North Dakota oil production dips again in January

Despite the decline, rising oil prices have brightened the recent outlook.

March 11, 2021 at 11:37PM
The sun set over the Bakken Oil Formation, behind an oil well near Williston, N.D., in 2013. (Jim Gehrz, Star Tribune/The Minnesota Star Tribune)

North Dakota's oil production fell 3.7% in January, continuing a slide that began last fall.

The nation's second-largest oil-producing state, North Dakota pumped out 1.15 million barrels per day in January, down from 1.19 million in December, the state reported Thursday.

North Dakota's natural gas output also fell from December to January, by 1.4%.

North Dakota oil production has been volatile since COVID-19 depressed demand and battered oil prices.

The state was producing at least 1.43 million barrels per day during the first quarter of 2020, but that number nose-dived to a seven-year low of 862,349 barrels per day in May.

As prices recovered somewhat, production gradually increased to 1.23 million barrels per day before falling again. Oil prices were essentially too low to drill new wells as output from older ones receded.

However, the scenario for drilling and fracking new wells has improved since January as oil prices have risen.

West Texas Intermediate — the benchmark U.S. crude — was trading around $66 per barrel Thursday, its highest mark since 2018. WTI's average price was about $52 in January.

Mike Hughlett • 612-673-7003

about the writer

about the writer

Mike Hughlett

Reporter

Mike Hughlett covers energy and other topics for the Minnesota Star Tribune, where he has worked since 2010. Before that he was a reporter at newspapers in Chicago, St. Paul, New Orleans and Duluth.

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