Break-even oil prices in Bakken are now reaching equivalency with oil production areas in the Middle East, with new well designs to thank for the achievement, according to the North Dakota Department of Mineral Resources. Activity in the region has increased as the new Bear Creek gas processing plant has gone into production, which has galvanised the testing of new well designs by providing much-needed gas processing infrastructure. The local industry is trying to increase efficiency and lower the break-even price. In a recent report, the US Energy Information Administration (EIA) said that the average price per barrel was $28.50 at the end of last year, up from about $30 during 2014.
Break-even oil prices in Bakken are now reaching equivalency with oil production areas in the Middle East, with new well designs to thank for the achievement, according to the North Dakota Department of Mineral Resources. Activity in the region has increased as the new Bear Creek gas processing plant has gone into production, which has galvanised the testing of new well designs by providing much-needed gas processing infrastructure. The local industry is trying to increase efficiency and lower the break-even price. The Bakken area’s break-even price is currently $15, competitive with the price per barrel for the low-cost producers of the Middle East.