North Dakota's oil output up 12% in Aug as more wells resume output
|10/16/2020 | 05:39pm|
Oct 16 (Reuters) - North Dakota’s oil production rose about 12% to 1.16 million barrels per day (bpd) in August as more wells and drilling rigs resumed production after a drop earlier this year, the state's regulator said on Friday.
Producers in the state shut about 5,000 wells pumping 300,000 bpd as prices tumbled into negative territory in April.
Output in the United States, while still well below the peak 13 million bpd reached in January, has been gradually rising with U.S. crude futures holding around $40 a barrel over the past several months.
The additional U.S. oil production is adding to uncertainty over what the Organization of the Petroleum Exporting Countries will do next month. OPEC and allies are scheduled to meet Nov. 30 to review a plan to ease curbs on production, potentially adding 2 million bpd next year.
North Dakota's crude oil output rose to 1.16 million bpd from 1.04 million bpd in July, state regulator North Dakota Department of Mineral Resources reported. Peak production in the state was 1.4 million bpd in 2019.
Officials said 16 drilling rigs are active in the state, up from 10 in July. Crude oil produced in the state was selling for $31.75 a barrel, compared with $9.16 per barrel in April when the COVID-19 pandemic and a market glut knocked prices lower.
(Reporting by Gary McWilliams Editing by Marguerita Choy)