Extreme Weather Leads To Sharp Drop In North Dakota Oil Prod A recent bout of bad weather has slashed oil production in North Dakota by almost 80 percent, and restoring the lost output could take several days. North Dakota, home to part of the Bakken shale formation, is the third-largest oil-producing state in the United States, with a daily production of 1.1 million barrels.
The situation is temporary, but today’s volatile market is acutely aware of any production outages, particularly in the United States. North Dakota’s loss of roughly 800,000 bpd has caused oil prices to climb even higher at an inopportune time when global oil prices are already high. The U.S. oil industry has come under fire recently for its slow post-covid production increase.
According to Katie Haarsager, spokesperson for the North Dakota Oil and Gas Division, the extreme weather has caused road blockages with snow and ice. This has hindered the ability of oil companies to reach their production sites and has damaged their electrical infrastructure.
( I think we will see WTI on a up trend in the weeks ahead )