North Dakota
Halt in drilling by one of North Dakota’s largest oil producers expected to bring layoffs
BISMARCK — A stop to oil drilling in North Dakota by one of the largest producers in the state will likely lead to layoffs but is “nothing new” to the industry, experts said.
Harold Hamm, founder of Continental Resources, said his company plans to
stop drilling in North Dakota’s Bakken formation for the first time in 30 years
because of low crude oil prices, according to a Monday, Jan. 19, report.
At a North Dakota Industrial Commission meeting the next day, Gov. Kelly Armstrong said people should understand that Continental is not pulling up stakes in North Dakota.
“To be clear, this isn’t the first time an oil company has laid down rigs on infield drilling locations when they’re at a break-even point. … This happens a lot,” Armstrong said.
Nathan Anderson, director of the state Department of Mineral Resources, said Continental plans to halt its three drilling rigs by the end of February.
“They would evaluate whether they pick up rigs after that, based on where oil production is and where the economics are,” Anderson said at the meeting.
The financial break-even point for oil is anywhere from $50 to $65 a barrel, he said.
WTI crude oil futures extended losses to $59 a barrel on Thursday, Jan. 22, amid mounting evidence of an oversupplied market, an industry publication reported.
Ron Ness, president of the North Dakota Petroleum Council, said operations will continue on the 20,000 producing wells in the state, and this development related to drilling new wells is “nothing new.”
“We’ve had a good run in North Dakota in the Bakken, and it’s going to go through commodity downturns like this. That’s where we’re at today, and it looks like we’re going to be here for a while, possibly,” he told The Forum.
North Dakota is a major player in the U.S. oil industry, ranking third only to Texas and New Mexico, according to industry statistics.
The state relies heavily on tax revenues from the sale of oil and gas to fund vital infrastructure and other projects, so downturns in the market could impact state budgets.
When oil prices and activity levels drop, North Dakota needs to budget accordingly, which was done during the last legislative session,
Anderson said in a previous interview.
Forum file photo
Continental has a big footprint in North Dakota, second only to Chord Energy, headquartered in Houston, the largest operator in the Bakken, Ness said.
Chord has not publicly indicated its plans, he said, while other large companies such as ConocoPhillips, Exxon and Devon Energy might be able to reduce but not halt drilling activity.
Public companies will likely make such announcements at quarterly investor meetings in early to mid-February, he said.
North Dakota is not alone, with all oil basins seeing reductions in activity. Ness said the Permian Basin in Texas, which produces more than 5 million barrels of oil a day, is looking at a 15% drilling reduction.
The state has weathered downturns before, in 2009 and 2015, and in 2020 at the start of COVID-19 pandemic.
Exploration and drilling of new wells, a massive investment for oil companies, is important to the industry because well outputs decline over time, Ness said.
There are about 30 rigs drilling new wells currently in the state, a number that will begin to decline in the weeks to come with Continental’s moves, and possible reductions by other companies.
“They’re just pacing their new investments for a while, until they feel that outlook is better. A lot of people don’t want that oil produced at $45 to $50. They feel that oil’s worth $75 to $90 a barrel. If you produce it, you’ve got to sell it,” he said.
Forum News Service file photo
While it still takes tens of thousands of people to produce North Dakota’s typical 1.1 million barrels of oil each day, the exploration and drilling side of the industry employs the highest number of people, Ness said.
That workforce tends to be more transient, coming from all over the country and the world, he said, and is where there will likely be layoffs or consolidations, impacts that could be felt by March.
“It certainly is, hopefully, just a short term ramification of news like this,” he said.
North Dakota
For North Dakota producers, ‘death by a thousand paper cuts’
BISMARCK — North Dakota is experiencing losses on nearly every commodity outside of beef and cattle and the state is working toward finding solutions to the ongoing loss of cropland value. At the same time, costs have increased at a faster rate than farmers are used to. North Dakota Agriculture Commissioner Doug Goehring describes it as “death by a thousand paper cuts.”
“It’s not any one thing that’s taking farmers to their knees,” he said. “I needed to get a certain sensor in the fuel pump and that fall before COVID, we were coming out of a kind of a tough year and it was $1,700. I said, ‘Let’s just wait and put it in next spring.’ Well, next spring came around and it was $3,200. I mean, holy cow. And nothing changed. So, there just seems to be some opportunistic type of practices going on.”
Rules and regulations don’t seem to be helping. For Goehring, a look at certain regulations would be a good step. One example is the Regional Haze Rule adopted by the EPA in 1999, mandating that states develop and implement air quality protection plans to reduce the pollution that causes visibility impairment. North Dakota, with a clean coal emission in place and operating at 19 parts per million, was disadvantaged.
“You had air emission standards in Pennsylvania that were operating at 200. Then the memorandum came from the administration and EPA that you had to cut those emissions in half. How the heck do you cut 19 or 18 parts per million in half?” he said.
American culture has brought more hurdles, too.
Tom Campbell, USDA state director for Rural Development, notes the rise of GLP-1 drugs. People are eating less sugar, bread and starches, which could be hitting some key sectors regionally. Combined with rising expenses and fixed costs, it becomes a “double whammy.”
“You have to harvest everything, and hopefully we can get some big yields to offset some of the losses,” Campbell said, noting that weight-loss drugs may be “changing habits” among consumers.
“… I don’t know if it’s for sure or not, but we’re concerned about the future there, too.”
A bright spot for the region, but an unfortunate development for others, is drought in the Pacific Northwest. Low moisture levels there have added dollars to other markets.
“Unfortunately, somebody else’s disaster is our benefit. But, usually, that’s what it takes: somebody else’s problems to fix our problems,” Campbell said.
With prices, it’s a waiting game. High prices are generally thought to correct themselves with low demand. What can be controlled, Goehring believes, is the way rules and regulations are considered.
Measurable outcomes could give detailed accounts of the domino effect that takes place with either implementing regulations or taking them away.
“There has to be some measurable difference on a basis at which the public can derive some value from a rule or regulation that goes in place. Because every one of them is impacting our daily lives, whether it’s at home, on the road or in our businesses,” Goehring said.
Digital Content Producer and Sports Reporter at the Grand Forks Herald since December of 2020. Maxwell can be contacted at mmarko@gfherald.com.
North Dakota
Page Days returns 1 year after destructive storm
PAGE, N.D. — An annual celebration in a small Cass County community this year will be extra special.
Traditionally, Page Days is held Father’s Day weekend.
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North Dakota
One year later, tornado survivors rebuild and remember
FARGO — For the last year, as the Pfaff family has rebuilt, they’ve lived with the constant reminder of their devastating loss as they look across their property, while also picking up the pieces of their own home, which was also left in ruins after the June 20, 2025, tornado rolled through.
Sounds of rebuilding and recovery, not just a home, but lives that were very literally torn apart.
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