Seventh straight month of record well counts
The North Dakota Industrial Commission has released its latest Oil and Gas Production Report, outlining hydrocarbon activity in the state for September 2017.
Oil production rose in September reaching 1,107 MBOPD, from 1,089 MBOPD in August. 1,054 MBOPD of this production comes from the Bakken and Three Forks formations, while only 5% comes from legacy conventional plays.
Flaring rates exceed capture targets
Gas production fell in September, with the state producing 1,943 Mcf/d. Gas production has been rising overall in North Dakota, with four of the last six months setting new records for gas output. The decrease in gas production in September was likely due to an increase in flaring. North Dakota operators flared 17% of produced gas in September, making it the first month the industry missed gas capture targets in three years of reporting.
The number of producing wells in the state continues to rise, reaching 14,190 in September. This is yet another all-time high, the seventh in a row. Bakken and Three Forks operations do not dominate well counts quite as thoroughly as production, and 15% of all wells currently producing target conventional formations.
Permitting activity jumps
Drilling permitting activity was relatively constant in August and September at just over 100, but rose to 147 in October. This is not particularly surprising, as has shown a pattern in recent months of jumping every three months. According to the NDIC, operators are maintaining a permit inventory that will accommodate increased drilling price points within the next 12 months.
The NDIC estimates there are 853 wells waiting on completion in the state, down 10 from August. High winds impeded completions work in September, meaning only 71 wells were completed in the month, down from 84 in August.
