North Dakota's January Oil Output Hits One-Year Low Amid Extreme Cold Snap
(Reuters) — Crude oil production in North Dakota fell 14% in January compared with the prior month, hitting a one-year low after a cold snap weighed on activity, state regulators said on Thursday.
Output in the third-largest oil producing state fell 172,000 barrels-per-day (bpd) to 1.103 million bpd, its lowest since January 2023, monthly data from the state Industrial Commission showed. At one point during the month, roughly half the state's production was offline.
Lynn Helms, director of the North Dakota Department of Mineral Resources, said activity has since recovered and output is set to climb above December level, which was 1.273 million bpd.
The state expects to see one to two rigs added this year, Helms said.
Pricing for Bakken crude has firmed ahead of the start of the Trans Mountain Pipeline's expansion, said Justin Kringstad, director of the North Dakota Pipeline Authority.
Canada's long-delayed Trans Mountain oil pipeline expansion is due to start line fill from April, tripling crude flow from Alberta to Canada's Pacific Coast to 890,000 bpd.
"Last fall, there was some market concerns with the timing of Trans Mountain in Canada, and when it would be in service", Kringstad said, adding that these concerns appear to have eased, buoying prices.
Bakken oil delivered at Clearbrook, Minnesota strengthened to an 83-cent per barrel discount to West Texas Intermediate on Thursday, recovering from a near $2 discount in February, according to Kringstad.
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