North Dakota May oil production lowest since January, state regulator says
Adds details throughout
By Georgina McCartney
HOUSTON, July 16 (Reuters) -North Dakota's May oil production fell to its lowest since January, monthly data from the state's Department of Mineral Resources showed on Tuesday.
WHY IT'S IMPORTANT
North Dakota is the third-largest oil producing state in the U.S., behind Texas and New Mexico.
BY THE NUMBERS
Oil production in North Dakota fell by 49,000 barrels per day (bpd) to 1.195 million bpd in May, the data showed, its lowest since January when output dipped to just 1.105 million bpd after extreme cold weather knocked out a chunk of the state's production capacity.
CONTEXT
May output likely fell following road restrictions, which hampered frac crews from moving around, said Mark Bohrer, assistant director for the state's oil and gas regulator.
A total of 55 wells were completed in June, according to preliminary data.
"We need that to be in the 90-100 range to achieve production growth," Bohrer said.
WHAT'S NEXT
In the second half of the year, well completions are expected to rise and production to follow, said Justin Kringstad, director of the North Dakota Pipeline Authority.
There are currently 14 frac crews active in the state, compared with 15 in June, state data showed.
On the pricing side, Bakken oil delivered at Clearbrook, Minnesota weakened to a 61-cent per barrel discount to West Texas Intermediate on Tuesday, compared with a 16-cent discount during June, according to Kringstad.
Reporting by Georgina McCartney in Houston; Editing by Jamie Freed
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
