Director's Cut for December, 2010, Released

NDIC/Director's Cut, December 15, 2010

Sept oil: 10,262,814 bbls --> 342,094 bbls/day

Oct oil: 10, 609,662 bbls --> 342,247 bbls/day (all-time high) (see director's notes)

Sept producing wells: 5,197
Oct producing wells: 5,300 (all-time high)

Sept permitting: 167
Oct permitting: 232

Sept sweet crude price: $67.95
Oct sweet crude price: 74.41

Rig count: 166 --> high during this reporting period -- an all-time high

Comments:

• Weather significantly impacted oil production; 75% of oil is trucked from sites; snowstorms stop the trucks; there was a major wind and snowstorm the week of October 25th
• Takeaway capacity remains above production 
• Takeaway by rail is growing; crude trucked to Canada is decreasing
• New pipelines and rail projects: three in the review or engineering stage; two under construction; one just concluded an open season
• The spread between ND sweet crude and NYMEX-WTI remains about 10 percent
• Threat for federal regulation of hydraulic fracturing remains high -- investors need to note
• Natural gas producing is rising and flaring is still well above normal