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ND oil production drops again; remains above 1 million barrels a day

Eloise Ogden/MDN North Dakota’s oil production numbers have declined slightly according to January figures from state officials. Yet, the state continues to produce more than a million barrels of oil a day.

North Dakota oil production numbers dropped again in January to 1.147 million barrels a day, state officials said.

In December 2020, the state produced 1.191 million barrels of oil and in November 2020, 1.227 million barrels of oil.

The January numbers are the most recent figures available and were released by the North Dakota Department of Mineral Resources on Thursday.

The price of crude oil on Thursday was $56.25 for N.D. light sweet and $64.44 for West Texas Intermediate.

The state’s natural gas production in January was 88,279,301 MCF or 2,847,719 MCF a day, also a slight drop from December when the state produced 89,547,418 MCF or 2,888,626 MCF a day. The gas capture percentage in January was 94%.

Fifteen rigs were actively working in the oil field on Thursday, the same number as in February. In January, 12 rigs were actively working, according to information from Lynn Helms, director of the Mineral Resources Department.

The state had a preliminary number of 15,798 producing wells in January. Of that number, 14,016 or 89% from unconventional Bakken-Three Forks. The rest from legacy conventional pools. There were 661 wells waiting on completion in January.

Fort Berthold Reservation produced in January, 289,127 barrels of oil a day. Five rigs were drilling on the reservation and 2,528 wells were active. There were 97 wells waiting on completion.

Helms said the drilling rig count is down 75 percent January 2020 to this January.

He said the number of well completions has been low and volatile since March 2020 “as the number of active completion crews dropped from 25 to one, then climbed back up to four this month.”

Crude oil transportation capacity “including rail deliveries to coastal refineries is adequate, but could be disrupted due to U.S. Appeals Court for the Ninth Circuit upholding a lower court ruling protecting the Swinomish Indian Tribal Community’s right to sue to enforce an agreement that restricts the number of trains that can cross its reservation in northwest Washington state,” Helms said.

He said drilling permit activity is slowly increasing but more volatile due to oil price volatility, and operators are continuing to maintain a permit inventory of about 12 months.

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