Bakken oil is produced from the Bakken shale formation covering 200,000 square miles underneath North Dakota, Montana and Saskatchewan. The oil is extracted by going through a layer of shale. The presence of shale has created an opportunity for bakken oil companies who specialize in shale-related operations such as horizontal drilling equipment and materials.
The Bakken oil production is still surging ahead despite the economic recession. Stock prices have been affected marginally, but growth still continues in the region at close to 50% per year (wells, rigs) which is an amazing rate, as revenue quickly follows. America is currently in an energy crisis as it looks forward to the future for creative ways to provide energy for our children. Bakken oil companies will maximize their profits with Bakken oil drilling because of the tax credits, lower overhead and close immediacy of the oil.
Oil produced by Bakken oil companies is estimated at about $80 USD per barrel (October). Recent barrel prices have gone over $85 - this means Bakken oil is seeing approximately a 72.5% gross profit margin, which is excellent for companies. You can check out www.oil-price.netfor more Oil prices too.
Other smaller Bakken formation oil companies with operations within the Bakken region (some only have leases). These Bakken oil symbols have their ticker symbol appended for your review:
|A Few Companies in The Bakken Oil Play
- Primary Petroleum
- Kodiak Oil & Gas Company (KOG)
- St. Mary Land & Exploration (SM)
- Continental Resources (CLR)
- Whiting Petroleum Corp (WLL)
- Brigham Exploration Co. (BEXP)
- Northern Oil & Gas (NOG)
- Paramount Resources
Not much is known about the actual size of the Bakken oil reserve itself, due to many reason. First of all the technology for measuring the oil reserve is imperfect, and relies on a method for calculating hydrocarbon density which cannot in all cases be reliably extrapolated across such a large region. Various studies have been performed through the years, not all complete, ranging from Dow and Williams to Leigh Price with the USGS (in 1999) to a most recent estimate by the North Dakota Dept of Mineral Resources, who rebalanced the estimate at 167 billion. The fact is we just won't know how much oil is there until we have drilled the last drop.
The Bakken oil formation of 2010 is a great opportunity for drilling companies and stock tickers. if you are an investor you may consider following drilling permits, new companies and legislature. The Bakken oil stocks perform quite well and have attracted the attention of noteworthy investors. Bakken formation stocks are discussed in further detail on our site by clicking "Bakken Oil Stocks"