Crude Oil Prices Drop

September brought in record breaking numbers of oil production in North Dakota.

About 67-thousand barrels were produced a day, which is a 5 percent increase. As winter is already here, the oil industry is seeing the effects. The price of sweet crude oil has dropped nearly 20 dollars a barrel since October. With many more months of winter weather expected, we asked if that price could drop even lower.

Lynn Helms; NDIC Dept of Mineral Resources: “I think our answer would be no. I think we’ve seen the bottom. The markets reacted very aggressively to the exemptions that were granted to the Iranian sanctions. Saudi Arabia has already announced that it’s cutting production a half a million barrels a day in December.”

We can also expect to see some changes in flaring regulations on tribal land. The Bureau of Land Management’s new regulations go into affect on November 27th– but they don’t apply to the tribes. The BLM will be working with the state and the tribes to make sure flaring on native land is compliant.

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