North Dakota Rig Count Continues Fall

The number of rigs deployed in oil-rich North Dakota dropped more than 2 percent from last week as spending cuts take their toll on development.

North Dakota's rig count last week dipped below the 100 mark for the first time in five years as oil companies spend less on exploration and production because of low crude oil prices. In February, Continental Resources, one of the largest drillers in North Dakota, said it was "deferring" some operations in the state's Bakken shale reserve area to cope with the low oil price environment.

In its first report for the week, the state government reported the number of rigs actively exploring for or producing oil and natural gas was 96, down from the 98 reported last week.

More than 90 percent of the state's oil production comes from Bakken shale. In January, oil production was 1.19 million barrels per day, a 3 percent decline from the previous month. The state's all-time high was around 2 million bpd, reached late last year.

In a mid-March report, the state said the low price of oil was "by far the biggest driver behind the slow-down" in the shale reserve.

Data in a drilling productivity report from the U.S. Energy Information Administration, meanwhile, finds net production from key shale basins in the United States may slow down in April. Of the seven shale basins reviewed, including Bakken, only the Permian shale in western Texas shows a projected gain.