Tuesday, November 15, 2016

North Dakota Legislature, New Governor Need To Take A Look -- November 15, 2016

From SeekingAlpha today, data from EIA:
  • West Texas' Permian Basin now holds nearly as many active oil rigs as the rest of the U.S. combined, including those offshore;
  • the rig count has been rising since this summer, but the Permian began seeing rigs increase earlier than the U.S. as a whole, and is adding rigs more quickly; 
  • of the ~450 total U.S. rigs, the Permian now accounts for ~220; and,
  • Permian production has reached 2M bbl/day of oil, while south Texas’ Eagle Ford and North Dakota’s Bakken have each fallen to below 1M bbl/day
A thought:
North Dakota is known among the oil and gas companies that it is a high-tax state compared to Texas; and North Dakota is becoming known as the state that can't get a pipeline built. With the enthusiasm for the Permian, and the current crude oil glut, the ND legislature and the new governor should probably address these two issues. 

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