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
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.
Antero Poised to Benefit from Second Wave of LNG
2024-02-20 - Despite the U.S. Department of Energy’s recent pause on LNG export permits, Antero foresees LNG market growth for the rest of the decade—and plans to deliver.
Heard from the Field: US Needs More Gas Storage
2024-03-21 - The current gas working capacity fits a 60 Bcf/d market — but today, the market exceeds 100 Bcf/d, gas executives said at CERAWeek by S&P Global.
US Natgas Prices Hit 5-week High on Rising Feedgas to Freeport LNG, Output Drop
2024-04-10 - U.S. natural gas futures climbed to a five-week high on April 10 on an increase in feedgas to the Freeport LNG export plant and a drop in output as pipeline maintenance trapped gas in Texas.
US NatGas Futures Hit Over 2-week Low on Lower Demand View
2024-04-15 - U.S. natural gas futures fell about 2% to a more than two-week low on April 15, weighed down by lower demand forecasts for this week than previously expected.