Lynn Helms, Director of the North Dakota Industrial Commission Department of Mineral Resources, released his monthly "Director's Cut" today showing North Dakota's oil and gas stats. The full Director's Cut can be found here.
North Dakota's rig count as of today is 29 – representing the lowest number of rigs since October of 2005. The all-time high was reportedly 218 rigs in May of 2012. The statewide rig count is down 87% according to the Director's Cut.
The Director reportedly opines that "Operators are committed to running the minimum number of rigs while oil prices remain at current low levels."
However, while production is also decreasing, the numbers do not reflect significant decline.
The Director's Cut reports January, 2016 oil production at 34,796,333 barrels = 1,122,462 barrels/day and February, 2016 oil production at 32,431,669 barrels = 1,118,333 barrels/day.
The Wall Street Journal noted today that "[s]lumping oil prices are starting to affect output in U.S. shale fields, including the prolific Bakken formation in North Dakota."
That is a great way to put it – prices are starting to affect output.
In reality, a slight decline in production has occurred, but it is not really notable in light of the rig count in January being nearly double today's count. In January the rig count stood at 52...
According to the Wall Street Journal article, "North Dakota crude oil production fell for the third month in a row, ticking down 0.4% in February and hitting its lowest level in 18 months. The slightly lower production in February follows a 2.6% drop in January and a 2.5% slide in December, data from the department show."
With the relatively drastic decline in the rig count, one would expect to see a more significant decline in production.
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