On Wednesday Lynn Helms, the Director of the North Dakota Department of Mineral Resources, announced that North Dakota has produced 1 billion barrels of oil in total. His monthly report also showed that the state produced 35.1 million barrels in the month of August.
According to an article from thehill.com, the EIA announced on Wednesday that it predicts North Dakota will increase production in November. The United States’ top seven oil producing states are also projected to increase production. The EIA estimates that the country will be producing 5.14 million barrels per day (bpd) in November.
Reuters reported yesterday that North Dakota production did not meet the projected estimates due to a flaring mandate that requires companies to capture a certain percentage of natural gas on site. Despite the mandate, flaring levels rose in August to 27 percent. If the October data reaches over 26 percent production will be reduced in North Dakota.
The mandate requires energy companies to flare off no more than 74 percent of the natural gas they produce. Operation costs also rose 36 percent this year at an estimated $15,000 per well per month.
Regarding falling oil prices’ effect on the ND oil boom Reuters asserted, “Trying to assuage concerns on Wall Street that falling oil prices could imperil the state’s Bakken oil boom, Helms said oil extraction in McKenzie County, the state’s largest oil-producing county, wouldn’t become economically unfeasible until $28 per barrel, far below current oil prices.”