Natural Gas Production Update -- November 2012

  North Dakota ---------- total gas production      

 Latest figures from the NDIC Department. of  Mineral Resources

Sep 2012 gas production -- 23,806,444 mcf
Aug  2012 gas production -- 23,633,182 mcf
Sep 2011 gas production -- 14,468,539 mcf
                                                         


One-Year Snapshot                                                                

                    Produced             Sold
9-2011----14,442,365       8,704,231    60%
10-2011-- 15,748,395       9,748,728    62%
11-2011-- 15,742,326       9,647,780    61%
12-2011-- 16,770,945     10,269,072    61%
1-2012----17,673,641     11,101,608    63%
2-2012----16,972,475     10,925,420    64%
3-2012----19,089,886     12,234,952    64%
4-2012----19,146,588     12,027,904    63%
5-2012----20,952,671     13,748,969    66%
6-2012----21,015,689     13,706,774    65%
7-2012----22,260,560     14,410,356    65%
8-2012----23,633,182     15,759,164    67%
9-2012----23,806,444     15,745,398    66%

Natural gas comments from Department of Mineral Resources director Lynn Helms (11/20/2012)...

Daily natural gas production continues to increase slightly faster than oil production.  This indicates that gas oil ratios are increasing and confirms the need for more gathering and processing capacity.  Construction of processing plants and gathering systems will now be affected by weather. US natural gas storage has dropped to 6% above the fiveyear average but this still indicates low prices for the foreseeable future.  North Dakota shallow gas exploration is not economic at near term gas prices.

Natural gas delivered to Northern Border at Watford City is up to $3.06/MCF.  This results in a current oil to gas price ratio of 26 to 1, but the high liquids content makes gathering and processing of Bakken gas economic.  


Source: North Dakota Industrial Commission/