North Dakota’s oil and gas production rose 2.8% in August, while high crude oil prices could bode well for future production.
“I am pleased to report that crude oil and natural gas production has recovered since July,” Lynn Helms, North Dakota director of mineral resources, told reporters on a conference call Wednesday.
He noted that July’s oil and gas production was hampered by maintenance outages at several gas processing plants. (Limitations in gas processing can also affect oil production).
North Dakota produced 1.11 million barrels of crude per day in August, up from 1.08 million the previous month, state data released Wednesday.
During the same period, natural gas production increased from 2.98 million MCF per day to 2.96 million. One MCF is 1,000 cubic feet of natural gas.
The number of oil rigs in North Dakota increased from 23 in July to 28 in August and stands at 30 today. The number of rigs is an indicator of new production.
âThere was good news on the number of platforms,â Helms said. “There is good news on the oil price front – the prices are very, very strong.”
Oil prices in the United States crossed the $ 80 per barrel mark this week for the first time since 2014. Natural gas prices in the United States are at sustained levels not seen in years, while prices Global gas prices have skyrocketed due to shortages.
Oil prices at $ 80 a barrel – if they hold up – “are certainly strong enough to transfer capital to the Bakken,” Helms said.
Yet shale oil companies in the United States have been much more disciplined this year when it comes to capital investment than in the past, when growth willy-nilly hurt profits.
And while high oil and natural gas prices will help North Dakota – taxes on the industry help fuel the state budget – it’s not good news for U.S. consumers already facing the crisis. inflation for many products.