Bakken output cut due to flaring restrictions

OREANDA-NEWS. April 15, 2015. An estimated 9,000 b/d of oil production is being curtailed in North Dakota due to companies not being able to meet natural gas flaring restrictions put in place last year.

Curtailed production is down from 12,000-13,000 b/d earlier this year because of a decline in well completions and additional gas compressor capacity coming online, the Department of Mineral Resources (DMR) said.

"By June I think we'll see more curtailments again in order to achieve the gas capture goal," DMR director Lynn Helms said. Helms expects a production surge in June when a tax break for oil producers who are delaying well completions kicks in.

Six companies were ordered to cut production to 100 b/d after they failed to meet the flaring restrictions, which require producers to capture 77pc of all gas produced.

Occidental Petroleum (Oxy), Emerald Oil, Abraxas Petroleum, Enerplus, QEP Resources and Samson Resources were all ordered to cut output, but Oxy, QEP, Samson and Enerplus were later removed from the list.