North Dakota Oil Output On Track To Have Record Year In 2018

Thanks in large part to President Donald Trump’s fiscally conservative policies, such as approving the Dakota Access Pipeline, North Dakota is currently on track to have a record year in 2018.

The trend lines have been moving upward recently as the North Dakota Department of Mineral Resources’ (“DMR”) latest data shows that November 2017 became the tenth month in a row in which daily output reached above 1 million barrels.

In November 2017, the state produced 1.19 million barrels of oil produced per day, the highest since July 2015.

Advertisements

The all-time record month for America’s second-best oil-producing state was 1.23 million barrels per day in December 2014.

“We are closing in on that 1.2 million (barrel per day) number, which is a pretty important number,” Lynn Helms, director of North Dakota’s Department of Mineral Resources claimed recently. “Sometime in the first half of this year, we should break the record.”

The primary driver of this growth has been the 1,100-mile-long Dakota Access Pipeline, which has been a gamechanger for the state ever since President Trump approved of it a few days after his January Inauguration.

In November, pipelines produced more than 50 percent of daily oil output, or 520,000 barrels of oil daily.

About 78 percent of oil shipments out of North Dakota is now being carried by pipelines, with the (more expensive) railroad share dropping from 24 percent in Early 2017 to less than 10 percent by November.

North Dakota saw a massive oil boom in recent years thanks to the 2006 Bakken Formation discovery at Parshall Oil Field. It peaked in 2012 and made North Dakota the number one ranking state in several categories – including the unemployment rate, population growth, and economic growth rate.

November 2017 was also an all-time record month for natural gas production in North Dakota, with output hitting 2,095,342 thousand cubic feet per day.

Oil production is also expected to post a record year nationwide in 2018. It is forecast to average 10.3 million barrels per day, surpassing the previous record of 9.6 million barrels per day set in 1970, according to a report in early January from the U.S. Energy Information Administration (EIA).

 

Please Share
Advertisements