(Petrolytics) - With the shutdown of the DAPL, it appears as though the Bakken might be shut-in for awhile longer. Even with pipeline access, the well-level economics will most likely struggle to compete with other opportunities (although the strike-down definitely isn't helping operators in North Dakota).
We'd expect the core acreage in the Bakken to continue development, however, the more fringe leases could sit idle or expire. The fraction of economically shut-in volume doesn't inspire confidence either. Many of these wells will require serious well intervention to return online. Many more will need to be P&A'd
"Oil production in North Dakota – from which more than 95% of the basin's crude output comes – averaged about 925,000-970,000 b/d in mid-June versus about 1.45 million b/d pre-pandemic owing to the pandemic-related output shut-ins."
Starr Spence, S&P Global Platts
Pretty fortunate that a significant piece of the Permian doesn't require interstate transportation, otherwise the fate could've been similar (albeit the economics are much better).
In any case, let's look at a few interesting pieces this morning.
We'll wrap up with a non-energy related story:
Harvard appears to be charging full tuition for virtual learning this fall. In our opinion, this is a misstep. We would encourage our kids to explore other options this fall. Perhaps it's worth taking a gap year, checking out the Lambda school, or going to vocational school. Full price for subpar product is crazy.