Bakken Drilling Economics Improve as WTI Nears $100

New drilling in North Dakota's Bakken formation is on firmer economic footing as West Texas Intermediate crude prices approach $100 per barrel, according to live market data. WTI was trading at $97.57 on Friday, May 22, a gain of $1.22, while the global Brent benchmark stood at $104.60.

The typical cost to drill and complete a new Bakken well is estimated between $7 million and $8 million. At current price levels, these projects can generate strong internal rates of return, especially in the core of the play. Expected ultimate recovery (EUR) for a modern Bakken well often ranges from 500,000 to over 1 million barrels of oil equivalent over its lifespan.

With WTI near $98, the revenue potential for a new well has increased significantly compared to lower price environments. The active rig count in North Dakota was reported at 25, indicating a measured pace of activity as operators evaluate capital allocation. The higher price deck provides more cash flow for publicly traded operators to fund drilling programs and for private companies to justify adding rigs.

The improved economics are a positive signal for royalty owners and service companies across the Williston Basin. While breakeven prices vary by location and operator, many core Bakken areas are profitable with WTI in the $50-$60 range. Current prices well above that threshold suggest robust returns, which could support a stabilization or gradual increase in drilling activity if prices hold.

The $1.22 daily increase in WTI and the strong Brent price also reflect tighter global supply dynamics, which benefit Bakken crude realizations. Operators typically hedge a portion of their production, but spot prices at these levels improve the economics of unhedged barrels and new wells coming online.

Sustained higher prices will be key for any significant acceleration in the state's rig count. The current count of 25 rigs is sufficient to maintain production but leaves room for growth if operator confidence in the price outlook strengthens. The fundamental economics of drilling in the Bakken have improved with the year's rally in crude oil.