BISMARCK, N.D. (GPN) – North Dakota’s oil production has set another record. The state Department of Mineral Resources reports that May’s average production was 810,000 barrels a day. That’s an increase of 2 percent from the previous month.
But there are some signs things may be slowing down in western North Dakota’s oil country. Drilling permit applications are down, and it’s taking more time to bring newly drilled wells into production.
The mineral resources department says once a well is drilled, it’s taking three months before it’s completed and starts producing oil.
Recent heavy rains have made it tougher for oil equipment to move around on western North Dakota’s roads.
The Department of Mineral Resources says worries about federal tax policy and regulation “continue to make investors nervous,” and there are proposals to get rid of some tax deductions that benefit the oil industry.
There are 186 drilling rigs working in western North Dakota this week. That number hasn’t changed much for several months. The state has 8,915 producing oil wells, which is an all-time high.
In May North Dakota oil wells pumped 25.1 million barrels of crude. The state accounts for about 11 percent of American oil production.