North Dakota's oil industry posted another tepid month in November with production falling 2.1 %.
The state's minerals resources director, Lynn Helms, called it a "moderate" decline, likely caused by a patch of bad weather in November.
North Dakota's oil output in October was flat, while Helms reiterated Tuesday that severe winter storms greatly slashed December's production. "It took well into January to really recover," he told reporters in a conference call.
The number of drilling rigs in North Dakota — a harbinger of future production — currently stands at 43, down from 44 in December, but up from 40 in November. Permits for new wells rose sharply in the fall, climbing from 65 in September to 86 in November.
"There was very strong activity in drilling permits and that is a real positive indicator for next year," Helms said.
The nation's third-largest oil-producing state, North Dakota pumped 1.1 million barrels of oil per day in November, down from 1.12 million in October, data released Tuesday shows. The state's natural gas production fell 4% during that period.
The U.S. last year regained most of the oil production it lost during the economic havoc wrought by COVID. But North Dakota's oil recovery has been at a considerably slower pace.
Still, with high petroleum prices and even moderate production gains in 2022, North Dakota's oil and gas tax revenues have been comfortably above state forecasts.
