North Dakota’s oil production for May was just over 1.1 million barrels per day.
"That is 1.16 percent above the revenue forecast," said State Mineral Resources Director Nathan Anderson, in his monthly "Director's Cut" report.
Anderson said the revenue forecast for May and through June is at 1.1 million barrels.
"It is down about 5.16 percent from April to May, or about 60,000 barrels per day," Anderson said. He said that was due to three main reasons.
"April completions were low, so May production was affected by those completion numbers," Anderson said. "Number two, there was a lower oil price environment in April and May, and certain operators decided to curtail some production in certain areas of the state. You also note there was a slight rig count decrease."
But Anderson said there is some better news.
"It's my understanding that the operators who curtailed production are actually starting to turn those wells back on line, in this slightly better price environment," Anderson said.
And Anderson said mergers and acquisitions in the industry have also impacted production. He said the merger of Chevron and Hess has just been finalized. And Anderson said the merged companies have options on where to put their capital investments.
"We're certainly hopeful they choose North Dakota," Anderson said.
