Bakken Oil Production Down for the First Time in Almost a Year
It's a double-edged sword. Some people love the lower gas prices, some people fear it. The effects are long-reaching, including a 5% drop in airline fares next year.
But it also means a lost of jobs for many in the oil patch and a big loss in revenue for states like Louisiana and North Dakota that make money from the oil industry. This revenue help keep taxes low and upgrade highways and education.
Oil production at the Bakken oil fields in West North Dakota has dipped for the first time in almost a year, and the dropping oil prices take a toll on the industry.
According to The Bakken Magazine- "For the first time since, November 2013, North Dakota’s oil production declined. The 1.182 million barrels per day in October represented a slight decrease of about 4,000 bpd.
Currently the rig count is 183 operating in the state, down from 193 in September and 191 in October. This drop has a huge impact on revenue collect by the state. This will definitely be a focus on the upcoming legislative session. The current price for sweet crude of $60 a barrel. This represents the lowest price since the first quarter 2009.
The low price of oil is expected to keep gas prices low during 2015. Gas prices in North Dakota are the lowest in years.
Depending on who you ask, some people love the lower prices. These are the people whose jobs are not connected with the oil industry. People who make a living in the industry see the drop as a sign of layoffs in the future.