Not only did North Dakota’s crude oil production rise for a third consecutive month in March, but the state finally regained all of the production lost in December when output fell by a record 49,776 barrels per day as a result of severe weather, ending that month with an average daily production of 926,687 bpd. Preliminary data released by the Department of Mineral Resources, DMR, on May 13 indicate the state’s average daily production increased by 24,996 bpd in March reaching a new record high of 977,051 bpd (see chart).
However, the record production in March was actually less than expected, hampered by lingering winter weather through the month, according to DMR Director Lynn Helms, who described the month as “in like a lion, out like a lion.”
In his monthly press conference on May 13, Helms said March began with three days of severe, double-digit, sub-zero weather and ended with eight inches of snow between Williston and Tioga.
And in between there was anywhere from a week to 12 days of high winds that kept completion crews grounded.
But moving farther into spring, Helms is now looking for greater production increases.
“So the larger surge in production anticipated in March didn’t happen, and so we’re looking to April for … increased production and record production.”
More than 100 wells remained shut-in
In addition to the weather, more than 100 wells remained shut-in during March in order to curb flaring while Hess Corp.’s Tioga gas plant was undergoing upgrades, also hampering the state’s output.
The Hess plant went back into service at the end of March and as reported by Petroleum News Bakken on May 4, Hess’ production alone increased from 63,000 barrels of oil equivalent per day over the first quarter to 80,000 boepd by the end of April as many of its wells went back on production.
Helms said in the May 13 press conference that some 50 wells remain shut in as a result of the Tioga plant being out of service, but those wells also will eventually go back online.
The elusive 1 million bpd mark
North Dakota’s daily production has long been expected to reach the 1 million bpd mark, but when that will occur has always been in question (see related story on what that milestone will mean to the state’s oil revenues on page 20).
In November, production reached a then record high of 976,453 bpd, flirting with that million bpd milestone, but with the drop of nearly 50,000 bpd in December, the question was put off indefinitely.
But with production now above November’s level, Helms was asked in the press conference his thoughts on reaching that mark.
“It’s always in our minds, simply because it’s such an intriguing number,” he said, adding that “we’re definitely within striking distance.”
Helms said he would not be surprised if the 1 million bpd milestone is reached in April, but he cautioned that production in North Dakota always depends on weather.
Completions backlog
Well completions increased from 70 in February to 200 in March, but fracturing crews remained behind with 635 wells awaiting completion.
Not only is weather a direct factor in that backlog, but load restrictions and poor road conditions were the main factors hampering completions.
However, while 635 wells were waiting to be completed at the end of March, that was 15 less wells than were awaiting completion at the end of February.
March numbers
As of the end of March, there were 10,457 producing wells in North Dakota, 69 percent of which were unconventional Bakken petroleum system wells. Of the 977,051 bpd North Dakota produced in March, 94 percent came from the Bakken system with legacy conventional pool wells producing the other 6 percent.
Putting those numbers together, a little more than two-thirds of the state’s wells accounted for nearly all of North Dakota’s output in March.
Along with oil, natural gas production was up in March at 1.086 billion cubic feet per day compared to the 1.064 bcf produced in February. However, while gas production increased, flaring decreased in March (see related stories on pages 1 and 5).
As of the end of March, there were 193 drill rigs operating in North Dakota, up from the 189 operating at the end of February. At the end of April the rig count stood at 188 and as of May 13, there were 192 rigs operating in the state.
