Monday, May 25, 2020

Department Of Mineral Resources News

North Dakota Oil Production Slips about 1% in June

North Dakota's daily oil production slipped about 1 percent in June amidst tepid crude prices , according to state data released on Friday. The state pumped 1.03 million barrels of oil per day (bpd) in June, down from 1.04 million bpd in May, according to the North Dakota Department of Mineral Resources, which reports on a two-month lag. Natural gas production dipped slightly to 1.85 million cubic feet per day. The state's oil well count hit 13,915 during the month, an all-time high.

U.S. Shale Greater Threat to OPEC After Oil Price War

In a corner of the prolific Bakken shale play in North Dakota, oil companies can now pump crude at a price almost as low as that enjoyed by OPEC giants Iran and Iraq. Until a few years ago it was unprofitable to produce oil from shale in the United States. But the steep slide in costs has U.S. shale operators poised to capitalize on Wednesday's decision by the Organization of the Petroleum Exporting Countries to cap output for the first time in eight years. In effect, even as OPEC has decided to reduce output to try to boost prices…

North Dakota Daily Oil Production Drops 2% in June

North Dakota's daily oil production fell 2 percent in June, the victim of low crude prices weighing on the energy industry.   Daily output fell to 1.03 million barrels of oil per day, according to the state's Department of Mineral Resources, which reports on a two-month lag.     (Reporting by Ernest Scheyder; Editing by Chizu Nomiyama)

North Dakota Oil Output Posts Biggest Drop in History

North Dakota's oil output fell the most in history in April, with low crude prices and inclement weather forcing producers to cut back the drilling and fracking of new wells, state regulators said on Wednesday. The output drop highlighted the deep pain spreading through the second-largest oil producing state, with the more than 50 percent drop in crude prices since late 2014 fueling spending cuts and layoffs. The state pumped 1,041,007 barrels of oil per day (bpd) in April…

Hess Oil Storage Facility in North Dakota Leaks 32,000 Gallons

An oil storage facility in North Dakota owned by Hess Corp leaked about 32,000 gallons on Tuesday, though the crude has been recovered on site, state regulators said.   A transfer pump at a tank battery in Mountrail County, in the state's northwest corner, failed, causing storage tanks to overflow, according to the North Dakota Department of Mineral Resources (DMR).   A state inspector has been sent to the scene to monitor remediation, DMR said.   Hess was not immediately available to comment. (Reporting by Ernest Scheyder)

U.S. Shale to OPEC: Above $40, We are Coming Back

For leading U.S. shale oil producers, $40 is the new $70. Less than a year ago major shale firms were saying they needed oil above $60 a barrel to produce more; now some say they will settle for far less in deciding whether to crank up output after the worst oil price crash in a generation. Their latest comments highlight the industry's remarkable resilience, but also serve as a warning to rivals and traders: a retreat in U.S. oil production that would help ease global oversupply and let prices recover may prove shorter than some may have expected.

Are the Saudis Winning the War Against Shale?

Saudi officials insist the kingdom's oil production strategy is not aimed at putting U.S. shale producers out of business, a message that has been repeated to visiting U.S. policymakers. The United States remains the kingdom's most important security partner, and Saudi officials do not want to be seen to be deliberately trying to halt the shale revolution. Rising domestic oil production is important to U.S. policymakers because it has given the United States a greater sense of energy security, and the Saudis remain keen not to offend their most important ally.

North Dakota Oil Output Defies Market

North Dakota's oil production once again defied expectations for a decline in November, even seeing a slight uptick for the second consecutive month, as unusually warm weather helped offset the deepening decline in fracking activity. Production in the second-largest U.S. oil producing state rose by 5,000 barrels per day (bpd) to 1.18 million barrels, monthly data from the Department of Mineral Resources showed. Last month, it also rose 5,000 bpd. Output in North Dakota's Bakken…

North Dakota Oil Output Posts Surprising Jump

North Dakota's daily oil production rose slightly in October, a surprising increase amidst plunging crude prices that shows the state's energy industry may be more resilient than previously thought to pressure from OPEC and other global forces. The state produced 1,168,950 barrels of oil per day (bpd) in October, compared with 1,162,159 bpd in September, said the Department of Mineral Resources, which reports on a two-month lag. Natural gas output rose 3 percent to 1,654,594 million cubic feet per day. The number of producing wells hit an all-time high in October of 13,173.

North Dakota Oil Well Backlog Eclipses 1,000 for First Time

The number of oil wells in North Dakota that have been drilled but not fracked eclipsed 1,000 for the first time in September, as producers delayed turning them on in hopes crude prices will soon recover. The milestone, which was widely expected around the second-largest oil producing state, highlights the immense cost pressure companies have come under in the past year as crude prices have dropped more than 50 percent. Fracking alone can account for nearly two-thirds of a well's cost.

OPEC Stalled the Shale Revolution: Kemp

The resilience of U.S. shale producers has surpassed all expectations as they have wrung extra efficiencies out of their operations and pulled rigs back to the most prolific sections of existing plays. The shale sector's ability to cut costs and sustain their output in the face of plunging prices has been extraordinary and testament to the entrepreneurial spirit and technical skill of the independent producers. Shale producers are justifiably proud of their ability to survive the perfect storm that has hit their industry since the middle of 2014.

North Dakota Well Backlog Nears 1,000

The number of North Dakota oil wells that have been drilled but not fracked rose to an all-time high in August of almost 1,000, as producers delayed bringing them online as long as possible in hopes that crude prices would rebound. It was the latest sign yet that the state's oil industry, the second-largest in the United States, has sharply curtailed spending amid the more than 50 percent drop in oil prices since 2014. North Dakota now has 993 drilled-but-uncompleted wells…

North Dakota to Extend Flare Rules Deadline

North Dakota is poised to give the energy industry up to two extra years to curb the amount of natural gas burned off at oil wells, a move that would ease worries pipeline construction delays make it impossible to meet aggressive flaring standards. Governor Jack Dalrymple and the two other members of the North Dakota Industrial Commission (NDIC), who spent months last year finalizing the rules, will mull oil companies' request for the extension at their Thursday meeting. "These were lofty goals…

In downturn, N.Dakota's Oilfield Firms Jostle for Tiniest of Jobs

Oilfield service companies eager for work amid plunging crude oil prices have until the end of Wednesday to bid for a guaranteed job: plugging a North Dakota well abandoned by a producer closing up shop in the No. 2 U.S. oil patch. Whichever oilfield service company does the plugging, be it Halliburton Co, Schlumberger NV or another firm, the job could bring in more than $20,000. While that's far less than the millions they have received to drill and fracture wells in years past, the more-than 70 percent drop in oil prices since last summer means no job is too small.

North Dakota Well Completions Slow Sharply

No new well completion reports have been filed in North Dakota since July 10, the longest gap this year, according to daily activity records published by the state's Department of Mineral Resources (DMR). Completions, rather than wells drilled, provide the best guide to short-term changes in output, since operators can always delay completing a well and putting it into production, either because they are waiting for completion crews to be available or to wait for better prices.

North Dakota's Output Stabilizes

Crude oil production data published by the state of North Dakota on Friday contained something for both bulls and bears. Bears can point to the unexpected resilience of shale production in the face of lower oil prices while bulls can point to the fact that production is no longer growing after five years of tremendous gains. The state pumped an average of 1.2 million barrels per day (bpd) in May, an increase of 32,000 bpd compared with April, according to the Department of Mineral Resources (http://link.reuters.com/kan25w).

North Dakota Oil Output Jumps in May

Oil fields Photo Wikipedia

North Dakota's daily oil production rose 3 percent in May, state regulators said on Friday, hinting that the state's Bakken shale formation may be more resilient to sliding crude prices than expected. The state's well count hit a record high in the month with producers deciding to hydraulically fracture more freshly drilled wells, bucking a trend to mothball them. Drilling permit applications also spiked. "I was surprised by the increase in output for May," said Lynn Helms, head of the state's Department of Mineral Resources (DMR).

Power Outage in North Dakota's Delays Drilling Rig Data

A power outage in North Dakota's capital on Wednesday brought down computer servers that provide data used to track myriad output statistics across the second-largest U.S. oil producing state. The outage means the state's daily drilling rig count - a closely watched number that can offer guidance on future oil production - is not available. The count stood at 76 on Tuesday, near where it has been for several weeks. The rig count is tabulated daily by the state's Department of Mineral Resources (DMR), North Dakota's oil regulator.

South African Union Mulls Options over Glencore Layoffs

South Africa's National Union of Mineworkers is considering taking legal action against the government if Glencore cuts over 600 jobs at its Optimum Coal unit, it said on Monday. NUM said in a statement that Glencore had, in its view, failed to comply with its social and labour plans regarding severance packages and it was therefore up to the department of mineral resources (DMR) to "enforce compliance". Glencore said last week it would proceed with a plan to close some of its Optimum Coal operations because of weak prices.

North Dakota's Rig Count Bottoms

The drilling rig count in North Dakota's oil patch, a closely watched metric through which many attempt to divine future crude production, appears to have hit a bottom. For the past three weeks the count has hovered between 76 and 79, after sliding only slightly from 80 at the end of May. On June 12, the count hit 76, the lowest level since 2009. The count bobbed slightly in the ensuing days, hitting 77 on Tuesday. It has, in short, been the longest period since oil prices started to slide last fall that the rig count has stayed in the same range, offering many in and near the No. 2 U.S.