Crude oil production in North Dakota, the nation’s third-largest oil-producing state, will be relatively stable in February, state regulators said Monday, with little change expected in drilling activity.
Nathan Anderson, director of the North Dakota Department of Mineral Resources, said operators are likely to keep the rig count, an indicator of future production, close to the current annual operating level of 26.
North Dakota’s oil production fell by 76,000 barrels per day in December to 1.12 million barrels per day, according to the latest data from the department.
Production is estimated to have fallen by 80,000 barrels per day to 110,000 barrels per day for several days in January as winter storms caused operators to halt production, according to the North Dakota Pipeline Authority.
“We’ll see the effects of winter (in the data) in January,” said Justin Kringstad, president of the North Dakota Pipeline Authority, referring to oil production.
Anderson said Friday’s Supreme Court decision to overturn U.S. President Donald Trump’s emergency tariffs is unlikely to increase North Dakota’s oil production in the short term. He added that production growth will depend on capital costs, expenses and oil prices.
President Trump’s tariffs have increased costs for U.S. oil producers and service companies who buy imported equipment and materials. Many have absorbed additional costs. Others tried to pass them on to customers.
(Reporting by Georgina McCartney in Houston and Sidharth Caval in New York; Editing by Franklin Paul)
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