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OIL AND GAS
Economy in shale oil state North Dakota outpacing nation
by Daniel J. Graeber
Bismarck, N.D. (UPI) Jun 12, 2013


Most non-OPEC oil supplies coming from the United States
Washington (UPI) Jun 12, 2013 - U.S. oil production should be the main driver of growth outside members of the Organization of Petroleum Exporting Countries, the Energy Department said.

The Energy Information Administration said in a weekly status report non-OPEC supply growth outpaced global consumption in 2013 and should do so again in 2014.

EIA, the statistical arm of the Energy Department, said Wednesday it expects production from outside OPEC to increase by 1.5 million barrels per day this year and another 1.2 million bpd in 2015 "with production from tight oil formations in the United States as the main driver."

In its monthly market report, published Tuesday, EIA said it estimated U.S. oil production in May averaged 8.4 million bpd, the highest monthly average in a quarter century.

U.S. oil production for 2014 should average 8.4 million bpd and reach 9.3 million next year, which would represent the highest annual average since 1971 if EIA forecasts are accurate.

The increase in U.S. oil production means the U.S. economy is relying less on foreign oil resources.

For the week ending June 6, EIA said crude oil imports averaged 7.1 million bpd, up 23,000 bpd from the previous week. Nevertheless, over the last four weeks, crude oil imports were down 8.1 percent year-on-year.

The economy in North Dakota, the state at the heart of the U.S. oil boom, is growing faster than all other states, Gov. Jack Dalrymple said.

For the fourth year in a row, the gross domestic product in the state increased 9.7 percent to top all other states.

North Dakota oil production is increasing at a rapid pace. Oil production in March, the last full month for which data are available, averaged 977,051 barrels per day, an all-time high. State officials expect production, mostly from the Bakken reserve area, should reach an average 1 million bpd at some point this summer.

The state's mineral resources accounted for 3.6 percent of the GDP growth.

Dalrymple said he'd move the state forward in a way that supports strong economic growth.

"It's very encouraging that our continued economic growth stems from nearly every business sector and that no single industry tells the whole story of the great progress we're making," he added in a statement Wednesday.

Average per capita income of $57,084 leads the nation. North Dakota was ranked 38th in the nation in that category in 2000.

A 2013 state report shows crime increased 7.9 percent from 2011 to 2012.

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