North Dakota Drilling, Fracking Hold Steady Despite Oil Price Swings
(Reuters) — The number of hydraulic fracturing crews and rigs operating in North Dakota was unchanged in June, even as oil prices have faced increased volatility in recent weeks, the state regulator said on June 24 during a monthly briefing.
There are currently 13 frac crews operating in the state and 32 rigs. Overall, U.S. energy firms last week dropped oil and natural gas rigs for the eighth straight week for the first time since September 2023, according to data from energy services firm Baker Hughes on Friday.
North Dakota is the third-largest oil-producing state. Its oil output fell 22,000 barrels-per-day (bpd) to 1,172,000 bpd in April, monthly data from the state Industrial Commission showed.
"Volatility is hard for companies to plan for. Many of the operators in the state now are larger operators and react less to the volatility in prices that we're seeing right now," said Nathan Anderson, director of the state's Department of Mineral Resources.
U.S. crude futures jumped to a six-month high on June 18 at around $75 a barrel as the escalating Israel-Iran conflict stoked global supply concerns. Prices have since slid around $10 per barrel on expectations that a ceasefire between Israel and Iran will reduce the risk of oil supply disruptions in the Middle East.
Meanwhile, Bakken oil delivered at Clearbrook, Minnesota, was pricing at a 75 cents per barrel premium to West Texas Intermediate on Tuesday, the state regulator said.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments