North Dakota's oil production rose nicely again in November, and, with petroleum prices rising, monthly output should set records in 2018, the state's top oil and gas official said Tuesday.
"We're pretty optimistic," said Lynn Helms, director of North Dakota's Department of Mineral Resources. "Everything points to more (oil) rigs, more frack crews and more activity in North Dakota."
North Dakota, the nation's second largest oil-producing state, pumped out 1.19 million barrels per day in November, up 1 percent from October and the highest monthly output since July 2015. The state's all-time production high was 1.23 million barrels per day in December 2014.
"We are closing in on that 1.2 million (barrel per day) number, which is a pretty important number," Helms said. "Sometime in the first half of this year, we should break the record."
November was also a good month for North Dakota's natural gas production. It rose 1.4 percent from October, hitting a record high of 2.1 million MCF per day. (An MCF is a thousand cubic feet of gas.)
The U.S. oil industry is expected to post a record year in 2018. Crude oil production is forecast to average 10.3 million barrels per day, surpassing the previous record of 9.6 million barrels per day set in 1970, according to a report last week from the U.S. Energy Information Administration (EIA).
Oil prices are currently near a three-year high, with the U.S. benchmark crude price of West Texas Intermediate (WTI) closing just short of $64 per barrel Tuesday.
Prices have risen due to a relatively hot global economy — which has increased oil demand — coupled with supply curtailments by OPEC and Russia. The oil-producing countries agreed in November to extend production limits originally set in November 2016. The supply caps, aimed at reducing global oil inventories, are expected to run through 2018.