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Oil, gas numbers dip slightly

Eloise Ogden/MDN The decision by some operators to curtail some production in certain areas of North Dakota during the lower oil price environment was among reasons for the decline in oil and gas production in the state in May, according to Nathan Anderson, director of the N.D. Department of Mineral Resources.

BISMARCK – North Dakota’s oil and gas production numbers dropped slightly from April to May, according to Nathan Anderson, director of the North Dakota Department of Mineral Resources.

Anderson gave the monthly oil and gas report this past week.

Anderson said oil production in May came in at 34,496,480 barrels or 1.11 million barrels per day, while April was at 35,199,579 barrels or 1.17 million barrels per day.

“That is 1.16% above revenue forecast so the revenue forecast for May, actually through the month of June, is at 1.1 million barrels (per day), so slightly over revenue forecast from May. It is down 5.16% from April to May or about 60,000 barrels per day from April to May,” he said.

He said 1.08 million barrels per day, or about 97.3% of the total state’s production, is from the Bakken and Three Forks formations and the remainder from nonBakken/Three Forks.

Natural gas production for the month of May was at 104 billion cubic feet (BCF) or 3.335 BCF per day, according to Anderson. He said April came in at 104.1 BCF or 3.471 BCR per day, down 3.3% from April to May.

Production numbers are normally about two months behind.

Anderson said there were three main reasons for the production decreases. He said May completions were low so May production was affected by those completions. There was a lower oil price environment in April and May, and certain operators decided to curtail some production in certain areas of the state. He said there also was a slight rig count decrease.

Anderson said 31.5% of the N.D. production comes from McKenzie County and the top five counties (McKenzie, Williams, Dunn, Mountrail and Divide) make up 96.5% of the state’s oil production.

Currently, 544 rigs are operating in the United States and 46.5% of them are in Texas, Anderson said. The total rig count includes land only. He said the current rig count in North Dakota is 29, down three rigs from April, May and June.

He said 97 permits were issued in June and there were 65 completions.

“With a lower completion count (43) in April, that certainly impacts the production level for May,” Anderson said.

On the Fort Berthold Reservation, Anderson said, May oil production was at 149,229 barrels per day or an 18.9% decrease (about 35,000 barrels per day). In April, he said the reservation produced 184,026 barrels per day.

“They currently have one drilling rig drilling,” he said.

He said the reason for the decline in production on Fort Berthold is operators choosing to curtail production in the lower price environment in April and May.

“I would expect that to continue in this area for the next month as well,” he said.

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