An industry expert says oil production in North Dakota's Bakken formation could exceed a million barrels per day by the end of this decade. Speaking at the oil conference being held this week in Bismarck, David Hobbs with IHS Cambridge Energy Research Association (CERA) said technology innovation is reducing the unit costs for oil prducers and allowing more wells to be drilled on fewer acres.
Hobbs also cited the recent dramatic increase in production to support his trend analysis. He pointed out that in 2006 wells were producing less than 200 barrels of oil a day and are now averaging about 850 barrels a day. Hobbs added that regulatory policy will play an important part in determining how much of the Bakken's potential production is achieved.
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