Takeaway capacity more than adequate: Helms
North Dakota’s April oil and gas production report was released and indicates that production and rig count is up thanks to stabilized WTI oil prices between $45 and $60/barrel.
Lynn Helms of the North Dakota Industrial Commission’s Department of Mineral Resources said operators has shifted from running the minimum number of rigs with the bump to 62 rigs in May.
Helms also noted that “current operator plans are to add 5-10 rigs in the second and third quarters of 2018 depending on workforce and infrastructure constraints” and the rig count would only drop if WTI remained under $45/barrel for 30 days or more days.
Oil and gas production were both up from March to April, at a 2.0% and 2.3% increase respectively, the NDIC said.
State-wide gas flared also increased to 15.5%, but pales in comparison to the historical high of 36% in September of 2011. The Bakken’s daily volume of gas flared was at 351 million cubic feet for the month of April.
Gas production and number of producing wells were both at all-time highs (67,248,699 Mcf and 14,571, respectively) for April.
The Commission has established the following gas capture goals:
- 74% October 1, 2014 through December 31, 2014
- 77% January 1, 2015 through March 31, 2016
- 80% April 1, 2016 through October 31, 2016
- 85% November 1, 2016 through October 31, 2018
- 88% November 1, 2018 through October 31, 2020
- 91% beginning November 1, 2020
