North Dakota oil companies plan to cut rigs as oil prices weaken

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North Dakota oil and gas operators are preparing to reduce rigs and hydraulic fracturing crews due to falling oil prices, according to the state’s Department of Mineral Resources. With prices dropping below $65 per barrel—the current breakeven point—production is expected to slow in America’s third-largest oil-producing state. Department Director Nathan Anderson reported Friday that four or five operators plan to drop rigs due to the “soft prices and volatile price environment,” despite North Dakota’s historical breakeven range of $55-$60 per barrel. The state expects its active rig count to decline from the current 31 to approximately 27 by August, while two of the 14 operating frac crews may also be cut back.