The director of North Dakota’s Mineral Resources Department calls it a “pleasant surprise.”
Lynn Helms is talking about the February oil production numbers.
"Oil production was anticipated to drop again significantly," said Helms. "Yet in oly dropped about one-half of one percent, just slightly over 4000 barrels a day."
Helms says in February, the state produced just over 1.1 billion barrels of oil a day. He also says natural gas production also went up by about three percent – to nearly 1.7 billion cubic feet per day.
"We saw non-completed wells drop by 38," Helms told reporters at his monthly Director's Cut briefing. "We also saw some expanded capacity for gas capture. I think that allowed companies to open up some wells and producte at a higher rate than what we would have anticipated."
In February, North Dakota's gas flaring rate was down to 11%. There are currently 29 rigs working in the Bakken. The all time high was 218, back in 2012.
Helms says he does expect the March figures will show another drop in daily production, as load restrictions take effect on county and state roads.
"It has become enormously expensive to move a workover rig or a drilling rig," Helms said. "At these prices, people are waiting."
Helms says where the price goes could be determined by next week’s OPEC meeting – where there will be proposals to ratchet back oil production.
