BISMARCK, N.D. (AP) - North Dakota’s daily oil output fell 15% from March to April, the largest drop ever from one month to the next, state officials said Friday.
Figures show that oil production declined to an average of 1.22 million barrels per day in April, down 200,000 barrels per day from the previous month, the Bismarck Tribune reported. Oil companies idled wells and halted drilling plans after prices collapsed due to the coronavirus.
While official production data lags by several months, state Mineral Resources Director Lynn Helms said he believes North Dakota’s oil output bottomed out in mid-May at less than 1 million barrels per day.
“We think it’s already turned a corner and on the way back up,” he said at his monthly press briefing.
West Texas Intermediate crude, the U.S. oil pricing benchmark, was trading for around $36 per barrel Friday. That’s a substantial increase from earlier this spring when prices plunged as travel and oil usage halted during the pandemic.
Even so, oil prices are not considered high enough to sustain much new drilling. A total of 11 rigs were operating Friday, down from the mid-50s before prices collapsed.
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