Though North Dakota's oil production increased only slightly in September, the state has been benefiting from the same high petroleum prices that have eroded consumers' purchasing power.
Higher prices benefiting North Dakota oil industry
While production is down, the companies are making more because oil prices are at their highest since 2014.
November 16, 2021 at 11:11PM
North Dakota churned out 1.11 million barrels of oil per day in September, up 0.5% over August, according to state data released Tuesday. The state's natural gas production was a bit stronger, up 1.8% over the previous month.
U.S. oil prices have climbed in recent months to around $80 a barrel, hitting highs not seen since 2014. Prices for North Dakota crude were 32% higher in September than in the state's tax revenue forecast — a boost for its treasury.
"U.S crude stocks are really low — they are at the bottom of their five-year average," Lynn Helms, North Dakota's mineral resources director, told reporters Tuesday.
Those low inventories should continue to support high oil prices unless there is an "OPEC surprise" or a significant increase in the cartel's production, Helms said.
On the flip side, "we are not going to see relief in gasoline or diesel prices," he said. "Sorry, consumers."
In Minnesota, gasoline has rocketed to an average price of about $3.17 per gallon, up from $1.95 a year ago, according to GasBuddy, a price-tracking firm. The national average is $3.41; the North Dakota average is $3.19.
Stronger oil prices have increased North Dakota's oil rig count, an indicator of new production. The number of rigs deployed has risen from 27 in September to 29 last month and 34 in mid-November — "the best since the pandemic," Helms said.
The rig count "has really shown some growth," he said.
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