At 27, the number of rigs actively exploring for or producing oil or natural gas in North Dakota is the lowest it's been in more than a decade, state data show.
The government reports 27 rigs in service as of Monday, relatively stable when compared with recent weeks. The rig count ties the all-time low reported in July 2005 and comes at a time when energy companies are spending less on exploration and production because of lower crude oil prices.
Of the 15 states surveyed by oil services company Baker Hughes, only two — California and New Mexico — reported an increase in rig activity for the week ending May 13. Rig data from Baker Hughes show the number in North Dakota, the No. 2 oil producer in the nation, dropped to 24 at some point last week. Texas, the No. 1 oil producer, saw its rig count decline by 7, or 3 percent, from the previous week.
The trend in North America is a reflection of lower spending and is in part behind the decline in the region's crude oil production. Globally, the Organization of Petroleum Exporting Countries said in its latest monthly market report it estimated about $290 billion was cut from spending plans.
Following two years of steady gains in production, OPEC said the decline in the United States would be around 430,000 barrels per day. Overall, the monthly report found production from suppliers outside the 13-member group will decline heavily, with growth only expected in a few countries like Canada and Russia.
In North Dakota, Lynn Helms, the director of the state's oil and gas division, said last week that energy companies working in the state are committed to running only a small number of rigs.
State data show oil production in March, the last full month for which figures are available, at 1.11 million barrels per day, a decline of about 1 percent from February. Natural gas production, however, reached an all-time high for the state last month at 1.7 million cubic feet per day.
