Has ND Oil Production Peaked? | Russell T. Rudy Energy LLC
The good news is that North Dakota oil production hit an all-time high of 1.23 million barrels per day in December. The bad news is that this level will probably not be surpassed any time soon. “Rigzone” reports that Lyn Helms, the head of the state’s Department of Natural Resources, indicated that while this record production is encouraging, he is concerned that the oil rig count within the state could soon dip below 130, the number he feels is required to maintain the current rate. Last Friday there were 137 oil rigs running in North Dakota, but Helms cautioned that there are indications that 15 of these could be idled in the near future.
Low prices and falling rig counts can indicate future decreases in production. However, increases in rig efficiency, concentration on “sweet spots” in known reservoirs, and a backlog of drilled, but not yet completed wells, could help delay significant reductions. Currently there are about 750 wells in the state which have been drilled but are awaiting fracking and other completion operations.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/137222/After .
