N.Dakota Oil Continues Exponential Growth and Is on Pace to Become the No. 2 Oil State in January
In just a little more than two years, oil production in North Dakota has doubled from 232,000 barrels per day in August 2009 to a new record-high 464,000 barrels per day in September of this year, according to data released yesterday by the state's Department of Mineral Resources (see chart above). September's record-setting oil production was 4.5% above the previous month and 35% above the year-ago level. The number of wells producing oil in the Peace Garden State also reached a new record level in September at 5,818, and the daily oil production of 80 barrels per well also set a new record.
Bottom Line: At the current rate of ongoing record-setting increases in its oil production, North Dakota is on pace to surpass both California (540,000 barrels per day) and Alaska (550,000 barrels per day) by next January to become the No. 2 oil-producing state in the country, behind only Texas (1,410,000 barrels per day).
15 Comments:
DRILL--DRILL--DRILL. Dave
O'Bama's re-election is assured by adopting the Drill-Baby-Dril slogan & doing something about it. That approach will more than fund the green jobs by letting the market pick winners!
I doubt he will adopt that approach.
Great news.
Next: The coastal waters off of Florida, banned "permanently" from drilling by the Bush Bros, but maybe something can be done.
And now the burning question...
With so much new supply being provided to the market, why is oil still priced at almost $100/bll?
$100 oil was achieved from fear over "peak oil." Why are we still paying these prices?
Oil production is growing fast and so are exports of U.S. refined oil products. Latin America and Mexico are the sources of increased demand. This may be a reason for oil prices being strong in the U.S.
Louisiana Light Sweet (delivered at St. James, La) is selling for about $114.00/bbl, today, and the closer you get to China the more expensive oil gets.
Tapis Crude (Singapore) is selling for $124.00 per barrel
World Global production in 2011 is not only below 2010, it's below 2005.
An addition of 100,000 bbl/day in a Global Market of 86 Million bbl/day of Total Liquids is less than a rounding error.
The U.S. used 5.6% Less Gasoline in the last 4 weeks than the corresponding period last year
The Price of Oil has Doubled since 2005, but Global Production is Down.
What was that Econ 101 stuff about Higher Prices bring More Supply?
Maybe, it doesn't, necessarily, apply to "Declining Finite" Resources?
Note:
When I say the production of Oil is declining, I'm referring to "Oil" (Crude + Condensate," not "Liquids" (which includes Ethanol, Biodiesel, Refinery Gain, Natural Gas Liquids, Cow Pee, etc.)
Rufus II: "What was that Econ 101 stuff about Higher Prices bring More Supply?"
When I took Econ 101 many years ago, we were taught that higher profits bring more supply. Higher prices will bring higher supply if all other factors remain constant.
If production costs have risen as fast as prices - if it costs more to drill in 6,000 feet of water than it did to drill in 300 feet of water - then higher prices just might not bring higher supply.
Good Point, JB.
"Next: The coastal waters off of Florida, banned "permanently" from drilling by the Bush Bros, but maybe something can be done"...
Is that you Joe Biden?
Benji,
"The coastal waters off of Florida, banned "permanently" from drilling by the Bush Bros, but maybe something can be done."
You repeat this "permanent" nonsense over and over. Regardless, next up should be the Keystone Pipeline, a shovel ready project if there ever was one. Your boyfriend is currently bowing to the environmental nut jobs, aka "his base."
Could the new found bonanza in N. Dakota (and other oil/gas shale sites) have a potentially problematic continuation?
U.S. Government Confirms Link Between Earthquakes and Hydraulic Fracturing
This of course could just be another polar bear scam too...
Juandos
Do you mean that hydraulic fracturing allows seismic stresses to be relived in small pieces rather than building up to become a huge earthquake? File that one under the "features" part of hydraulic fracturing.
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