DENVER and HOUSTON, Oct. 17, 2014 /PRNewswire/ -- Oil production from shale formations in North Dakota and Texas increased by 55,000 barrels per day (b/d) or 2.1% in September, according to Bentek Energy, an analytics and forecasting unit of Platts, a leading global provider of energy, petrochemicals, metals and agriculture information.

In South Texas, Eagle Ford shale oil production was 38.3% higher than September 2013, with more than 414,000 incremental barrels per day available to domestic end users, according to Jack Weixel, Bentek Energy director of energy analysis.

"With recent downward price pressure in Brent and West Texas Intermediate crude oils, a lot of folks might expect production rates to start crumbling," said Weixel. "In fact, they're doing the opposite. Producers have experience with price volatility and have dug in. They won't walk away from these valuable plays unless low prices remain for an extended period of time."

The latest Bentek data showed that from September 2013 to September 2014, total U.S. crude oil production has increased by more than 1.5 million b/d.

Crude oil production in the North Dakota section of the Bakken* shale formation of the Williston Basin averaged nearly 1.2 million b/d in September, the data showed. This was 231,000 b/d higher than levels seen in September 2013.

"Prices of Bakken and Eagle Ford shale oil have been decreasing throughout the third quarter of this year," said Jacqueline Puig, Platts associate editor of Americas crude.

The Platts Eagle Ford Marker, a daily price assessment launched in October 2012 and reflecting the value of oil out of the Eagle Ford Shale formation in South Texas, has dropped 14.8% since January 1, with an average price year to date of $101.36 per barrel (/b). The marker has ranged between $83.27/b and $110.71/b since January. The price of oil out of the Bakken formation at Williston, North Dakota, has fluctuated between $70.88/b and $96.59/b year to date, according to the Platts Bakken price assessment. It reached a high of $96.59/b in mid-June before decreasing to $70.88/b October 15. The price averaged $88.57/b for the January through mid-October period.

The Platts Bakken, which was introduced earlier this year, is a daily assessment of price for oil closest to the wellhead prior to determination of transportation by rail or pipe. The assessment reflects a sulfur content of 0.2% or less and an American Petroleum Institute (API)** gravity of 42 or less, similar to the nature of North Dakota Light Sweet crude. The Platts Eagle Ford Marker reflects the value of a median 47-API Eagle Ford crude barrel, based on the crude's product yields and Platts product price assessments, adjusted for U.S. Gulf Coast logistics.

Platts introduced the world's first independent daily price reference valuing crude oil produced from a shale formation in May 2010 when it began assessing Bakken Blend shale oil injected into pipelines at Clearbrook, Minnesota, and Guernsey, Wyoming. Platts began publishing its Platts Bakken assessment on April 22.

For more information on Platts' price assessments methodology visit these links: Details of Platts Bakken and Platts Eagle Ford Marker. Bentek Energy's shale oil production figures are derived from proprietary data models using publicly available data. For more information on data models, reports or Bentek's methodology, contact info@bentekenergy.com.

Platts will publish monthly updates via press release on Bakken and Eagle Ford shale oil production and price data.

Visit this link to see the Platts May 2014 special report: Bakken: The King in the North.

* The Bakken formation spans North and South Dakota, Montana, Saskatchewan, Manitoba and Alberta.
** API gravity is a measure of how heavy or light a grade of crude oil is compared to water.

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SOURCE Platts

SOURCE: Platts