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OIL AND GAS
Second quarter strong, but Shell's boss wants even more
by Daniel J. Graeber
Amsterdam, Netherlands (UPI) Jul 31, 2013


Strong quarter for Whiting on back of Bakken, Niobrara shale
Denver (UPI) Jul 31, 2013 - Production from shale basins in the Northern Plains reached record levels in the second quarter, Whiting Petroleum Corp. declared.

Whiting said net second quarter production was 10 million barrels of oil equivalent per day, of which nearly 90 percent was crude oil. For the third quarter, the company expects production to approach 11 million boe per day.

Net production from the Bakken and Three Forks area of North Dakota increased 33 percent year-on-year, while net output from the Niobrara shale increased 59 percent from the first quarter alone.

For the three months ending June 30, Whiting said oil production of 8.01 million barrels represented a 20 percent increase year-on-year. Natural gas production from its assets in North America increased 8 percent year-on-year.

The outlook for North Dakota was strong given the record production and cash flow generated from the Bakken play, Whiting Chairman and Chief Executive Officer James Volker said.

"We believe we have plenty of running room in the Williston Basin [of North Dakota]," he said in a statement Thursday.

Whiting, which has headquarters in Denver, reported total revenues for the second quarter of $835.6 million, up 26 percent from second quarter 2013.

Though second quarter performance was better for Royal Dutch Shell, its top director said Thursday he wanted even better results going forward.

"I am determined to get a tighter grip on business performance management in the company, and improve the balance between growth and returns," Chief Executive Officer Ben van Beurden said in a statement.

Shell said second quarter 2014 earnings were $5.1 billion, compared with $2.4 billion for the same period last year.

Van Buerden said he wanted to see stronger momentum for the company moving forward despite robust performance in the second quarter. In particular, competitive results are needed in the oil reserve plays spread out over much of North America.

Improvement will take time, but progress is already evident, he said.

The company said net capital investments for second quarter 2014 were $1.1 billion, compared with $10.9 billion for second quarter 2013.

"We are making progress with the priorities I set out at the start of 2014: to balance growth and returns by focusing on better financial performance, enhanced capital efficiency, and continued strong project delivery," van Buerden said.

Oil and gas production for the quarter totaled 3 million barrels of oil equivalent, relatively unchanged from one year ago.

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