Oil prices have gained 8% in the last month and Goldman Sachs is predicting that prices will continue to rise.
Factors such as European sanctions on Iranian imports, political instability in key oil producing countries and an increased demand for oil in China and the US mean we will likely continue to see the prices rise.
This is good news for the Bakken. Decreasing availability of other sources will push Bakken Oil into greater demand.
That’s fine by the Bakken.
Production has been churning out 700,000 barrels per day. Some have suggested it could reach 1 million barrels per day. Only six other fields have seen such an output: Burgan (Kuwait), Cantarell (Mexico), Daqing (China), Samotlr (Russia), and Kirkuk (Iraq).
Analysts say that with China’s growing middle class and increasing energy demands as well as the growing demands of the US and other nations the need for oil will only grow. Production in the Bakken does not show signs of slowing anytime soon either.
This is very good news.
Image Source: Richard Masoner