Thanks to its shale boom, North Dakota has treated many Americans very well.
But Barclays’ Paul Horsnell (via Reuters’ John Kemp) says the state’s oil and gas development now finds itself at a tipping point.
While the boom is “far from over,” he notes the number of rigs in the state has begun to wane.
Data from drilling firm Smith Bits shows a year-over-year decline of four rigs in August, which doesn’t sound like much. But Horsnell says “there are lags, as well as efficiency and productivity effects, that slow and complicate the mapping between rig counts and output.”
Here’s the full rig count data:
…be it due to higher costs or development bottlenecks, there does seem to have been a shift in the relative attractiveness of incremental Bakken drilling activity in North Dakota…At least for rig markets, North Dakota no longer looks like the most attractive new frontier for business opportunities.
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