As of Monday, the number of rigs actively exploring for or producing oil and natural gas in North Dakota was lower for a second straight week, state data show.
State data show 33 rigs actively exploring for or producing oil and gas as of Monday, one less than reported last week. Rig counts are a loose metric gauging optimism in the energy sector and state trends contrast with a market characterized last week by major gains in crude oil prices.
For the seventh week in a row, oilfield services company Baker Hughes reported an increase in the North American rig count on signs the market rebound was gaining stability. Oil prices slumped below $30 per barrel this year, but are now moving closer to $50 on speculation that members of the Organization of Petroleum Exporting Countries may take action next month to stimulate prices.
North Dakota crude oil production in June, meanwhile, declined 2 percent from the previous month to around 1.03 million barrels per day and more than 15 percent lower than the all-time high reached in December 2014.
State data show an average rig count for June at 28, one higher than the May average. Statewide, however, the rig count is down 84 percent from the all-time high of 218, set in May 2012.
Lynn Helms, the director of the state's oil and gas commission, said last week energy companies working in North Dakota are committed to running the minimum number of rigs as long as the price of oil stays below $60 per barrel.
North Dakota is the No. 2 oil producer in the United States behind Texas. State data show an expected decline in revenue from oil and gas taxes, with the two years ending 2015 the likely peak for oil and gas taxes and the state general fund.
