Oil production from shale formations in North Dakota and Texas increased by more than 78,000 barrels per day (b/d), or 3.1%, in August, according to Bentek Energy, an analytics and forecasting unit of Platts.
The latest data shows that South Texas, Eagle Ford oil production was 37% higher than August 2013, just short of 400,000 incremental barrels per day available to the domestic market, according to Jack Weixel, Bentek Energy director of energy analysis.
"This production is important to sustain storage levels at Cushing, Oklahoma, in the face of higher refinery demand in the US," Weixel said. "Bentek estimates that, from August 2013 to August 2014, total US crude oil production has increased by over 1.5 million b/d."
Bentek reported that crude oil production in the North Dakota section of the Bakken shale formation of the Williston Basin averaged nearly 1.2 million b/d in August. This was 227,000 b/d higher than levels seen in August 2013.
"Prices of Bakken shale oil fell to the mid-$80.00 per barrel (/b) area between mid-August and mid-September, while prices of Eagle Ford shale oil trended below the $100.00/b level since mid-August," said Richard Capuchino, Platts managing editor of Americas crude.
The Platts Eagle Ford Marker, a daily price assessment launched in October 2012 and reflecting the value of oil out of the Eagle Ford Shale formation in South Texas, has dropped 0.9% since January 1, with an average year-to-date price of $103.234/b. The marker has fluctuated between $94.20/b and $110.71/b since the first of the year.
The price of oil out of the Bakken formation at Williston, North Dakota, has ranged between $83.35/b and $96.27/b since April 22, according to the Platts Bakken price assessment. It reached a high of $96.27/b in mid-June before leveling off and trading closer to the $90.3669/b average for the year.
The Platts Bakken report, introduced earlier this year, is a daily assessment of price for oil closest to the wellhead prior to determination of transportation by rail or pipe. The assessment reflects a sulfur content of 0.2% or less and an American Petroleum Institute (API) gravity of 42 or less, similar to the nature of North Dakota Light Sweet crude. The Platts Eagle Ford Marker reflects the value of a median 47-API Eagle Ford crude barrel, based on the crude's product yields and Platts product price assessments, adjusted for US Gulf Coast logistics.
Platts introduced the world's first independent daily price reference valuing crude oil produced from a shale formation in May 2010 when it began assessing Bakken Blend shale oil injected into pipelines at Clearbrook, Minnesota, and Guernsey, Wyoming. Platts began publishing its Platts Bakken assessment on April 22.