Oil production in North Dakota drops for first time in almost a year


Production at the Bakken oil fields in North Dakota has dropped for the first time in almost a year, as plummeting oil prices take a toll on the industry.

The Bakken Magazine reports that production slowed to 1.182 million barrels per day in October, a slight decrease of 4,000 barrels per day on the month earlier, making the first decline in production since November 2013.

The decline may continue as well, with KX News reporting that the number of operational rigs in December stands at 183, compared to 193 in September.

The fall in production is caused by dwindling demand for oil, which has caused prices to drop almost 50 per cent since September, as well as new restrictions on flaring placed on oil companies since the beginning of October.

Further restrictions on crude oil conditioning have recently been approved and will come into effect in April, which North Dakota Department of Mineral Resources director Lynn Helms says is likely to leas to a plateauing of production, the Bakken Magazine said.

He told the Star Tribune that drilling for new wells is expected to be down in 2015, while current drilling rigs could decrease in number by about 50 by the middle of next year.

"I honestly did not see them [oil prices] this soft," he told the newspaper. "That is going to have a significant impact."

The low price of oil is expected to keep gas prices low during 2015. Prices at the pump are currently at the lowest level in four years in Minnesota, averaging $2.53 per gallon.

Next Up

Jose Berrios

Report: Twins could be 'aggressive sellers' ahead of trade deadline

José Berríos and Nelson Cruz could be in high demand in the coming weeks.

Screen Shot 2021-06-22 at 7.49.39 PM

Why the Timberwolves haven't lost the D'Angelo Russell trade...yet

The Wolves' offseason got more challenging but not impossible.

Pixabay - water surface

2-year-old dies a week after being pulled from Ham Lake pond

The boy had been at Lions Park with family and friends.

Facebook - Dinosaur Drive-Thru image

50 animatronic dinosaurs to take over Mall of America parking lot

Dinosaur Drive-Thru opens June 24 and runs through July 11.

new ulm police department squad car

Police: Man who shot himself during traffic stop has died

He died in a Twin Cities hospital early Wednesday.

Flickr - Voyagerous - Christine Warner

MN's lone National Park is also one of the least popular in the country

Travelers are clearly overlooking what northern Minnesota has to offer.

Elton John

Elton John confirms rescheduled St. Paul dates for farewell tour

"I'm going to go out in the biggest possible way, performing at my very best," John said.

Alex, Curt and Steven Boesl

3 Minnesotans honored with Carnegie Medals for heroic acts

The award is the highest honor for civilian heroism in North America.

police tape, crime scene

Police discover woman dead at Twin Cities home following welfare check

Officers also found "multiple" children on the scene, all of them unhurt.

bear cub

Bear clambers into northern MN home through kitchen window

A black bear in the house isn't something you see every day.

Ambulance hospital emergency

5 teens hurt in rollover crash near Hutchinson

The crash happened before 6:30 a.m. Wednesday.

Pixabay - Crappie fish

MN DNR: Please call us if you find a large group of dead fish

The agency says hot weather might be contributing to recent die-offs.