Report: ND is now 4th biggest oil-producing state

BISMARCK — North Dakota has surpassed Louisiana as the fourth-largest oil-producing state in the nation, the U.S. Energy Department says.

The agency's Energy Information Administration said North Dakota produced 6.38 million barrels of crude in May, edging Louisiana, which had 6.34 million barrels for the month. Oklahoma was ranked fifth, at 5.7 million barrels for that month, according to the most recent figures. Oil production data typically lags at least two months.

Steven G. Grape, an Energy Department petroleum engineer, said Wednesday that North Dakota averaged 206,000 barrels daily in May, compared with 205,000 barrels for Louisiana.

North Dakota's oil production, pegged at 2.8 million barrels for May 2005, has risen sharply since then with improved horizontal drilling technology in the rich Bakken shale and Three Forks-Sanish formations in the western part of the state.

"In the Bakken and the Three Forks, they're having great success poking new holes," Grape said. "If you look at the increase, it doesn't look like it's letting up."

Energy Information Administration figures show Louisiana's oil production has slipped from 7.4 million barrels in May 2005. Grape said natural gas has overshadowed oil as a priority for drillers in Louisiana.

"They're looking at different targets onshore," Grape said.

North Dakota produced a record 62.8 million barrels of oil last year, up nearly 18 million barrels from 2007. State and industry officials expect another record this year, and perhaps in 2010 when a new rail shipping station and a pipeline expansion project come on line in northwestern North Dakota.

Ron Ness, president of the North Dakota Petroleum Council, said the state is actually producing more than 7 million barrels daily at present.

Texas, Alaska and California are currently the top oil-producing states. Texas produced 32.7 million barrels in May; Alaska, 21 million; and California, 17.7 million. Total U.S. production for the month was pegged at 162.2 million barrels, Energy Information Administration figures show.

North Dakota's oil production accounts for about 2 percent of total U.S. crude oil production, the Energy Information Administration said. That's grown from 1 percent less than two years ago, said Ness, whose Bismarck-based group represents about 160 companies working in the state's oil patch.

North Dakota has risen from being the ninth-largest oil-producing state in 2006, but would have to triple its monthly production to become No. 3.

"Never say never, but we could catch California," Ness said. "We certainly didn't see this one coming. And with the improved technology and if the business climate stays friendly, who knows?"