North Dakota Oil, Gas Production Hits All-Time High in April
Oil and natural gas production from North Dakota's Bakken play reached new record highs in April, the North Dakota Industrial Commission's (NDIC) Department of Mineral Resources reported Monday.
According to preliminary estimates, oil production in April 2013 grew 1.3 percent to 793,249 barrels of oil per day (bopd) from 782,999 bopd in March. While the number of well completions dropped by 28 to 119, well completions remained above the threshold needed to maintain production; as a result, the oil production rate rose. At the end of April, approximately 490 wells were waiting on completion services, an increase of 50.
Gas production rose 1.7 percent from 834,637 thousand cubic feet per day (Mcf/d) in March to 860,398 Mcf/d in April. The rise in gas production is consistent with a Bentek Energy study showing that gas to oil ratios increase as wells ago. However, North Dakota shallow gas exploration is not economic at near-term gas prices, and while U.S. gas storage is now 2.4 percent lower than the five-year average, lower prices are anticipated for the foreseeable future.
The number of wells producing in the Bakken also reached a new record high of 8,758, up from 8,639 in March, the Department of Mineral Resources reported.
The number of drilling permits and rig count in the play were down from all-time highs, however. In May, 211 drilling permits were issued, down from the record of 370 in October 2012. Drilling permit activity was down slightly in April due to sufficient permit inventory to accommodate multi-well pads, the inability to construct locations during load restrictions, and the time required to deal with federal hydraulic fracturing rules if necessary.
The Bakken rig count as of Monday stands at 184, down from the all-time high of 218 set May 29, 2012. The rig count in March and April was 186; in May, the rig count was 187. More than 95 percent of drilling still targets the Bakken and Three Forks formations.
Leasing activity in the state is very slow, mostly renewals and top leases in the Bakken-Three Forks area, according to the Department of Mineral Resources.
North Dakota operators faced difficulties with weather this spring. April 2013 was the coldest month on record with over 80 percent of state highways blocked in mid-April by heavy snow, and May 2013 was the wettest on record, said NDIC Department of Mineral Resources Director Lynn Helms in a statement.
North Dakota's Bakken play has played a significant role in reversing the decline seen in U.S. oil production, which could reach approximately 10 million barrels of oil per day between 2020 and 2040, the U.S. Energy Information Administration reported on June 14.
However, uncertainty surrounding federal policies on taxation and hydraulic fracturing regulation continue to make investors nervous, said NDIC Department of Mineral Resources Director Lynn Helms in a statement.
"Pressure on the federal budget has led to a budget proposal that eliminates deductions for intangible drilling costs and the depletion allowance."
Helms urged readers to submit comments to the Bureau of Land Management regarding a draft of regulations for hydraulic fracturing on federal lands. A new proposed rule was published May 24, and comments are now being accepted through Aug. 23.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension