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North Dakota's rig count drops as consolidation sweeps oil patch
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North Dakota's rig count drops as consolidation sweeps oil patch
Apr 12, 2024 2:59 PM

HOUSTON, April 12 (Reuters) - Operators in North

Dakota's Bakken oilfield reduced their rig count to 36 in April,

down from 40 in March, marking the lowest number this year as a

wave of consolidation has swept through the oil patch, state

regulators said on Friday.

"Their drilling budgets are disrupted especially if both are

active in the Bakken. They may have an entirely new rig

schedule, trying to coordinate with the midstream folks to come

up with gas capture plans," said Lynn Helms, North Dakota

director of mineral resources.

He pointed to the recently announced $11 billion merger

between Chord Energy ( CHRD ) and Enerplus. And last year, U.S.

oil giant Chevron ( CVX ) proposed to buy Bakken-focused

producer Hess Corp. ( HES )

Crude oil production in North Dakota rose 13% in February

compared with the prior month, after hitting a one-year low in

January when a cold snap disrupted activity, state regulators

said.

Output in the third-largest oil producing state rose 144,000

barrels-per-day (bpd) to 1.247 million bpd, monthly data from

the state Industrial Commission showed.

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