North Dakota Operators Hold Back on Drilling Amid Ongoing Price Volatility
North Dakota's oil operators are taking a cautious approach to ramping up drilling despite a recent surge in oil prices driven by the Iran war. According to Mark Bohrer, assistant director of the Oil and Gas Division at the state's Industrial Commission, companies are waiting to see if higher prices will last long enough to justify new investment.
The U.S. WTI price has risen 25 cents to $96.60 on Friday, with a 44.1% increase since the war started in late February. Continental Resources, the state's second-largest oil producer, plans to add a rig and resume drilling after laying down a rig earlier this year.
Other operators like ConocoPhillips, EOG Resources, and Diamondback Energy are diverting resources to drill new wells or expand existing ones in the Permian basin. However, oil production in North Dakota is expected to remain stable in the coming months, with a slight increase possible in the near term.