2023-08-19 13:37:53
Oil and gas production in North Dakota saw a significant increase in June, according to a report from the North Dakota Department of Mineral Resources. The state produced 1,167,301 barrels of oil a day, compared to 1,135,009 barrels a day in May. By comparison, New Mexico, another major oil producer, saw production decline to 1,708,249 barrels a day.
The ND light sweet oil price was $78.25 per barrel, while West Texas Intermediate sold for $82.51 per barrel. North Dakota also experienced an increase in natural gas production. The state produced 3,250,105 million cubic feet (MCF) of natural gas per day, or a total of 97,503,151 MCF in the month of June. In May, the daily production was 3,156,883 MCF, with a total of 97,863,358 MCF in the month.
Currently, there are 41 active drilling rigs in North Dakota. June set a new record for producing wells in the state, reaching a preliminary figure of 18,085 wells. The previous month had 17,929 producing wells. In June, there were 433 wells awaiting completion, with 85 wells authorized in June and 70 in July.
In the Fort Berthold Reserve, daily oil production reached 136,829 barrels in June. Currently, there are four active drilling rigs in that area, with a total of 2,652 active wells and a potential of 3,900 wells. In addition, there are 26 wells waiting to be completed and 172 drilling permits have been approved.
In general, the number of drilling rigs remains low in North Dakota due to factors such as labor issues and mergers and acquisitions. However, it is expected to gradually increase in the mid-40s over the next two years. Currently, there are 22 fracturing rigs actively working in the state.
The Director of the Department of Mineral Resources, Lynn Helms, highlighted external factors affecting the oil market, such as Saudi Arabia’s announcement of unilateral cuts in oil production and the continued impact of Russian sanctions, economic activity in China and changes in crude oil supply chains. These factors continue to contribute to significant price volatility in the industry.
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