High hopes despite lower oil production in June

High hopes despite lower oil production in June

As May had a record high for oil production in North Dakota this year, it can be difficult to follow it up. Recently, it was confirmed that production went down 2 percent in June as the producers held back activity to focus on maintaining the natural gas limit. Despite the drop, the state still produced a fair amount of oil and capped off at nearly 1.23 million barrels.

Many are unsure of what to think of the oil industry currently due to declining production around the nation and the tariffs on foreign trade. However, many experts in the field are expecting a positive change in prices and production within the upcoming months.

Potentially less gas and summer hazards

One of the reasons for the slower production in June was because of the frequent rain. The storms forced producers to shut down operations or close roads that limited vehicles that transport the supply. As the summer comes closer to the end, the state is expecting less rain hazards to interfere with the production.

The biggest obstacle oil producers faced in June was natural gas capture. North Dakota increased the percentage of the gas capture policy and placed more resources into preserving it for the month. While the state does not expect natural gas to stop interfering with oil production, they are setting up several new plants and expansion projects to minimize the trouble.

More wishing and wells

Despite the decrease in oil production and operating rigs, North Dakota did set a new record in oil and gas well productions. The state made 14,778 new wells that can aid in the state’s efforts to continue the industry’s growth.

Lynn Helms, the director of the Department of Mineral Resources, believes that the production will rebound and to expect more production records by the end of the year. He is not the only one that believes that, as the International Energy Agency (IEA) believes that the global oil demand growth of the nation will increase from 110,000 to 1.5 million oil barrels per day by 2019.

Should this dramatic increase occur, there could be more workers operating in the industry. This does mean that there could be a higher chance of an oil field accident. If you or a loved one receive any damages from the field, you should contact a personal injury lawyer that specializes in the oil industry to help you obtain compensation.

No Comments

Sorry, the comment form is closed at this time.