Executive Summary
WTI crude prices edged above $60 per barrel to begin the quarter but only crossed that threshold once more in the first trading day after the attack on Saudi Aramco oil processing facilities. Those gains were erased in the last two weeks of the quarter, however, as prices fell to under $55 by September 30th.
Infrastructure development and acreage value are two areas under the spotlight in the third quarter of 2019. Pipeline constraints largely eased with the opening of the DAPL, and current Bakken price differentials are relatively low considering how far they are from the Gulf Coast refineries and export markets. Acreage values in the regions are decreasing as a result of capital discipline and returns that investors are seeking. Investor appeasement has led to operators hemming their capital expenditures and emphasizing drilling efficiencies in order to generate acceptable returns.
