Bakken Update: EOG Resources' Completion Technology Is A Game Changer
EOG Resources (EOG) is changing the way it is working the Bakken. The Eagle Ford is its flagship, followed by the Bakken. The Permian was replaced as its number 2 play after NGL prices pulled back. This wasn't the only reason, as EOG was the first to rail Bakken Light to Louisiana. Its ability to get LLS pricing has changed the dynamics of Bakken price realizations. In the most recent quarter, EOG had a realized crude price of $10.52. This has worked so well, EOG only utilizes a very small percentage of production in pipeline capacity. Other Bakken operators have begun railing crude. The rails will be a big part of Bakken crude transport for many years and it all started with EOG.
Over the past year, EOG has implemented a new completion design. It was first used in the Eagle Ford and Permian, and now it has found its way to North Dakota. In the Eagle Ford, EOG has used this and has a large number of short laterals with 24-Hour IP rates north of 3000 Bo/d. Its best completion, the Burrow Unit #2 produced 6331 Bo/d. In order to increase crude production it has not focused on long fracs but those that increase the surface area around the well bore. Essentially, it wants better fracs near as opposed to farther away as it allows the crude to flow in a radius around the well bore.
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