McKenzie County leads state in production
M.K. French
Farmer Staff Writer
North Dakota’s oil production in July 2025 exceeded the state’s revenue forecast for the first time since the new projections were established, while the total count of active producing wells hit an all-time high. The data was presented by the Department of Mineral Resources (DMR) Oil and Gas Division during the September Director’s Cut briefing last week.
July 2025 production, the first month to be measured against the state’s new forecast of 1.15 million barrels per day (bbl/day), came in strong. Total oil produced was 35,987,222 barrels, which averages out to just over 1.16 million bbl/day. This figure is up 0.19 percent from June and stands 0.95 percent above the state’s revenue forecast. Gas production also saw a healthy increase, reporting 109.1 BCF (Billion Cubic Feet), a 1.91 percent jump from June. The Gas-Oil Ratio (GOR) continued its upward trend, reaching a new record of 3.03 MCF per barrel of oil. The North Dakota market oil price was reported at $61.75 per barrel, sitting 4.7 percent above the state’s revenue forecast price of $59 per barrel.
The state’s well count reached a new peak in July, a sign that operators are bringing back previously curtailed production. The total number of producing wells hit an all-time high of 19,547 in July, an increase of 38 wells over the previous month. The number of inactive wells is also decreasing as those sites come back online following a period of low prices. While the Baker Hughes rig count indicated 27 active rigs in North Dakota, the DMR’s website reported 32 active drill rigs. Frack crew count saw a slight decrease to 12, but completions are up, with 83 completions reported in August, compared to 77 in July. The trend toward extended reach laterals is continuing, with permits for three-mile and four-mile laterals becoming more commonplace. The top five producing counties - McKenzie (32 percent of the state’s total), Williams, Dunn, Mountrail, and Divide - account for a massive 96.4 percent of North Dakota’s total production.
Justin Kringstad, director of the North Dakota Pipeline Authority, provided an update on transportation and infrastructure, highlighting an increased reliance on rail and mixed signals on future gas processing capacity. Kringstad reported that there was a noticeable uptick in the use of the rail network, with volumes around 180,000 barrels per day, primarily moving to the higher-priced Pacific Northwest (PAD 5) market. Following scheduled maintenance in June, the state’s gas capture rate rebounded to 95.2 percent in July, a positive signal on efforts to limit flaring.
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