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North Dakota rig count hits new low

State data show oil production off from peak reached in December.

By Daniel J. Graeber

BISMARCK, N.D., April 27 (UPI) -- The number of rigs in active service in North Dakota hit a new historic low Monday at 84, down more than 100 from its recent peak, state data show.

The state government said there are 84 rigs in active service as of Monday. That's down around 10 percent for the month and 59 percent, or 125, less than the historic peak reached in 2012.

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A weak oil market has left energy companies with less capital to spend on drilling operations. In the state's latest monthly market report, Lynn Helms, director of the North Dakota Industrial Commission, said the low price of oil was "by far the biggest driver behind the slow-down" in exploration and production.

More than 90 percent of the state's oil production comes from Bakken shale, one of the reserve areas behind the exponential growth in U.S. oil production. Helms said production was in part curtailed by the lack of infrastructure needed to utilize natural gas associated with some shale deposits in the state.

The state is working to curb flaring, a practice where associated gas is burned off.

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State data show oil production for February, the last full month for which data are available, was around 1.17 million barrels per day. That's down around 1.1 percent from the previous month and 4 percent below the all-time high reached in December.

A federal report on oil production nation-wide predicts the slump will last at least through the summer.

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