North Dakota Rig Count Steady at 26 Amid High Oil Prices
Bakken operators maintain activity level as WTI nears $97, suggesting stable near-term production outlook.
North Dakota's active rig count held steady at 26 on Monday, according to Bakken Wire's live data. This level of drilling activity persists alongside robust crude oil prices, with West Texas Intermediate (WTI) trading at $96.60 per barrel.
The current rig count provides a key indicator for future production trends in the Bakken formation. Historically, the number of active drilling rigs in North Dakota has been a leading metric for oil output, with changes in the rig count typically influencing production volumes several months later. A stable count suggests operators are maintaining a consistent pace of new well development.
The high price environment supports this sustained activity. The Brent crude benchmark was at $100.21, while the Bakken crude differential—the discount for Bakken crude versus WTI—was -$3.42. This pricing structure provides economic incentive for continued drilling and completion work in the state's primary oil-producing region.
Natural gas prices, another factor influencing operator economics, were at $3.02 per MMBtu.
Given the direct correlation between rig activity and subsequent production, the current count of 26 rigs points to a stable near-term outlook for North Dakota's oil output. Without a significant increase or decrease in the drilling fleet, production levels are likely to follow a similar flat to slightly moderating trend in the coming quarters, barring changes in completion rates or well productivity.
The Bakken formation has seen rig counts fluctuate significantly over past cycles, often closely tracking movements in crude oil prices. The current combination of high prices and a steady, moderate rig count reflects a period of disciplined capital allocation by operators, focusing on core acreage and efficient operations rather than aggressive expansion.
Source
Bakken Wire Live Data
