North Dakota Hits Record Oil & Gas Production - June 2014

Bakken Oil Well

The State of North Dakota hit nearly 1.1-million b/d oil in June 2014, setting a new record, according to the Department of Mineral Resources' (DMR) August Director's Cut. During the same month, North Dakota also had record monthly gas production (1,253,154 mcf/d), and the highest recorded number of producing wells (11,079).

In April, North Dakota crossed the milestone 1-million b/d oil mark. The Bakken region, which includes portions of western Montana, exceeded the 1-million b/d mark at end of last year according to the Energy Information Administration (EIA). It is the fourth region, along with the Gulf of Mexico, Eagle Ford, and Permian basins, producing more than 1 million b/d in the nation.

Read more: North Dakota Hits the 1-Million b/d Mark

About 28% of gas produced in May and June was flared, despite the completion of Hess' Tioga Gas Plant expansion in May 2014. DMR officials noted the plant has been operating below full capacity due to the delayed expansion of gas gathering from South of Lake Sakakawea.

The expansion project, which is part of a $1.5 billion investment Hess has made in the area for infrastructure improvements, began processing about 120-million standard cubic feet of gas per day (mmscf/d) in May, according to Hess. The company expects the plant will process at least 250 mmscf/d with the potential to increase beyond 300 mmscf/d.

Read more: Hess Production to Soar in Bakken by the End of 2014

Highlights from August 2014 Director’s Cut

• May Oil – 1,040,469 b/d
• June Oil – 1,092,617 b/d
• May Gas – 1,192,860 mcf/d
• June Gas – 1,253,154 mcf/d
• May Producing Wells – 10,902
• June Producing Wells – 11,079
• 28% of produced gas in May and June flared

Read more at dmr.nd.gov

North Dakota & Texas Make Up Half of U.S. Oil Production

U.S. Oil Production

Combined production from North Dakota and Texas made up nearly half of U.S. oil production according to the Energy Information Administration (EIA) in April of 2013.

Recently, the state of North Dakota hit the 1-million b/d mark for oil, nearly tripling its production over a three year period. The increase in production is directly related to the development of the Bakken Shale. Since April of 2011, production from the Bakken increased 19,000 b/d on average each month, according to the EIA.

Read more: North Dakota Hits the 1-Million b/d Mark

In July of 2014, the EIA predicts the Bakken will produce nearly 1.1-million b/d of oil. June production was 1,074,000 b/d.

Bakken is Major Contributor to U.S. Oil Production Growth

The tight oil and shale gas revolution has changed the face of the energy industry in the U.S., and by 2015, the U.S. is predicted to be the top oil producer in the world, according to the International Energy Agency (IEA). As the country re-asserts itself as a world-wide oil producer, the state of North Dakota is expected to remain in a leading role for oil production.

Texas Leads the Way

The Eagle Ford Shale in South Texas is the only other shale play in the country that can top the Bakken for oil production. State-wide production in Texas was 3-million b/d in April of 2014 according to the EIA. Current production estimates place Texas above the second rated OPEC producing country of Iraq.