North Dakota Oil Production Surges as Strong Prices Boost Drilling Activity
North Dakota's oil patch is booming as strong prices and increased drilling activity have pushed oil production to new heights. According to Nathan Anderson, director of the state Department of Mineral Resources, June oil output reached 1.153 million barrels per day, a 2.45% increase from May and slightly above the revenue forecast.
The number of rigs running in the state has also increased, with seven more rigs added between July 13 and August 19, bringing the total to 33. This marks a positive change, as the number of operators running rigs climbed from 14 to 19 during the same period, signaling broader industry confidence in the Bakken.
Anderson noted that prices are underpinning the activity, with West Texas Intermediate in the mid-$80 range and North Dakota barrels averaging about $80.50 in June, roughly 36.5% above the revenue forecast. This has led to increased drilling and completion work, with eight active frac crews and a total of three to four completion crews.
On the gas side, record volumes were set in June, with natural gas production reaching an all-time high of 3.58 billion cubic feet per day, surpassing the previous record set in September 2024. Despite this, Pipeline Authority Director Justin Kringstad noted that North Dakota's gas capture performance is 'a very, very strong gas capture picture.'