BISMARCK, N.D., June 27 (UPI) -- North Dakota gained two rigs from last week as stability in the crude oil market brought some players back to shale, state data for Monday show.
State data show 30 rigs actively exploring for or producing oil and gas as of Monday, an increase of 7 percent from the previous week. Rig counts serve as a loose barometer for the oil and gas industry and, while easing somewhat, markets are swinging back to the demand side in a sign of returning balance.
Oilfield services company Baker Hughes last week reported a net loss of three rigs, or about 0.7 percent, for North America. Shale-rich Oklahoma was among the biggest losers last week, with a rig count decline of about 7 percent. Of 15 states included among those with major variances, North Dakota, the No. 2 oil producer in the United States, and Texas, the No. 1 producer, posted the largest gain in rig activity last week.
Crude oil prices have been at or near the upper $40 per barrel range for much of June, an indication some level of stability is returning to the market. West Texas Intermediate, the U.S. benchmark for crude oil prices, moved up about 1 percent from June 20 to June 23, but collapsed more than 5 percent Friday after the British vote to leave the European Union.
North Dakota entered June with 25 rigs in active service, which tied a record low set in July 2005. The all-time low point for rigs in North Dakota is zero.
The North Dakota Industrial Commission reported total crude oil production in April, the last full month for which data are available, at 1.04 million barrels per day, about 6.3 percent lower than March and 15 percent below the all-time high of 1.23 million bpd reported in December 2014.
After setting a record in March, natural gas production dropped 5.5 percent as the drop in oil prices meant companies had less capital to invest in exploration and production.
