Released June 26, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Market volatility may be an impediment to pursuing more upstream activity, a North Dakota regulator said after pointing to a decline in the state's crude oil production.
North Dakota is home to the Bakken shale formation, an early darling from the start of the shale boom at the early part of the 2000s. The state ranks third, behind Texas and New Mexico, respectively, in terms of total crude oil production, with the federal government putting March volumes at around 1.16 million barrels per day (BBL/d).
State data, however, put production at closer to 1.17 million BBL/d. Still, while that was 6.5% above the state forecast, it marked a 1.8% decline from April levels. On Tuesday, the state's Department of Mineral Resources released its "Directors Cut," showing upstream activity has been stable for most of the year, with 30 active rigs in the state.
Hess Corporation (New York, New York) and Continental Resources (Oklahoma City, Oklahoma) are among the major players in the Bakken play. The state added that the total number of producing wells had improved since earlier this year, when extreme winter-weather conditions curbed upstream activity.
Nathan Anderson, the director of the state Department of Mineral Resources, said that current market conditions were putting companies on edge, however.
"Volatility is hard for companies to plan for," he said Tuesday.
Anderson said earlier this month that roughly four or five different operators indicated that lower oil prices may be limiting future upstream activity.
The uncertainty stems largely from U.S. President Donald Trump's trade policies, where he's threatened steep tariffs for months, only to reverse course and complicate supply-chain logistics formulated from his original agenda. At Wednesday's levels, crude oil prices may be below the point at which many drillers can make a profit.
Price movements caught the recent attention of the World Bank, which said oil-price volatility is greater than it's been in 50 years. Prior to the two-week conflict between Iran and Israel, the World Bank added that, when adjusted for inflation, global commodity prices were below the five-year average to 2019, the year before the COVID-19 pandemic.
The price for Brent crude oil, the global benchmark, was trading at around $66 per barrel early Wednesday, a day after Iran and Israel agreed to put down their weapons. The prior week, Brent jumped to $77 per barrel.
Onshore crude oil production in the Lower 48 states has more than tripled since 2010, driven by growth in the Permian region. Total Lower 48 crude oil production in 2016, a year after an export ban was lifted, averaged 8.7 million BBL/d.
The U.S. Energy Information Administration (EIA), the statistical arm of the U.S. Energy Department, expects the Permian basin alone to account for 6.5 million BBL/d this year, representing about half of the total U.S. crude oil production. The Bakken represents 8% of total domestic production.
The EIA in its Short-Term Energy Outlook for June said it expected Bakken production to fall marginally by around a hundred thousand barrels per day or so by next year. Total U.S. crude oil production, including both shale and offshore, is expected to average 13.42 million BBL/d this year, but falls to 13.37 million BBL/d by 2026, according to the forecast.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
North Dakota is home to the Bakken shale formation, an early darling from the start of the shale boom at the early part of the 2000s. The state ranks third, behind Texas and New Mexico, respectively, in terms of total crude oil production, with the federal government putting March volumes at around 1.16 million barrels per day (BBL/d).
State data, however, put production at closer to 1.17 million BBL/d. Still, while that was 6.5% above the state forecast, it marked a 1.8% decline from April levels. On Tuesday, the state's Department of Mineral Resources released its "Directors Cut," showing upstream activity has been stable for most of the year, with 30 active rigs in the state.
Hess Corporation (New York, New York) and Continental Resources (Oklahoma City, Oklahoma) are among the major players in the Bakken play. The state added that the total number of producing wells had improved since earlier this year, when extreme winter-weather conditions curbed upstream activity.
Nathan Anderson, the director of the state Department of Mineral Resources, said that current market conditions were putting companies on edge, however.
"Volatility is hard for companies to plan for," he said Tuesday.
Anderson said earlier this month that roughly four or five different operators indicated that lower oil prices may be limiting future upstream activity.
The uncertainty stems largely from U.S. President Donald Trump's trade policies, where he's threatened steep tariffs for months, only to reverse course and complicate supply-chain logistics formulated from his original agenda. At Wednesday's levels, crude oil prices may be below the point at which many drillers can make a profit.
Price movements caught the recent attention of the World Bank, which said oil-price volatility is greater than it's been in 50 years. Prior to the two-week conflict between Iran and Israel, the World Bank added that, when adjusted for inflation, global commodity prices were below the five-year average to 2019, the year before the COVID-19 pandemic.
The price for Brent crude oil, the global benchmark, was trading at around $66 per barrel early Wednesday, a day after Iran and Israel agreed to put down their weapons. The prior week, Brent jumped to $77 per barrel.
Onshore crude oil production in the Lower 48 states has more than tripled since 2010, driven by growth in the Permian region. Total Lower 48 crude oil production in 2016, a year after an export ban was lifted, averaged 8.7 million BBL/d.
The U.S. Energy Information Administration (EIA), the statistical arm of the U.S. Energy Department, expects the Permian basin alone to account for 6.5 million BBL/d this year, representing about half of the total U.S. crude oil production. The Bakken represents 8% of total domestic production.
The EIA in its Short-Term Energy Outlook for June said it expected Bakken production to fall marginally by around a hundred thousand barrels per day or so by next year. Total U.S. crude oil production, including both shale and offshore, is expected to average 13.42 million BBL/d this year, but falls to 13.37 million BBL/d by 2026, according to the forecast.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
