Coronavirus
Coronavirus Information Center
Severe weather outlook South Dakota

Daily oil production falls to record low in latest report

Local News

North Dakota’s daily oil production fell below a million barrels in May, for the first time in three years.

It’s the lowest number in seven years, according to the latest report from the state Oil and Gas Division released today.

Department of Mineral Resources Director Lynn Helms says the drop was not surprising, but the magnitude of it was.

Rig counts have seen an 82 percent decrease since January. In April, there were 35, and as of today, there are 11.

Helms says between the pandemic, the recent OPEC agreement, new NEPA rules and the DAPL shutdown, everything was shaken up this year.

The U.S. Energy Information Administration, or EIA, predicts oil prices will be restored in a year. Helms says, “That’s a little optimistic”, adding, he believes the industry will see a permanent loss of demand.

“We have a plan. We call it the Legacy Fund. It was built on the idea that, ultimately, either world demand for crude oil would peak or North Dakota production would peak, and then begin to decline. The Legacy Fund isn’t large enough yet to really deal with that,” he shared when asked how the state is preparing.

Helms says there will be a big discussion of shifting spending priorities during the next upcoming legislative session to be able to fund state government going forward.

He also projects the state will be back up above a million barrels for July.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Latest Stories

More Local News

Recent Videos

Scouts @ Food Pantry

Special Education Grant

Remdesivir at Trinity

Crowded Jails

Dr. Wynne on School Spread

ERG Money

Apartment Fire Safety

Warehouse Found

Brick Oven Bakery Helps Fire Victim

Wednesday. August 12th, 2020 - KX Storm Team Evening Forecast - Dave Holder

Census Safety

Bismarck Guidelines

KX Storm Team Full Evening Forecast 8/12

Construction on 43rd

Push to Remove Measure 3

Vaping and COVID-19

YHF

Mandan Soccer

TMCS postpones Fall sports

Body Identified

More Video

KX News Trending Stories

COVID Symptoms infographic

North Dakota Resources

North Dakota Resources

More Resources

Don't Miss