Oil and gas operators in North Dakota have indicated they plan to drop rigs and frac crews due to weaker oil prices, a move that is likely to impact output in the third largest U.S. oil producer, the state's Department of Mineral Resources said on May 16.

Oil producers in the state, home to the Bakken play, have started to slow output, dropping rigs, as prices have fallen below $65, the price required to break even.

North Dakota breakevens have historically been in the $55/bbl to $60/bbl range, said Nathan Anderson, director of the state regulator.

"We're expecting the rig count to soften just a little bit, and most certainly related to soft prices and a little bit of a volatile price environment that we're in right now," Anderson said.

About four or five operators plan to drop rigs either as part of their business plans or due to low prices, Anderson said.

The state's rig count is likely to drop to about 27 by August, he added. The rig count stood at 31 on Friday.

Two of the 14 frac crews currently operating could also be reduced, Anderson added.

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