North Dakota reports highest oil rig count in 28 years

Like the oil gushing out of the Bakken Formation in western North Dakota, the number of oil rigs actively drilling is soaring to new heights.

North Dakota had 102 oil rigs drilling Wednesday, after hitting 100 on Monday for the first time in decades.

“It’s quite a milestone. It’s been 28 years since we were over 100 rigs,” said Lynn Helms, director of the North Dakota Oil and Gas Division. “We’re just getting going good here.”

The oil and gas division, a part of the Department of Mineral Resources, regulates the drilling and production of oil and gas in the state.

In 2009, North Dakota jumped to a fourth-place ranking among oil-producing states, behind only Texas, Alaska and California.

North Dakota produced a record 79.7 million barrels in 2009, an increase of about 17 million barrels from 2008. In 1999, the state produced about 32.9 million barrels.

The number of operating rigs in North Dakota is expected to rise to 120 by mid-year, according to Helms.

The industry has rebounded from an oil price collapse in late 2008. The number of operating rigs in North Dakota dropped from 96 in November 2008 to a low of 32 in May 2009.

“Once crude oil prices got back up above $60 a barrel, then the rig count started to climb very rapidly,” Helms said.

Because of horizontal drilling techniques and other technological improvements, oil production has greatly increased in recent years. Even three decades ago, the last time nearly 100 rigs were operating in North Dakota, the state’s highest annual production total was about 50 million barrels.

Helms said the increased oil patch activity is helping communities, too. The oil industry estimates each drilling rig creates about 120 jobs — 40 direct and 80 indirect.

“That 70 rigs we’ve increased is over 8,000 jobs,” he said. “You can see it, too. Just try to get a motel room in Minot, Williston, Dickinson or Bowman.”