Oil output in North Dakota is set to rise in August as operators bring back online some production they had curtailed after oil prices sank earlier in the year, the state regulator said on Friday.
Oil prices fell to multi-year lows last quarter after U.S. President Donald Trump unveiled an extensive list of trade tariffs in April, driving operators across the U.S. to shed rigs.
“In May and June, certain operators had, because of the low price environment, curtailed some production in the state. But the Department of Mineral Resources believes that curtailed production is coming back online during the months of July and August,” said Nathan Anderson, director of the North Dakota Department Of Mineral Resources.
U.S. crude futures have recovered some of those losses incurred last quarter, bouncing back to around $63.40 a barrel during Friday’s session, having hit around $57 on May 5, their lowest since February 2021.
“Given frac crews, completion numbers, summertime, I do expect that July will see an improved oil production level, and August has thus far been relatively consistent with those July numbers. So I do expect a couple of good months coming,” said Justin Kringstad, director of North Dakota Pipeline Authority.
There are currently 29 active rigs in the state of North Dakota, steady compared with July, the state’s regulator said. Meanwhile the frac crew count is currently at 14, up from 13 in July.
North Dakota is the third largest oil producing state. Oil production in North Dakota rose 39,000 barrels per day to 1.15 million bpd in June, the latest complete monthly data from the state Industrial Commission showed.
(Reporting by Georgina McCartney in Houston; Editing by Susan Fenton)