North Dakota – update – Oil Gas Leads

Total production

Oil production in North Dakota from horizontal wells fell m-o-m by about 2.5% in July, to 1.02 million b/d, while natural gas output increased to over 3 Bcf/d. Through July, 331 horizontal wells began production this year, only 4 more than in the same time frame last year (327). These numbers are not enough to sustain current output, which is why total oil production is now below where it was 8 years ago, when North Dakota first crossed the 1 million bbl/d milestone.

Supply projection

As of last week, 37 rigs are drilling horizontal wells (according to Baker Hughes). Assuming that well productivity can be maintained, this should be a sufficiently high level for some growth in output in the coming months.