Hess Lean Advantage allows for Bakken Oil Price Recovery
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Focus on Efficiency Positions Bakken for Oil Price Recovery


Lean manufacturing practices have allowed Hess to drive down drilling and completion cost, even during the low oil price environment of the last two years.

Hess has made efficiency a cornerstone of its operations to successfully weather a low oil price environment as well as position it for an oil price recovery. The company's Lean efficiency journey, which began when the price of crude was still rising to $100 per barrel, has allowed the company to continue to drill and complete wells in its prime acreage in North Dakota during a time many other operators were forced to delay operations.

In its fast-paced operation in the Bakken, Hess recently changed its standard completions design from 35- to 50-stage hydraulic fractures per 10,000-foot lateral. The 15 additional stages are resulting in a 15 percent to 20 percent increase in initial production with additional costs offset by future efficiency gains.

Efficient lean manufacturing practices in the Bakken have resulted in wide-ranging impacts. Hess reduced the number of days it takes to drill a well from 45 to 16 days and cut drilling and completion costs 60 percent over five years while simultaneously improving safety.

Our high-quality Bakken acreage, industry-leading drilling and completion costs and advantaged infrastructure position our Bakken asset to be a major contributor to the company's future production and cash flow growth.