North Dakota Production Will Surpass 1 Million b/d Early in 2014

Bakken Production Chart - Goldman Sachs
Bakken Production Chart - Goldman Sachs

North Dakota oil production grew a little less than 10,000 b/d from September to October to set another record with 941,637 b/d.

With current weather conditions, it will take an exceptional November and December for the state to surpass 1 million b/d before year-end. The Bakken has surprised us before, but it looks like it will be some point in the first quarter before North Dakota joins the million barrel a day club.

The state also set a record in October for natural gas production with 1.07 bcf/d and for the number of producing wells with 9,900. With ~200 wells coming online per month, the state will easily surpass 10,000 wells before the end of 2013. Pretty amazing for a state that had just ~3,600 producing wells at the beginning of 2008.

Other highlights from the monthly director's cut include:

  • 5,939 wells producing from the Bakken and Three Forks
  • October sweet crude prices fell to $85.16/bbl and further to $71.42/bbl in November
  • 202 well completions in October
  • McKenzie County roads were close 3-4 days due to rain in October
  • Operators have indicated plans to add 10-15 rigs by mid-year 2014
  • Days from spud to initial production increased to 114 days from 100 days in October
  • More than 95% of drilling targets the Bakken and Three Forks
  • ~460 wells were awaiting completion at the end of October

Read the full director's cut at dmr.nd.gov