ND Oil Production Slowly Coming Back -- Lynn Helms -- August 28, 2020

 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.