North Dakota has reached new records in both oil and gas production, according to preliminary data released by the state’s Department of Mineral Resources (DMR) on July 13.
The state, where the core of the Bakken/Three Forks play is located, produced roughly 1.2 million barrels per day of oil in May—an increase of about 17,000 barrels from the last record set in December 2014.
“This is a very encouraging time for North Dakota as oil and gas operators and service companies have developed drilling rigs that are twice as efficient as they were in 2014 to drill and complete permitted wells,” Lynn Helms, director of the North Dakota DMR, said in a statement. “Closing the gap between current wells producing and the wells capable of producing will add to 2018 production numbers so we should continue to reach new highs.”
North Dakota also continues to set record numbers for gas production reaching about 2.3 billion cubic feet per day, according to May data from the DMR. Increasing gas production has increased pressure on operators to meet requirements of the North Dakota Industrial Commission’s gas capture policy.
The state also announced gas capture was at 83% in May. The current capture goal is 85% and is scheduled to increase to 88% in November 2018. This is the first time since October 2017 that industry has not met the commission goal, the DMR said.
“Missing the gas capture goal for May is disappointing, but can be attributed in large part to gas plant maintenance,” Helms said. “The department is meeting with operators and midstream companies to encourage working together to divert gas when needed to use 100% of available capacity and to think creatively on how they plan to meet future goals.”
Production data for the close of the second quarter is scheduled to be released Aug. 15.
Recommended Reading
Enverus: 1Q Upstream Deals Hit $51B, but Consolidation is Slowing
2024-04-23 - Oil and gas dealmaking continued at a high clip in the first quarter, especially in the Permian Basin. But a thinning list of potential takeout targets, and an invigorated Federal Trade Commission, are chilling the red-hot M&A market.
Mighty Midland Still Beckons Dealmakers
2024-04-05 - The Midland Basin is the center of U.S. oil drilling activity. But only those with the biggest balance sheets can afford to buy in the basin's core, following a historic consolidation trend.
CEO Darren Woods: What’s Driving Permian M&A for Exxon, Other E&Ps
2024-03-18 - Since acquiring XTO for $36 billion in 2010, Exxon Mobil has gotten better at drilling unconventional shale plays. But it needed Pioneer’s high-quality acreage to keep running in the Permian Basin, CEO Darren Woods said at CERAWeek by S&P Global.
Novo II Reloads, Aims for Delaware Deals After $1.5B Exit Last Year
2024-04-24 - After Novo I sold its Delaware Basin position for $1.5 billion last year, Novo Oil & Gas II is reloading with EnCap backing and aiming for more Delaware deals.
Mesa III Reloads in Haynesville with Mineral, Royalty Acquisition
2024-04-03 - After Mesa II sold its Haynesville Shale portfolio to Franco-Nevada for $125 million late last year, Mesa Royalties III is jumping back into Louisiana and East Texas, as well as the Permian Basin.