OPEC Decision Likely to Lead to More Bakken Oil, Expert Says
A recent decision by OPEC to continue cuts to oil production will likely lead to more activity in the Bakken.
"OPEC is causing higher oil prices and that will likely lure more U.S. oil production to the game," said gasbuddy.com Petroleum Analyst Patrick DeHaan. "In fact, just in the last week, the U.S. rig count, certainly a measure of how many rigs are drilling for oil, rose again: that is certainly helping U.S. oil companies and that means there will be more shale oil coming to the market."
The production cuts started last year and show up at the gas pumps here in Montana in the form of higher fuel prices.
"Gas prices today are averaging about $2.60 in Montana, but just a year ago the average price in the state was $2.17 and I would say that almost all of the difference in that price is because of the OPEC decision to cut oil production," DeHaan said.
Despite the news, gas prices in Montana actually dipped about a cent during the past week. Although prices are currently higher than last year, they are lower than the prices from 2014 and 2013 when gas was around 25 cents per gallon more expensive.