North Dakota Oil Output Expected to Hold Steady Despite Price Softness, Regulator Says
According to a Reuters report via BOE Report, North Dakota’s oil output is expected to remain steady despite crude prices dropping after the U.S. and Iran signed an interim deal to end their conflict. Nathan Anderson, director of North Dakota’s Department of Mineral Resources, said WTI at $76.60 a barrel remains historically strong, noting operators continued producing 1 million to 1.5 million bpd even when prices sat at $60. Two operators plan to add rigs, including Continental Resources. The state currently has 26 rigs running and 12 active hydraulic fracturing crews.
What It Means for Subcontractors
- Demand for field services in North Dakota should stay consistent through the near term, with no significant production pullback expected from operators.
- Two incoming rigs, including one from Continental Resources arriving as early as July, represent concrete near-term opportunities for drilling and completions crews.
- With permits up to 93 in May from 83 in April, completion work and associated services are likely to tick higher in the months ahead.
