COVID-19 spike, uncertain political future dampen ND oil production outlook
BISMARCK, N.D. (KFYR) - You may have noticed falling gas prices at the pump the last few weeks.
North Dakota oil industry leaders say that’s because of falling crude prices, which could have long-term effects on the state’s oil production.
As coronavirus cases spike again around the country and world, investors aren’t sure how people will will react.
That, combined with our country’s unknown political future, may have some scared about the future.
Oil industry leaders say that uncertainty is pushing down crude prices.
While Bakken oil production numbers are holding steady, there are some ominous signs.
A year ago, the state had 57 active drilling rigs. As of Monday, there are 14.
“Companies will try to maintain their production but it’s going to be difficult as we move forward without the drilling rigs. So, it’s a pretty big challenge. Right now, our production is doing fine. Ultimately, that lack of new rigs, that lack of new wells, that will create a fall in North Dakota’s oil production,” said Ron Ness, ND Petroleum Council.
Ness says demand isn’t an issue right now, despite some countries putting strict COVID lockdowns back into place.
He says uncertainty alone is enough to keep prices low.
Copyright 2020 KFYR. All rights reserved.