Production of oil in North Dakota has been shooting up. Prices have dropped recently. What does that look like in terms of the value of oil produced?
Multiplying the monthly production by the average sweet prices in the state results in the following estimated value of monthly production in the state:
There is a discount in sweet crude prices in the state compared to West Texas Intermediate due to transportation cost. The prices realized in North Dakota are:
Just think what the value of production would have been without that drop in prices the last two months.
The production part of the value of oil is: