Generic Hero BannerGeneric Hero Banner
Latest market news

North Dakota gas output set record in July

  • : Natural gas
  • 15.09.17

North Dakota natural gas production reached a record high in July, tracking higher crude output.

Gas production in July averaged at 1.88 Bcf/d (53mn m³/d), 1.3pc higher from June and 10.5pc higher than July 2016, according to the North Dakota Department of Mineral Resources.

July crude production was up by 1.4pc, compared to the previous month to about 1.05mn b/d. Nearly all of the gas produced in North Dakota comes from the state's oil wells.

The actual well completion in June was 88, much higher than the 63 reported last month and up from 66 in May.

Higher well completions would drive production increase, according to department director Lynn Helms.

The well completions number has been highly variable amid lack of experienced crews for hydraulic fracturing, he noted.

The preliminary well completion number in July is 67.

In July gas production growth was in line with oil production growth. Gas production growth has outperformed crude in prior months as producers have been focusing in areas with high gas-to-oil ratio.

"Rigs have been in the core areas long enough now that we are not seeing shift to higher and higher gas-to-oil ratio," Helms said.

Changes in well completion technology is also a major factor behind slower gas production growth.

Bringing wells online slower and restricting the initial production rate make a better well in the long term, Helms said.

Gas captured by North Dakota operators in July remained unchanged from the month earlier at 88pc.

New gas gathering pipelines that should come online this month should keep the gas capture rate steady as production increase, according to Helms.

The number of producing wells in North Dakota in July rose to an all-time high of 13,981. The estimated number of wells waiting on completion at the end of July rose by 34 from a month earlier to 889.

The number of fracking crews currently working in the state have increased and should be able to complete the number of wells drilled by the active rigs, Helms said.

North Dakota today has 56 active drilling rigs, down by two from the end of July. The all-time high was 218 rigs in May 2012.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more