The monthly “Director’s Cut,” featuring December oil and gas production numbers, was released on Valentine’s Day.
"Unfortunately, not a lot of candy and roses in the report," North Dakota Mineral Resources Director Lynn Helms told reporters. "It's a bit of a downer."
In December, the state produced 1,475,685 barrels of oil a day. One month earlier, the state set a record for production -- 1,519,037 barrels a day.
"We saw about a 3 percent drop," Helms said.
Helms said says self-curtailment -- that is, oil companies ratcheting back some of their production because of concerns about natural gas flaring -- is part of the reason for that.
"They (companies) curtailed about 54,000 barrels a day," Helms said. "One of the major operators I've been talking to has curtailed between 20,000 and 30,000 barrels a day at this point."
In December, companies captured 84 percent of the natural gas, meaning 16 percent was flared. The state has a goal of 88 percent capture, that was to take effect in November.
Helms said in 2020, oil production will be likely be curtailed by the coronavirus, which has been reducing oil demand, especially in the Far East.
"When you think about the amount of goods that go to and from China by ship -- and all of those are powered by crude oil -- and when you think about the impact on manufacturing and consumers around the world, it's a pretty enormous impact," Helms said.
