North Dakota reports slight oil production decline amid geopolitical price volatility

The North Dakota Legislative Budget Section convened on June 25, 2025, to discuss key updates regarding the state's oil and gas production, market trends, and future projections. The meeting highlighted a slight decline in oil production and emphasized the importance of gas capture rates amid ongoing geopolitical uncertainties.

During the meeting, it was reported that oil production in North Dakota experienced a 4.5% decrease, totaling 184,000 barrels per day. The rig count remained steady at two, while the well count continued to rise, surpassing 3,000. Notably, gas capture rates remained robust, with a reported capture of 149 million cubic feet per day and a capture rate of 95.7%.

The discussion also touched on the impact of global events on oil pricing. Industry leaders expressed concerns over ongoing geopolitical tensions, particularly following military actions in the Middle East, which have contributed to price volatility. Prices have fluctuated between the low sixties and mid-seventies per barrel, with operators in North Dakota largely maintaining their production plans despite these uncertainties.

The meeting further explored the relationship between oil and gas production, particularly in the Bakken region. Concerns were raised about the limited gas production capabilities compared to other regions, such as Texas and the Appalachian Basin. Legislators emphasized the need for a deeper understanding of gas production's role in supporting oil activity, as the state grapples with the challenge of managing gas alongside oil extraction.

As the meeting concluded, participants acknowledged the complexities of the current energy landscape and the necessity for ongoing discussions about the future of North Dakota's oil and gas industry. The next steps will involve continued monitoring of production trends and market conditions as the state prepares for the upcoming biennium.