North Dakota Crude Output Expected to Rise with Higher Oil Prices

North Dakota's crude oil output is expected to rise in March and subsequent months as operators reactivate dormant wells and weather restrictions ease, according to the state's regulator.

The North Dakota Department of Mineral Resources reported that the number of inactive wells, which are considered those not producing for three months, stood at 2,835 in January, while there were 19,244 producing wells. The regulators expect an increase in production as operators take advantage of higher oil prices, which have surged since the US and Israel attacked Iran on February 28.

However, Justin Kringstad, executive director at the North Dakota Pipeline Authority, cautioned that operators with long-term budgets may not make rapid changes until price stabilization occurs and supply is known. Oil production in North Dakota fell by 1,000 barrels per day to 1.12 million barrels per day in January.

The regulator also noted that the hydraulic fracturing crew count in North Dakota remains at eight, but this number should increase slightly once warmer weather sets in.