BAKKEN OIL BUSINESS JOURNAL

BakkenJournal_Dec15-Jan16

The BAKKEN OIL BUSINESS JOURNAL is a high-gloss, full-color magazine with a targeted distribution that gets our Advertisers in front of the RIGHT EYES in this industry. Direct mailed to Companies in the Bakken with bonus distribution at Energy Shows.

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Read online @ B A K K E N O I L B I Z . C O M / d i g i t a l - j o u r n a l 9 by: CHRIS BISCHOF P R I C E SUCCESS THE OF Renae Mitchell - renaemitchell.com Renae Mitchell - renaemitchell.com $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ On one hand, factors including hydraulic fractur- ing and horizontal drilling have changed the game, making it possible for US oil companies to in- crease domestic production at a staggering pace, thereby offsetting demand for imports while si- multaneously adding to global oil supplies. By many measures, success is raging. The world is now different thanks to low oil prices. But, low prices are both good news and bad news. Success requires heroes. In the oil world, the US heroes are the frackers, the people and firms who've revolutionized the business of oil drilling. However, heroes always possess a strength that is also a weakness. Among frackers, that strength is the power to extract oil from reserves that were previously believed to be out of reach. The weakness, however, is the power of those increasing oil supplies to drive oil prices so low that drilling is no longer profitable. We've reached that point. Prices are so low that a growing number of US drilling According to the U.S. Energy Information Administration (EIA), Brent crude oil prices will average $54 a barrel in 2015 and about $56 a barrel in 2016. The EIA projects West Texas Intermediate (WTI) will average about $4 a barrel less than the Brent price in 2015 and $5 a barrel less in 2016. Furthermore, the International Energy Agency (IEA), forecasts that by 2020 the price of Brent will rise to about $80 a barrel. These dry projections are based on the hope that the chaotic forces now tearing apart some OPEC and middle-east nations do not worsen and spread to neighboring states over the next several years. In our view, that hope is misplaced. ‚ě§ continued, pg 10

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