North Dakota saw a significant drop in crude oil production in May, with output decreasing by approximately 50,000 barrels per day compared to April. This marks the lowest monthly production level since January, when severe weather conditions halted operations.
According to the North Dakota Department of Mineral Resources’ latest report, oil production in May averaged 1.195 million barrels per day, down by 3.9% from April’s 1.24 million barrels per day. Mark Bohrer, Assistant Director at the department, attributed the decline to ongoing road restrictions and fewer completed wells than expected.
On a positive note, natural gas production in North Dakota increased during the same period, particularly in the Bakken shale region.
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In May, the majority of North Dakota’s oil, 97%, came from the Bakken and Three Forks formations, with only 3% from conventional pools. The state’s drilling rig count stood at 37 in May and June, climbing slightly to 39 by mid-July, a figure expected to rise further due to anticipated mergers and acquisitions.
Currently, North Dakota operates 14 frac crews, with drilling activity forecasted to see a modest uptick. Operators maintain a permit inventory of about 12 months to sustain operations amid fluctuating production levels.
June recorded 55 completed wells, down from 67 in May, with Bohrer noting that achieving production growth would ideally require completing between 90 to 100 wells.
Looking ahead, Bohrer anticipates a gradual increase in drilling activity over the next two years, aiming to return the rig count to the mid-forties.