Core Laboratories N.V. (CLB): Is the Bakken Boom About to End?

The rig count only tells part of the story. Because of multi-pad drilling, not only are more wells being drilled with fewer rigs, but also production isn’t coming on line one well at a time. Instead, its coming on line in spurts of two to eight wells at a time. While the weather might have slowed production, drilling efficiencies also play a role in how the rate of production comes on line. Overall, though, this appears to be temporary in nature.

The Bakken is still really in its infancy – the industry has only drilled around 5,000 wells at this time. This is a far cry from the potential of 40,000-50,000 Bakken wells once the play is fully developed. While the price of oil will play a role in how many wells are drilled in the near term, its hard to imagine the price of oil dropping low enough over the long term to make the Bakken an unprofitable place to drill. So, while the Bakken might experience an occasional slowdown, the boom is nowhere near its end.

The article Is the Bakken Boom About to End? originally appeared on Fool.com.

Motley Fool contributor Matt DiLallo owns shares of Heckmann and has the following options: Short Jun 2013 $4 Puts on Heckmann. The Motley Fool owns shares of Heckmann and has the following options: Long Jan 2014 $4 Calls on Heckmann and Short Jan 2014 $3 Puts on Heckmann.

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