With rig counts headed to single digits and demand moribund, North Dakota is considering intervening in Bakken Shale operations by setting prorationing on oil production.
Articles from Bakken Shale
The collapse in drilling activity deepened in April, with permitting for oil and natural gas wells at a record low, but there are glimmers of gains so far this month, according to an analysis by Evercore ISI.
The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) on Monday withdrew a proposal to limit vapor pressures when crude oil is transported by rail, which could be a positive for Bakken Shale oil to be moved west by rail in an ongoing dispute with Washington state.
Hess Corp. said it will further scale back capital spending in response to an oil-price collapse worsened by the coronavirus pandemic.
Continental Resources Inc., the biggest operator in the Bakken Shale, said it dramatically cut oil production and intends to reduce its rig count after posting a steep first quarter loss amid the cratering in oil prices.
Houston-based Marathon Oil Corp., which works in the Bakken Shale, Oklahoma and the Permian Basin, has paused all completion activities and is shutting in some production as it joins the legions of operators at war with low demand and prices.
North Dakota’s Department of Mineral Resources (DMR) has established the Bakken Restart Task force to help the state’s oil and gas industry and supporting sectors recover from the collapse in oil demand and prices caused by the Covid-19 pandemic.
Washington regulators are moving ahead to restrict oil rail offloading that has led North Dakota officials to call for federal assistance to move Bakken Shale crude to the West Coast.
Having already announced gross voluntary oil production cuts of 225,000 b/d for May because of weak prices, ConocoPhillips has now updated that amount to 265,000 b/d, management said Thursday.
Armed with a report from the U.S. Department of Energy (DOE), North Dakota officials on Tuesday urged federal officials to overturn Washington state’s ban that prevents Bakken Shale crude from being shipped by rail into the state.