North Dakota oil producers need a price of $55 per barrel in order to sustain the state’s current production of 1.2 million barrels per day, Reuters reports. Department of Mineral Resources Director Lynn Helms on Thursday outlined production scenarios based on various oil prices and rig counts for North Dakota legislators. Breakeven rates in four counties that represent 90% of drilling in the state range from $29 to $41. The average oil price in North Dakota is $40 per barrel.
Kemp said the state’s rig count will fall to 90 if prices hover around $35 per barrel. North Dakota’s rig count has fallen from 191 to 165 since October.
Oil production in North Dakota reached one million barrels per day last April. State officials in June predicted oil output would reach 1.5 million barrels per day by 2017. Kemp’s latest projections show oil would have to rebound to $85 to achieve that milestone.
