Oil production in North Dakota shows usual drop in January 2020. Price takes a nose dive.

Workover rig in place. Flaring of gas visible. Lots and lots of room for more wells. Photo by James Ulvog.

Uh oh.

Production in North Dakota dropped in January, which is typical. Look at the production chart and you can pick out each of the winters because production usually falls off.

However, the price has fallen through the floor, courtesy of Saudi Arabia and Russia kicking off a price war and declaring they will flood the market with increased production.

Crude oil prices dropped in February and have continued in free fall during March. Prices on 3/17/20 per the Director’s Cut report are all the way down to $18.50 for North Dakota light sweet and $23.60 for the North Dakota market estimate.

Production in January 2020 dropped to 1,429,515 bopd (preliminary), off 47,262 bopd from January (revised) and down 89,515 bopd from December’s record high.

Price data:

 

Production data since 2008: 

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