The US state of North Dakota recorded an average gas production rate of 1.6 mcf/d and an oil production rate of 1.21m b/d for the month of June, reported USAToday.
These rates are a record in the state for gas, and the second highest rate ever recorded in North Dakota for oil. “What we’re observing is US producers are not indicating any decrease in US oil production,” said Lynn Helms, Director of the North Dakota Department of Natural and Mineral Resources.
“Even if the price has dropped, they are finding ways to cut costs and to be a lot more efficient with their drilling and completions, and they’ve built up a very large number of non-completed wells,” Helms continued.
Despite the historically low oil prices, US producers continue to drill new development wells, with 848 added in June. The day the new figures were released, the WTI index fell below $42 for the first time in over six years.
North Dakota operators routinely sell below the WTI benchmark due to the remote location of production. Even so, the break-even price for production in many sites in the state is under $30.
The StarTribune reported that North Dakota passed the milestone 10,000 number in wells drilled, but noted that the number of rigs drilling new wells was only a third of what it was during the biggest boom years of 2012-2014.