Six months of new record well counts
The North Dakota Industrial Commission released its latest Oil and Gas Production Report today, outlining hydrocarbon activity in the state for August 2017.
Gas production reaches 1,943 Mcf/d despite increased flaring
Gas production also rose in August, reaching 1,943 Mcf/d. This is also an all-time high for North Dakota. Four of the last five months have set new records for gas production in the state. The new record in August was set despite the percentage of gas flared increasing to 14%, up from 12% in July.
Oil production rose in August, growing to 1,085 MBOPD from 1,048 MBOPD in July. This oil is almost exclusively produced from unconventional wells, as only 5% comes from legacy conventional pools.
The number of producing wells in the state is still rising, and reached 14,080 in August. This is, once again, an all-time high. The past six months have each set new records for producing wells, likely due to the buoyant effects of higher prices. Bakken and Three Forks wells are, in general more productive than conventional wells, as 85% of producing wells target the Bakken, but these wells contribute 95% of all production.
Permitting
Drilling permitting activity has relatively constant, except for in July. May, June, August and September each saw about 100 drilling permits approved, but 146 were approved in July. According to the NDIC, operators are maintaining a permit inventory that will accommodate increased drilling price points within the next 12 months.
August completions down 1/3 from July; DUCs now at 863
The number of well completions decreased significantly, falling from 95 in July to 63 in August. The number of wells awaiting completion fell, however, dropping by 26 to end August at 863.
