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North Dakota Gas Capture Rate Hits 95%, Exceeding State Target - Bakken Wire
Regulatory

North Dakota Gas Capture Rate Hits 95%, Exceeding State Target

State regulators report continued high compliance with flaring rules as oil production and prices rise.

Bakken Wire Staff·🔆Midday Wire·

The North Dakota Industrial Commission's Oil and Gas Division reported the state's gas capture rate for June was 95%, exceeding the current 91% target, according to the latest monthly production report. The state has maintained a capture rate at or above 94% for over a year.

The regulatory framework, established by the NDIC, sets escalating gas capture targets, with a goal of 94% by the end of 2026. Operators failing to meet these targets face curtailment orders limiting their oil production. This policy has directly incentivized significant investments in pipeline gathering infrastructure and processing plant capacity across the Bakken formation.

High commodity prices are providing a favorable backdrop for these infrastructure investments. As of midday Thursday, August 20, WTI crude was trading at $86.46, a gain of $2.07. Brent crude stood at $93.57. The active rig count in the state was 33, according to live Bakken Wire data. Increased drilling activity, coupled with strong prices, puts additional focus on the ability of midstream systems to keep pace and maintain high capture rates.

The consistent high compliance indicates that most major operators have aligned their development plans with the regulatory requirements. The threat of production restrictions has proven an effective tool for the state, shifting flaring from a common practice to a managed exception primarily for emergencies, well testing, or in areas lacking immediate pipeline access.

The next regulatory benchmark will be the 94% capture goal set for the end of this year. Industry analysts suggest that maintaining the current capture level through the winter months will be a key test of system reliability. Further infrastructure projects, particularly those aimed at capturing gas from smaller or more remote well pads, will be critical for operators to remain in compliance as development continues.

Source

North Dakota Industrial Commission Oil and Gas Division monthly production report, Bakken Wire live market data

flaringgas captureregulationnorth dakota industrial commissioninfrastructurecompliance

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