From Geoff Simon's top ND energy stories:
Oil Production Slowing Coming Back
Helms: Major Improvement Two Years Out
Frac crews are beginning to return to North Dakota, and well
completion numbers are climbing, but the state's top oil industry
regulator says it will likely be a couple years before the state can
expect any return to production growth mode.
Lynn Helms, director of the Department of Mineral Resources, said
oil prices will have to climb to $55-60 per barrel before the state will
see a return to normal drilling activity with about 55 rigs in
operation. Helms said the state currently has just 11 active rigs, and
they are all drilling on federal leases because of concern that a
potential Joe Biden administration would halt oil and gas drilling on
federal land.
Click here to listen to Helms' comments.
Helms, who spoke to a group of business leaders this week during a
"Return to the West" session organized by the Grand Forks Chamber of
Commerce, said 11 rigs can drill 20-to-25 wells per month. But he said
that is far short of the 70-to-80 new wells needed to sustain production
at 1.2 million barrels/day, which is about where it's believed to be
today. Helms said that means the state will have to work through its
inventory of more than 900 DUCs - drilled but uncompleted wells - to
keep production from declining. Helms said more completions are
occurring with oil prices holding steady around $40/bbl.
Click here to listen to Helms' comments.
Helms said the Energy Information Administration doesn't expect
global oil demand to return to previous levels until sometime in 2022,
which would generate an increase in oil drilling activity.
Click here to see the East Revisits West session on the Grand Forks Chamber Facebook page. Helms' presentation begins at the 27:30 mark. |
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