North Dakota Rig Count Holds at 29 as Oil Prices Support Bakken Activity
WTI crude trading above $83 provides a stable price environment for operators in the basin, though production growth remains muted.
North Dakota's active drilling rig count held steady at 29 on Tuesday, as firm oil prices provided a supportive backdrop for Bakken Shale operators. West Texas Intermediate crude was trading at $83.06 per barrel, a gain of $0.93, while the international Brent benchmark stood at $88.59.
The current rig level reflects a sustained period of disciplined capital investment by producers in the Williston Basin. Historically, the rig count serves as a leading indicator for future oil production, with a typical six-to-nine month lag between drilling activity and new wells contributing to output. The count has remained range-bound between the high 20s and low 30s for several months.
The Bakken crude differential—the discount at which Bakken oil trades versus WTI at the Cushing, Oklahoma hub—was reported at -$3.42 per barrel. This narrower differential improves netbacks for producers marketing their crude.
Analysts note that at current price levels, many Bakken wells remain economically viable, encouraging operators to maintain, but not aggressively expand, drilling programs. The focus for many companies continues to be on capital discipline, shareholder returns, and optimizing production from existing wells rather than pursuing volume growth at all costs.
Natural gas prices, a secondary revenue stream for oil-directed drilling in the basin, were quoted at $2.75 per MMBtu on Tuesday.
The stable rig count suggests that North Dakota's oil production, which has been plateaued near 1.1 million barrels per day in recent months, is unlikely to see a significant surge in the near term. Operators are likely to keep production relatively flat, with the active rigs working to offset natural decline rates from the existing well inventory.
The current environment allows for steady operation and modest free cash flow generation but does not yet provide the price signal typically required to trigger a substantial uptick in drilling activity across the Bakken formation.
Source
Bakken Wire Live Data, August 11, xx:xx CT
