North Dakota gas output up for March

Associated natural gas production in North Dakota rose in March as additional hydraulic fracturing crews were added and production rebounded from severe weather the month before, according to preliminary data from the North Dakota Pipeline Authority.

The state's gas output in March averaged 2.8 Bcf/d (79mn m³/d), up by nearly 6pc from a month earlier but 8pc lower than production for March 2020.

The gas capture rate for North Dakota, which is the percentage of natural gas not flared during production, was 94pc for March, up from 92pc in February and ahead of the target rate set by the state of 91pc.

Gas flared because of pipeline constraints amounted to 4pc of production, while the remaining 2pc was flared from wells with zero sales.

North Dakota has about 18 operating oil and gas rigs remaining in its portion of the Williston basin, according to data provided by the pipeline authority. The drilling rig count is down by 67pc from January 2020.

The rig count is not expected to rise significantly this year, but big improvements will come next year after the winter, Department of Mineral Resources director Lynn Helms said.

The Northern Border Ventura Transfer index, an indicator for the price of Bakken gas production, averaged $2.38/mmBtu in March. That was significantly lower than the monthly average for February of $17.06/mmBtu but much higher than the March 2020 monthly average of $1.50/mmBtu.

The Bakken shale includes 15 counties in North Dakota and five counties in Montana.

By Taylor Zavala