North Dakota's January Oil Output Hits One-Year Low Amid Extreme Cold Snap
(Reuters) — Crude oil production in North Dakota fell 14% in January compared with the prior month, hitting a one-year low after a cold snap weighed on activity, state regulators said on Thursday.
Output in the third-largest oil producing state fell 172,000 barrels-per-day (bpd) to 1.103 million bpd, its lowest since January 2023, monthly data from the state Industrial Commission showed. At one point during the month, roughly half the state's production was offline.
Lynn Helms, director of the North Dakota Department of Mineral Resources, said activity has since recovered and output is set to climb above December level, which was 1.273 million bpd.
The state expects to see one to two rigs added this year, Helms said.
Pricing for Bakken crude has firmed ahead of the start of the Trans Mountain Pipeline's expansion, said Justin Kringstad, director of the North Dakota Pipeline Authority.
Canada's long-delayed Trans Mountain oil pipeline expansion is due to start line fill from April, tripling crude flow from Alberta to Canada's Pacific Coast to 890,000 bpd.
"Last fall, there was some market concerns with the timing of Trans Mountain in Canada, and when it would be in service", Kringstad said, adding that these concerns appear to have eased, buoying prices.
Bakken oil delivered at Clearbrook, Minnesota strengthened to an 83-cent per barrel discount to West Texas Intermediate on Thursday, recovering from a near $2 discount in February, according to Kringstad.
Related News
Related News
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- South Dakota Governor Signs Bill Banning Eminent Domain for Carbon Pipeline
- Woodside May Delay Final Investment Decision on Louisiana LNG to Q2, CEO Says
Comments