North Dakota oil and gas production rebounded in January

North Dakota's oil production rose 11 % in January, rebounding from a dismal December.

"January was a very good month," Lynn Helms, North Dakota's mineral resources director, said at a news conference Wednesday. "We all know what happened in December."

North Dakota's oil industry — the nation's third-largest — was stymied in December by a severe cold snap followed by a large storm. Output was only 957,864 barrels per day, one of the worst months in recent years.

In January, North Dakota churned out 1.06 million barrels of oil per day. The state's natural gas production in January also bounced back from December, increasing 7 %.

February production also looks strong, but March oil and gas output may again be hurt by bad weather, Helms said. For 2023 overall, "we are seeing some of our large operators looking at production growth."

The U.S. last year regained most of the oil production it lost during the economic havoc wrought by COVID-19. But North Dakota's oil recovery has been at a considerably slower pace. Production has not come near the record 1.52 million barrels per day seen in November 2019.

The state's drill rig count — an indicator of future production — now stands at 45, down one rig from February and January. North Dakota had 17,269 producing oil wells in January.

Oil prices have been generally falling since October, and West Texas Intermediate — the benchmark U.S. crude price — was trading at around $67 per barrel Wednesday, its lowest mark since November 2021.

North Dakota oil prices were below the state's tax revenue forecasts in January; however, production was higher than forecast.