North Dakota Bakken Update 2021
As of February 19, 2021
| Platts American Gulf Coast Select (AGS) | $ |
| North Dakota – Light Sweet | $41.00 |
| West Texas Intermediate | $60.06 |
| Brent Crude | $63.77 |
| Natural Gas | $3.11 |
ND Active Rig Count: 15 – As of February 19, 2021
North Dakota Bakken Update 2020
North Dakota Department of Mineral Resources oil and gas production figures for September 2020.
1,221,667 barrels/day — September 2020 oil production
$31.59 — Average price of a barrel of North Dakota oil in September 2020
84,409,981 MCF or 2,813,666 MCF/day — September 2020 gas production
93% — gas capture percentage
88% — state mandated gas capture goal for September.
15,377 — Number of producing wells in September 2020
51 — Number of drilling permits issued in September 2020
43 — Number of completed wells in September 2020, up from 19 in August
11 — Average drilling rig count in September 2020
80% — Decrease in drilling rig activity between January and September 2020
Bakken Update – Strategic Petroleum Reserve
The U.S. Department of Energy is negotiating with U.S. oil companies to store up to 23 million barrels of excess petroleum in the U.S. Strategic Petroleum Reserve.
“When producing oil you have two options – you either use it or you store it. With the impacts caused by the COVID-19 pandemic, we are seeing an enormous decrease in demand as our country works to contain the virus,”
U.S. Secretary of Energy Dan Brouillette.
Bakken Update – Whiting Petroleum Bankruptcy Filing
April 2, 2020
Whiting Petroleum Corp., a major oil producer in North Dakota, filed a Chapter 11 bankruptcy petition in Texas – which will allow it to reorganize its debt obligations, and adjust its equity interests. Whiting Chairman Bradley Holly said that, “following the restructuring process, we look forward to having substantially less debt and a significantly improved outlook for our Company and its stakeholders.”
North Dakota Bakken Update 2020 – Continental Oil
March 20, 2020
The Williston Herald’s Renée Jean reported on March 20, 2020, that Continental Oil will reduce its 2020 capital expenditures by 55 percent, and the number of rigs it is operating in the North Dakota Bakken to three, from the nine rigs it is currently operating.
Continental forecasts that its reduction in capital expenditures will reduce its crude oil production by less than 5 percent. Continental Oil has operations in both North Dakota, and in Oklahoma.
Bakken Update – Whiting Petroleum
March 20, 2020
The Williston Herald’s Renée Jean reported on March 20, 2020, that Whiting Petroleum will cut its capital expenditures in 2020 by 30 percent. Whiting Petroleum is an independent oil and gas company operating in the North Dakota Bakken and in northeast Colorado
Bakken Update – Hess Corporation
March 19, 2020
The Williston Herald’s Renée Jean reported on March 19, 2020, that Hess Corporation will drastically reduce its North Dakota Bakken drilling operations – from six rigs to one – in response to market conditions, resulting in a 5,000 barrel per day drop in production.
Hess is now expected to delay almost all of its discretionary exploration activities – other than its operations in Guyana.
Nevertheless, in 2020, Hess still expects to produce 175,000 barrels of oil equivalent per day in North Dakota, and will remain one of the Bakken’s top five oil producers.
Bakken Update – Production Forecast
March 18, 2020
North Dakota’s oil production declined 3 percent in January from December’s total, to 1.43 million barrels per day – the third consecutive monthly decline.
Lynn Helms – the Director of North Dakota’s Department of Mineral Resources – expects continued production declines in 2020, but not below one million barrels per day.
Bakken Update – Liberty Midstream
March 13, 2020
The Williston Herald’s Renée Jean reported on March 13, 2020, that Liberty Midstream – an independent company offering hydraulic fracturing services – plans significant cuts in its 2020 capital expenditures in the North Dakota Bakken. joining ONEOK and Marathon Oil, which previously announced similar plans.
However, President Donald Trump announced on Friday that the United States would buy large quantities of oil for its Strategic Petroleum Reserves due to the coronavirus national emergency: “We’re going to fill it up to the top.”
Bakken Update – Oil Dumping Claim
March 11, 2020
The Williston Herald’s Renée Jean reported on March 11, 2020, that an anti-dumping claim against Saudi Arabia and Russia for oil price manipulation has been requested by the Domestic Energy Producers Alliance – an organization of 34 groups representing more than 10,000 individuals and companies performing domestic land-based and natural gas exploration and production.
The petition – which has been filed with the United States Department of Commerce and the United States International Trade Commission.- seeks an anti-dumping investigation into crude oil price manipulation by Saudi Arabia, Russia, and certain other countries.
OPEC has previously tried to reduce the volume of US oil production by artificially reducing prices, and producing more oil than is currently demanded. Crude oil prices fell 30 percent on Monday after Saudi Arabia declared that it would lower its prices $6 to $7 per barrel with respect to oil sold to Europe and Asia, and put more than 2 million more barrels of oil on the market.
Bakken Update – Marathon Oil
March 10, 2020
The Williston Herald’s Renée Jean reported on March 10, 2020, that Marathon Oil will decrease capital expenditures by $500 million in 2020 – primarily in areas other than in the North Dakota Bakken range – such as in Oklahoma.
Bakken Update – Saudi Price War
March 8, 2020
World oil prices dropped significantly overnight as Saudi Arabia and Russia failed to agree on production cuts in order to support the price of oil.
Brent crude fell $11.44, or 25.3%, to $33.83 per barrel in London.
The U.S. crude oil price fell $10.77, or 26.1%, to $30.49.
Such losses were in addition to a 10.1% drop in U.S. oil prices on the preceding Friday.
U.S. Natural Gas Consumption – 2019
According to a report issued on March 3, 2020, by the U.S. Energy Information Administration (EIA), U.S. natural gas consumption increased by 3% in 2019 to a record of 85.0 billion cubic feet per day, with additional natural gas-fired electric capacity, and lower natural gas prices, causing the increase in domestic natural gas consumption.
Bakken Update – Continental Oil
The Williston Herald’s Renée Jean reported on March 3, 2020, that Continental Oil will increase capital expenditures in 2020 in the North Dakota Bakken range.
Continental Oil – 2019 Production in the North Dakota Bakken
Continental’s oil production reportedly increased 18 percent in 2019, with crude oil production in the Bakken increasing 14 percent — even though 60 percent of its 2019 capital expenditures were spent in Oklahoma.
Continental Oil – 2020 Plans in the North Dakota Bakken
Continental Oil plans to spend $2.65 billion on capital expenses in 2020 — with $2.2 billion invested in drilling and completing wells. 60% of its capital investment is to be made in the North Dakota Bakken, with 9 rigs operating, and 245 net completed wells. New oil and gas infrastructure in the Bakken range was one of the factors which led to Continental to increase capital expenditures in North Dakota.
Continental’s founder and Executive Director Harold Hamm was quoted as saying that the Bakken’s oil reserve is one of the best in the country, and Continental Oil is reportedly able to produce positive cash flow even with oil prices at $50 per barrel.
North Dakota Bakken Update 2020 – Prediction
The Williston Herald’s Renée Jean opined on February 28, 2020, that oil and gas producers in the North Dakota Bakken range will have to be creative in order to keep production increasing.
Top producing oil and gas companies in 2020 are expected to include Continental, Hess, Marathon, and XTO — with Continental planning to make the largest investment in the region.
In contrast, smaller companies — such as Whiting and Oasis Petroleum — may be challenged in the current low price environment. Oasis is reportedly shopping its Wild Basin gas production plant in McKenzie County.
While technology has helped to lower the break-even oil price requirement in the North Dakota Bakken, future mergers and acquisitions are likely in 2020 in order to achieve a necessary scale.
Some experts estimate that 7 to 10 years of prime production remains in the North Dakota Bakken range, with an expected peak within five years, followed by level production for about 15 years.
North Dakota Bakken Update 2020
Gary C. Dahle has represented clients from the countries of Canada, Norway, and Sweden, and the states of Alabama, Arizona, California, Colorado, Connecticut, Florida, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Tennessee, Texas, Virginia, Washington, and Wisconsin in the United States, with respect to North Dakota mineral rights and probate issues in various North Dakota Counties.
Attorneys not licensed in North Dakota are invited to refer possible North Dakota joint tenancy title ownership issues to Minnesota and North Dakota attorney Gary C. Dahle, at 763-780-8390, or gary@dahlelaw.com.
Topics of Interest – North Dakota Ancillary Probate
Topics of Interest – North Dakota Intestate Succession.
Topics of Interest – North Dakota Mineral Rights.
Topics of Interest – North Dakota Transfer on Death Deeds
Topics of Interest – North Dakota Affidavits of Heirship
Topics of Interest – North Dakota Informal Probate
Related issues – see Minnesota Probate.
Copyright 2020 – All Rights Reserved
Gary C. Dahle – Attorney at Law
2704 Mounds View Blvd., Mounds View, MN 55112
Phone: 763-780-8390 Fax: 763-780-1735 gary@dahlelaw.com
http://www.legis.nd.gov/general-information/north-dakota-century-code
Legal Disclaimer
Information provided herein is only for general informational and educational purposes. North Dakota joint tenancy issues can involve complex legal issues. If you have a specific legal problem about which you are seeking advice, consult with a North Dakota attorney of your choice.
Gary C. Dahle, Attorney at Law, is licensed to practice law only in the State of North Dakota, and in the State of Minnesota, in the United States of America. Therefore, only those persons interested in matters governed by the laws of the State of North Dakota and Minnesota should consult with, or provide information to, Gary C. Dahle, Attorney at Law, or take note of information provided herein.
Accessing the web sites of Gary C. Dahle, Attorney at Law – http://www.dahlelaw.com, https://www.NorthDakotaTransferonDeathDeeds.com, or https://www.dahlelawnorthdakota.com – may be held to be requests for information.
However, the mere act of either providing information to Gary C. Dahle, Attorney at Law, or taking note of information provided on https//www.dahlelaw.com, https://www.NorthDakotaTransferonDeathDeeds.com, or https//www.dahlelawnorthdakota.com – does not constitute legal advice, or establish an attorney/client relationship.
Nothing herein will be deemed to be the practice of law or the provision of legal advice. Clients are accepted by Gary C. Dahle, Attorney at Law, only after preliminary personal communications with him, and subject to mutual agreement on terms of representation.
If you are not a current client of Gary C. Dahle, Attorney at Law, please do not use the e-mail links or forms to communicate confidential information which you wish to be protected by the attorney-client privilege.
Please use caution in communicating over the Internet. The Internet is not a secure environment and confidential information sent by e-mail may be at risk.
Gary C. Dahle, Attorney at Law, provides the https://www.dahlelaw.com, https://www.NorthDakotaTransferonDeathDeeds.com, and https://www.dahlelawnorthdakota.com web sites and their content on an “as is” basis, and makes no representations or warranties concerning site content or function, including but not limited to any warranty of accuracy, or completeness.