVoice
     

    Contribution by Keith Schaefer from Oil & Gas Investments

  • #4551

    Anonymous

    Phillips 66 Signs Oil-By-Rail Contract for New Jersey Refinery
    Phillips 66 secured a deal with Global Partners to get crude oil delivered by rail to its New Jersey refinery from North Dakota’s Bakken Shale. The five-year contract will allow Phillips 66 to take in 50,000 barrels of oil per day using Global Partners’ rail network.

     
    By Ben Lefebvre
    Published January 08, 2013
    Dow Jones Newswires
     

  • #4550

    Charles Randall
    Participant

    The original post by Paul from Fox is update from OGJ Jan 09 news item on growth of refineries (this one P66 to NJ Bayway Refinery 5yr contract) with rail deliveries of Bakken Crude. The production rates on Bakken have gone from Famine due Pipeline restrictions to Feast due Railed Crude movements. Not sure the hight (+$12.50-18.0/Bbl) rail rates will give enough margin for Bayway to survive (even if COp/P66 sells refinery) given the issues closing all/most of East Coast Refineries – especially those without cokers/less complex.

    The total production for Bakken crude was given as ~728,000 b/d in Nov 2012 another new record since rate started significantly increasing from July 2011 ~350MBD gaining nearly ~25-50MB/month (course N Dakota Bakken Crude production does now include some from S Dakota ~5MBD & Montana ~50MBD.

    The Bakken crude is on-target to hit 1 million bpd rate in July 2013 which only few fields in world have been able duplicate (Saudi Ghawar field, Kuwait Burgan field, Mexico Cantrarel, China Daquing and Iraq’s Kirkuk among others) as Becky’s post mentions.

    The 1MMBPD rate will be moved by 700MBD rail contracts & 600MBD pipeline contracts or 1.3MMBD by the end of 2013 which should keep up with surging production rate thru first of 2014. Their are more than 18 rail terminals in N Dakota handling all rail movements which have enabled the ramp-up in production stalled by lack Pipeline completion due environmental harrasment/lawsuits/blockage.

    Here is link to article with some good details on Production rates, moves by rail & P/L of Bakken Crude. < http://www.rbnenergy.com/from-a-famine-of-pipeline-to-a-feast-of-rail-giving-thanks-for-bakken-delivery >

    And link Becky’s post was from OGJ chart on ” proven/probable/possible” production rates for Bakken Crude field.  But both Probable & Possible curves will be hit  this year in July & Dec 2013. If more of pipelines get completed (aka upper half of XL P/L) even more room test upper production levels will be available.  EIA/Govt/Environmentalist have all minimized potential of this formation that actual production has outstripped every year since 2009!
    Regards

  • #4548

    Anonymous

    Monterey Shale in California offers huge oil resources

     
    Oil industry experts in the U.S. see the huge market potential of California’s Monterey Shale, which runs from Los Angeles to San Francisco. The U.S. Geological Survey reported that the area contains more than 400 billion barrels of oil, equal to nearly half the total amount of conventional oil in Saudi Arabia. Research from private companies is focusing on finding ways to efficiently extract oil from the area, as its geological layers are folded, unlike other shale areas.
     

  • #4545

    Anonymous

    BP’s forecasts illustrate the extent to which the North American boom, first in shale gas production and now in shale oil, has redrawn the global energy map and landscape.
    By Selina Williams
    http://online.wsj.com/article/SB10001424127887323468604578245650412849768.html

  • #4540

    Anonymous

    Phillips 66 has signed a five-year contract with Global Partners LP to use its rail transloading, logistics and transportation system to deliver crude oil from the Bakken region of North Dakota to the Phillips 66 Bayway refinery in New Jersey. This is one of several commitments to transportation infrastructure Phillips 66 has made that tie directly to its strategy of delivering advantaged crude oil to the company’s U.S. refineries.
    The terms of the contract include a take-or-pay commitment from Phillips 66 to receive approximately 91 MMbbl of crude oil over the contract term, which equates to approximately 50,000 bopd.  The contract will utilize Global’s network of loading facilities and offloading terminals.  Phillips 66 is one of the first energy companies to move shale crude to the East Coast.  Last year, the company expanded its capability to deliver shale crude to its refineries by truck, rail, barge, ocean going vessels, and pipeline.
    “Global has established a ‘virtual pipeline’ for the reliable transportation of Bakken crude,” said Tim Taylor, Executive Vice President, Commercial, Marketing, Transportation & Business Development of Phillips 66.  “Our five-year agreement with Global assures us long-term access to advantaged crude for our Bayway refinery through what we believe is a cost competitive origin-to-destination supply system to the East Coast.”

  • #4538

    Anonymous

    Valero Energy Corp.’s (VLO) fourth-quarter earnings hit a seven-year high as the refining company took full advantage of the growing supply of North American crude and stopped buying expensive light, sweet crude imported from overseas.

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