North Dakota crude production drops 1.7% in August, total drop of 3.3% since December ’15 high
Crude oil production averaged 1,186,444 BOPD in August, which was down only 20,552 barrels a day from July. The high was 1,227,529 in December, which makes August the eighth highest production month on record.
The last 11 months look something like a plateau.
Not the collapse that OPEC had apparently been expecting. It is also not a mirror image of the runup in production, which is what Peak Oil doctrine dictates should have happened.
Look at the backlog of wells waiting to be completed, or the fracklog:
The buildup of over 300 wells since last fall represents production that is just waiting for an improvement in price. A modest jump in crude will open up a lot of those wells. At the recent completion rates of 120 to 150 wells a month, the fracklog represents somewhere between 6 and 8 months of new wells.