BISMARCK, N.D., Feb. 27 (UPI) -- As state leaders review legislative and economic affairs, government data for Friday show the number of rigs in North Dakota down 38 percent year-on-year.
State data show 120 rigs actively exploring for or producing oil and natural gas in North Dakota as of Friday, down 38 percent from the same date last year and off 41 percent from the historic high in 2012.
The previous five-year low of 137 active rigs in North Dakota was reported last week.
Whiting Petroleum, one of the largest operators in the region, said this week it would cut its rig activity in the Bakken shale area of North Dakota from 16 to 10 this year.
Though Whiting's announcement indicates a trend in spending because of low oil prices, rig counts are not necessarily an indication of production woes. North Dakota state data show a record 1.2 million barrels of oil produced in December, the last full month for which data are available.
The state's economy is among the fastest growing in the nation, placing a burden on the government's capacity to handle the boom. Gov. Jack Dalrymple this week signed a $1.1 billion spending bill to help build infrastructure in oil-producing regions of the state.
Dubbed a "surge" bill, the governor said lawmakers in the new assembly need to ensure the state's budgetary plans match growth momentum.
"We will continue working with the legislature to achieve our priorities, which include strong support for education and public safety, property tax reform, providing additional tax relief, and enhancements for pipeline integrity and rail safety," he said in a Thursday statement.
