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Oil production likely to drop to 900,000 daily barrels

Posted 8/16/16 (Tue)

By Jack Dura
Farmer Staff Writer

As state oil production continues to creep downward, North Dakota’s top industry regulator said the state could soon see 900,000 daily barrels plateauing for more than a year.
“It’s going to take a significant amount of time and effort to move it back up again,” Lynn Helms, Department of Mineral Resources director, said Friday, Aug. 12.
Oil prices have stayed in the $40-48 range, he added, less than the sustained $50 price point needed to increase activity.
June production dropped 2 percent from May to just over 1.02 million barrels a day, while the state’s active rig count stood at 33 Aug. 12 with 14 rigs in McKenzie County. Much of the low activity can be attributed to half of June being too windy to fracture wells, Helms said.
North Dakota has been on a trend the last 18 months in sliding 20,000 barrels a day, the lowest point now since April 2014, Helms said, adding the state will likely drop below 1 million daily barrel production before 2017.
Meanwhile, natural gas production is up over 1.1 percent.
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