Lynn Helms, director of the Department of Mineral Resources, led this month’s ND Oil and Gas Director’s Cut. According to Helms, the North Dakota crude oil production rebounded slightly in the month of June.
Production averaged 859,362 barrels in June, far below the record 1.52 million barrel daily average in November 2019. Helms added that producers shut in about 7,000 wells in response to the sharp drop in oil prices.
Click here for August 2020 Director’s Cut
Click here for June 2020 Production Report
As crude crept back above $30/barrel, producers started bringing those shut-in wells back on line in June, raising average production to just over 890,000 bbl/day for the month.
Helms added the industry is nowhere near the 70 to 80 new wells per month to maintain or grow production. Helms said there are currently only 11 drilling rigs and three frac crews in the state.
Helms speculated that much of the Bakken activity is in response to the possibility that Joe Biden wins the president election. Democratic candidate Joe Biden has threatened to ban new drilling on federal land, and Helms said that would affect many leases in North Dakota.
“A lot of times have timing limitations on them and there is a great deal of discomfort and uncertainty with the potential November election,” Helms said. “If people have a federal permit or federal right of way in hand, they’re acting on it.”
The Bakken has a considerable amount of land impacted by federal regulation, about one-fourth of the state’s production is either on the Fort Berthold Reservation or on federal land in Billings and McKenzie Counties. Helms said a Biden win would likely put an end to growth in the Bakken.
About The Director’s Cut
The Director’s Cut is a monthly publication by the North Dakota Director of Mineral Resources, Lynn Helms. Information contained within the Director’s Cut is as complete as possible at the time of publication.
Monthly Production Report includes all wells capable of producing and all permits issued in North Dakota for the month reported.
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