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ND oil production back at 1 million barrels

North Dakota’s oil production returned to more than a million barrels of oil a day, according to the latest report from the North Dakota Department of Mineral Resources.

In May, the state produced 1.058 million barrels of oil a day, the most recent figures available. Oil production dropped to under a million barrels of oil a day in April, when the state produced 905,357 barrels of oil a day.

The Mineral Resources Department announced the newest oil and natural gas production numbers this week.

On Tuesday, North Dakota light sweet crude was selling for $100.50 a barrel and West Texas Intermediate at $102.60.

The state produced 2,787,671 million cubic feet a day of natural gas in May. In April the state produced 2,451,679 million cubic feet a day.

Fort Berthold Reservation produced 207,927 barrels of oil a day in May. Four rigs were actively drilling on the reservation, and the reservation has 2,644 active wells. Twenty wells are waiting on completion. There are 303 approved drilling permits.

As of May, North Dakota had 16,953 (preliminary number) producing wells.

The drilling rig count is slowly increasing, said Lynn Helms, director of the Mineral Resources Department.

He said OPEC+ continues to phase out oil production cuts beginning September 2021 through the end of the third quarter in 2022. At its June meeting, he said, OPEC+ decided to increase production of approximately 680,000 barrels per day in July and August. He said Russia sanctions have exacerbated an already tight market. The strategic petroleum reserve releases by Organization for Economic Cooperation and Development countries resulted in a very short-term drop in oil prices, Helms said.

He said drilling activity is expected to slowly increase while operators maintain a permit inventory of about a year.

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