Another dip in oil prices Monday, briefly touching a five-year low at less than $50 a barrel, caused an upset in the stock exchange and focused more attention on response by companies drilling the Bakken in North Dakota.
Crude for February delivery was posted at $50.35 per barrel on the NYMEX Monday.
The active rig count in North Dakota dipped to 170 Monday, a drop of 14 rigs drilling in less than three weeks.
Some of that slowdown may be seasonal, but some can be attributed to companies laying off rigs while watching what happens in the oil market. Bakken oil is discounted another $10 to $16 a barrel because of transportation costs.
One major Bakken producer, Continental Resources, recently announced it will cut its Bakken rigs by half of what it had planned for 2015, down to 11 from the 19 rigs it expected to have drilling under an earlier forecast.
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On the other hand, company owner Harold Hamm said he still expects to complete 188 Bakken wells this year while oil well service costs, which include hydraulic fracturing, should decline by 15 percent.
Hess Corporation spokesman John Roper said his company has 17 rigs drilling in the Bakken and was still hiring as of last week, despite rumors of layoffs in the oil patch.
A December company investor presentation said Hess expected to have 14 rigs drilling during 2015 and Roper said Hess will update its investors about 2015 drilling activity sometime in January.
Marathon Oil says it will announce its 2015 Bakken drilling program in February.
A company release says: "Expected impacts to oilfield service costs plus the change in crude oil (prices) warrants additional time before finalizing our 2015 budget."
Whiting Petroleum, which recently completed the purchase of Kodiak Oil & Gas Corp. to become the largest Bakken oil producer, says much the same thing in this release: "Given volatile oil prices, we intend to issue final 2015 guidance…in February."
In mid-December, Lynn Helms, North Dakota's top regulator, said he expected the rig count could drop by as many as 30 to 45 over coming months. Half that low-end estimate was reached the first week in January.
Helms said temporary slowdowns can be expected in long-term oil play. Drilling in the Bakken is expected to take 25 years to complete.
Reach reporter Lauren Donovan at 701-220-5511 or lauren@westriv.com.