North Dakota oil production steady, despite winter weather
M.K. French
Farmer Staff Writer
The North Dakota Department of Mineral Resources (DMR) released its director’s cut report for December 2024, revealing steady oil production despite recent cold weather and minor fluctuations in other areas. Director Nathan Anderson presented the findings, highlighting the dedication of the DMR team during the busy legislative session.
McKenzie County Statistics
McKenzie County continues to be a dominant force in oil and gas production in North Dakota. Preliminary figures for December show the county produced 11,130,775 barrels of oil, representing a substantial 30.1 percent of the statewide total of 36,926,387 barrels. McKenzie County also leads in natural gas production, with 47,026,871 MCF produced in December. This accounts for a significant 45 percent of the state’s total natural gas production of 104,616,219 MCF. With these strong production numbers, McKenzie County continues to be a key driver of North Dakota’s energy sector.
Statewide Statistics
Oil production for December reached 36,926,000 barrels, averaging 1.19 million barrels per day. This figure slightly exceeds November’s production and remains well above revenue forecasts. While oil production volumes are strong, crude oil pricing has remained near $70 per barrel, aligning with revenue forecasts. Natural gas production also saw consistent numbers, with December’s output at 104.6 billion cubic feet (BCF), averaging 3.4 BCF per day. This closely mirrors November’s figures.
Drilling permits have shown a positive trend, with 87 issued in December and 102 in January. The state’s rig count currently stands at 33, a slight decrease from previous months, attributed to recent mergers within the industry. Anderson noted that while some operators have reduced rig numbers, others have picked them up, resulting in a relatively stable overall count. He also pointed out the continuing trend of longer horizontal laterals in drilling operations, suggesting increased lateral footage completed year-over-year. The DMR is currently compiling data on this trend.
Cold weather in the region has impacted production, with approximately 5 percent of oil production currently offline due to the recent cold snap. Justin Kingstead, Director of the North Dakota Pipeline Authority, stated that this equates to between 50,000 and 80,000 barrels per day. He expects production to return to normal as temperatures rise. Kingstead also discussed pipeline capacity and the movement of oil and natural gas within the state.
Anderson addressed questions regarding a recent state lease sale in Golden Valley County. He clarified that the low price per acre in the sale does not indicate a decline in the Bakken formation’s value, suggesting that other formations in the area, such as the Three Forks and Red River formations, may be driving interest.
Another question concerned House Bill 1483, which aims to promote drilling outside the core Bakken and Three Forks units by offering reduced tax rates. Anderson explained that the bill applies to all non-Bakken formations and removes the 10-mile radius restriction around existing fields, potentially impacting tier 2 and tier 3 locations.
Looking ahead, the DMR anticipates steady rig counts, completion activity, and production for the remainder of 2025. They also expect pricing to remain stable in the near term. The department continues to monitor mergers within the industry, particularly the pending Chevron-Hess merger, for potential impacts on activity.
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