North Dakota Crude Output Set to Rise Amid High Oil Prices

North Dakota's crude oil production is poised to increase in the coming months as operators take advantage of high oil prices, according to state regulator Nathan Anderson. The price of U.S. oil has surged, with current prices trading around $93.63 a barrel and futures prices for delivery six months from now at $76.50 a barrel, 17% higher than before the Iran war began in late February.

Operators in North Dakota are boosting output from existing wells while holding back on new drilling due to sharp price volatility tied to the Iran conflict. Anderson noted that energy companies look at futures prices rather than daily price moves when deciding whether to increase drilling, as it can take six to nine months for first oil after drilling and fracturing a new well.

The state has seen an increase in hydraulic fracturing crews, with 10 currently operating in North Dakota. One operator is set to add an additional rig and frac crew in July, while there has been a 13% increase in deployment of workover rigs from 110 to 125 as operators look to optimize existing production.

Anderson attributed the rise in production to operators bringing curtailed or shut-in production back online since the Iran conflict began. However, he noted that drilling activity remains cautious due to uncertainty surrounding the Iran war and volatility in oil prices.