Schweigert, Klemin & McBride, P.C.

May was a record month for North Dakota oil and gas

Oil and gas production in North Dakota continues to rise throughout 2018. As per usual, production increased as the weather warmed up, but the rates are not just consistent with recent years. May marked the state’s most productive oil and gas month in years.

The state’s production levels hit record highs for both oil and gas in May. The per-day production rate increased by more than 17,000 barrels since the previous record in December 2014.

According to data from the North Dakota Oil and Gas Division, the state’s oil industry produced 1,244,629 barrels of oil per day at its new record rate. That’s an increase of more than 17,000 barrels per day compared to the former 2014 record. The May rate was also a 19,000-barrel increase over April of this year.

The increased production brings padded profit margins for producers, particularly in the Bakken and Three Forks oil fields. Those regions account for anywhere from 96-99 percent of the state's oil production at this time.

More growth to come?

In addition to recent growth, industry experts predict 2018 as a whole could break previous production records. Despite a lower number of operating rigs, technological improvements facilitate higher production with fewer locations according to the Oil and Gas Division.

Production data for the full second quarter becomes available later in August. Operators are planning to add up to five more rigs in the duration of the year which may contribute to higher production rates and potentially to break May’s record.

Increased production brings increased pressure

The increase in production is absolutely a positive for the state’s economy. While that is a highlight of the new production rates, it's not without added risk. The demand on the industry brings strains which can bring financial and physical implications for businesses and workers.

The local area is still working to keep up with the ebbs and flows of the oil industry. The pressure to deliver and sustain the market logically brings with it added pressure to workers and companies alike. It’s of the highest importance to know that accidents can happen and preparation is necessary for those directly involved during an oil production boom.

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Bismarck, ND 58501

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