North Dakota oil production ticks up in September to 1.113 million b/d

North Dakota oil production grew in September, albeit by just 0.5% month on month, according to state Department of Mineral Resources data released Nov. 16.

The state pumped 1.113 million b/d of crude, in August, Lynn Helms, the DMR's director of oil and gas, said during the state's monthly production press webinar.

"Oil prices are very, very strong," Helms said. He noted that September's North Dakota realized market price was just under $66/b, and on Nov. 16 it is close to $78/b.

For natural gas, the state produced 3.015 Bcf/d in September, up 1.8% on the month, Helms said.

And although North Dakota lost a rig on average in September to 27, down by one on the month, it gained two rigs in October moving to 29, according to DMR data.

But on Nov. 16, 34 rigs were working in the state, the monthly DMR report said.

Helms noted the US Energy Information Administration, which tracks rig productivity from drilling rigs in US basins, shows the Bakken has double the productivity of a rig in the New Mexico Permian, where wells have more water production.

Also in the Bakken, when fracturing interference occurs while drilling an infill well, "it makes the wells better," while it's "the other direction in New Mexico," he said.

On the permitting front, 69 drilling permits were issued in the state in September but only 37 in October, Helms said, a total "inadequate to sustain or grow our production"

The low number may be a glitch in the switchover of the state's new electronic filing system, Helms said, adding that late last month and in the first half of November "a lot of permits were being approved."