North Dakota Oil Continues Exponential Growth

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 |  Includes: OIL, USO
by: Mark J. Perry

In just a little more than two years, oil production in North Dakota has doubled from 232,000 barrels per day in August 2009 to a new record-high 464,000 barrels per day in September of this year, according to data released yesterday by the state's Department of Mineral Resources (see chart above). September's record-setting oil production was 4.5% above the previous month and 35% above the year-ago level. The number of wells producing oil in the Peace Garden State also reached a new record level in September at 5,818, and the daily oil production of 80 barrels per well also set a new record.

Bottom Line: At the current rate of ongoing record-setting increases in its oil production, North Dakota is on pace to surpass both California (540,000 barrels per day) and Alaska (550,000 barrels per day) by next January to become the No. 2 oil-producing state in the country, behind only Texas (1,410,000 barrels per day).