Development of the promising Bakken Shale formation is reshuffling the deck for US states with bragging rights on oil production, boosting North Dakota now into the top tier of oilpatch jurisdictions.
Thanks to the Bakken, North Dakota, has drilled past New Mexico, Wyoming and the venerable Oklahoma to claim fifth place among US oil producing states with average daily output of 202,000 b/d, according to EIA data at the end of last year, before activity slowed for the latest recession.
Excluding offshore output, Louisiana may well be in reach with its production of 209,000 b/d. But the Bakken will have to prove extremely prolific for North Dakota to challenge California's 587,000 b/d, Alaska's 702,000 b/d or Texas' 1.09 million b/d any time soon.
Given the optimism of some USGS reports about the potential for the Bakken, however, we may be watching the emergence of a new state oil-producing powerhouse. Last year the USGS estimated the Bakken formation may hold anywhere from 3 billion to 4.3 billion barrels of recoverable oil.
North Dakota's 202,000 b/d average for December of 2008 represented a 50% gain from December of 2007, when North Dakota's 135,000 b/d average still had it lagging Wyoming's 145,000, New Mexico's 161,000 and Oklahoma's 164,000.
Once the industry resumes a normal growth pattern with sustainable oil prices again, North Dakota could come storming quickly toward the icons on the top.
Leave a comment