Drilling activity in North Dakota has slowed considerably over the last year. At present here are less than 40 active drilling rigs in North Dakota. This number is so low it is hard to believe. At the peak there were around 200 active rigs in North Dakota. The the North Dakota Department of Mineral Resources Website keeps track of many different statistics regarding the drilling industry. Here is a link to their Website. North Dakota Active Drilling Rig List.
Emerald oil emeraldoil.com on their Website gives information on their decision to seek chapter 11 protection in conjunction with what they describe as a “Fast Track Restructuring”. They state they are trying to preserve the value of the company.
Emerald Oil states they have received $20 million in post-petition debtor in possession financing which, subject to Bankruptcy Court approval. Emerald Oil is one of the most recent casualties of the downturn in crude oil prices.
Blackridge Oil and Gas announces a company restructuring. Blackridge Oil and Gas has become another victim of low oil and gas prices in the North Dakota Bakken Oil region. Oil prices have been persistently low for the last few months after declining from over $100 per barrel in 2014.
Black Ridge Oil and Gas has been running their company as a “Non Operator” which helped keep some of their costs down, but the downturn in Crude Oil Prices was just to much in the long term. Here is a link to the article on their website describing the situation. blackridgeoil.com
According the the latest Baker Hughes Rig count dated 4/1/2016 the the number of rigs drilling for oil in the United States dropped by 10 to 362. This is an extremely low rig count, and may lead to production falling faster than it has so far.
The number of rigs drilling in the Bakken fell by 2 to 29. This level of rigs should see Bakken oil and gas production start to fall at an increasing rate. 29 is well below the number of rigs needed to maintain production, and should impact the statistics used by the Energy Information Administration.
According to the Weekly Baker Hughes Rotary Rig Report, the number of Rigs drilling for Oil dropped by eight (8) in the latest reporting week to 354. One year ago according to the same report there were 760 rigs drilling for oil in the United States. Even though the number of rigs drilling for oil has dropped over fifty (50) percent, production has stayed relatively high.
As a result of persistent oversupply of crude oil, Crude oil prices are hovering just below $40 per barrel.
OPEC Shocker Sends Oil Stocks Soaring. At the recent meeting of the OPEC Cartel they seem to have finally come to an agreement to limit production. Even though the cuts in production do not start untill November, 2016 the shock waves have sent oil prices higher.
The stock prices of many exploration and production companies has risen sharply as a result. There may be a short squeeze happening in some of these stocks.
OPEC Shocks the oil market by setting the stage to reduce oil production. Two (2) years ago almost to the day Saudi Arabia let production rise to capture market share. Now they seem ready to bring production back in line with demand. On November 30th the price of oil rose dramatically on news of the preliminary agreement.
The prices of most exploration and productions rose in response to higher crude oil prices.
VaporKote.com increases ROI of oil Field equipment using a propritary boriding process to reduce pump wear. This reduces wear and downtime increaseing profits for drilling companies in the Bakken.