North Dakota drilling and fracking activity stable as prices fluctuate, state regulator states

In a Tuesday monthly briefing, the state regulator revealed that despite recent volatility in oil prices, the number of frac crews and rigs in North Dakota remained unchanged in June. There are 32 rigs and 13 frac crews currently operating in North Dakota. Baker Hughes, an energy services company, said that the U.S. energy companies last week reduced oil and natural-gas rigs by eight for the week, the first drop since September 2023.

North Dakota is third in the nation for oil production. The state Industrial Commission reported that its oil production fell by 22,000 barrels per day (bpd) in April to 1,172,000 BPD.

Volatility is difficult for companies to plan. "Many of the larger operators in the state are now bigger operators and react less strongly to the price volatility that we're currently seeing," said Nathan Anderson. Director of the Department of Mineral Resources in the state. U.S. crude oil futures reached a six-month-high on June 18, at $75 per barrel, as the escalating Israel/Iran conflict raised global supply concerns. Since then, prices have fallen by around $10 per barrel as investors expect a ceasefire to reduce the threat of oil supply disruptions across the Middle East.

The state regulator reported that Bakken oil delivered in Clearbrook, Minnesota was priced at 75 cents more per barrel than West Texas Intermediate Tuesday. (Reporting and editing by Matthew Lewis in Houston)

(source: Reuters)