Monday, December 17, 2012

October Production Data Released

The latest initial oil and gas production figures have been released by the North Dakota Department of Mineral Resources. Total oil production for the month of October was reported at 23,164,406 barrels, compared to 21,877,429 barrels reported for September. The natural gas production total was 24,677,309 mcf, compared to 23,874,169 mcf in September. The October producing well total was 8,025, compared to 7,899 in September. All three totals are new record highs. The following summary from the Department of Mineral Resources accompanied today's release of the latest production data...

October saw a decline in drilling and an even greater decline in hydraulic fracturing  resulting in a 2.5% oil production rate increase from September. Rig count has declined  further to around 180 as more operators transition to higher efficiency rigs and implement  cost cutting measures at the end of their 2012 capital budgets.  The idle well count rose  sharply indicating an estimated 340 wells waiting on fracturing services.  Rapidly  escalating well costs that consumed capital spending budgets faster than many companies  anticipated and uncertainty surrounding future federal policies on taxation and hydraulic  fracturing are impacting capital investment decisions.  Over 95% of drilling still targets  the Bakken and Three Forks formations.

Source: North Dakota Industrial Commission 

No comments: