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North Dakota oil output keeps rising

Oil production from US energy state surges past 1 million barrels per day in February

The US energy state of North Dakota saw oil output rise in February by nearly 53,000 barrels per day more than 1 million barrels per day in February.

North Dakota, which is home to the prolific Bakken play, pumped 1.03 million bpd in February compared to 981,380 in January, according to preliminary data from the North Dakota Industrial Commission. Ninety-five percent of production came from the Bakken and Three Forks formations.

Natural gas production also increased in February to 1.709 billion cubic feet of natural gas per day from 1.561 the month before.

Oil production in the North Dakota peaked at  at 1.227 million barrels of oil per day in December 2014, while natural gas production reached an all-time high of 1.76 bcfpd in November last year.

The state's rig count edged up by one to 39 in February over January but has since reached 51, according to the NDIC.

"Low oil price associated with lifting of sanctions on Iran, a weak world economy, and capital movement to the Permian basin continued to depress drilling rig count. Utilisation rate for rigs capable of 20,000+ feet is 25% to 30% and for shallow well rigs (7000 feet or less) 15% to 20%," the NDIC said in its monthly report.

Meanwhile, well completions decreased slightly from 56 in January to 53  in February.

But permitting has recovered from 45 drilling permits in February, to 93 in March, the NDIC said.