NDIC Considering Extending Completions Deadlines

When considering the likely production of crude oil in the U.S. in the coming months, and the affect that production will have on prices, one of the large variables is the rate of completions, particularly in the Willison Basin in North Dakota.  That is because there are more than 900 drilled but uncompleted wells in the state.  However, NDIC regulations require that, unless extended, an operator must complete a well within one year of the issuance of the drilling permit.

The tension created by this rule in the era of depressed prices is obvious.  As Ron Ness, the president of the North Dakota Petroleum Council (NDPC) recently stated:  "Why would we want companies to be forced to spend money or complete the wells when the economics don't warrant it?  In today's economic of an over-supplied oil market, it makes no sense."