North Dakota Oil Output Steady Despite Global Price Drop
North Dakota's oil output is expected to remain steady despite a recent drop in global prices, according to state regulator Nathan Anderson.
The US and Iran signed an interim deal last week to end their conflict, causing a sharp decline in oil prices. However, Anderson said oil prices are still historically strong at $76.60 per barrel for West Texas Intermediate crude.
In North Dakota, operators have continued to produce 1 million to 1.5 million barrels of oil per day even when prices were lower, around $60 a barrel. With two operators planning to add rigs in the near future, including billionaire Harold Hamm's Continental Resources and a private operator, Anderson expects a slight uptick in drilling activity.
The state regulator issued 93 permits to energy companies in May, up from 83 in April. North Dakota wells produced 1,137,155 barrels per day (bpd) in April, down about 6,000 bpd from the prior month due to a decrease in well completion pace.