lynn helms

Oil wells transfer to new Bakken operators

Oct 10, 2017
Amy Sisk / Prairie Public

North Dakota officials have noticed an uptick in the number of oil wells transferring ownership in the Bakken.

Nearly 700 wells are in the process of being transferred from longtime North Dakota operators to new ones, mineral resources director Lynn Helms said Tuesday in his department’s monthly oil and gas briefing.That number’s unusual given that, recently, only 100 wells were transferred in a typical month.

“Companies have re-evaluated their business model and decided to focus on an area where they’re having greater success,”  Helms said.

Amy Sisk / Inside Energy

The Organization of Petroleum Exporting Countries will continue curbing oil output through March 2018, opening the door for more production in the United States.

 

Late last year, OPEC -- along with Russia -- agreed to cut production. 

The cartel wanted to boost oil prices amid an oversupply of crude on the global market. 

But OPEC's cuts gave the United States an opportunity to fill in the gap. Oil production here soared and prices have moved up, but more slowly than anticipated.