Oil production down, gas production up
The North Dakota Industrial Commission released its latest Oil and Gas Production Report Friday, outlining hydrocarbon activity in the state for March 2017.
Oil production down in spite of all-time high producing wells
The NDIC reported that oil production in March was down to 1,026 MBOPD, from 1,034 MBOPD in February. A record 13,632 wells were producing in March, which is an all-time high for North Dakota. The decrease in production seems to be the result of old wells coming back online; even though more wells are active, some of these wells are not producing much. The NDIC reports that the number of inactive wells in the state decreased by 312 in March, meaning some older, less productive wells may have come into the mix.
Gas production increased, however, rising from 1,704 MMcf/d in February to 1,729 MMcf/d in March, the NDIC said. Eighty-six percent of all active wells target the Bakken or Three Forks, while 14% target legacy conventional plays.
More rigs
The NDIC reports that the number of drilling rigs active in the state continues to rise, from 39 in February to a current total of 51. Bakken operators have shifted from running the minimum number of rigs to incrementally increasing and decreasing as oil prices move above and below $50/bbl. According to NDIC Director Lynn Helms, if WTI drops below $45/bbl for more than 30 days rig count is expected to drop. Utilization rate for rigs capable of 20,000 feet is ~25%, and for shallow well rigs is ~15%.
Source: EnerCom Analytics
DUCs are down: 689 wells waiting on completion
Drilling permit activity returned to previous levels in April, after rising sharply in March. The NDIC estimates that wells waiting on completion decreased by 110 in March, to about 689 wells. Leasing activity is limited to renewals and top leases in the Bakken area, with minimal other activity.
The NDIC reports that 10.5% of gas produced was flared in March, down slightly from February proportions. Gas gathering in the south portion of the Bakken is currently expanding, and crude and NGL transfer lines have been approved pending geotechnical work in the summer.
