Worrying Signs For North Dakota’s Oil Industry

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The North Dakota Department of Mineral Resources has reported that the state’s oil production dropped by about 25,000 barrels a day in September. As the chart below via @javierblas2 illustrates, North Dakota oil production has dropped on a year-over-year basis for the first time in over a decade.

The September data also illustrate that the number of wells that are drilled but uncompleted (DUCs) have risen above 1,000 for the first time ever, as oil producers defer pulling oil out of the ground at current prices, hoping instead for better times ahead.

Finally, there are two worrying signs of slowing from the transportation side of things. Firstly, U.S. freight rail traffic is down 5.2 percent versus the same week last year (h/t @jkempenergy), showing slowing demand. Meanwhile, imports into the key U.S. ports of New York and Los Angeles (which account for over half of all goods entering the U.S. by sea) have dropped by over 10 percent from August to October.

Full article: Worrying Signs For North Dakota’s Oil Industry (Oil Price)

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