Boston, MA 09/22/2014 (wallstreetpr) – Due to the boom in the shale oil production, the number of drilling rigs for crude oil in the Williston Basin has jumped to the highest level in around two years. Due to the shale boom, it is forecasted that North Dakota’s output will increase to two million barrels a day. According to the data posted on Baker Hughes Inc. (NYSE:BHI)’s website, rigs in the Williston Basin increased by four to 198, highest in number since October 2012.Rigs drilling for the gas in the U.S. declined by nine to 329.
In the previous five years, the total energy rig count has nearly doubled as producers undertake horizontal drilling and hydraulic fracturing for the deposits of oil and gas in U.S. shale formations. According to the forecasts of the federal government, in 2015, shale gas boom will enhance the domestic production of crude oil to the highest level attained in last 45 years, thereby quenching imports to the U.S.
The number of rigs in North Dakota will increase more than 200 next year, as per Lynn Helms, the director of the Mineral Resources department. The oil output of the state is estimated to be 2 million barrels a day, highest between 2015 and 2025.
Whiting Petroleum Corp. (NYSE:WLL) is in agreement with Kodiak Oil & Gas Corp. (NYSE:KOG) for buying out the shares in later for about $3.8 billion, making it a dominant crude producer in the region.
There has been a jump in the oil production by 248,000 barrels a day in the week ended September 12 to 8.84 million, the highest since 1986, according to Energy Information Administration data. Oil supplies rose 3.67 million barrels to 362.3 million. Intermediate crude in West Texas for October delivery settled at $92.41 a barrel on the New York Mercantile Exchange, down by 66 cents or 0.7%. Stockpiles of the U.S. gas increased to 2.891 trillion, up by 90 billion cubic feet as per EIA. Supplies were 13% less than the five-year average and 12% less than year prior levels.